UK Enterprises Redefine Multicloud Strategies

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Enterprises in the UK are adopting AI-native multicloud environments to improve agility, compliance and cost transparency amid tighter regulations and economic uncertainty, according to a new research report published by Information Services Group (ISG) , a global AI-centred technology research and advisory firm.

The 2025 ISG Provider Lens® Multi Public Cloud Services report for the U.K. finds enterprises entering a pivotal phase of cloud transformation shaped by generative AI (GenAI) deployments, sovereign infrastructure mandates and automation-focused operating models. Especially in the finance, healthcare and manufacturing sectors, organisations are redesigning their cloud environments to support next-generation workloads while enforcing jurisdictional data controls. This approach reflects a growing need for cloud platforms that prioritise governance, accountability and long-term flexibility.

“As British enterprises build their cloud strategies, they are striking a balance between governance, cost optimisation and innovation,” said Rakesh Parameshwara B, director and head of UK banking and insurance at ISG. “Digital sovereignty and GenAI adoption are becoming key considerations in productivity and operational resilience.”

Integral to operations

A growing number of UK enterprises are embedding autonomous agents into workflows, the report says. They are using GenAI for documentation, incident resolution and knowledge retrieval to streamline operations and reduce manual effort. As agentic automation matures, it is reshaping expectations around productivity, observability and operational resilience. AI is becoming integral to how enterprises manage and operate cloud environments at scale.

As cloud strategies mature, FinOps is evolving from a cost control function into a core governance discipline, ISG says. The unpredictability of costs in multicloud environments has increased the importance of cost transparency and financial accountability. Enterprises increasingly rely on cost optimisation and predictive budgeting based on service level agreements (SLAs) to improve oversight and manage spending more effectively. This focus reflects enterprises’ efforts to sustain AI-driven cloud adoption while maintaining financial discipline.

Digital sovereignty requirements are accelerating the adoption of jurisdictional controls across the U.K. market, the report says. Enterprises are implementing Hold Your Own Key (HYOK) models, U.K.-specific cloud zones and strict data residency policies to address regulatory and risk obligations. These measures are especially important for enterprises functioning in highly regulated sectors, such as finance, healthcare and manufacturing.

“Enterprises are moving away from transactional cloud sourcing toward long-term approaches focused on innovation,” said Meenakshi Srivastava, lead analyst, ISG Provider Lens Research, and lead author of the report. “They seek providers that are strategically investing in compliant architectures and outcome-driven engagement models.”