Customer frustration with supplier lock-in has hit a tipping point, largely thanks to recent changes in VMware licensing. This insight comes from NetApp, which shared its IT predictions for 2025, emphasizing shifts in the storage landscape.
One major trend is the rise of security as a service, particularly disaster recovery as a service (DRaaS). This shift responds to increasing cyber threats and the emergence of new security frameworks like NIST 2 and DORA. Organizations need robust solutions to recover from attacks, and DRaaS offers a simplified way to fall back on clean data and infrastructure.
Matt Watts, NetApp’s chief technology evangelist, spoke at the company’s Insight event in London, noting how VMware’s licensing changes have caught many by surprise. Companies are now more likely to reconsider their lock-in situations and explore alternative strategies. “The VMware events shook the market,” Watts said. “Organizations are cutting down on licensing waste and moving towards containerization.”
Watts also predicted that the enthusiasm for AI would wane. As businesses realize that some projects can’t deliver on their lofty promises, companies heavily invested in AI might face tough realities. “When expectations don’t meet reality, it will lead to a more critical assessment of AI projects,” he explained.
Furthermore, he pointed out the infrastructure challenges tied to new technology. Governments will need to invest significantly to support the demands of IT transformations driven by AI, particularly concerning energy and water requirements. Watts shared a telling example from Ohio, where 80 datacenters with energy needs akin to 20 million households were unable to launch until they agreed to cover 90% of their power costs upfront. That’s the only way electric companies can secure investment for necessary infrastructure.
He also highlighted how the power demand for datacenter racks has skyrocketed—from about 7kW ten years ago to 150kW today, especially with AI deployments.
Lastly, sustainability will take center stage. There’s growing pressure on companies to show they operate sustainably, which extends to their cloud providers. The European Corporate Sustainability Reporting Directive is a prime example of how emissions considerations are becoming more critical. “People want to work for companies that prioritize sustainability,” Watts noted. “It’s becoming a key factor in attracting and retaining talent.”
NetApp is tapping into a framework they call the “Magic Roundabout,” a visual tool that helps understand complex data landscapes. Watts believes this model can help organizations navigate future tech innovations, including developments like DNA storage and quantum computing.