“Organisations need to make informed choices around their cloud journeys,” he says. “There are significant hurdles to cloud integration and adoption, pretending they don’t exist just makes it harder to create a cloud solution that gets the right results.”

AI, inflation, exchange rates, rapid digitisation, and energy costs have driven cloud expenses higher. Research from 2024 found that nearly three in five companies saw their cloud spending increase, with 40% reporting a rise of 25% or more. A Tech Target analysis of cloud costs in 2025 highlights key expenses, including networking, storage, computing, data transfer, database services, licensing, and security. For South African businesses, these costs are further influenced by exchange rate fluctuations and political factors.

Many organisations struggle to forecast expenses accurately, especially when dealing with variable workloads and complex pricing structures. Hanekom emphasises the need for a more strategic approach.

“Changing this narrative is critical in 2025—and entirely possible,” he notes. “With the right tools and a realistic strategy, companies can gain greater control over cloud spending without compromising service quality.”

Cost management goes hand in hand with optimisation and customisation, yet both are challenging due to a growing skills gap. Finding and retaining cloud talent remains difficult, particularly as expertise must stay ahead of evolving trends. Specialised knowledge in areas like DevOps and security is essential, but ongoing training is a challenge when skilled professionals are in short supply.

This reality has driven increased reliance on trusted cloud service providers and integrators. Hanekom points out that these providers offer a practical solution. “They bring the expertise, stay ahead of best practices, and manage the complexity for you,” he says. “While this has always been a key value of managed services, today, it’s the most effective way to maintain cloud efficiency without the costs and challenges of hiring and retaining skilled personnel.”

Another key consideration is legacy infrastructure. Many organisations struggle to integrate older systems with modern cloud architecture, as outdated protocols and architectures often clash with cloud-native approaches. However, this doesn’t mean companies must abandon their existing investments. “Legacy isn’t always a liability,” Hanekom explains. “Some systems may be incompatible with the cloud, but with a clear strategy and visibility into future architecture, businesses can still extract value from past investments. The best cloud strategies today find a balance—leveraging what works while letting go of what doesn’t.”

Regulatory compliance is a non-negotiable factor in cloud strategy. Data regulations are evolving rapidly, making it increasingly difficult to maintain compliance across multiple jurisdictions. Companies must have complete visibility and control over their data—where it resides, how it moves, and how it aligns with local regulatory requirements.

The right cloud strategy can turn these challenges into opportunities. Hanekom highlights the role of hyperscale cloud in achieving this balance. “Hyperscale solutions enable organisations to scale efficiently, enhance security, integrate AI, and automate operations,” he says. “The key is crafting a strategy tailored to your business needs—one that harnesses the benefits of data, security, and speed while optimising costs and minimising risks.”

“There are innovative ways to leverage hyperscale clouds to overcome these challenges, gain a competitive advantage and accelerate innovation,” says Hanekom. “Hyperscale cloud lets you scale, secure, step into AI and automate operations. The best practice is unique to your business and the threads you need to pull to ensure you gain the benefits of data, security, and speed while reducing cloud spend and risk.”