Enterprise Architecture (EA) Tools unterstützen Unternehmen und Organisationen dabei, mit ihren IT-Strategien die Geschäftsziele optimal zu unterstützen. Sie sorgen ebenfalls dafür, dass Unternehmen ihre Roadmaps für die digitale Transformation geordnet vorantreiben können. EA Tools bieten dafür unter anderem Collaboration-, Reporting-, Testing- und Simulationsfunktionen. Mit deren Hilfe lassen sich Modelle implementieren, die Geschäfts- und IT-Prozesse gezielt verbessern.

Um die beste Lösung für Ihr Unternehmen zu finden, sollten Sie zuerst prüfen, ob sich das jeweilige Tool mit Ihrem Technologie-Stack integrieren lässt. Anschließend gilt es abzuwägen, ob die Informationen, Diagramme und Tabellen, die die Software zur Verfügung stellt, für das Unternehmen auch einen echten Nutzwert haben.

Empfehlenswerte Enterprise-Architecture-Tools

Nachfolgend finden Sie einen Überblick über die wichtigsten Enterprise-Architecture-Tools – in alphabetischer Reihenfolge. Sie stellen einen Mix aus Visualisierungs-, Collaboration- und Project-Management-Funktionen bereit und unterstützen eine Vielzahl von Enterprise Architecture Frameworks.

Ardoq

Nachdem zuerst über einfache Formulare Informationen von Usern, Entwicklern und sonstigen Stakeholdern im Unternehmen eingesammelt wurden, lässt sich mithilfe von Ardoq ein digitaler Zwilling der gesamten Organisation erstellen. Der Ansatz setzt also darauf, die Menschen, die in ihren Rollen mit den verschiedensten Systemen arbeiten, realistisch in ihrer Arbeitswelt abzubilden.

Jede Mitarbeiterin und jeder Mitarbeiter im Unternehmen kann später von den Netzwerkvisualisierungen und Datenfluss-Diagrammen profitieren, um seine eigene Rolle optimal zu unterstützen und den Arbeitsplatz immer wieder anzupassen und zu modernisieren. Das Tool lässt sich mit den wichtigsten Cloud-Plattformen integrieren. Es bietet eine API, die individuelle Anpassungen in allen wichtigen Programmiersprachen (Python, C#, Java, etc.) ermöglicht.

Wichtigste Use Cases:

• “Architektonischen Stress” bei Lastspitzen simulieren, falls größere Veränderungen bevorstehen;

• Verstehen, wie verändertes Nutzerverhalten neue Anforderungen generiert;

• Application Portfolio Management, um besser strategisch zu planen.

Atoll Group SAMU

Das EA-Tool SAMU macht die Enterprise Architecture sichtbar, indem es tiefe Verknüpfungen zwischen On-Premises-Systemen, dem Cloud-Layer und Tools für das Business Process Management aufzeigt. Das Tool der Atoll Group bietet vielfältige Integrationsmöglichkeiten, zum Beispiel mit Monitoring-Tools (etwa Tivoli, ServiceNow), Configuration-Management-Datenbanken (zum Beispiel CA, BMC) oder Service-Organisations-Tools (BMC, HPE). Alle Informationen fließen in ein zentrales Datenmodell ein, das um den zusätzlichen Input der Stakeholder weiter angereichert wird.

Wichtigste Use Cases:

• Enterprise-Architektur visualisieren;

• strategische Planungsprozesse und Architektur-Reviews mit Informationen unterfüttern;

• mithilfe einer visuellen Verständnisgrundlage die Kommunikation verbessern.

Avolution Abacus

Dieses Tool erfasst die Breite und den Umfang der Unternehmensarchitektur mit Hilfe eines auf Diagrammen basierenden Dashboards. Die Integration mit gängigen Tools wie SharePoint, Excel, Visio, Google Sheets, Technopedia oder ServiceNow vereinfacht die Nutzung. Abacus wurde inzwischen auch um einen Machine-Learning-Layer ergänzt, der es Anwendern ermöglicht, ein Modell zu trainieren, das ihnen beispielsweise hilft zu erkennen, wer im Unternehmen für welches System verantwortlich ist.

Wichtigste Use Cases:

• die IT für das gesamte Unternehmen “öffnen”, um ein allgemeines Verständnis der Datenflüsse zu erzeugen;

• umfassendes Enterprise Modeling, um eine Roadmap für künftige Entwicklungen zu erstellen;

• Business-Metriken tracken, die mit der Unternehmens-Performance zusammenhängen.

BOC Group ADOIT

ADOIT soll Teams dabei unterstützen, Ressourcen zu verwalten, Bedarfe vorherzusagen und Assets zu tracken. Dazu mappt das Tool jedes System oder Softwarepaket mit einem Objekt. Die Datenflüsse zwischen den Systemen werden in Beziehungen umgewandelt, die von diesen Objekten mithilfe eines anpassbaren Metamodells erfasst werden. Geschäftsprozesse können auf ähnliche Weise über ein gut integriertes Begleitprodukt namens ADONIS modelliert werden. ADOIT ist Web-basiert und lässt sich auch mit Tools wie Atlassian Confluence integrieren, um die Datenerfassung und -entwicklung zu beschleunigen.

Wichtigste Use Cases:

• ein unternehmensweites Modell erstellen, das bei sämtlichen Teammitgliedern ein Verständnis über den Stack schafft – und wie man diesen verbessern kann;

• vollständiger Zugriff auf EA-Daten über eine Mobile-Anwendung;

• bei Fusionen und Übernahmen den Tech-Bereich durch genaues Asset-Mapping orchestrieren.

Bizzdesign Hopex

Nach der Übernahme von Mega International zählt die Hopex-Plattform zum Portfolio von Bizzdesign. Sie soll dabei unterstützen, Unternehmensanwendungen zu modellieren und dabei ein Verständnis der von ihnen unterstützten Geschäfts-Workflows schaffen. Dabei liegt ein Schwerpunkt auf den Bereichen Data Governance und Risikomanagement. Hopex basiert auf Microsoft Azure und stützt sich auf eine Reihe offener Standards wie GraphQL und REST Queries, um Informationen aus Komponentensystemen zu sammeln. Das Reporting ist mit den Office-Tools von Microsoft sowie mit grafischen Lösungen wie Tableau und Qlik integriert.

Wichtigste Use Cases:

• datengestützte Erkenntnisse herbeiführen, um Cloud- und Anwendungsbereitstellung zu steuern;

• akkurate Nutzungsmodelle erstellen, um Architekturanforderungen zu verstehen;

• eine Bedarfsschätzung mit Umfragen und anderen Tools vornehmen, um für die Zukunft zu planen.

Bizzdesign Horizzon

Das Tool dient dazu, Business Workflows und den zugrundeliegenden Tech-Stack zu modellieren. Dazu bietet Horizzon ein Graph-basiertes Modell, das Daten von sämtlichen Stakeholdern einsammelt und diese an eine Analytics-Engine weitergibt. Im Ergebnis entstehen Diagramme, die den aktuellen Systemzustand widerspiegeln. Wichtige Schwerpunkte dieses Tools sind Change Management und Zukunftsplanung: Horizzon ist nicht zuletzt dafür konzipiert worden, die Risiken eines Redesigns zu minimieren. Das Toolset unterstützt die wichtigsten Frameworks ArchiMate, TOGAF und BPMN. Neben Mega hat Bizzdesign im Januar 2025 auch den EA-Geschäftsbereich der Software AG – Alfabet – übernommen.

Wichtigste Use Cases:

• Vorhersage zukünftiger Anforderungen durch Predictive Modeling;

• Orchestrieren von Workflows auf der Basis der technischen und der Business-Architektur;

• Antizipieren von Risiken sowie Security- und Governance-Problemen durch die Modellierung von Datensicherheitsanforderungen.

Capstera

Das Tool von Capstera fokussiert darauf, die Business Architecture selbst abzubilden. Value und Process Maps helfen dabei, die Rollen der verschiedenen Unternehmensbereiche zu definieren und nachzuverfolgen. Dabei können im laufenden Prozess Verknüpfungen mit den zugrundeliegenden Softwarprodukten und Tools hinzugefügt werden.

Wichtigste Use Cases:

• Reports erstellen, die sich erst einmal mit der Business-Architektur selbst beschäftigen;

• Beziehungen zwischen Menschen, Abteilungen und Rollen analysieren;

• die langfristige strategische Planung vorantreiben.

Clausmark Bee360

Teammitglieder, die Clausmarks Flaggschiffprodukt Bee360 (früher Bee4IT) verwenden, wollen eine einfache “Single Source of Truth” über die Workflows im Unternehmen. Ziel ist es, verschiedenen betrieblichen Rollen intelligentere Entscheidungen zu ermöglichen. Das Modul Bee360 FM (Finanzmanagement) bietet etwa die Möglichkeit, Kosten nachzuvollziehen und zuzuordnen. Die Anwender können verschiedene solcher Module miteinander verknüpfen, um EAM, Finanzmanagement, Portfolio Management und Agile Planning nahtlos zu integrieren – bei maximaler Transparenz.

Wichtigste Use Cases:

• C-Suite-Ebene befähigen, Projekte zu managen und Assets zuzuweisen;

• präzise digitale Zwillinge entwickeln, um ein Verständnis über Datenflüsse zu schaffen und künftige Erweiterungen zu planen;

• integrierte Wissensdatenbank aufbauen, um alle digitalen Workflows zu tracken.

EAS

Das Essential-Paket von EAS (Enterprise Architecture Solutions) nahm als Open-Source-Projekt seinen Anfang und hat sich inzwischen zu einer kommerziell verfügbaren Cloud-Lösung weiterentwickelt. Das Tool erstellt ein Metamodell, das die Interaktionen zwischen Systemen und Geschäftsprozessen beschreibt. Ebenfalls enthalten sind Pakete, um gängige Business Workflows wie Datenmanagement oder DSGVO-Compliance zu tracken.

Wichtigste Use Cases:

• den technischen Reifegrad der eigenen Architektur evaluieren;

• Sicherheit und Governance durch besseres Asset Tracking optimieren;

• wachsende Systemkomplexität kontrollieren und managen.

OrbusInfinity

Orbus Software hat Anfang 2025 die Akquisition seines Konkurrenten Capsifi abgeschlossen. Der Anbieter stellt mit OrbusInfinity eine Enterprise-Transformation-Plattform auf KI-Basis zur Verfügung, die schnellere, bessere Entscheidungen, Kosteinesparungen und Risikominimierung verspricht. Architecture-Teams sollen mit Hifle von OrbusInfinity mit einer Vielzahl von Stakeholdern interagieren können, um eine “digitale Blaupause” ihres Unternehmens zu generieren, die eine einheitliche Sicht auf das aktuelle und künftige Geschäft realisieren soll. Diverse Drittanbieter-Tools lassen sich außerdem mit der Plattform integrieren, darunter etwa von Microsoft, Flexera, ManageEngine oder ServiceNow.

Wichtigste Use Cases:

• Stakeholder-Management;

• Enterprise-Landschaften visualisieren;

• Entscheidungsfindung und Datenanalyse automatisieren.

Planview Enterprise One

Planview bietet eine ganze Reihe von Produkten, mit denen Unternehmen Teamwork, Prozesse und die Enterprise Architecture nachvollziehen können. Die Enterprise Tools sind in drei Kategorien unterteilt: strategisches Portfolio-Management, Produktportfolio-Management und Projektportfolio-Management. Im Zusammenspiel entstehen hardware- und Software-übergreifende Layer, die rollenbasierte Perspektiven für Führungskräfte und Teammitglieder eröffnen. Das Toolset integriert mit gängigen Ticket-Tracking-Systemen wie Jira, um Workflow-Analysen und Reports zu erstellen. Inzwischen hat Planview nach einer Übernahme neue Tools in sein Portfolio integriert, die früher unter den Namen Daptiv, Barometer und Projectplace bekannt waren.

Wichtigste Use Cases:

• eine langfristige, strategische Vision für die Architekturentwicklung aufbauen;

• Entwicklungsarbeit auf Projektebene tracken und in eine beliebige Strategie integrieren;

• mit Fokus auf die Customer Experience und die Produktstruktur den Change vorantreiben.

QualiWare Enterprise Architecture

Das Enterprise Architecture Tool von QualiWare ist Teil einer größeren Sammlung von Modellierungswerkzeugen, die darauf abzielt, sämtliche Geschäftsprozesse zu erfassen. Beispielsweise ist es möglich, einen digitalen Zwillinge zu bauen, mit dem sich Customer Journeys nachvollziehen lassen. Qualiware hat diverse KI-Algorithmen integriert, um Dokumentation und Process Discovery zu optimieren.

Wichtigste Use Cases:

• ein kollaboratives Ökosystem für Business Manager aufbauen, das ein Verständnis von der Enterprise Architecture vermittelt;

• architektonische Designelemente erfassen, um ein Wissens-Ökosystem rund um den Stack aufzubauen;

• eine breite Beteiligung in Sachen Dokumentationserstellung und -überprüfung fördern.

Quest Erwin Evolve

Das Erwin Evolve Tool von Quest hat sich von einem Datenmodellierungs-Tool zu einem System für Enterprise-Architecture- und Geschäftsprozess-Modellierung weiterentwickelt. Um die Komplexität moderner, ineinandergreifender Softwaresysteme und der von ihnen gemanagten Geschäftsprozesse zu durchdringen, können Anwender auf benutzerdefinierte Datenstrukturen zurückgreifen. Das Web-Tool erstellt Modelle, rollenbasierte Diagramme und andere Visualisierungen, die in allgemein zugängliche Dashboards einfließen. Zum Paket gehört ein KI-basiertes Modellierungs-Tool, das Whiteboard-Skizzen integrieren kann.

Wichtigste Use Cases:

• einen digitalen Zwilling für die strategische Modellierung der Enterprise Data Architecture erstellen;

• Customer Journeys verstehen;

• Services und Systeme mit Application Portfolio Management tracken.

SAP LeanIX Enterprise Architecture Suite

Die Tool-Sammlung von LeanIX umfasst unter anderem Enterprise Architecture Management und andere Bereiche, die für Aufgaben wie SaaS– und Value-Stream-Management wichtig sind – etwa um Cloud-Deployments und darauf laufende Services zu tracken. Die Daten die dabei über die IT-Infrastruktur gesammelt werden, fließen in ein grafisches Dashboard ein. Das Tool ist eng mit wichtigen Cloud-Workflow-Tools wie Confluence, Jira, Signavio und Lucidchart integriert. Das ist für Teams von Vorteil, die diese Tools bereits nutzen, um ihre Entwicklungsstrategien zu planen und umzusetzen. Seit November 2023 ist LeanIX Teil von SAP.

Wichtigste Use Cases:

• Anwendungsmodernisierung und Cloud-Migration managen;

• Obsoleszenz von Software-Services evaluieren;

• Kosten kontrollieren und managen.

ServiceNow

Die Tool-Sammlung von ServiceNow lässt sich auf verschiedene Architekturtypen herunterbrechen, darunter Assets, DevOps, Security und Service. Die Tools katalogisieren die unterschiedlichen Hardware- und Softwareplattformen, um Workflows und Datenflüsse im Unternehmen abzubilden und zu verstehen. Ausführliche Reportings und detaillierte Dashboards ermöglichen Analysen, auf deren Grundlage Risiken minimiert und die Ausfallsicherheit der Systeme erhöht werden können.

Wichtigste Use Cases:

• Tracken von Assets, Services und Systemen, die das Unternehmen ausmachen;

• Governance-Themen, Risikobegrenzung, IT-Management und Security Operations werden in einer Plattform zusammengeführt;

• durch die Integration von CRM-Tools lassen sich auch kundenorientierte Services managen.

Sparx Systems

Um Teams und Projekte verschiedener Größe und Komplexität zu unterstützen, hat Sparx vier Versionen seines EA-Tools entwickelt. Allen gemeinsam ist eine UML-basierte Modellierung, mit der sich die Komponenten komplexer Systeme tracken lassen. Eine Simulations-Engine ermöglicht “War Gaming” und vermittelt ein Verständnis darüber, wie sich Fehler ausbreiten und kaskadieren können. Sparx stellt zudem eine Vielzahl von vorgefertigten Design Patterns bereit, um Teams bei der Modellierung zu unterstützen.

Wichtigste Use Cases:

• Nachfrage- und Lastveränderungen zur Prognose künftiger Anforderungen simulieren;

• (potenzielle) Probleme durch eine Verbindungs-Matrix im Auge behalten;

• Dokumentation erstellen.

Unicom System Architect

System Architect ist eines der Angebote aus Unicoms Team Blue. Es handelt sich um ein Tool, das ein Metamodell verwendet, um automatisiert so viele Daten wie möglich über die laufenden Systeme zu sammeln – manchmal auch durch ein Reverse Engineering von Datenflüssen. Dieses systemweite Datenmodell kann über benutzerdefinierte Dashboards Teammitgliedern aller Rollen zugänglich gemacht werden. Ein weiteres erwähnenswertes Feature: Die Ressourcenzuweisung lässt sich mit Hilfe von Simulationen optimieren.

Wichtigste Use Cases:

• Was-wäre-wenn-Fragen zum Architekturmodell stellen;

• ein Metamodell von Daten und Systemen aufbauen;

• Migrations- und Transformationspläne erstellen.

ValueBlue BlueDolphin

Dieses EA-Tool sammelt Daten auf dreierlei Art:

1. Es importiert Basisdaten auf der Grundlage standardgesteuerter Automatisierung (ITSM, SAM).

2. Es arbeitet mit den Dateiformaten von Architekten und Systemdesignern – etwa ArchiMate oder BPMN.

3. Es gibt Fragebögen an andere Stakeholder heraus, die auf anpassbaren Vorlagen basieren.

Die aufbereiteten Informationen werden in einer visuellen Umgebung bereitgestellt, die Auskunft über die historische Entwicklung von Systemen gibt.

Wichtigste Use Cases:

• systemweite Daten von internen und externen Stakeholdern automatisiert und formularbasiert erfassen;

• zukunftsorientierte Reportings erzeugen, um den Change zu überwachen und voranzutreiben;

• Kooperation und Zusammenarbeit durch offenes Data Reporting fördern.

(fm)

Dieser Artikel ist im Original bei unserer Schwesterpublikation CIO.com erschienen.

For years, I have been saying that cybersecurity is no longer a technology problem. It has become a business leadership challenge.

Yet, despite record levels of spending, ever-growing security teams, increasingly sophisticated technologies and a constant stream of new regulations, organizations continue to suffer major cyber incidents with alarming regularity. Every week seems to bring news of another ransomware attack, supply chain compromise or data breach affecting organizations that many would have assumed were well protected.

The obvious conclusion is that we are asking the wrong questions.

Too many executive teams remain preoccupied with the latest threat actor, the newest security product the CISO wants to buy or the latest vulnerability making headlines. Those issues matter, but they are not what should be keeping CEOs awake at night.

In my view, there are three far more fundamental issues that deserve the attention of every chief executive.

1. Corporate complexity, and the widening gap between business leadership and cybersecurity reality

Perhaps the biggest cybersecurity risk facing large organizations today is not technical at all.

It is the growing disconnect between executive perception and operational reality.

Many boards genuinely believe their organizations are reasonably well protected. They receive regular dashboards showing improving maturity scores, increasing compliance levels, falling vulnerability counts and reassuring traffic-light reports.

Unfortunately, cyber attackers do not read dashboards.

Behind those executive reports often lies an increasingly complex technology landscape, thousands of unmanaged digital assets, ageing infrastructure, rampant shadow IT, fragmented ownership, inconsistent governance and security teams struggling to keep pace with relentless business change.

The problem is rarely a lack of effort.

It is that corporate complexity has reached a level where traditional governance mechanisms are no longer capable of providing an accurate picture of organizational resilience.

Executives believe they understand the level of cyber risk they face because they receive regular reports. Those reports often measure activity rather than resilience.

Governance committees end up debating around another percentage point of phishing awareness or vulnerability remediation, while fundamental issues remain unaddressed in the background.

2. Organizational inertia, and the need for executive structure to evolve faster

Cyber criminals continue to evolve rapidly. Large organizations generally do not.

This is the second issue that should concern every CEO.

Throughout my career, I have observed organizations repeatedly responding to new cyber threats by adding another technology platform, another monitoring capability, another compliance framework or another governance committee.

Very rarely do they stop to redesign how cybersecurity operates.

The result is what I described several years ago as the “Cybersecurity Spiral of Failure”.

• As complexity and regulation increase, organizations invest in more security products.
• More products create more complexity.
• More products and greater complexity generate more alerts.
• More alerts require more analysts.
• More analysts produce more reports.
• More reports continue to build up executive confidence.
• Meanwhile, the underlying structural weaknesses remain largely unchanged, technical debt piles up and costs escalate.

And when the inevitable breach eventually happens, reality reveals itself, but distrust also sets in between senior executives and security teams.

This is not a funding problem. Nor is it a skills problem. It is fundamentally an operating model problem.

Many organizations continue trying to solve twenty-first century challenges using governance, accountability, organizational and reporting structures designed twenty-five years ago.

The cybersecurity function itself has evolved dramatically. Many executive structures have not.

This organizational inertia extends beyond technology: It affects budgeting cycles, investment priorities, procurement processes, accountability models and decision-making speed.

Cyber attackers innovate every day. Organizational change often takes years.

That imbalance should worry every CEO.

3. Accelerating technological disruption, and how it challenges organizations in areas where they are intrinsically weak

The third issue is potentially the most significant over the coming decade.

• Artificial intelligence, autonomous agents and machine identities
• Software supply chain complexity.
• Quantum computing, and post-quantum cryptography

Each of these developments represents far more than another technical trend.

Together, they fundamentally change the dynamics of cybersecurity.

Artificial intelligence is transforming countless business processes. At the same time, it is also increasing both the speed and sophistication of cyber-attacks while simultaneously transforming defensive capabilities.

Organizations have become increasingly dependent on software ecosystems that extend far beyond their own direct control. Engaging with the supply chain in ways that lead to a genuine appreciation of the risks involved has become a key challenge for most cybersecurity practices.

Quantum computing may eventually invalidate much of today’s cryptographic algorithms, forcing organizations into one of the largest technology efforts since Y2K — but without the benefit of a fixed deadline and faced by a problem that is considerably more complex and hyperconnected IT estates that have little to do with those of the late 90s.

None of these challenges can be solved overnight: They require clear governance, sustained investment over a few years and cross-functional organizational coordination.

Most large organizations are weak on those three fronts: This is precisely why CEOs should be focusing on them now.

Waiting until some of those risks become obvious will almost certainly be too late.

Businesses naturally prioritise immediate commercial pressures. Cybersecurity often involves preparing for risks whose timing remains uncertain.

But one of the greatest leadership failures I keep seeing remains the inability of organizations to act decisively on known unknowns.

That tension explains why many organizations delay action until external events force them to respond. Unfortunately, cybersecurity rarely rewards late action.

Leadership will determine who succeeds

Cybersecurity discussions still frequently focus on technology. I believe they should focus far more on leadership.

Technology will continue evolving. Threat actors will continue adapting. Regulations will continue expanding. Those developments are inevitable.

What remains within the control of every CEO is how their organization responds.

Does cybersecurity remain an IT issue? Or is it recognised as an integral part of business resilience?

How is cybersecurity accountability assigned at executive level? Or does it still rest largely with a CISO hidden in the organization?

Does the board spend sufficient time discussing resilience? Or does cybersecurity appear only when approving budgets or reviewing incidents?

These questions will increasingly determine organizational success.

The companies that navigate the next decade successfully will not necessarily be those spending the most on cybersecurity. Nor will they be those deploying the latest security technologies first.

They will be the organizations whose leadership recognises that cybersecurity has become a permanent business capability — embedded into governance, strategy, operational decision-making and organizational culture.

That transformation cannot be delegated. It begins with the CEO.

And perhaps that is the single biggest issue that should keep every chief executive awake at night: Not when the next cyber-attack will happen, but whether their organization is evolving quickly enough on those matters to meet a threat landscape that is changing much faster than the business itself.

This article is published as part of the Foundry Expert Contributor Network.
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Cisco and AMD have expanded their partnership with a new package of hardware and security software that’s designed to help enterprise customers protect, deploy, and manage distributed AI resources.

During AMD’s Advancing AI event this week, Cisco’s president and chief product officer Jeetu Patel took to the stage during AMD CEO Lisa Su’s keynote to talk about how AI inference will be widely distributed and will require an architectural stack of software and tools that Cisco and AMD are partnering to develop.

The joint architecture combines AMD’s compact, high-performance Ryzen AI Halo hardware and a variety of Cisco networking, observability, governance, and security technologies. “AMD provides the deskside/local AI platform. At the foundation is AMD Ryzen AI Halo hardware, an isolated agent sandbox and the services needed for local-first inferencing, including model routing and token limits via AMD’s Semantic Router and local inference on Lemonade,” wrote Cisco’s Yash Sheth, senior director, engineering and research, in a blog post about the new package.

Ryzen AI Halo (pictured below) is designed to support local AI inference on an AI PC using its CPU, GPU, and XDNA neural processing unit (NPU), according to AMD. A resilient AI platform should continue delivering useful AI services even when connectivity is limited, models need to change, or workloads shift, AMD stated.

Cisco then wraps that platform in a secure harness that includes its Splunk Agent Observability plus Splunk Infrastructure Monitoring to provide full-stack observability, tracking agent behavior, tokenomics and compute operation, according to Sheth.

Cisco also brings its AI Defense for model and agent security; DefenseClaw for security policy enforcement, so guardrails are enforced directly on-device, within the agent harness; and Cisco Cloud Control offering a single pane of glass for unified policy and control, Sheth stated.

“To make deskside and local AI computing work at enterprise scale, every AI node must be treated as a secure, managed node in the enterprise network,” Sheth wrote.

“The need for token efficiency and data sovereignty is driving a new class of computing, deskside computing, with users and teams putting AI agents right by their sides,” Sheth wrote. “Inference is moving to a hybrid architecture with thousands of ambient deskside agents in an enterprise helping employees have 24×7 productivity. That’s an extraordinary opportunity. It’s also a brand-new operating challenge.”

As agentic AI moves from experimentation to real enterprise workflows, organizations need more than powerful endpoints. AI agents can run continuously and act on enterprise data, but create new requirements for network infrastructure, tokenomics, agent behavior, and security, according to a statement from AMD.

“Running more AI locally can help improve responsiveness, keep sensitive data closer to users, and reduce dependence on cloud-only approaches, but enterprises also need a way to monitor and manage these systems at scale. AMD and Cisco are addressing that gap by collaborating to pair high-performance local AI compute with the observability, governance, and control infrastructure needed for enterprises to deploy it responsibly,” AMD stated.

“By combining AMD Ryzen AI Halo systems and our broader local AI software capabilities with Cisco’s enterprise networking, observability and security technologies, we are helping customers deploy AI in a way that is performant, secure, observable and manageable at scale,” said Jack Huynh, senior vice president and general manager, computing and graphics group with AMD, in a statement.

A few other interesting statistics and trends cited in AMD CEO Su’s keynote include:

• AI adoption is accelerating across all industries, with agentic AI driving a surge in compute demand and shifting workloads from training to inference, which accounts for 60% of global AI compute capacity in 2026.
• AI is moving beyond the cloud, with edge and personal devices becoming critical for real-time, distributed intelligence.
• The AI accelerator market is projected to reach $1.4 trillion by 2030, nearly tripling previous forecasts, with GPUs expected to dominate but CPUs gaining new growth vectors due to agentic AI.
• Server CPU market is forecasted to grow over 50% to $200 billion by 2030, fueled by rapid agentic AI adoption and the need for massive CPU infrastructure.

For years, I have been saying that cybersecurity is no longer a technology problem. It has become a business leadership challenge.

Yet, despite record levels of spending, ever-growing security teams, increasingly sophisticated technologies and a constant stream of new regulations, organizations continue to suffer major cyber incidents with alarming regularity. Every week seems to bring news of another ransomware attack, supply chain compromise or data breach affecting organizations that many would have assumed were well protected.

The obvious conclusion is that we are asking the wrong questions.

Too many executive teams remain preoccupied with the latest threat actor, the newest security product the CISO wants to buy or the latest vulnerability making headlines. Those issues matter, but they are not what should be keeping CEOs awake at night.

In my view, there are three far more fundamental issues that deserve the attention of every chief executive.

1. Corporate complexity, and the widening gap between business leadership and cybersecurity reality

Perhaps the biggest cybersecurity risk facing large organizations today is not technical at all.

It is the growing disconnect between executive perception and operational reality.

Many boards genuinely believe their organizations are reasonably well protected. They receive regular dashboards showing improving maturity scores, increasing compliance levels, falling vulnerability counts and reassuring traffic-light reports.

Unfortunately, cyber attackers do not read dashboards.

Behind those executive reports often lies an increasingly complex technology landscape, thousands of unmanaged digital assets, ageing infrastructure, rampant shadow IT, fragmented ownership, inconsistent governance and security teams struggling to keep pace with relentless business change.

The problem is rarely a lack of effort.

It is that corporate complexity has reached a level where traditional governance mechanisms are no longer capable of providing an accurate picture of organizational resilience.

Executives believe they understand the level of cyber risk they face because they receive regular reports. Those reports often measure activity rather than resilience.

Governance committees end up debating around another percentage point of phishing awareness or vulnerability remediation, while fundamental issues remain unaddressed in the background.

2. Organizational inertia, and the need for executive structure to evolve faster

Cyber criminals continue to evolve rapidly. Large organizations generally do not.

This is the second issue that should concern every CEO.

Throughout my career, I have observed organizations repeatedly responding to new cyber threats by adding another technology platform, another monitoring capability, another compliance framework or another governance committee.

Very rarely do they stop to redesign how cybersecurity operates.

The result is what I described several years ago as the “Cybersecurity Spiral of Failure”.

• As complexity and regulation increase, organizations invest in more security products.
• More products create more complexity.
• More products and greater complexity generate more alerts.
• More alerts require more analysts.
• More analysts produce more reports.
• More reports continue to build up executive confidence.
• Meanwhile, the underlying structural weaknesses remain largely unchanged, technical debt piles up and costs escalate.

And when the inevitable breach eventually happens, reality reveals itself, but distrust also sets in between senior executives and security teams.

This is not a funding problem. Nor is it a skills problem. It is fundamentally an operating model problem.

Many organizations continue trying to solve twenty-first century challenges using governance, accountability, organizational and reporting structures designed twenty-five years ago.

The cybersecurity function itself has evolved dramatically. Many executive structures have not.

This organizational inertia extends beyond technology: It affects budgeting cycles, investment priorities, procurement processes, accountability models and decision-making speed.

Cyber attackers innovate every day. Organizational change often takes years.

That imbalance should worry every CEO.

3. Accelerating technological disruption, and how it challenges organizations in areas where they are intrinsically weak

The third issue is potentially the most significant over the coming decade.

• Artificial intelligence, autonomous agents and machine identities
• Software supply chain complexity.
• Quantum computing, and post-quantum cryptography

Each of these developments represents far more than another technical trend.

Together, they fundamentally change the dynamics of cybersecurity.

Artificial intelligence is transforming countless business processes. At the same time, it is also increasing both the speed and sophistication of cyber-attacks while simultaneously transforming defensive capabilities.

Organizations have become increasingly dependent on software ecosystems that extend far beyond their own direct control. Engaging with the supply chain in ways that lead to a genuine appreciation of the risks involved has become a key challenge for most cybersecurity practices.

Quantum computing may eventually invalidate much of today’s cryptographic algorithms, forcing organizations into one of the largest technology efforts since Y2K — but without the benefit of a fixed deadline and faced by a problem that is considerably more complex and hyperconnected IT estates that have little to do with those of the late 90s.

None of these challenges can be solved overnight: They require clear governance, sustained investment over a few years and cross-functional organizational coordination.

Most large organizations are weak on those three fronts: This is precisely why CEOs should be focusing on them now.

Waiting until some of those risks become obvious will almost certainly be too late.

Businesses naturally prioritise immediate commercial pressures. Cybersecurity often involves preparing for risks whose timing remains uncertain.

But one of the greatest leadership failures I keep seeing remains the inability of organizations to act decisively on known unknowns.

That tension explains why many organizations delay action until external events force them to respond. Unfortunately, cybersecurity rarely rewards late action.

Leadership will determine who succeeds

Cybersecurity discussions still frequently focus on technology. I believe they should focus far more on leadership.

Technology will continue evolving. Threat actors will continue adapting. Regulations will continue expanding. Those developments are inevitable.

What remains within the control of every CEO is how their organization responds.

Does cybersecurity remain an IT issue? Or is it recognised as an integral part of business resilience?

How is cybersecurity accountability assigned at executive level? Or does it still rest largely with a CISO hidden in the organization?

Does the board spend sufficient time discussing resilience? Or does cybersecurity appear only when approving budgets or reviewing incidents?

These questions will increasingly determine organizational success.

The companies that navigate the next decade successfully will not necessarily be those spending the most on cybersecurity. Nor will they be those deploying the latest security technologies first.

They will be the organizations whose leadership recognises that cybersecurity has become a permanent business capability — embedded into governance, strategy, operational decision-making and organizational culture.

That transformation cannot be delegated. It begins with the CEO.

And perhaps that is the single biggest issue that should keep every chief executive awake at night: Not when the next cyber-attack will happen, but whether their organization is evolving quickly enough on those matters to meet a threat landscape that is changing much faster than the business itself.

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Earlier this month, Nokia provided an AI-RAN platform update that brings an AI-native and programmable compute which is projected to double spectral efficiency by 2028. This increases speed, but more importantly, it can allow mobile operators to create some actual monetization beyond connectivity.

With this release, Nokia is introducing what it calls the industry’s first commercial AI-RAN platform, built on its AI‑native anyRAN software and Nvidia’s Aerial AI-RAN stack running on merchant GPU-based accelerated computing. The company is already seeing more than 20% gains in spectral efficiency from AI-driven radio algorithms, with a roadmap to reach 50% by 2027 and more than 100% by 2028, effectively doubling capacity on existing spectrum in dense cells.

Legacy RAN infrastructure enables connectivity but not much beyond that. The AI-RAN makes the network intelligent and extends AI into the physical world, enabling telcos to get more from their infrastructure investments, including providing a path to 6G. The partnership with Nvidia brings CUDA and AI into mobile environments.

For Network World readers, the headline isn’t just that Nokia got to market first with AI‑RAN—it’s that the company is using AI and GPUs to break the historical coupling between radio performance and custom silicon refresh cycles, and to turn the RAN into an application platform.

What AI-RAN actually is

At a technical level, Nokia’s AI‑RAN is a software‑defined baseband architecture that runs Layer 1/Layer 2 RAN functions and AI models on accelerated compute, primarily GPUs, instead of being locked into fixed‑function ASICs. Udayan Mukherjee, Nokia’s CTO for RAN and core, summarized the vision in the analyst briefing: “AI‑RAN is essentially a platform that turns the radio network into a true AI‑native programmable platform… one software detached from the hardware, defining flexible hardware deployment configurations, including part of the AI grid.”

Several pillars stand out:

• AI‑native design: Algorithms move from traditional linear models to increasingly nonlinear techniques (e.g., advanced channel estimation, deep receivers/transmitters, RKHS-based methods), which demand tensor-heavy compute best delivered by GPUs.
• Software-defined RAN: The same anyRAN software stack runs across different hardware configurations—plug‑in cards, standalone AI‑RAN nodes, and COTS/cloud RAN—so innovation comes via software releases rather than baseband card swaps.
• Programmable “D‑apps” layer: Nokia is pushing a new real‑time E3 interface from Layer 1/2 into an application layer for distributed apps (D‑apps) that can tap IQ samples, channel estimation and scheduling data for use cases such as sensing and location services.
• Crucially, this isn’t meant to replace all custom silicon overnight. Mukherjee was explicit: “We are not dropping the purpose‑built product… but we want to also get to merchant silicon, because that’s the future as we want to develop bigger models and AI elements and value‑added services on top of it.” The result is a hybrid era where AI‑accelerated platforms coexist with existing basebands but begin to shoulder the most compute‑intensive workloads.

Why AI-RAN matters for operators

Nokia and its early operator partners are trying to solve three perennial problems: finite spectrum, changing traffic patterns, and the drag of hardware refresh cycles.

First, spectrum constraints. Aji Ed, Nokia’s head of AI‑RAN and cloud RAN, called spectrum “the first constraint everybody has,” noting that operators have paid “huge amount of money” for bands and now need to “get up to the 2x spectrum” in terms of usable capacity. By running more complex AI models for multi‑user MIMO pairing, channel estimation, carrier aggregation and deep receiver/transmitter functions on GPUs, Nokia believes it can unlock those gains where traditional platforms simply run out of compute headroom.

Second, traffic is shifting. Generative AI and distributed inference workloads are driving more uplink-heavy, latency‑sensitive patterns that current RANs weren’t designed for. AI‑RAN’s ability to adapt scheduling, beamforming and resource allocation dynamically via AI models deployed at the baseband is meant to keep up with this shift.

Third, innovation cadence. In Ed’s words, “hardware upgrades can’t keep up with the innovation… we can’t really have a silicon refresh cycle linked with every three‑year cycle.” Nokia’s subscription‑based software model is designed to deliver new AI algorithms, spectral‑efficiency improvements and network optimization features continuously, without requiring “forklift” hardware replacements.

For operators, the message is attractive: comparable TCO and power to existing basebands, “no hardware premium” for GPU adoption, but higher capacity and a path to new services. Nokia told analysts it has reached performance, price and energy efficiency parity between its custom GridShark silicon and GPU-based systems, while moving the baseband roadmap to merchant silicon.

Nokia’s differentiation strategy

Every major RAN vendor is talking about AI‑enhanced radio, but Nokia is drawing a line between incremental gains and what it claims is a platform shift. When asked why its 2x spectral efficiency ambition is so much higher than the ~20% numbers competitors discuss, Ed pointed to the underlying architecture: “We are able to bring much more complex algorithms into this compute infrastructure… all of these require much higher compute, which is exactly what is coming from the accelerated computing.”

Several differentiators emerge:

• Aggressive spectral roadmap: Nokia is targeting 1.5x by 2027 and 2x by 2028, across TDD massive MIMO and FDD scenarios, with a feature roadmap built jointly with Nvidia and other partners.
• Single code base, three deployment paths: The same anyRAN software stack runs on (1) a GPU‑powered AirScale capacity plug‑in card, (2) a high‑capacity standalone AI‑RAN node, and (3) GPU‑based COTS/cloud RAN servers. This lets operators modernize “at their own pace” and mix brownfield evolution with greenfield AI-native deployments.
• Open ecosystem with D‑apps: Nokia is leaning into ORAN compliance (front‑haul, O1/O2) and actively championing the E3 interface and D‑apps concept within ORAN and AI‑RAN alliances, with Bell Labs and at least two external partners already building sensing and location applications on the platform.
• Software subscription tied to value: The commercial model builds on existing software subscriptions but ties pricing more explicitly to delivered value, such as spectral efficiency improvements and new AI services, rather than pure license metrics.

Mukherjee emphasized the openness angle in the briefing: “We see a lot of third‑party applications, whether it’s improving spectral efficiency or location service or sensing, can be developed on this platform… any AI‑powered services from us in Nokia or from ecosystems can be actually developed on top of it.” For operators burned by closed optimization stacks, that’s a notable pivot.

How AI-RAN unlocks new revenue

Most operators will sign off on AI‑RAN if the capacity and TCO story holds, but the more strategic question is monetization beyond connectivity. Nokia’s spokespeople spent considerable time on this in the analyst call, pointing to several classes of services that are difficult or impossible to deliver without AI running in the RAN itself.

Examples include:

• Integrated sensing: Turning the RAN into a distributed sensor grid that can support applications such as 3D mapping, gesture recognition and environmental monitoring, using the same RF infrastructure. Mukherjee noted, “We have at least two to three partners developing sensing applications on top of it… as well as two other companies developing location services.”
• Physical AI and location services: For factories, logistics hubs and smart cities, AI‑RAN can provide high‑precision positioning and real‑time telemetry for robots, drones and autonomous systems by fusing radio data and AI models at the edge.
• Distributed AI infrastructure: Operators exploring “AI‑native cities” can use AI‑RAN nodes and COTS GPU servers as a distributed inference fabric for applications that need tight latency to endpoints—think AR/VR offload, real‑time video analytics or interactive generative AI experiences.
• Premium connectivity tiers: With fine‑grained, AI‑driven control over uplink/downlink scheduling and QoS, operators can create differentiated SLAs for enterprise slices, mission‑critical IoT and AI workloads, charging for guaranteed performance rather than best‑effort connectivity.

Ed framed the opportunity as a continuum: Superior connectivity from 2x spectral efficiency creates “space for new AI workloads and other use cases,” while the D‑apps ecosystem and subscription model provide a mechanism to package and sell those capabilities. In practice, that could look like:

• Industrial sensing-as-a-service, where Nokia and partners supply D‑apps for integrated sensing and positioning, and operators monetize them per site or per device.
• Network‑exposed APIs for inference, location and RF sensing, integrated into operators’ broader network API portfolios as they pursue “network-as-a-platform” strategies.
• Sector‑specific AI‑native services, such as stadium analytics, transportation corridor monitoring, or drone traffic management, built by ISVs on top of Nokia’s exposed E3 data.

For operators that already use Nokia’s MantaRay and SMO stacks for cross‑network optimization, AI‑RAN essentially becomes the local real‑time execution environment, while R‑apps/X‑apps continue to orchestrate macro-level behaviors. Mukherjee described this layered architecture as “DU and CU on the platform running D‑apps using E3, interfacing to X‑apps and R‑apps through E2SM and connecting to the overall management system/SMO for lifecycle management.”

Adoption path and reality check

Nokia is not promising instant transformation. AI‑RAN pilots are slated for late 2026, with commercial availability on card‑based systems in 2027 and AirScale-based systems around 2028, all driven from a single software stack that supports 4G, 5G and is upgradable to 6G. The company already has trials and collaborations underway with T‑Mobile US, SoftBank, Indosat Ooredoo Hutchison, BT, Elisa, Vodafone, Orange, NTT Docomo, Deutsche Telekom and others.

There are still open questions around 3GPP vs ORAN standardization of E3, the maturity of the D‑apps ecosystem, and how operators will digest yet another subscription layer tied to radio software. But Nokia’s move puts a stake in the ground: in the AI era, the RAN is not just a throughput engine; it’s a programmable AI computer that can be monetized.

For Network World readers evaluating vendor roadmaps, this launch suggests a clear directional change. If Nokia hits its targets, AI‑RAN could mark the point where baseband becomes less about hardware SKUs and more about an AI platform strategy—one where spectral efficiency and new services are rolled out at “software speed,” as Ed described it, rather than at the pace of the next card generation.

Quantencomputer versprechen, einige der schwierigsten Rechenprobleme unserer Zeit zu lösen. Doch dabei ist es bereits eine Herausforderung, die Funktion eines Quantenrechners zu verstehen. Umso besser, dass Yuval Boger, CCO beim Quantum-Computing-Spezialisten QuEra, das für uns künftig einmal pro Monat übernimmt. Und zwar in etwas unkonventioneller, aber verständlicher und unterhaltsamer Form – mit Comics.

Mit seinem Comicbuch „Quantum Bits“ zeigt der Manager, dass sich selbst anspruchsvolle Physik mit Humor, alltäglichen Vergleichen und klarer Sprache verständlich vermitteln lässt. In Teil 1 dieser Serie widmet Boger sich der wohl berühmtesten Katze der Wissenschaft.

Die Katze, die Quantenmechanik erklärt

1935 entwickelte der österreichische Physiker Erwin Schrödinger ein Gedankenexperiment. Eine Katze sitzt in einer geschlossenen Box. Ebenfalls darin befinden sich ein radioaktives Atom, ein Detektor und ein Giftfläschchen. Zerfällt das Atom, löst der Detektor das Gift aus und die Katze stirbt. Zerfällt es nicht, bleibt sie am Leben.

Der Clou an der Sache: Der Zerfall eines einzelnen Atoms ist ein Quantenprozess. Solange niemand das Ergebnis misst, beschreibt die Quantenmechanik das Atom als Überlagerung verschiedener Möglichkeiten. Daraus entstand die bis heute populäre Vorstellung, Schrödingers Katze sei gleichzeitig lebendig und tot.

Genau das wollte Schrödinger jedoch nicht sagen. Im Gegenteil. Sein Gedankenexperiment sollte zeigen, wie befremdlich die Gesetze der Quantenmechanik wirken, wenn man sie auf unsere Alltagswelt überträgt. Für einzelne Atome bestätigt die Physik diese Regeln seit Jahrzehnten experimentell. Eine Katze hingegen erleben wir immer in einem eindeutigen Zustand – entweder lebendig oder tot.

Die Quantenwelt im Alltag

Wo also endet die Quantenwelt und wo beginnt die Welt des Alltags? Diese Frage beschäftigt Physiker bis heute. Für das Verständnis von Quantencomputern ist sie jedoch ein idealer Ausgangspunkt. Denn, bevor wir über Qubits sprechen können, müssen wir verstehen, warum die Natur im Kleinsten nach anderen Regeln spielt als im Großen.

Der Comic übersetzt dieses Prinzip in eine Alltagssituation. Solange die Rückmeldung auf die Bewerbung aussteht, sind mehrere Ausgänge denkbar. Erst mit der Antwort wird klar, welche Realität gilt. Physikalisch ist das natürlich nur eine Analogie – aber sie macht anschaulich, worum es bei Schrödingers Katze geht: um den Unterschied zwischen möglichen Zuständen und einem gemessenen Ergebnis.

The evolution of Java is the subject of a just-released documentary about the programming language and development platform. “The Java Story: The Official Documentary” tells the story of Java through interviews with the engineers who created it and shepherded it through three decades.

Produced by CultRepo and sponsored by Oracle, JetBrains, IBM, and Azul, the documentary follows Java from its set-top box and browser-based origins at Sun Microsystems in the 1990s and through its rise to dominate server-side computing in the 2000s, the “dark ages” and resurgence with Java 8 under Oracle in the 2010s, and its continuing modernization and promising role in AI today. “From its humble beginnings as a project code-named ‘Oak’ at Sun Microsystems to becoming a global standard for enterprise software and billions of devices, Java’s journey is one of radical innovation, strategic pivots, and enduring community strength,” said Cult.Repo.

The documentary also delves into Sun’s bitter Java licensing dispute with Microsoft, Oracle’s suit of Google over its use of Java APIs Android (Google won), the creation of the Java Community Process, Sun’s open-sourcing of Java, and Oracle’s switch to the six-month release cycle. Technical enhancements such as lambda expressions in Java 8, virtual threads in Java 21 (Project Loom), and the ongoing refactor to bring value objects to the Java object model (Project Valhalla) also get attention.

Technical experts and other Java figures interviewed in the documentary include James Gosling, creator of Java; Kim Polese, Java’s first product manager; Carla Schroer, director of Java compatibility at Sun Microsystems; James Duncan Davidson, creator of Apache Tomcat; Mark Reinhold, chief architect of the Java Platform Group at Oracle; Brian Goetz, Java language architect in the Java Platform Group at Oracle; Rod Johnson, creator of Spring; and Gavin King, creator of Hibernate.

Some lucky customers took delivery of their own Tensor Processing Units (TPUs), custom chips developed by Google for AI applications, in the second quarter, company executives disclosed during a call to discuss its latest financial results on Wednesday.

The disclosure comes at a time when enterprises are grappling with a global shortage of high-end GPUs that is driving up costs and slowing AI deployment timelines, and even those who have GPUs don’t always have electricity to operate them.

“We delivered to customer data centers for the first time in Q2,” said Anat Ashkenazi, CFO of Google’s parent Alphabet, adding that the company had begun to recognize a small amount of revenue from TPU orders, although it expected to recognize more in 2027.

Ashkenazi did not name the customers or describe the commercial arrangements, leaving open questions about whether the systems are being deployed by large enterprises, governments, sovereign AI initiatives, or other cloud providers.

Until recently, Google’s TPU strategy centered on giving customers access to the chips through Google Cloud, while using the same silicon internally to power its own AI models and services. But during the company’s last earnings call in April, just days after it released two new TPU models, CEO Sundar Pichai said Google would consider selling TPUs to AI labs, capital markets firms, and high-performance computing applications.

On Wednesday’s call, Pichai said Google will scale up TPU sales “based on the opportunities we see and the demand we see, commensurate with the constraints that exist and the allocation needs we have for frontier model development.”

But Google is still keeping the bulk of its TPUs for itself, either for internal use or to rent out through Google Cloud Platform.

“Our first priority is making sure we are allocating what we need to compete at the frontier in terms of AGI development,” Pichai said on Wednesday’s call. “We are using both TPUs and GPUs mainly for serving our models.”

Defense research agency DARPA made its largest quantum computing award ever this week, with a $125 million agreement announced on Wednesday. The same day, the White House announced an additional $5 billion for the Genesis Mission, which focuses on AI for science but also includes technology to accelerate quantum computing and quantum sensors.

“Taken together, these announcements signal that U.S. quantum strategy is shifting from supporting individual research projects to building the infrastructure needed for a quantum-enabled economy,” says Heather West, research manager in the infrastructure systems, platforms, and technology group at IDC.

None of the individual quantum announcements are surprising, she says. But the level of coordination is new. “Government investment is expanding beyond foundational research toward commercialization, manufacturing, and deployment,” she says.

“The US government has been signaling that quantum computing is a priority,” says David Mooter, an analyst at Forrester Research. Part of it is the desire for the US to be a leader in quantum, as it has been in other high-tech areas, he says. And part of it is because the government itself can take advantage of quantum computers.

“Spy agencies would love to use them to decrypt intercepted messages, including messages they intercepted years ago and saved,” he says. And other departments could use quantum computers or networks for energy-related research, for supply chain optimization, and for secure communications. 

Quantum computing is accelerating, he says. “I would not be surprised to see a general gate-based quantum computer that’s good enough to provide commercial value for limited use cases by 2030.”

DARPA’s Quantum Benchmarking Initiative

DARPA’s Quantum Benchmarking Initiatives was launched in 2024, and 18 companies were selected in April of 2025 for Stage A of the project, with awards of up to $1 million each. The companies were to use the money to provide details of their concepts and show how they could lead to a functional, fault-tolerant quantum computer in under a decade.

Then, in November of 2025, DARPA chose 11 companies for Stage B of the project, with awards of up to $15 million for developing their research plans.

To date, only two companies have been chosen for Stage C: PsiQuantum and Microsoft. PsiQuantum announced $32 million of DARPA funding for testing and evaluation in September of last year. This week’s $125 million award will expand the scope and pacing of the validation and verification work. Stage C awards can go up to $300 million, according to DARPA.

This past May, PsiQuantum also announced $100 million from the Department of Commerce, part of the CHIPS and Science Act, to accelerate domestic manufacturing of critical quantum computing components.

Microsoft and PsiQuantum are both in Stage C, bypassing the sequential path that other companies are expected to follow, because they were both part of DARPA’s predecessor to QBI, the Underexplored Systems for Utility-Scale Quantum Computing program.

Genesis Mission

Genesis Mission was launched in late 2025 with the goal of using AI to accelerate scientific breakthroughs, and it now includes more than 15 government agencies.

As part of the Genesis Mission, quantum computing and sensing company Infleqtion announced three projects for the Department of Energy on Wednesday. The three projects focus on quantum circuit design for nuclear applications, atomic quantum sensing, and nuclear fusion energy research.

This announcement did not include the total monetary value of the projects, but, in May, the company announced a separate agreement with the Department of Commerce for $100 million to accelerate Infleqtion’s neutral-atom technology roadmap.

Other quantum-related Genesis Mission projects announced this week include $1.5 million for a BlueQubit quantum error correction project with Microsoft and other partners, a Stanford effort to model the behavior of electrons at quantum scale, an MIT quantum sensing project, Argonne National Laboratory projects on quantum circuit design and quantum sensors, Brookhaven Lab quantum sensor projects, and quantum computing projects at Northwestern University.

IBM, one of three dozen private companies that are part of the Genesis Mission Consortium, announced that it will be leading a project to support more effective quantum applications, and will contribute up to $50 million of quantum compute access for the Genesis Mission.

Enterprise priorities

This week’s quantum announcements aren’t a sign that enterprises need to run out and buy quantum computers, says IDC’s West. But they do need to start preparing for the quantum era — such as by identifying business areas where quantum computing could become a competitive differentiator over the next decade.

But the most immediate threat is that of adversaries using quantum computers to break current encryption standards. Organizations should be inventorying cryptographic assets and developing a roadmap for the migration to quantum-proof algorithms, West says.

The point of no return is closer than ever, and many major players in the encryption and communication space, including Google and Cloudflare, have been accelerating their timelines. In fact, this Wednesday was the federal deadline for naming their post-quantum cryptography migration leads under a June executive order.

“The preparation that needs to be done to prepare is to implement post-quantum cryptography yesterday,” says Forrester’s Mooter.

However, according to a survey released by DigiCert this morning, while 87% of organizations are planning, testing or implementing PQC initiatives, only 7% of organizations have deployed quantum-safe or hybrid cryptography across most of their digital certificates.

Google’s AI offerings span its internal and cloud offerings. Its data centers are processing seven times more AI tokens compared to last year. To keep up, Google is upgrading its data-center hardware and software technologies at a faster clip. It plans to raise $80 billion to build new data centers. (See related story: Google transforms its data center architecture for agent era)

Network World spoke with Mark Lohmeyer, vice president and general manager of AI and computing at Google, about how the company’s infrastructure is keeping pace with AI demand.

Network World: What is the primary shift in infrastructure needs?

Mark Lohmeyer: We’ve seen the rise of agents and agentic use cases. Years ago, it was the chat phase: Ask a question, get an answer. Now we’re in the agentic era, where you express your intent, agents spin off multiple sub-agents, working in parallel, preserving state. This is a radical shift in what infrastructure needs to do; make them fast, cost effective, secure, reliable. We’re delivering infrastructure optimized for the age of agents.

NW: What’s the goal of the infrastructure buildout, and what should customers expect regarding costs?

ML: Ultimately, it’s about enabling customers with leading-edge capabilities and models at scale cost-effectively. With agents, inference transactions increase by 50x, 100x versus non-agentic workloads. We’re driving the cost per transaction down exponentially. In our latest platforms, we reduce the cost by almost 2x for the same work. Customers serve twice the number of users at the same cost, directly driving profitability.

NW: How are you addressing energy efficiency?

ML: Energy is a critical resource, and Google has optimized for years. We design data centers and compute [to drive] high PUE (power usage effectiveness). We introduced liquid cooling over five years ago, and these latest systems are all liquid cooled. For agentic workloads, CPUs come to the forefront… orchestrating agents, calling tools, doing evaluation loops in reinforcement learning. Our latest Axion-based CPU platform called N4A has energy efficiency and is significantly better than the prior generation and x86 comparables.

NW: How do you think about token efficiency as you build-out systems?

ML: Performance and efficiency gains are powered by co-design of the model and infrastructure. Gemini is trained on TPUs, primarily served on TPUs with high frontier model capability, in a token and cost-efficient way. This stems from co-design across the full stack.

NW: How do you project what infrastructure will be needed years in advance?

ML: Hardware cycles deliver a new next generation roughly every year, but design cycles are two years or more in advance. We work with DeepMind doing core research, to application teams taking models into production, to billions of users, to our team building infrastructure. We work upstream with DeepMind and application teams to understand what’s coming. Agents weren’t being broadly spoken of externally, but internally we had those insights around what they would need. That shows up in hardware design. We hit the timing right — these platforms are built for agents.

NW: What’s the eighth generation TPU platform?

ML: We deliver new platforms every year, and ones launched years ago are close to 100% utilized because demand for AI-optimized compute is high. The eighth-generation TPU platform is the first delivering two complete systems, from the chip all the way up to the network and storage and software, that are optimized.

TPU-8t is optimized for training, and TPU-8i is optimized for inference. For TPU-8i, we increased SRAM on the chip to 384MB — three times the prior generation — and increased the HBM by 50%.

NW: How are you approaching GPU and TPU compatibility?

ML: People in a single cluster do not commingle GPUs and TPUs. We offer both options based on specific workload needs. We’ve been investing on the TPU side in using software frameworks customers are comfortable with on GPUs and enabling those on TPUs. For example, PyTorch and vLLM. Customers could have a pool of GPUs and TPUs, running vLLM on top of that. Start with a workload on TPUs, but if the TPU pool is fully utilized, spill to GPUs or vice versa. This works because it’s all leveraging the same compatible software layer on top.

NW: How has the orchestration platform changed for agents?

ML: Kubernetes is becoming the orchestration platform of choice for AI. Google is transforming GKE [Google Kubernetes Engine] into an agent-native orchestration solution. When expressing intent to an agent and it spins up multiple sub-agents, compute needs to spin up rapidly — TPUs or GPUs — without long delays, then run and spin back down. We’re optimizing at every layer of the GKE stack: significantly improving node startup time and how rapidly we start and stop containers. Lovable demonstrates this with GKE, spinning up hundreds of sandboxes for live coding sessions on their platform in parallel, paying for infrastructure when needed.

NW: What is the role of the network and storage infrastructure?

ML: The network is critical for AI. This requires creating large-scale clusters of GPUs or TPUs and enabling them to talk to each other in a high-performance way. We created the Virgo network — a collapsed network architecture, non-blocking within a data center, where multiple pods or NVLink72 domains connect together.

In TPU8T, we can connect over a million TPUs together leveraging Virgo, creating large-scale, high-performance, reliable clusters that shrink innovation cycles. Storage is equally critical. In large-scale clusters, something is always failing. The ability to take snapshots and go back to a checkpoint is important.

We’ve introduced Managed Lustre 10T, with 10 terabytes per second of bandwidth, 18 petabytes of storage in single clusters. This is 10 times faster than last year and 20 times faster than competition. We have Rapid Bucket, low-latency storage backed by Google storage systems. Both are impactful in large-scale training environments.

NW: How does KV cache strategy differ between training and inference?

ML: For TPU-8i, we increased SRAM on the chip to 384 megabytes — three times the prior generation — and increased the HBM by 50%. Storing KV cache directly in chip memory allows responding to inference requests much more rapidly and cost-effectively than going to an external system. For inference workloads, storing as much KV cache as possible on-chip is critical.

We’re introducing a dedicated KV cache storage subsystem that works across GPUs and TPUs. As KV caches get larger, being able to fall back to this dedicated subsystem becomes critical. Loading model weights rapidly is important in dynamic inference environments where accelerators switch between models hour by hour.

Google’s data center team is racing to turn its infrastructure into a well-oiled machine for AI and the onslaught of agents. At this year’s Google I/O, CEO Sundar Pichai shared startling numbers: Google’s data centers processed about 3.2 quadrillion tokens a month, roughly seven times more than the 480 trillion processed in May 2025.

“Multiple agents work together, and now you’ve got millions, billions of users around the world potentially spinning off agents to help them do things,” said Mark Lohmeyer, vice president and general manager for AI and computing infrastructure at Google.

Google’s new data-center blueprint includes updated hardware, software, and orchestration layers to keep always-running agents operational.

In the LLM era, users sent prompts and received responses, and Google’s infrastructure was designed for latency and throughput. But agents could increase inference transactions by up to 100 times non-agentic workloads, Lohmeyer said. Google’s redesigned AI data-center stack has the elasticity for agents to be widely distributed, run for long periods, and make decisions independently.

“We’re delivering new platforms every year, each one optimized for what we think the world is going to need for the age of agents going forward,” Lohmeyer said.

Efficient data flow is key so agents can act, reason, and decide faster.

Google adjusted the Google Kubernetes Engine into an agent-native environment, where agents could be quickly spun up in sandboxes and containers. “From an infrastructure perspective, you need to spin up a bunch of TPUs or GPUs very rapidly. Then you need to be able to run them and spin them back down,” Lohmeyer said.

Google also made drastic improvements to its silicon to support its middleware changes. It recently introduced new AI chips, with the TPU-8t for training, and TPU-8i for inference. The 8t chip has three times more computing power than the previous-generation Ironwood chip. The 8i chip has 384 megabytes of SRAM and 288GB of HBM3e memory, which is 50% more than the previous-generation chip.

The platform is optimized for KV cache (key-value cache), which stores important contextual information needed by agents to make decisions, which reduces the round trips to other memory and storage systems. “Being able to store more of the KV cache directly on the chip allows you to respond much more rapidly and cost-effectively,” Lohmeyer said.

A new CPU called Axion N4A is more power efficient at agentic workloads such as orchestration and tool calling, Lohmeyer said.

Google also made many network and storage improvements to cut training and inference time. A new technology called TPUDirect can move data from storage directly into the memory of the TPU quickly by bypassing any orchestration overhead, Lohmeyer said.

A networking technology called Virgo can coordinate 1 million TPUs across a widely distributed network. It can also link up GPUs such as Nvidia’s latest CPU-GPU package called Vera Rubin. “In the case of Vera Rubin, we’ll be able to connect up to 960,000 GPUs leveraging Virgo,” Lohmeyer said.

A new technology called Pathways is a distributed training framework that efficiently scales machine learning across millions of TPUs and GPUs. Pathways solves bottleneck issues typically associated with JAX, and both help coordinate across wide networks.

“The software to orchestrate these large-scale distributed training jobs is also just as important as the hardware that it runs on top of,” Lohmeyer said.

Weighing Google’s AI data-center stack

Google is the only provider with its own data centers, software, hardware and models, said Jack Gold, principal analyst at J. Gold Associates. Google can optimize each on a regular cadence, which “many data centers can’t easily afford given the high cost of new chips,” Gold said.

Google’s stack may not be best for every data center need compared to Nvidia’s general-purpose GPUs, CPUs, and networking. AWS and Microsoft are also creating their chips.

“There is no real risk of Nvidia being replaced by Google in a big way. But with an ever-expanding market, there is plenty of room for all players,” Gold said.

But Logan Wolfe, partner at Kyndryl’s global AI strategy and sovereign transformation, advised enterprises to adopt a multi-cloud strategy to reduce risk from system failures, however superior an infrastructure may be. “I think that kind of hybrid and liquid infrastructure, we’re definitely getting there,” Wolfe said.

The cost per token varies depending on the provider of inference, whether that’s Microsoft, Google, OpenAI or Anthropic. That will matter as AI moves from experimentation to a powerful tool that drives business changes.

“Ultimately it really comes down to how much money are we spending on AI to move a certain business outcome,” Wolfe said.

Deutschland steht unter Zeitdruck. Diesen Eindruck vermittelt die Studie „The accelerating impact of AI on campus and branch networks“. Demnach haben hiesige Unternehmen nur noch etwa 24 Monate Zeit, bevor ihre Netzwerkkapazitäten mit der KI-Nutzung nicht mehr Schritt halten.

Im Rahmen der Studie wurden 3.472 CIOs sowie Führungskräfte aus den Bereichen Netzwerk, End User Computing und Technologie in Asien-Pazifik, Europa, dem Nahen Osten, Lateinamerika und Nordamerika befragt. Darunter waren 200 aus Deutschland. Die Befragten arbeiten in Organisationen mit mehr als 500 Mitarbeitern. Die gemeinsam von Foundry und Cisco konzipierte sowie von Cisco gesponsorte Untersuchung wurde zwischen März und April 2026 durchgeführt.

Kollaps in zwei Jahren

Die gewonnen Zahlen sind alarmierend: 67 Prozent der deutschen Betriebe erwarten, dass ihre Netze innerhalb der nächsten zwei Jahre an ihre Grenzen stoßen werden. Ganze 84 Prozent geben offen zu, dass sie massive Upgrades benötigen, um mit dem explodierenden Datenwachstum Schritt zu halten.

Dabei ist KI längst kein Zukunftsszenario mehr. In deutschen Unternehmen ist sie im Arbeitsalltag angekommen:

• GenAI (etwa Chatbots) wird bereits bei 36 Prozent unternehmensweit eingesetzt.
• Agentic AI zur Automatisierung von Prozessen folgt mit 32 Prozent.
• Physical AI, etwa in der Robotik, liegt bei 25 Prozent.

Daten-Tsunami durch KI

Diese zunehmende KI-Nutzung bringt jedoch ein Problem mit sich: Der dadurch verursachte Datenverkehr wird sich, so die Studie, in den kommenden drei Jahren mehr als verdreifachen (ein Plus von 214 Prozent). Auf diesen Tsunami sind gerade einmal 16 Prozent der deutschen Unternehmen vollumfänglich vorbereitet.

Aber warum bringen die neuen KI-Anwendungen die Infrastruktur so ins Schwitzen? Der Grund liegt in der Arbeitsweise der KI. Im Gegensatz zu einem menschlichen Nutzer, der gelegentlich eine Webseite aufruft, lösen KI-Agenten in Sekundenschnelle Dutzende von API-Aufrufen und Datenbankabfragen aus. Workloads, die keine Fehler verzeihen. Sie reagieren extrem empfindlich auf Latenz, Bandbreitenmangel und Paketverluste.

Kritische Lage in der Industrie

Besonders entscheidend für die Wertschöpfung, Exportkraft und Produktivität in Deutschland ist die Industrie. Gemäß dem kürzlich von Cisco veröffentlichten State of Industrial AI Report setzt zwar ein Fünftel der deutschen Unternehmen KI großflächig und ausgereift in laufenden Industrieprozessen ein. Viele Unternehmen stoßen jedoch durch fehlende Voraussetzungen insbesondere bei Netzwerkinfrastruktur, Cybersicherheit und IT/OT-Betriebsmodellen an ihre Grenzen. Dies gilt insbesondere, wenn KI in Echtzeit in der Produktion eingesetzt wird. Entsprechend benötigt vor allem die Industrie eine moderne und skalierbare Infrastruktur, denn mit KI wird die Netzwerkkapazität Teil der realen Wertschöpfung.

Wenn KI für Deutschland wirklich eine zweite Chance ist, Versäumnisse der Digitalisierung aufzuholen, wie Uwe Peter, Geschäftsführer von Cisco Deutschland, postuliert, dann besteht Handlungsbedarf. So fordert Peter: „Deutschland muss jetzt dringend in KI-fähige und schnell skalierbare Netzwerke investieren, um weiterhin wettbewerbsfähig zu bleiben. Ansonsten droht unserem Wirtschaftsstandort gerade im Vergleich zu anderen Industrienationen ein erheblicher Rückstand.“

Der weltweite Vergleich

Eine Gefahr, die die Studie zu belegen scheint. So sehen weltweit 23 Prozent (hierzulande 16 Prozent) der Unternehmen ihre Netzwerkinfrastruktur vollständig für die KI-Zukunft gerüstet. Und lediglich bei 76 Prozent (Deutschland 84 Prozent) der globalen Unternehmen sind Upgrades erforderlich. Bei der unternehmensweiten KI-Nutzung liegt der weltweite Durchschnitt aktuell in allen drei Bereichen vor Deutschland:

• Generative KI 51 Prozent,
• Physical AI 28 Prozent
• und Agentic AI 33 Prozent.

Ein Flaschenhals ist oft das Funknetz. Die Hälfte der Unternehmen nennt WLAN als den Bereich mit dem größten Kapazitätsbedarf. Hier entbrennt derzeit ein politischer Richtungsstreit um das 6-GHz-Band. Während Experten fordern, dieses Frequenzband für WLAN freizugeben, um die nötigen Kapazitäten für KI zu schaffen, empfiehlt ein EU-Beratungsgremium aktuell die Priorisierung des Mobilfunks.

„Spektrumspolitik ist heute Industriepolitik“, kritisiert denn auch Peter. So stehe für Deutschland viel auf dem Spiel: Bis zum Jahr 2030 könnten der Industrie 13,7 Milliarden Euro verloren gehen, wenn das Spektrum nicht rechtzeitig für WLAN-Anwendungen zugänglich gemacht werde.

Leadership wants to scale AI. Budgets are tripling. Adoption is up.

Then the CFO asks the question every board now asks: which of these initiatives is actually profitable?

Most organizations cannot answer that question, not because they lack visibility into cost, but because the cost data they have was never designed to produce that answer.

Applying lessons learned from managing cloud spend won’t be a fix for the AI and ROI quandary. True, cloud taught a generation of CFOs that billing without business context is noise. So to get cloud ROI, they stitched two data sources together: cost data plus business data. AWS reveals which account, which region, which tag, which resource. Merge in customer and product mappings on top and the ROI of the cloud spend comes into focus.

But AI is harder. It requires three data sources: cost, business, and telemetry—the automatic collection of data from disparate sources that helps to clarify the whole picture of what happened and why. An executive or engineering lead can have AI invoices and customer revenue. But they have no way to connect them to business value. The token count on the OpenAI invoice does not specify which customer triggered which call, which feature it served, or whether the prompt produced a business outcome. That data does not exist in the provider’s billing.

AI providers won’t fix this problem

The situation is not likely to change anytime soon because AI providers are not in the business of attributing an enterprise’s costs to that enterprise’s customers. Instead, AI providers are in the business of selling tokens. The granularity they expose is the granularity their billing systems require, not the granularity a CFO requires.

Not convinced? Compare what AWS gives you to what an AI provider gives you.

AWS billing exposes resource IDs, account hierarchies, region, SKU, tag metadata, usage by the minute. Every dollar can be attributed to a workload, a team, a customer segment if it was tagged correctly. The data is rich enough that mature FinOps teams built unit economics on top of it years ago.

An AI provider invoice gives you tokens consumed by model, with optional grouping by API key. That is the resolution. No request-level attribution. No customer ID. No feature mapping. No prompt outcome. No retry identification. Multi-step agent workflows collapse into a token count. Imagine a large bank receives a multi-million dollar AI invoice each month. But it has no visibility into what parts of the business were responsible for what parts of the cost so cannot allocate them.

If an enterprise wants to know what AI cost drove which customer or feature, it has to capture that data itself, inside an application, before the call leaves it. 

Three required sources

Building AI ROI measurement requires three data sources, stitched together in a single model.

1. Cost data, normalized across providers. Every AI provider delivers cost differently. OpenAI invoices in one taxonomy, Anthropic in another, fine-tuning vendors and inference platforms each in their own. Cloud GPU costs sit in AWS or Azure billing. Vector database costs land in Pinecone or Snowflake invoices. None interoperate by default. Normalization is necessary but not sufficient. It will put all your AI costs in one schema. It does not tell you what they produced.
2. Application-layer telemetry. This is the source most organizations are missing, and the one that makes AI ROI structurally different from cloud ROI. It requires instrumenting AI calls inside your application across six categories: request-level tracing tied to a customer or session ID; feature attribution tied to the product surface that triggered the call; agent-step capture for multi-step workflows; retry and fallback identification so recovery costs don’t get attributed to primary calls; model selection logging that records which model was chosen and why; and outcome capture that ties each call to whether it produced business value. None of this data exists in the provider’s billing. All of it has to be captured at the moment the call is made and stored in a system that can be stitched to the cost data.
3. Business data. Revenue, customer segments, product hierarchies, and feature usage. The same business data already feeding your CRM and analytics stack, mapped to the customers and features the telemetry layer attributes calls to.

Stitched together, the three sources produce the unit economics every AI investment decision now requires: cost per customer interaction, margin per feature, profitability per agent workflow, ROI per model choice. None of these can be calculated from billing data alone. None can be calculated from telemetry alone. They require all three sources, modeled together in a way that maps cost to outcome.

Why agentic AI makes this urgent

Single-call inference is the easy case. One request, one cost, one customer, one outcome.

Agentic workflows are different. An agent decomposes a task into multiple steps. Each step calls a model. Some steps fall back to a different model when the first fails. Some steps retry on a poor result. Some steps invoke external tools that themselves cost money. A single user request can produce dozens of inference calls across multiple providers, with the cost compounding in ways the provider invoice cannot disaggregate.

If telemetry does not capture agent-step granularity, no one will know which steps are profitable. Aggregate costs will show up three weeks later in the invoice. By then, the workflow has been running at scale, customers are onboarded, and unprofitable paths have been retried thousands of times.

When agents make the calls, the volume of cost-generating events without business context attached grows by an order of magnitude. The window for instrumenting this before it becomes unmanageable is closing.

What changes when the three sources come together

Once the three sources are stitched together, the AI investment conversation changes.

Five different ways to build the same AI capability stop looking equivalent. They converge on adoption metrics and diverge by 10x on cost. The team picks the approach that delivers a similar business outcome at one-fifth the cost, because the team can finally see the difference. Product teams design features with margin awareness from the architecture phase, not from the post-launch budget review. Engineering teams choose model architectures with cost-per-outcome data alongside latency and quality. Leadership evaluates AI initiatives the way they evaluate any other capital allocation: on unit economics, not on the engagement chart. Aggregated invoices track the cost per customer interaction. Engagement metrics reveal margin per feature. Gut-instinct model selection is checked against real cost-per-outcome model selection results. 

Within seconds, everyone can see which AI features are profitable, which should scale, and which should be killed. This is the insight everyone is looking for and companies that achieve it will optimize the benefits of AI.

The build trap

AI costs are compounding now. The board is not waiting 18 months for an internal project to reach production.

The temptation to build it anyway has never been sharper. AI coding tools have changed what a small engineering team can ship in a quarter. The instrumentation layer looks tractable. The cost normalization looks like a weekend project. The semantic model feels like something a senior engineer could draft over a sprint.

It is a trap. Three reasons.

Volume is the first. A production AI footprint generates millions of telemetry events per hour, and that volume scales with agentic adoption. Real-time ingestion, correlation, and attribution at that scale is not the same problem as vibe coding a prototype in an afternoon. It is a permanent operational system that has to be right every minute of every day.

The vendor landscape is the second. Cost data arrives in delayed billing windows from providers with non-interoperable schemas. Schemas change without notice. New AI providers enter the landscape monthly, each with its own taxonomy and metering. The system is not built once. It is maintained against a moving target that moves faster than most internal release cycles.

The third is what the first two add up to: this is business-critical infrastructure. The CFO and the board are going to make capital allocation decisions on the data this system produces. When schema drift goes unnoticed for two weeks, when an agent telemetry stream stops correlating to a vendor that quietly changed its billing API, the cost of being wrong is not a sprint of cleanup. It is a quarter of misallocated capital.

The build-vs.-buy question for engineering leaders has changed. It’s not “can we build this?” The honest answer is yes. The real question is whether the marginal hour of your strongest engineers is best spent stitching cost data to telemetry to business outcomes, or building the AI products that produce the revenue the cost data is measuring.

The capability is reproducible in weeks. The choice is whether to spend the next 18 months building it, or the next 18 months acting on it.

—

New Tech Forum provides a venue for technology leaders—including vendors and other outside contributors—to explore and discuss emerging enterprise technology in unprecedented depth and breadth. The selection is subjective, based on our pick of the technologies we believe to be important and of greatest interest to InfoWorld readers. InfoWorld does not accept marketing collateral for publication and reserves the right to edit all contributed content. Send all inquiries to doug_dineley@foundryco.com.

SAP-Anwenderunternehmen stehen unter Druck, auf SAP S/4HANA zu wechseln, weil die Mainstream-Wartung für SAP ERP (SAP ECC 6.0) Ende 2027 ausläuft und die bis Ende 2030 geltende erweiterte Wartung kostenpflichtig ist.

Zwar stellt SAP mit der „SAP ERP, Private Edition, Transition Option“ eine weitere Wartungsverlängerung bis 2033 in Aussicht. Da diese einer Neuimplementierung gleichkommt, bleibt SAP-Kunden mehr Zeit für die Planung, die Analyse und das Changemanagement. Der Nachteil: Wer diese Option nutzt, läuft Gefahr, technologisch ins Hintertreffen zu geraten, da Innovationen nahezu ausschließlich für SAP S/4HANA bereitgestellt werden.

Zögerliche SAP-S/4HANA-Transformation trotz Wartungsdruck

Obwohl der Druck hoch ist, hat eine große Zahl der SAP-Bestandskunden die Transformation auf die seit 2015 verfügbare ERP-Suite offenbar noch nicht vollzogen. Eine COMPUTERWOCHE-Expertenrunde zeigte, wo die größten Hürden liegen und was erfolgreiche Projekte auszeichnet.

Warum etliche Unternehmen die Transformation vor dem regulären Wartungsende scheuen und stattdessen zwei Prozent Mehrkosten für die erweiterte Wartung einkalkulieren, brachte ein Teilnehmender auf den Punkt: Firmen haben über Jahrzehnte in ihre SAP-ERP-Lösung investiert und sie an individuelle Prozessanforderungen angepasst, damit die Abläufe entlang der Supply Chain reibungslos laufen. Er habe daher in den vergangenen zehn Jahren keinen Kunden erlebt, der freiwillig umsteigen wollte. Alle hätten gesagt, dass sie müssen.

Nach Erfahrungswerten eines weiteren Experten nutzen erst rund 20 Prozent der SAP-Kunden SAP S/4HANA als Kernapplikation produktiv, unter anderem, weil entsprechende Transformationsprojekte auf sieben bis neun Jahre angelegt sind.

Altlasten bremsen die SAP-S/4HANA-Transformation

Unternehmen, die sich für den Wechsel entscheiden, verzichten häufig auf jede Modernisierung. Sie vollziehen einen Eins-zu-eins-Umstieg ohne Code-Modifikation, sei es in Form einer System Conversion (Brownfield-Ansatz) oder per Lift and Shift in SAP Cloud ERP Private (früher: SAP S/4HANA Cloud Private Edition). Dabei ist eine große Zahl von SAP-ERP-Installationen gar nicht zukunftsfähig, weil sie auf Prozessen aus den 1990er Jahren basieren und im Lauf der Jahre durch zahlreiche Eigenentwicklungen erweitert wurden.

Nicht selten gibt es bis zu mehrere tausend kundeneigene Programme im Z/Y-Namensraum, die zum Teil nicht mehr genutzt werden und das System unnötig belasten. Die Experten waren sich einig, dass eine solche rein technische Migration, bei der Altlasten wie ABAP-Eigenentwicklungen mitgeschleppt werden, keinen Mehrwert für das Unternehmen bringt.

Es muss geprüft werden, welche Eigenentwicklungen beibehalten werden, weil sie wettbewerbsdifferenzierend und damit geschäftskritisch sind, und welche gelöscht werden müssen, weil sie nicht genutzt werden oder weil es dafür inzwischen SAP-Standardfunktionen gibt. Handlungsbedarf besteht auch bei einer dreistelligen Anzahl von Buchungskreisen, von denen niemand weiß, welche noch benötigt werden, oder bei zahlreichen Dubletten in den Kreditoren- und Debitorenstammdaten.

Studie “SAP S4HANA”: Sie können sich noch beteiligen!

Zum Thema SAP S4HANA führt die COMPUTERWOCHE derzeit eine Multi-Client-Studie unter IT-Verantwortlichen durch. Haben Sie Fragen zu dieser Studie oder wollen Partner bei dieser Studie werden, helfen wir Ihnen unter research-sales@foundryco.com gerne weiter.

Migrations-Tools und KI-Agenten beschleunigen den Umstieg

Um diesen Prüf- und Bereinigungsaufwand zu bewältigen, bietet SAP mehrere Tools, um die Transformation auf SAP S/4HANA zu vereinfachen: darunter SAP Activate, SAP Cloud ALM, Migration Cockpit, Readiness Check, Custom-Code-Check oder Modifikationsabgleich. Ergänzt werden sie durch Lösungen wie Signavio für die Prozessanalyse. Die Experten schätzen den Effizienzgewinn durch solche Migrationswerkzeuge auf 30 bis 50 Prozent.

Zusätzliche Produktivität versprechen KI-Agenten, die Altsysteme automatisiert analysieren, Code bereinigen und Datenflüsse transformieren. Das reduziert den Migrationsaufwand und beschleunigt den Umstieg.

Scope-Management als Schlüssel für den Projekterfolg

Einig waren sich die Teilnehmenden, dass SAP-S/4HANA-Transformationsprojekte in der Regel nicht an der Technologie scheitern, sondern an einer mangelhaften Scope-Definition und am unzureichenden Changemanagement.

Ein Scope-Management vor dem Projektstart, das berücksichtigt, wie viel Veränderung der IT-Organisation und den Fachbereichen zugemutet werden kann, sei essenziell für den Erfolg, sagte einer der Teilnehmenden. Es erfordert die Fähigkeit zu priorisieren und ein iteratives Vorgehen, bei dem zunächst geschäftskritische Must-haves und Quick Wins umgesetzt werden. Weniger wichtige Nice-to-haves folgen später. Wer dagegen in der Konzeptionsphase bereits den großen Wurf anstrebt, wird voraussichtlich scheitern. Als Beispiel wurde der direkte Umstieg auf ein SAP-S/4HANA-Kernsystem genannt, das nach dem Clean-Core-Ansatz von nicht mehr lauffähigen Programmen und obsoleten Erweiterungen bereinigt ist.

Genauso wichtig ist ein Change-Management, das Mitarbeitende von Beginn an einbezieht, die nötige Akzeptanz schafft und vom Top-Management aktiv unterstützt wird, sowie eine verbindliche Governance mit klaren Zielvorgaben. Unverzichtbar ist auch die Einbindung der Fachbereiche. Sie stellt die größte Herausforderung dar, da Unternehmen befürchten, dass durch die SAP-S/4HANA-Transformation zu viele personelle Ressourcen gebunden werden, die dann für Kernaufgaben fehlen. Kommt es vor, dass IT und Fachbereiche als Antipoden agieren, sollte ein Change-Coach als Vermittler eingesetzt werden.

Hybride Betriebsmodelle setzen sich langfristig durch

Bereits vor dem Projektstart muss abschließend geklärt sein, welches Betriebsmodell für SAP S/4HANA am besten zu einem Unternehmen und seinen Zielen passt, auch mit Blick auf regulatorische Anforderungen. Das ist häufig nicht der Fall, sodass das Projektteam unnötig Zeit damit verbringt, das passende Betriebsmodell zu ermitteln. Das bremst Transformationsvorhaben aus.

Nach Ansicht eines Teilnehmenden wird sich langfristig ein hybrides Betriebsmodell durchsetzen, bei dem der SAP-Kunde entscheidet, welche Elemente der SAP-S/4HANA-Landschaft in einer Hyperscaler-Cloud, einer souveränen Cloud und/oder On-Premises laufen. Eine weitere, weitgehend unbekannte Möglichkeit ist der Betrieb im Rahmen der Customer-Data-Center-Option (CDC) von SAP Cloud ERP Private (früher: SAP S/4HANA Cloud Private Edition), die aus Gründen wie Datenschutz, Leistung und Souveränität eine interessante Alternative sein kann.

Mehrere Experten stellen darüber hinaus fest, dass die vollwertige SaaS-Lösung SAP Cloud ERP Public (früher: SAP S/4HANA Cloud Public Edition) inzwischen verstärkt eingesetzt wird. Sie stellt vorkonfigurierte Kern-ERP-Funktionen (Best Practices) bereit und lässt sich relativ schnell einführen, ermöglicht aber kaum individuelle Anpassungen. Diese Abstriche nehmen Unternehmen in Kauf, um von regelmäßigen, automatischen Upgrades und technologischen Innovationen zu profitieren.

Kritisiert wurde allerdings, dass die Cloud-Diskussion häufig unter begrifflichen Unschärfen leidet. So macht der Betrieb von SAP S/4HANA in einer Hyperscaler- oder SAP-Cloud die Lösung noch lange nicht zum Software-as-a-Service-Angebot. Solche Ungenauigkeiten irritierten SAP-Kunden und bremsten die Entscheidungsfindung. Letztlich sind beim Cloud-Betrieb auch die Kosten entscheidend. Zwar wollen viele Unternehmen anfangs maximale Sicherheit mit Private Network und Confidential Computing, wählen dann aber günstigere Commercial-Cloud-Angebote. Ausnahmen bilden regulierte Branchen und der öffentliche Sektor.

Ob hybrides Betriebsmodell oder Kostenfrage, am Ende entscheidet über den Projekterfolg nicht allein die Technologie, sondern auch, wie diszipliniert Scope und Wandel im Unternehmen gesteuert werden.

Teilnehmer der Round-Table “SAP S4HANA 2027”

Nvidia has introduced its next-generation Spectrum-X Ethernet networking platform, positioning it as a key building block for the next wave of “gigascale” AI factories designed to connect millions of GPUs while reducing power consumption and operational costs.

The networking platform is part of Nvidia’s broader Rubin architecture, which integrates six major components—including the Vera CPU, Rubin GPU, NVLink 6 switches, ConnectX-9 SuperNICs, BlueField-4 DPUs and the new Spectrum-6 Ethernet switches—into a tightly coupled AI infrastructure stack.

The company says this level of integration underscores the growing importance of networking in AI. In its most recent quarter, networking sales were $11 billion, up 263% year-over-year, prompting the ever-subtle CEO Jensen Huang to declare “We’re … now the largest networking company in the world” during Nvidia’s earnings call.

While GPUs have dominated headlines during the AI boom, networking has increasingly become a performance bottleneck as models grow larger and require faster communication between compute nodes.

Spectrum-X is a comprehensive platform consisting of Spectrum Ethernet switches, Spectrum-X SuperNICs, ConnectX NICs, BlueField DPUs, LinkX cabling and transceivers and Spectrum-XGS for networking between multiple AI data centers.

At the heart of the platform is the Spectrum-6 switch, a 102.4-terabit-per-second Ethernet switch system delivering 2x the capacity of previous-generation systems and built as part of the Vera Rubin platform. 

Spectrum-6 is designed to operate an AI factory as one end-to-end computing system. It combines new Ethernet switches, network interface cards, silicon photonics and software designed to improve bandwidth while lowering latency and power usage.

The new Spectrum-X technology intelligently balances traffic across available paths, rapidly bypasses failures and precisely recovers when data traveling across a network fails to reach its destination. Plus, support for open network operating systems and a choice of RDMA transport models gives AI builders flexibility without compromising performance.

Nvidia says its latest silicon photonics technology integrates optical communications directly into networking hardware, reducing power consumption while increasing bandwidth density compared with conventional optical networking approaches.

The announcement reflects a broader shift in AI infrastructure strategy. Early AI clusters were primarily limited by GPU availability, but hyperscale operators are increasingly finding that networking, storage and power delivery determine how efficiently massive GPU deployments perform. By integrating networking more tightly with compute, Nvidia aims to eliminate communication bottlenecks that emerge as AI systems scale beyond a single data center or even multiple campuses.

New to the platform is Nvidia’s previously announced Spectrum-XGS technology, which links geographically distributed data centers into a single AI supercomputer. Together, the technologies are designed to enable organizations to construct AI factories that span multiple facilities while operating as a unified computing environment.

You are one of the six billion people (75% of the world population) online today, and every click you make is routed through the data center. Data centers, whether knowingly or unknowingly, play a very critical role in your daily online activities. With an increasing population, increasing usage of online presence, and now omniscient AI, the demand for data centers has increased manyfold, and the trend seems similar to the year 2000, when telephone towers were built to accommodate increased digital presence.

To win the AI race, Hyperscalers (Google, Meta, Amazon, Microsoft, Alibaba, Oracle, IBM, Tencent) are spending huge amounts of money on data center development. In the USA, the hyperscalers are planning to spend $650 billion in 2026, which is around 70% higher than 2025 spending, according to Yahoo Finance.

As per McKinsey research, by 2030, companies will invest around $7 trillion in Capex on data center infrastructure globally. More than $4 trillion will go towards computing hardware investment. More than 40% of this spending will be invested in the United States.

Demand growth in data centers

McKinsey analysis shows that global demand for data center capacity can more than triple by 2030, with a compound annual growth rate (CAGR) of around 22 per cent. In the USA, data center demand could grow by 20-25 per cent at the same time.  

The data center industry is currently undergoing a violent transition. We are moving away from the era of “bespoke projects” — where every facility was a unique architectural feat — into an era of industrialized infrastructure. With global capital expenditure in the sector projected to hit $3 trillion by 2028, the “bottleneck” has shifted. It is no longer about securing the capital; it is about the physics of the supply chain.

During my tenure at Vantage, managing the intersection of data center construction management (DCCM) and infrastructure management (DCIM), I saw firsthand that the most successful players aren’t those with the deepest pockets, but those with the most integrated data threads. If your construction data in Procore doesn’t talk to your financial reality in Yardi, or your operational capacity in DCIM, you aren’t building a data center — you’re managing a $500 million blind spot.

The death of “sticks and bricks”

Traditionally, data center construction was treated as civil engineering. But for the modern CIO, a data center is a complex product assembly.

The challenges are systemic. We are facing 50-to-80-week lead times for critical “long-pole” items: extra-high-voltage transformers, switchgear, and the liquid cooling manifolds required for the next generation of AI chips. In this environment, the traditional reactive supply chain model is a liability.

To survive the $3 trillion inflow, we must adopt a hybrid-agile SCOR (supply chain operations reference) model. This means applying continuous flow logic to standardized components (like modular power skids) while maintaining agile responsiveness for the volatile IT layer.

The digital bridge: Construction management software  to ERP

The most significant opportunity for CIOs lies in financial-operational integration. In many organizations, there is a data chasm between the construction site and the corporate office. Construction teams live in the construction management software tracking tasks, trades, RFIs and payment submittals. Finance teams operate corporate offices with project management tools (worth remembering that email is a key tool besides spreadsheets and phone calls) tracking capex schedule, commissioning timeline, capital drawdowns and asset lifecycle management.

These systems are siloed; the CIO loses visibility into the total cost to serve. By integrating construction management into the financial system, we create real-time financial visibility of the build. We can see exactly how a three-week delay in a chiller delivery impacts the internal rate of return (IRR) of the entire asset. This isn’t just accounting; it’s strategic telemetry.

From BIM to DCIM: The lifecycle thread

The second bridge is the handoff from construction (BIM) to operations (DCIM). Historically, this handoff was a nightmare of PDFs and Excel sheets. By the time the operations team took the keys, the “as-built” design information was already out of date.

The opportunity today is to maintain a continuous data thread. The sensor data and asset tags established during the “make” phase in our SCOR model should flow directly into the DCIM. This allows us to perform virtual commissioning. Before a single server is racked, we should already have a digital replica of the airflow, power distribution, and cooling capacity.

The scientific inference: AI in the supply chain

As someone who has led data and AI initiatives, I’ve seen the hype. But in the supply chain, the application of AI must be pragmatic, not generative. We don’t need AI to write poems; we need it for predictive procurement. Most organizations manage their procurement in ERP or a mix of a few tools to manage the source-to-settle business flow. Adopting a system workflow improves data collection and the state of the procurement cycle, which in turn provides AI with the context to draw inferences for possible delays and anomalies in original specifications and change orders.

By applying machine learning to global logistics data, we can move from just-in-time to just-in-case modeling. AI can analyze geopolitical risks, shipping lane congestion, and raw material pricing to tell a CIO: “Order your switchgear 14 months early, or your Q3 2027 ‘Power On’ date is at risk.”

Bringing it all together: AI in the supply chain and finance

Why it matters: Approximately 70% of the capex is on this workflow and making timely decisions that directly impact the ready-for-service dates. The current challenge of reactionary adjustment in design to procurement to local fit-out is a significant drain on capex efficiency and cost of capital. Because single-project delivery delays have become so volatile, a massive structural shift is occurring in how digital infrastructure is funded. Single-project debt (special purpose vehicles or SPVs) is facing severe friction. To insulate themselves from RFS shocks, the largest institutional players are moving toward permanent platform capital — aggregating exposure across dozens of global assets simultaneously.

Navigating these complex multi-billion-dollar engineering projects distributed over a large geography is simply unmanageable without rethinking and re-engineering existing tools and processes.

The roadmap for the modern CIO

To lead this transformation, CIOs must move beyond the IT shop mentality and become master orchestrators of the supply chain. Here is the 1500-word reality condensed into three mandates:

1. Standardize the product: Stop designing bespoke facilities. Move toward DFMA (design for manufacturing and assembly). If 70% of your data center can be built in a factory and shipped as modules, you bypass the unpredictability of on-site labor.
2. Integrate the financial stack: If your construction management software and your ERP aren’t sharing a heartbeat, your data is lying to you. Force the integration between Procore and Yardi.
3. Own the long poles: Don’t leave the procurement of transformers and cooling units to general contractors. Use your balance sheet to secure these items years in advance. In 2026, inventory is the new currency.

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In the client-server era, the penalty for inefficient programming, such as unoptimized database calls, was largely confined to application responsiveness. Today, in the AI era, code, architectural, and platform inefficiencies are no longer just a performance issue, they’re a financial and environmental liability. Left unchecked, poor code cascades into soaring token costs and spikes data center power consumption, directly undermining both cloud budgets and corporate sustainability goals.

AI’s impact on sustainability

By 2029, IDC projects that the number of actively deployed AI agents will exceed 1 billion worldwide, which is 40 times more than in 2025. And these agents will perform 217 billion actions per day.

To deliver on this demand, AI data centers are being built out at an unprecedented rate, with Gartner forecasting that global spending on data centers over the next three years will increase 31.7% to surpass $650 billion, driven primarily by hyperscaler cloud providers building out AI foundations, and optimizing servers for heavy AI workloads.

All this presents a significant strain on the energy grid as well as environmental sustainability, including:

• The power double-down: The International Energy Agency (IEA) projects that global data center electricity consumption will more than double from about 415 to 945 TWh by 2030, primarily fueled by energy-intensive accelerated computing for AI.
• The inference premium: AI workloads are vastly more demanding than standard web activities. A gen AI query consumes roughly 10 times the electricity of a conventional keyword search, or roughly 2.9 watt-hours as opposed to 0.3 watt-hours.
• Water consumption: Cooling these dense clusters is highly resource intensive. Global AI-related water demand is expected to reach 4.2 to 6.6 billion cubic meters by 2027.

The good news, however, is it’s not all out of the control of end user organizations and CIOs. Just as in the client-server era, through careful planning and execution, CIOs have the potential to significantly improve the performance, costs, and sustainability impacts of their AI application portfolio.

Here are four recommendations to maximize value as you look across your AI applications and infrastructure estate.

Revisit business objectives in light of AI

AI applications and platforms bring several new headaches for CIOs and CFOs in terms of FinOps. The variable nature of AI vendor billing due to variable monthly token costs is just one well-known example. To avoid unpleasant surprises, be sure to carefully review vendor contracts to decipher pricing models. Look for what’s included in seat-based license fees and what’s added as variable charges for agentic AI usage.

In addition, explore new metrics and KPIs such as intelligence per watt to help make sense of your return on AI. Just as miles per gallon helps us evaluate new car purchases, IPW can help to measure the computational efficiency of a system. It quantifies how much intelligence — typically measured in AI inferences, tokens processed, or model training iterations — a processor can deliver for every watt of electrical power it consumes.

According to Max Romanenko, chief engineering officer at relational database platform EDB, cost per query tells you almost nothing in an agentic world where autonomous systems are spinning up databases, pipelines, and queries around the clock. “The metric that matters is intelligence per watt, how much useful AI you get for every unit of energy you spend,” he says. “It isn’t just an environmental number, it’s also a performance indicator.”

With the measurements in place, you can then start to manage and optimize each layer in the AI stack from the infrastructure, or hyperscaler, layer to your own data and application layers.

It’s important to bear in mind that high token usage isn’t necessarily a bad thing. It depends on the net value delivered by each AI application and use case. Managing and optimizing the AI stack is important, but you’ll also want to measure the business value being delivered by each of these applications so you can measure your return.

Take a sovereign AI approach when evaluating hyperscalers

As you work with hyperscalers like Amazon, Google and Microsoft, it’s important to understand how they charge and how much, but also their environmental footprints. For example, by reading their sustainability reports, you can find out their annual water consumption across their global data centers and compare them with other providers.

In 2025, Amazon’s global data center operations used 0.12 liters of water per kilowatt-hour, which amounts to 2.5 billion gallons, or 5% of the annual water consumed by the metro Seattle area. The company has been able to operate more than seven times better than the industry average and have improved their water efficiency by 52% since 2021.

As demand for cloud computing and AI grows, water efficiency is another important metric for CIOs to monitor within hyperscaler ESG reports. While not at the same level of regulation as scope 2 and 3 greenhouse gas (GHG) emissions reporting, enterprises need to pay increasing attention to water use efficiency (WUE) with water scarcity becoming a growing risk for hyperscalers.

The key requisite at the infrastructure layer, though, is to ensure sovereign AI. This doesn’t mean you need to own everything, but you need control over your AI-driven operations when conditions change. With 71% of global executives stating that switching their primary AI vendor or model would be difficult if required today, it’s important to understand AI dependencies and be able to avoid vendor lock-in. 

Control efficiency at the data layer

The AI energy conversation has fixated on models and GPUs, but every agent, model, and inference call runs on the data layer beneath them, and that’s the one place a CIO can actually move the numbers.

“You can’t control consumption at the model layer,” says Romanenko. “Agents consume what they consume. But you can control efficiency at the data layer, and for most enterprises that’s the only real lever they have. Optimize search, retrieval, and vector indexing where the work actually happens and you cut compute, cost, and carbon at the same time. Ignore it, and it’s like running the heat with every window open.”

Ann Dunkin, distinguished professor of the practice at Georgia Tech, adds that CIOs who bring models in house and run them in their own infrastructure, or in the cloud infrastructure of their choosing, can have more control over the sustainability of inference, as well as of their costs and how their data is used.

Fine tune the application layer

When balancing a mix of commercial AI packages and custom-built code, costs can quickly spiral due to inefficient design and orchestration, redundant APIs, and unoptimized model routing.

With inference calls costing approximately 10 times that of conventional web queries, for custom AI applications, it’s important to design them to only use probabilistic code where necessary. Since many custom applications utilize a combination of both probabilistic and deterministic code, this is exactly where software developers need to make smart choices in their designs.

Other techniques to fine tune the application layer include semantic caching, intelligent model routing, and internal AI capability registries. “CIOs can implement intelligent routing solutions to select the most cost-efficient model for every prompt,” says Dunkin. “The most flexible routing solutions can drop into a user’s existing environment and orchestrate the actions of the company’s existing models.”

For CIOs looking to maximize the business value of every AI application in their portfolio, these new considerations, including new metrics, tools and approaches from the infrastructure layer all the way up to the application layer, should be an essential part of the equation.

When Anthropic unveiled Project Glasswing and the Mythos model, much of the discussion focused on the capabilities themselves.

Security leaders debated what these systems could mean for vulnerability discovery, exploit development and the pace of offensive innovation. Researchers examined technical benchmarks. Industry observers questioned how quickly these capabilities might fall into attackers’ hands.

Those conversations are important. They also point to a larger question that predominates my discussions with CISOs: How much time do we have?

Over the past year, conversations about AI in cybersecurity have changed noticeably. Twelve months ago, security leaders wanted to understand whether AI could meaningfully improve security operations. They wanted to know whether it could accurately investigate alerts, reduce analyst workload and operate reliably in production environments.

Today, security leaders are asking about timelines, implementation, how quickly AI is changing the threat landscape and what that means for how security teams operate.

Anthropic’s Mythos and Glasswing, OpenAI’s Daybreak and advances in DeepSeek accelerate those conversations. Each development provides another glimpse into the pace at which AI capabilities are advancing.

AI now reasons through security problems that historically required highly specialized expertise. The implications span vulnerability discovery, attack-path analysis, reconnaissance, social engineering and security operations.

The shift reflects a broader reality: cybersecurity is entering a period where the pace of adaptation may matter as much as the quality of defenses themselves. AI is accelerating both offense and defense simultaneously. Organizations are quickly redesigning security operations around that reality.

One consequence is becoming increasingly visible. For years, cybersecurity teams invested enormous effort in discovering threats, identifying vulnerabilities, gathering telemetry and collecting intelligence. AI is accelerating many of those activities simultaneously. Visibility is improving. Discovery is accelerating. Investigations are becoming faster and more comprehensive.

The bottleneck is beginning to move. The challenge increasingly centers on how quickly organizations can act on what they know. The organizations that gain an advantage may not be the ones with the most information. They will be the ones who can operationalize that information the fastest.

The timeline is compressing

Cybersecurity has experienced many major technology transitions. Cloud computing changed infrastructure. Mobile devices expanded the attack surface. Digital transformation connected systems that were previously isolated.

AI introduces a different dynamic.

Most technology transitions unfolded over years. Organizations had time to evaluate, pilot, deploy and gradually adapt operating models.

The current AI cycle moves at a different pace.

Capabilities improve continuously. New models arrive every few months. New research emerges every few weeks. Security teams absorb developments at the same time attackers do.

Vulnerability discovery provides a useful example. Security teams have long operated around a familiar cycle of discovery, validation, remediation and protection. AI systems accelerate every stage of that process. Similar patterns exist in phishing, reconnaissance, social engineering and attack planning.

A vulnerability that once moved through that cycle over weeks increasingly now moves through those stages in days or, in some cases, hours.

Attackers are already operating at the speed of AI. Defenders are now focused on reaching the same level of operational speed.

This shift is changing the questions CISOs ask.

Early discussions focused on capability. Could AI investigate alerts accurately? Could it operate reliably in production environments? Could it be trusted with meaningful security work?

As organizations gained experience with AI, the discussion shifted toward implementation. Security teams began evaluating where AI could create operational leverage and how quickly they could deploy it into existing workflows.

Today, many CISOs are focused on timing.

The pace of advancement is influencing planning horizons, budget decisions and operating-model discussions. Security leaders are evaluating how quickly they can introduce AI into investigations, threat hunting, detection engineering and response workflows. Boards are asking questions. Executive teams are paying attention.

Security programs that once viewed AI as a future initiative increasingly view it as a current operational priority.

The industry is moving from evaluating AI as a technology to incorporating AI as a security capability.

The timeline compression creates pressure on the traditional security operations model. Investigation speed, response speed and defensive coverage increasingly determine whether organizations can keep pace with adversaries operating with AI assistance.

Security operations are entering a new phase

The impact of AI is becoming particularly visible inside the SOC.

Many security operations centers were built around a straightforward assumption: alerts flow to human analysts who conduct investigations. Operational capacity scales primarily through hiring.

The volume of security data, the number of alerts and the complexity of modern environments have steadily increased. Security teams have responded by building processes, adding tools and creating specialized analyst roles.

AI introduces a new source of operational capacity.

Investigations that require analysts to examine dozens or hundreds of artifacts across endpoint, identity, cloud, network and email systems can now be performed in minutes. Analysts gain access to investigative depth and consistency that would be difficult to achieve manually at scale.

Many security leaders now view this capability through the lens of operating model design. They are examining how investigations are performed, how work is distributed and where human expertise creates the greatest value.

The evolution of the analyst role

One of the most important developments emerging from early production deployments is the evolution of analyst responsibilities.

Security analysts remain central to security operations. Their expertise becomes even more valuable as AI systems take on larger portions of investigative work.

Threat hunting, detection engineering, response strategy, governance and oversight are receiving increased attention. Analysts spend more time shaping how investigations are conducted, evaluating outcomes and improving overall security operations.

Many organizations are already beginning this shift.

Teams are investing more heavily in proactive security activities. Detection engineering programs are expanding. Threat hunting is becoming more accessible. Analysts are spending more time improving systems and less time repeating investigative tasks.

These changes create what I think of as an analyst-amplified SOC: an environment where AI expands the reach of security professionals and enables deeper security work across the organization.

Trust is critical and it doesn’t have to compromise speed

Faced with a compressing timeline, the instinct is to treat speed and trust as a trade-off, i.e., move faster, verify less. That trade-off feels inevitable. It isn’t.

You don’t trust AI in the abstract. You trust that a system understands your tools, your telemetry and the edge cases that only exist in your network. The problem was never speed. It’s speed without context. The faster a context-blind system runs, the more decisions you’re left unable to verify.

The tension eases when the system is quick to deploy and tunes to your environment once it’s there, rather than treating every network the same. Speed stops being the thing you trade against trust. The more it learns about your environment, the sharper and more trustworthy it becomes, so the two compound rather than compete. Trust still develops through operational evidence such as measurable outcomes, visibility into decisions and consistent performance. But where that evidence accrues matters.

The organizations making the fastest real progress understand this. They don’t compromise quality and trust for speed. They invest in AI that earns trust inside their own environment, so they don’t have to choose.

Leadership during a period of rapid change

The conversations surrounding Mythos and Glasswing reflect a broader reality facing security leaders.

AI is becoming part of both offense and defense. Security teams are incorporating it into investigations, detection engineering, response workflows and threat hunting. Attackers are incorporating it into their own operations.

Security leaders have an opportunity to modernize operating models, expand defensive capacity and build organizational experience while these capabilities continue to evolve.

The organizations making progress today are investing in readiness. They are building experience, adapting workflows and preparing teams for a new model of security operations.

The next phase of cybersecurity will be defined by how effectively organizations combine human judgment with machine-scale execution.

The question facing security leaders is increasingly clear: How quickly can their organizations adapt to a continuously changing threat environment?

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The evolution of Java is the subject of a just-released documentary about the programming language and development platform. “The Java Story: The Official Documentary” tells the story of Java through interviews with the engineers who created it and shepherded it through three decades.

Produced by CultRepo and sponsored by Oracle, JetBrains, IBM, and Azul, the documentary follows Java from its set-top box and browser-based origins at Sun Microsystems in the 1990s and through its rise to dominate server-side computing in the 2000s, the “dark ages” and resurgence with Java 8 under Oracle in the 2010s, and its continuing modernization and promising role in AI today. “From its humble beginnings as a project code-named ‘Oak’ at Sun Microsystems to becoming a global standard for enterprise software and billions of devices, Java’s journey is one of radical innovation, strategic pivots, and enduring community strength,” said Cult.Repo.

The documentary also delves into Sun’s bitter Java licensing dispute with Microsoft, Oracle’s suit of Google over its use of Java APIs Android (Google won), the creation of the Java Community Process, Sun’s open-sourcing of Java, and Oracle’s switch to the six-month release cycle. Technical enhancements such as lambda expressions in Java 8, virtual threads in Java 21 (Project Loom), and the ongoing refactor to bring value objects to the Java object model (Project Valhalla) also get attention.

Technical experts and other Java figures interviewed in the documentary include James Gosling, creator of Java; Kim Polese, Java’s first product manager; Carla Schroer, director of Java compatibility at Sun Microsystems; James Duncan Davidson, creator of Apache Tomcat; Mark Reinhold, chief architect of the Java Platform Group at Oracle; Brian Goetz, Java language architect in the Java Platform Group at Oracle; Rod Johnson, creator of Spring; and Gavin King, creator of Hibernate.

What if the next breakthrough in Enterprise AI doesn’t come from computer science alone?

What if it comes from applying principles that physicists have understood for more than a century?

According to Gartner, rising token-driven AI spend is straining budgets and challenging cost justification. As organizations race to deploy generative AI and agentic systems, token consumption dominates nearly every executive discussion: How many tokens did we use? How much did inference cost? Can we reduce our AI bill?

These are important operational questions. But they are not the strategic questions.

I believe the economics of enterprise AI can be viewed through the lens of three well-established principles from thermodynamics: the conservation of energy, entropy, and exergy.

While these principles describe physical systems — not AI —they offer a useful way to think about how organizations should measure AI success.

Principle 1: Value is created through transformation

The 1^st Law of Thermodynamics tells us that energy cannot be created or destroyed. It can only be transformed.

Enterprise AI presents a similar management lesson: Tokens are not valuable because they are consumed; they become valuable only when they are transformed into business outcomes: A faster loan application decision. A better customer experience. Faster and more accurate software. Reduced fraud. Higher employee productivity. A new product. A strategic insight.

The executive question therefore is not, “How many tokens did we consume?” It is: “How much business value did those tokens create?”

This leads to a new executive metric: return on tokens (ROT).

Just as organizations measure return on investment, they should begin measuring the business value generated for every million AI tokens consumed.

The organizations that win will not necessarily consume fewer tokens. They will generate more value from every token they use.

Principle 2: Every transformation creates waste

The 2nd Law of Thermodynamics teaches us that every energy transformation introduces inefficiencies.

Some energy inevitably becomes less useful for doing work.

The same pattern appears in enterprise AI: Not every token contributes equally to business outcomes.

Some are spent on:

• Repeated prompts
• Oversized context windows
• Redundant reasoning
• Hallucinations requiring correction
• Multiple agents performing the same work
• Expensive models solving simple problems

Those tokens are not “lost.” They simply produce very little business value.

I think of this as token entropy. Every enterprise deploying AI will experience it. The goal is not to eliminate token entropy completely — that would be unrealistic. The goal is to continuously identify it, measure it and reduce it. Because every unnecessary token represents an opportunity to improve both cost and business performance.

Principle 3: Useful work matters more than energy consumed

Thermodynamics introduces another important idea: Exergy.

Unlike energy, exergy measures how much energy can actually be converted into useful work. Two systems may consume the same amount of energy while producing dramatically different results.

The same is true for enterprise AI.

Imagine two companies each consuming one billion tokens. One produces meeting summaries. The other transforms claims operations, accelerates software delivery, detects fraud, improves customer retention, and creates new revenue opportunities. Both consumed the same number of tokens. Only one extracted significantly more business value.

Borrowing this concept as a management analogy, I call this token exergy.

Token exergy represents an organization’s ability to convert AI intelligence into meaningful business outcomes:

• High token exergy means AI is solving important business problems.
• Low token exergy means AI is generating activity without creating proportional enterprise value.

The distinction matters, because activity is not the same as impact.

A new responsibility for CIOs

For years, CIOs have monitored infrastructure: Cloud costs, storage, network utilization, GPU consumption.

These metrics remain important, but they tell only part of the story.

Token usage needs to be measured, planned, optimized and governed with the same discipline as any other cloud resource. This means that the next generation of CIO dashboards should answer different questions:

• What is our return on tokens?
• Where is token entropy reducing our effectiveness?
• How much token exergy are we generating?
• Which AI initiatives produce the greatest business value?
• Which use cases create the strongest competitive advantage?

These are no longer technology metrics. They are business metrics.

The next generation of CIOs will not simply deploy AI. They will manage an economy of intelligence.

Their role will resemble that of a portfolio manager — allocating AI capacity where it creates the greatest enterprise value, reducing waste and continuously improving the productivity of every autonomous workflow.

That responsibility cannot be fulfilled by dashboards alone.

It requires an intelligent layer capable of observing, learning and optimizing the entire AI  ecosystem. Three-layer enterprise agentic architecture Will enable this.

The next competitive advantage

Every major technology revolution eventually shifts from measuring inputs to measuring outcomes:

• Factories stopped measuring coal consumption and began measuring productivity.
• Cloud computing evolved beyond server utilization to business agility.
• Digital businesses measured customer acquisition costs and lifetime value.

Enterprise AI is approaching the same inflection point. Organizations that focus only on token costs will optimize for efficiency. Organizations that measure return on tokens, minimize token entropy and maximize token exergy will optimize for business transformation.

That is a fundamentally different objective. And I believe it will separate AI leaders from AI followers.

Because in the end, the future of enterprise AI will not be determined by how many tokens an organization consumes. It will be determined by how effectively those tokens are transformed into lasting business value. The AI adoption spending spree is over. Time to focus on value.

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AMD has expanded its AI infrastructure portfolio with the launch of Helios, an open, rackscale AI infrastructure designed for frontier AI and sovereign computing. Helios is built around AMD’s next-generation Instinct GPUs, EPYC Venice processors, Pensando networking and the ROCm software stack.

“Helios is AMD’s first complete AI rack system with GPUs, CPUs, and networking built together, instead of selling separate chips. It is well suited for training large AI models, memory heavy models, long context processing and high volume inference, and AMD’s biggest shot yet at challenging Nvidia’s dominance,” said Pareekh Jain, CEO at EIIRTrend & Pareekh Consulting.

AMD has also secured an early hyperscale deployment for Helios with Microsoft agreeing to deploy it to power its frontier model AI inference, its AI customers, and support Azure AI services.

The architecture behind Helios

The launch of Helios marks AMD’s latest attempt to strengthen its position in a market where Nvidia continues to dominate AI infrastructure. Unlike previous AMD AI offerings centred on individual accelerators, Helios is designed as a complete rack-scale system integrating compute, networking and software.

According to Jain, Helios goes up against Nvidia’s Vera Rubin rack. “Nvidia is faster on raw inference speed and has a faster internal connection between chips whereas AMD wins on memory size and offers better value for the price and power used. It’s standout feature is memory, where each rack packs about 50% more total memory than Nvidia’s competing system, which helps run very large AI models. It also uses open, industry-standard connections instead of Nvidia’s private technology, giving buyers more flexibility,” he said.

The AMD Helios rackscale design includes 72 AMD Instinct MI455X GPUs with AMD EPYC Venice CPUs and AMD Pensando Vulcano networking using UALink, optimized for compute, data movement, and system efficiency. The platform also supports both OCP and MX data types, delivering up to 2.9 EFLOPS of FP4 and 1.4 EFLOPS of FP8 compute for AI training and inference.

It also integrates 31TB of HBM4 memory with 19.6TB/s of memory bandwidth, while a liquid-cooling design uses quick-disconnect connections to efficiently dissipate heat. It is designed on open standards including OCP Open Rack Wide (ORW), Ultra Accelerator Link (UALink), and Ultra Ethernet Consortium (UEC) and can be scaled efficiently across datacenters while optimizing power, cooling, and serviceability for modern AI infrastructure, said the company.

On the security front, Helios incorporates a hardware root of trust and continuous attestation at every layer. It supports hardware-enforced isolation, encrypted memory and interconnects to help protect AI models, data and workloads in multi-tenant environments.

The software challenge

While the launch of Helios might help AMD close the hardware gap with Nvidia’s rack-scale systems, it will be the software compatibility that will be the real driver of enterprise adoption.

For this, AMD is expanding its ROCm AI software platform too, which supports frameworks including PyTorch, TensorFlow, and JAX, for enabling high-throughput inference and efficient distributed training while preserving familiar developer workflows.

Jain stated While hardware parity or superiority in memory bandwidth is achievable, software maturity remains the key differentiator for Nvidia. The Nvidia’s CUDA software has a 15-20 year head start, and almost every AI tool, tutorial, and codebase defaults to it.

He added software has been AMD’s weak spot. AMD has improved  ROCm a lot but it still lags behind on the newest, most specialized optimizations, and setup is more complicated. For everyday AI work, ROCm is usable but for cutting-edge performance, CUDA still leads.

Evaluating the trade-offs

For CIOs evaluating AI infrastructure, Helios launch brings in another option to a market that has largely revolved around Nvidia’s dominance. But when considering Helios, CIOs will have to evaluate factors such as performance, software readiness, deployment models, procurement timelines and total cost of ownership before committing to a platform.

While AMD has not publicly announced a specific price tag for the Helios, Jain believes it to be noticeably cheaper to buy and run with lower chip prices and lower power use per GPU.

“It gives companies a real second option besides Nvidia, easing supply shortages and giving leverage in negotiations. The catch is software, where teams need to check whether their AI tools run well on AMD’s stack, since some advanced tools are still CUDA only,” Jain said.

For CIOs planning to deploy both, Jain warns the two systems can’t be plugged together into one combined machine as they use different, incompatible connection technology. But companies can and do run both side by side in the same data center, just as separate systems handling different jobs.

Major AI labs are unleashing forward-deployed engineers (FDEs) to try and grab enterprise customers. Large consultancies are dishing out tokens and assembling armies of consultants — both human and agent — to do the same.

But smaller firms are in the mix now, as well. AI is helping 28Stone Consulting, a New York-based, 230-person technology consultancy for capital markets, punch above its weight against larger rivals in the rush to deliver FDEs.

In this Q&A, Thomas Dolan and Frank Erickson, founders of 28Stone, argue that agentic AI isn’t a one-size-fits-all solution in vertical markets; success takes discipline, deep domain expertise, and human involvement to mitigate risk.

Many enterprises continue to struggle with the use of AI agents, which is consultancies are stepping in to get projects off the ground. 28Stone is among those that have published blueprints and methodologies on the development and delivery of agentic AI workflows with humans in the loop.

Computerworld spoke with both founding partners about why companies are still stumbling with agentic AI rollouts, and what a disciplined delivery process actually looks like.

After 15 years of delivering software for capital markets firms, is ‘AI-first’ a real distinction or just positioning?

Dolan: “We’re not shying away from being AI-forward. What needs to shine through is AI done intelligently — not stuff you get by buying some tokens for somebody on the trading desk. We’re an AI-first firm.”

Erickson: “And it’s temporary. At some point, AI is going to be synonymous with software development.

“The whole idea of an AI SDLC (software development lifecycle) versus an SDLC is going to be one and the same, a lot like cloud computing today. To not include AI in your strategy, you’d look like a COBOL vendor.”

What does agentic AI delivery look like?

Dolan: “We’ve got several AI initiatives delivering a pure agentic approach. We’ve doubled down on the human expertise wrapper in the SDLC. That doesn’t mean sacrificing any of the benefits of the AI models — quite the opposite.

“You don’t achieve anywhere near the same level of value from applying AI without keeping that expertise — industry, functional and technical — throughout the process.”

Where do humans stay in the loop once agents are doing the work?

Dolan: “We’re believers in starting with requirements discovery. Someone who knows the analytical nuances of a good business analyst is critically important; shaping a product owner’s business information through a markup file that can be fed into a BA agent, then treating the output as if it came from a very fast junior BA. Only then is the story complete.

“The developer takes that story, transforms it into the most efficient input, then owns the output, because they’re accountable for that code. A developer should own the code on both the input and output side.

“Your product owner, who knows the business, that’s great. But expecting them to interact with an agent and output enterprise code is ridiculous. It’s not a great plan.“

Why not just put one do-everything person in charge of AI and agents?

Erickson: “Every analyst, programmer or software engineer isn’t a great requirements analyst. And a great domain analyst with some technical background won’t know if the agent’s code is garbage, maintainable, performant.

“It’s unrealistic to expect one individual to have that breadth across domain, software engineering, testing, deployment. Clients ask all the time, and we push back: ‘Great, if you can find that guy, they’re few and far between.’ To deliver at the enterprise level, you need the human expertise, at depth.“

Dolan: “There’s system speed and latency, important in parts of finance. Then there’s speed of delivery, because other areas evolve quickly and time-to-market is critical.

“Our human wrapper may at first pass come across as a little slowed down. Maybe it is. But [Erickson] has a good analogy about one of the dangers of AI: you can end up going really fast in the wrong direction. By the time you look up, you’re way off base and have to backtrack.“

What about AI in your sector do you think is overhyped?

Dolan: “The hype around the ease of use of AI and the democratization of enterprise software delivery — that ‘anybody could do it now, it’s all being done by machines’ — is another idea that could prove costly in the long run.

“This do-it-yourself reaction is dangerous for clients, and for trust in the overall AI benefit, which is real. We compare it to the beginning of offshoring 20, 30 years ago: a golden idea that was going to cure everything. A lot of firms did it thoughtlessly, thinking it’s just labor arbitrage, and it almost inevitably failed. That all-or-nothing mentality missed that offshoring is an amazing way of getting better value for your dollar, but it has to be done thoughtfully, so the delivery process — the thing that ties it all together — stays unsevered.

“We’re seeing that now. I’ve heard, ‘We’ll just push a button, the machine’s building the system.’ The machine is not building the system. It might be writing the code, the story, running the tests.

The system is built by a team of engineers you bring in and trust. My fear is that people will say, ‘We don’t need this vendor or this technology team. I’ve got a product team. They might not be able to code at all, but they know the business,’ and it fails dramatically. 

“Then people say, ‘We played with AI, it’s not ready yet,’ and throw it all away. One of the best things we can do is ensure clients know the benefit is real.“

Erickson: “The hype can be summed up in a single phrase: vibe coding. That has done AI a massive disservice, because there’s a huge difference between vibe coding and enterprise software development, and some of the loudest proponents of AI are too latched on to it. In our industry, the only way to succeed would be a stable of unicorns. It just doesn’t scale. I get perturbed when our people internally refer to AI tooling as vibe coding; if they think that’s what they’re doing, they’re misunderstood.“

When you engage clients at different levels of AI maturity, how do you get them to a understand what works?

Dolan: “95% of our take on an agentic approach is in line with everyone else’s, but that 5% matters, especially in requirements discovery, in who’s giving the requirements and how they’re thought of. It can set you up for dramatic errors, given the speed at which you’re moving.

“There’s a dangerous human tendency we’re seeing among clients to try and cut corners at the start of a project and — in lieu of having deep, expert driven discovery sessions — just summarize what they may want using AI.

“We would hope our clients are collaborative, everyone understanding it’s early days. If a client insists on doing something we feel strongly against, like a product owner completely owning everything right up to code generation, that’s an issue we have to either push back strongly on or step out of the accountability for.“

AI body shops — LLM providers and giant consultancies — are emerging to help enterprises deploy AI. Does that model work?

Dolan: “Whether you’re partnering with an LLM or with an AI-first, generic software provider — ‘Hey, we’re not industry guys, but we know AI delivery’ — you end up, if you’re a bank or a broker-dealer, saying: ‘All right, we know our business, these guys know the AI side of it. What could go wrong? Put us together and we’ll have quality engineering.’

“The problem is what you miss: the know-how of putting industry and technical expertise together and actually delivering financial services systems. The people working at the generic delivery firms, whether an AI-only firm or a body shop somewhere, don’t have that capability.“

Does AI change the economics for smaller consultancies like yours competing against the big firms, and does it cut both ways?

Dolan: “Over our 15 years pre-AI, there were two recurring reasons we’d lose a project. One: ‘We’d love to work with you guys, given your subject matter expertise, but the costs just aren’t there compared to my budgets. I’m being forced to go to a body shop or an [offshore] delivery center.’ The other side of that coin: ‘We love your capabilities, but you’re a firm of 230 people and I need 300, 400 people.’

“AI changes the options for clients. You don’t have to sacrifice the niche vendor who knows your space just because you need a larger team or a cost target. AI levels the playing field and should allow smaller firms to compete with the larger, big-box generic firms, the Accentures of the world.“

Erickson: “It redefines what scale means. You can look at velocity as a measure of your cost to deliver, not a rate card. Scale can’t be defined in terms of headcount anymore. It’s got to be defined in terms of output.

“There’s a threat in it, too. If you’re an Accenture with hundreds of thousands of low-cost software engineers, how do you train all those people? I feel for them. But for us, a couple hundred people with a specific domain focus, it’s a huge opportunity.“

How has the profile of the people you and others hire changed with this agentic process?

Erickson: “You’re still looking for people with strong engineering and design backgrounds, and communication skills, because they interact across the software development lifecycle more than in the past.

“Many take too much joy in typing out perfect code. Sorry, I don’t need you writing for-loops and classes anymore. I need you reviewing them, understanding them, operating at a higher level. That’s a different kind of person: an engineer, not a programmer or a coder. On the [business analyst] side it’s similar: people took great pride in detailed user stories covering every path. Now it’s conversations, prompts, reviewing output — less doing, more interacting.

“More than ever, they have to be interested in the domain. They can’t just be, ‘I want to learn everything there is to know about Java.’ That’s too narrow. They don’t have to be an expert; they have to be interested. In our case, capital markets is a specific niche. The biggest challenge is getting familiar with the tools — finding time, while delivering for customers, to ramp up and make the mistakes you need to without jeopardizing projects.“

What about governance? Who’s keeping AI delivery and its costs under control?

Erickson: “This is evolving rapidly. People aren’t sure how to put governance around this. The most obvious is financial governance. People are starting to get hefty bills. One of our clients spent a million dollars on tokens over the last eight weeks alone. Sticker shock. The token-maxing policies are starting to show their flaws. It’s wild west still: learn on the fly, then figure out what needs to be governed.“

Are CIOs actually opening their wallets? And when they do, what’s the smarter way to invest?

Erickson: “There’s still a lot of caution. Forecasts keep going down on how long something should take. So: ‘I could wait three months and maybe still get it delivered by the same date someone’s promising me now, but for half the price. I’m going to wait and see when equilibrium is met.’ We haven’t seen the wallets open up like crazy — it’s slow adoption.“

Dolan: “One of our clients is looking at it from a productivity-boost perspective: instead of doing the same for less, I can do much more for the same. AI lets clients pull the trigger on things they wouldn’t have in the past — projects that might not have been approved pre-AI, where the costs have come down to a point that’s palatable with the business.“

Erickson: “And that’s the story we’re hoping to hear more of. There isn’t a huge cost anymore to exploring a business opportunity. The time and money that would have gone to a return-on-investment study could be spent on a proof-of-concept with AI, and the project done a few weeks later. Maybe [there’s] a hint of things to come, where decisions start being made quicker. 

“There’s a little fear on our side, though: a lot of tiny little projects is tough for a consulting business.“

The emergence of artificial intelligence is beginning to expose a profound weakness in the way modern enterprises measure performance.

For decades, business evaluation systems have been built around the logic of the industrial and transactional economy. Revenue growth, operating margins, earnings per share, labor productivity, return on investment and market share became the dominant indicators of organizational success because they reflected the economic realities of a world in which value creation was primarily tied to physical production, labor efficiency, scale and later the automation of information processing. AI, however, is altering the very structure of enterprise value creation, and in doing so it is creating a widening separation between perceived future value and actual realized economic performance.

Much of the current discussion surrounding AI performance measurement reflects this tension. The overwhelming majority of AI-related metrics being celebrated today are not direct measures of realized enterprise outcomes. They are largely indicators of capability formation, market positioning, experimentation or investor signaling. Metrics such as AI spending levels, number of AI use cases, GPUs deployed, copilots implemented, models placed into production, AI hiring growth or agentic AI pilots all serve primarily as proxies for anticipated future advantage. These indicators may influence stock valuations, analyst sentiment and strategic narratives, but their relationship to measurable operational performance is often indirect, delayed or in some cases entirely speculative.

This distinction is critically important because capital markets have historically rewarded the expectation of technological transformation long before actual economic results materialized. During previous technological revolutions—including electrification, enterprise resource planning, the internet, cloud computing and mobile platforms—valuation expansion frequently preceded measurable productivity gains by many years. The market priced future possibility before operational economics caught up. In many instances, investors rewarded firms simply for appearing strategically aligned with the dominant technological shift of the era. AI appears to be following a similar trajectory.

The phenomenon resembles the famous productivity paradox articulated by economist Robert Solow, who observed that “you can see the computer age everywhere but in the productivity statistics.” AI today is visible everywhere: in investor presentations, earnings calls, technology conferences, product announcements and boardroom strategies. Yet in many industries, its measurable contribution to enterprise productivity, profitability or economic resilience remains difficult to isolate with precision. This does not necessarily mean AI lacks value. Rather, it reflects the reality that traditional accounting and performance systems were never designed to measure the forms of value AI increasingly produces.

Artificial intelligence creates benefits that are often diffuse, cumulative and difficult to attribute directly to financial outcomes. AI may improve forecasting accuracy, reduce fraud, accelerate decision cycles, augment employee effectiveness, improve customer interactions, optimize logistics or enhance cybersecurity resilience. These benefits frequently manifest as second-order effects distributed across the enterprise rather than as immediately visible financial events. The causal chain between AI investment and realized business performance can therefore become extraordinarily difficult to quantify. A company may become operationally more intelligent without immediately becoming measurably more profitable.

At the same time, AI introduces a profound danger: organizations may increasingly optimize for technological narrative rather than durable enterprise economics. Many firms today are pursuing AI primarily because markets reward the appearance of AI leadership. Investor enthusiasm, analyst pressure and competitive fear create incentives to demonstrate visible AI activity regardless of whether measurable economic value has actually been achieved. In this environment, AI metrics can easily become instruments of valuation signaling rather than instruments of operational truth.

This distinction between signaling and substance may become one of the defining economic challenges of the AI era. An organization may announce aggressive AI deployment programs, reduce headcount and report short-term margin improvements while simultaneously increasing hidden forms of technological fragility. Infrastructure costs may rise dramatically as GPU consumption, cloud usage, data engineering requirements and cybersecurity complexity expand. Technical debt may accelerate as AI-generated code proliferates without sufficient architectural discipline. Institutional knowledge may erode as organizations become excessively dependent on opaque models and automated systems. Long-term innovation capacity may weaken if enterprises divert disproportionate resources toward maintaining internally generated AI systems rather than building new strategic capabilities.

What measuring AI value might actually look like

The distinction between AI activity and AI value becomes clearer when viewed through the kinds of measures organizations choose to track. Many enterprises today emphasize indicators such as the number of AI models deployed, copilots implemented, agents created, prompts executed, tokens consumed or employees using AI tools. These metrics demonstrate adoption and technological activity, but they reveal relatively little about whether AI is producing meaningful business outcomes.

Measures of enterprise value look quite different. A manufacturer might evaluate whether AI improves demand forecasting accuracy enough to reduce inventory carrying costs or stockouts. A financial institution might measure whether AI meaningfully lowers fraud losses, accelerates loan processing or improves regulatory compliance. A healthcare provider could assess reductions in administrative burden, faster clinical decision support or improvements in patient throughput. In each case, the objective is not simply to measure AI deployment, but to determine whether AI creates measurable improvements in operational performance, economic outcomes or organizational resilience.

Ultimately, organizations may need to ask a different question: not “How much AI are we using?” but “How much business value does each unit of AI investment create?” That shift—from measuring technological activity to measuring economic outcomes—may become one of the defining management disciplines of the AI era.

Under traditional accounting frameworks, many of these deteriorations remain largely invisible. Quarterly earnings may improve even as underlying enterprise resilience declines. Stock prices may rise even as operational complexity becomes increasingly unsustainable. In this sense, the AI era threatens to widen the gap between financial appearance and organizational reality.

This is why the future of enterprise measurement cannot simply involve adding AI metrics to existing financial scorecards. The challenge is far deeper. AI forces a reconsideration of what business performance actually means. Historically, enterprises were measured largely through static indicators of efficiency and output. Increasingly, however, competitive advantage may depend less on traditional efficiency and more on adaptive intelligence: the ability of an organization to learn faster, make better decisions, integrate human and machine capabilities effectively, manage technological complexity sustainably and convert computational power into durable economic outcomes.

The most important future performance measures may therefore revolve around questions traditional accounting rarely addresses. How effectively does an enterprise convert technology investment into sustainable business capability? How economically efficient are its AI operations relative to the value they generate? How resilient is the organization to AI failure, cybersecurity disruption or infrastructure inflation? How successfully does it preserve and amplify human expertise rather than simply eliminate labor? How rapidly can it learn, adapt and operationalize new knowledge?

These are not merely technology questions. They are questions of enterprise economics, organizational sustainability and long-term competitive viability.

The companies that ultimately succeed in the AI era may not be those with the largest AI budgets, the greatest number of pilots or the most aggressive automation programs. They may instead be the firms that best understand the economics of technological capability itself: organizations capable of balancing innovation with resilience, automation with human augmentation and technological ambition with sustainable operational design.

The coming decade is therefore likely to produce a widening divide between enterprises optimizing for AI-driven valuation narratives and enterprises optimizing for measurable, durable economic performance. In the short term, these may appear to be the same thing.

Over time, however, the distinction will become increasingly visible. Some organizations will discover that AI has enhanced genuine enterprise capability. Others will discover that they merely optimized the appearance of transformation while silently accumulating new forms of economic and operational risk.

Artificial intelligence is not simply changing business operations. It is exposing the inadequacy of many of the measures used to evaluate business success itself. The central challenge of the AI economy may ultimately become not whether organizations adopt AI, but whether they can distinguish between technological activity and actual economic value creation.

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Enterprise AI is entering a new phase. While the first wave of generative AI focused on human productivity and content creation, the next wave — agentic AI — will fundamentally change how organizations operate. Agentic AI systems are capable of reasoning, planning, making decisions and executing actions across applications, workflows and business processes with minimal human intervention.

As organizations move toward agentic frameworks that can independently resolve customer issues, optimize supply chains, manage infrastructure, coordinate workflows and even operate IT environments, one reality becomes clear: The network becomes the nervous system of the autonomous enterprise.

The infrastructure requirements of agentic AI differ dramatically from those of traditional applications. These systems are highly distributed, continuously exchanging information, interacting with APIs, accessing multiple data sources and making decisions in real time. The performance, security, visibility and adaptability of the network will directly determine the effectiveness of AI agents. Organizations that view AI readiness solely as a compute or data challenge risk overlooking one of the most critical enablers of future success — the network itself.

From AI-ready networks to autonomous networks

The long-term destination is the autonomous network: A network capable of self-monitoring, self-optimizing, self-healing and self-securing through the use of AI and automation. However, autonomous networking will not emerge overnight. The investments enterprises make today to support agentic AI are the same foundational building blocks required for tomorrow’s autonomous operations.

In many ways, agentic AI serves as both the driver and beneficiary of network transformation. AI agents require networks that can dynamically adapt to changing demands, while autonomous networks will increasingly rely on AI agents to manage and optimize themselves. The result is a reinforcing cycle where AI and networking evolve together.

The core characteristics of the network of the future

One of the most critical requirements for AI-ready networks is real-time observability and telemetry. Agentic AI thrives on context, and AI agents must continuously gather information from users, applications, devices, clouds, security systems and operational platforms. Future-ready networks must provide end-to-end visibility across campus, branch, cloud and data center environments. High-fidelity telemetry streams, real-time performance monitoring, application-aware analytics, AI-aware analytics and unified operational visibility are essential. Without comprehensive visibility, AI agents operate with incomplete information, limiting their effectiveness and increasing operational risk.

Another cornerstone is intent-based automation. Traditional networks are configured manually, often requiring administrators to define thousands of individual settings. In contrast, autonomous networks operate according to business intent. Enterprises increasingly need to define desired outcomes — such as maintaining application performance, optimizing user experience or automatically isolating compromised devices — rather than micromanaging configurations. The network continuously adjusts itself to achieve those objectives, providing the foundation upon which AI agents can make decisions safely and consistently.

Agentic AI also introduces entirely new traffic patterns that require AI-optimized connectivity. Large language models, retrieval systems, vector databases, cloud AI services, edge inference platforms and multi-agent orchestration frameworks create significant east-west and cloud-bound traffic. Future networks must provide low-latency connectivity, high-capacity fabrics, dynamic traffic engineering, edge-to-cloud optimization and policies that identify and prioritize AI workloads. The organizations that can move data efficiently will gain a competitive advantage in AI execution speed and responsiveness.

Security is another non-negotiable element. Agentic AI expands the enterprise attack surface because AI agents increasingly access sensitive systems, interact with APIs, consume proprietary data and execute actions across business environments. Future-ready networks must embed zero trust security into their architecture, with continuous identity verification, fine-grained access controls, microsegmentation, policy-driven authorization and continuous risk assessment. Security can no longer be bolted onto the network; it must be integral to its design and AI agents need to adhere to their own identity rules.

Finally, distributed intelligence across edge and cloud environments is essential. Many AI use cases require decisions to occur close to the source of data. Manufacturing systems, healthcare environments, retail operations, transportation networks and smart facilities often cannot tolerate the latency associated with centralized processing. Future networks must support edge AI deployment, distributed processing architectures, local inference, hybrid cloud operations and intelligent workload placement. The ability to move intelligence closer to users, devices and operational environments will become increasingly important as agentic AI expands across the enterprise.

Human expertise remains essential

Despite rapid advances in AI, the future will not eliminate the need for human expertise. In fact, it may increase its importance. One of the most significant misconceptions surrounding AI is that automation eliminates the need for skilled professionals. The reality is that autonomous systems require expert oversight, governance, validation and continuous optimization.

As AI systems become more capable, enterprises will need professionals who understand network architecture, security policy, AI governance, operational risk management, data quality, regulatory compliance and human-in-the-loop decision frameworks. The challenge is compounded by the unprecedented pace of AI innovation. New models, architectures, orchestration frameworks, security concerns and governance requirements emerge almost monthly. Most enterprise IT teams cannot be expected to independently evaluate every development while simultaneously modernizing infrastructure and maintaining day-to-day operations.

Organizations need access to experts who continuously track technology evolution, understand emerging best practices and can help translate innovation into practical deployment strategies. These experts provide not only implementation support but also ongoing operational guidance, helping enterprises maintain appropriate human oversight as AI capabilities expand. The future is not fully autonomous decision-making without people; it is intelligent automation operating under expert human governance.

5 actions enterprises should take now

Organizations should be preparing for the autonomous future right now. The following investments deliver immediate value while laying the groundwork for long-term AI transformation:

1. Modernize network observability. Establish comprehensive visibility across users, applications, devices, clouds and infrastructure. Rich telemetry and operational data will become the fuel that powers both Agentic AI and autonomous network operations.
2. Build an automation-first operating model. Identify repetitive operational processes and begin automating them. Automation maturity is a prerequisite for autonomous networking and creates the operational foundation AI agents will eventually leverage.
3. Adopt zero-trust principles across the enterprise. Implement identity-centric security controls, segmentation and continuous policy enforcement. As AI agents gain access to enterprise systems, security architectures must evolve to leverage the same identity controls.
4. Design for edge-to-cloud AI workloads. Evaluate network architectures for latency, bandwidth and resiliency requirements associated with distributed AI. Future AI deployments will span data centers, public clouds, branch locations and edge environments.
5. Invest in skills and strategic partnerships. Develop internal expertise while leveraging partners that possess deep networking, automation, security and AI knowledge. Human expertise remains one of the most important success factors in building AI-ready and autonomous infrastructures.

The road ahead

Agentic AI is poised to transform enterprise operations in much the same way cloud computing transformed infrastructure and the internet transformed business itself. But AI agents cannot operate effectively without a modern network foundation. The enterprises that succeed will recognize that AI readiness extends beyond models and data. It requires networks that are observable, automated, secure, intelligent and increasingly autonomous. The investments made today in AI-ready networking are not merely infrastructure upgrades — they are strategic building blocks toward the autonomous enterprise of the future, where AI agents and autonomous networks work together under human guidance to deliver unprecedented levels of agility, efficiency, and innovation.

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The industry conversation around AI infrastructure has narrowed to a single dimension: scale. The focus is on GPUs, power, cooling and the massive physical footprint required to train and run AI agents and models. At the same time, organizations are adjusting to the speed and scale with which AI is identifying vulnerabilities — which is much faster than remediation can be started.

However, almost no one is talking about the infrastructure layer that actually determines whether AI workloads remain secure, resilient and compliant. This is the layer that runs the world’s most sensitive, regulated, high‑value workloads. Thankfully, it already has the guardrails needed for an era where vulnerabilities are discovered faster than ever. But are they being set correctly?

With more than one billion AI agents expected by 2029, organizations need a plan for their infrastructure layer to withstand threats from new frontier models, maintain uptime and protect data sovereignty. As they scale AI deployments, enterprises must secure the infrastructure AI depends on.

These five steps outline what organizations can do now to strengthen their infrastructure posture using proven, enterprise‑grade practices for current and future threats.

Step 1: Build on infrastructure engineered for security and resilience

Infrastructure must be secure by design, not secured after deployment. The systems that have historically supported the world’s most critical workloads — from global payments to national‑scale operations — were built with this principle at their core. If you’ve already invested in systems designed for mission-critical workloads, you’ve checked this first box.

Enterprise‑grade systems have been engineered with multilayered security controls, pervasive encryption, confidential computing and hardware‑level protections that make exploitation dramatically harder. A frontier model in the hands of a bad actor can chain weaknesses faster than humans can patch them — unless the underlying infrastructure is built to absorb and deflect that pressure.

When I meet with clients, I often tell them what our own security teams operate under: we assume vulnerabilities will continue to be discovered and we design for that reality. That mindset is what separates infrastructure that survives frontier‑model pressure from infrastructure that collapses under it. These systems continue to evolve with predictive failure analysis and accelerated recovery, allowing systems to continue operating even during investigation and remediation.

Step 2: Treat uptime and resilience as a security requirement

If your infrastructure fails, your workloads will too. These systems depend on uninterrupted access to data and compute, and even seconds of downtime can compound operational and security risk. Enterprise‑grade platforms deliver near‑continuous availability through redundant hardware paths and intelligent system recovery.

The easiest fix? Ample resources and an up-to-date infrastructure foundation. Too often, a security problem is really an availability problem that turned into a security problem. When systems fall behind on maintenance, capacity or recovery readiness, they create the exact openings a frontier model can exploit. A delayed maintenance cycle or a recovery process that takes too long becomes the opening a frontier model can exploit. Resilience is not just about uptime. It is a security control. And this will not be the last time a frontier model tests the limits of that resilience.

Data resilience is equally critical. Cyber‑resilient storage systems with immutable backups and rapid recovery capabilities ensure that critical data remains protected and available even after a cyber incident or disaster.

Step 3: Operate for continuous discovery, not periodic defense

The idea that you can prevent every vulnerability is outdated. The more realistic model is continuous discovery — finding, prioritizing and addressing issues faster than they can be exploited. Organizations must operate as if vulnerabilities will be found faster than ever.  Instead of relying on static defenses, they should emphasize layered controls, rapid triage, continuous delivery of fixes and coordinated disclosure.

Frontier models in the hands of bad actors can amplify security challenges by connecting vulnerabilities. They can chain misconfigurations, outdated components and privilege gaps into a viable attack route in minutes. And the more outdated or inconsistent an environment is, the easier that chaining becomes.

Modern operational‑intelligence tooling helps them surface that risk, prioritize what matters and act before an attacker can exploit the gaps. These platforms help organizations understand where they are exposed, identify which maintenance issues carry the highest operational and security risk, and reduce the blind spots that frontier‑model attackers are increasingly adept at exploiting.

It’s critical to assess how you manage your vulnerabilities. Internal processes should address severe vulnerabilities within hours, regardless of whether they are discovered by humans, traditional tooling or AI‑driven techniques. As AI accelerates vulnerability chaining, this posture maintains operational integrity and reduces exposure.

Step 4: Use AI to defend AI

Leading organizations are integrating AI‑driven threat detection directly into their infrastructure. On operating systems like z/OS, AI‑based analytics can identify anomalous and potentially malicious data access, reducing investigation time and limiting impact.

Beyond detection, autonomous security models are emerging that continuously govern risk, investigate threats and enforce resilience across identities, data, applications, cloud and networks. Across the industry, we’re seeing the rise of autonomous security frameworks that use AI to assess posture, detect threats and harden controls without waiting for human intervention. Combined with modern AI‑accelerated processors, these capabilities allow threats to be analyzed and mitigated directly within the infrastructure itself.

Step 5: Join a broader ecosystem fighting frontier model threats

No organization can face frontier model threats alone. These risks require coordinated industry action. Frontier models give both good and bad actors the ability to analyze codebases, chain vulnerabilities and probe infrastructure at a scale that no single enterprise can counter on its own.

Across the industry, coalitions are emerging to assess and remediate vulnerabilities discovered by frontier-class models and to help enterprises build AI resilience. Initiatives like Project Glasswing, Project QuiltWorks and the Frontier AI Alliance are examples of how providers, consultancies and security firms are beginning to coordinate their response to AI-accelerated threats.

Organizations can also benefit from independent assessments that evaluate readiness for agentic-enabled threats and identify gaps across their infrastructure. These assessments help teams understand where they are exposed, how frontier models might chain those exposures together, and what actions will reduce the likelihood of a high-impact event.

Participating in these programs is one of the most concrete steps enterprises can take today to strengthen their AI infrastructure posture.

Your AI security depends on the infrastructure you choose

AI is accelerating both innovation and risk. The organizations that succeed will be those that build on resilient, secure infrastructure, prioritize uptime as a security control, operate with continuous discovery, use AI to defend AI and participate in the global response to frontier‑model threats. In the end, your ability to scale AI safely comes down to the infrastructure you trust to run it.

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The Linux Foundation has launched the x402 Foundation, a new industry body that will oversee the x402 payment protocol, an open standard designed to let AI agents, applications, and APIs pay for digital services over HTTP.

The x402 protocol, originally developed by Coinbase, embeds payment capabilities directly into web interactions, allowing AI agents, APIs, and applications to send and receive payments as part of standard HTTP requests rather than through separate checkout or billing systems, according to the Linux Foundation. The protocol supports multiple payment types, from traditional cards to stablecoins.

“Under the neutral governance of the Linux Foundation, the x402 Foundation will allow developers, financial institutions, cloud providers, and other community members to collaboratively shape the protocol’s development,” the Linux Foundation said in a statement. “This open structure ensures that payments remain highly secure and adaptable, supporting multiple payment types, from traditional cards to stablecoins, without vendor lock-in.”

Forty organizations have joined the x402 Foundation since the Linux Foundation announced plans for the project in April, the statement added.

Members include Amazon Web Services (AWS), Google, Visa, Mastercard, Stripe, American Express, Cloudflare, Coinbase, Fiserv, Ripple, and Shopify, representing cloud providers, payment companies, and financial services firms.

Foundation targets a gap in agent-to-agent commerce

The announcement comes as software vendors add AI agents to business applications and developer platforms. Many of these agents are designed to call APIs, access third-party services, and complete tasks on behalf of users, creating demand for ways to pay for digital services without relying on separate payment systems.

Jim Zemlin, CEO of the Linux Foundation, said AI agents and automated systems are becoming active participants in the global economy but have lacked a native, secure way to transact.

“By bringing together leading companies across finance, technology and more, we’re ensuring that the payment layer of the internet remains neutral, highly interoperable and ready to support digital commerce,” he said in the statement.

The protocol addresses what several founding members described as a structural gap in how the web handles machine-initiated transactions.

How the protocol works

The x402 protocol is based on the HTTP 402 “Payment Required” status code, which was originally defined for internet payments but has seen limited use.

The protocol is intended for transactions involving paid APIs, AI services, cloud computing resources, digital content, and other online services that require payment. The Linux Foundation said it also supports machine-to-machine payments between software applications and can work with multiple payment methods, including traditional payment cards and stablecoins.

Today, developers typically monetize APIs and online services through subscriptions, prepaid credits, API keys, or account-based billing systems. The Linux Foundation said x402 is designed to standardize payment directly within HTTP interactions, allowing applications and AI agents to complete transactions without separate payment flows or custom billing integrations.

Governance structure spans payments, cloud and blockchain sectors

Under the Linux Foundation’s neutral governance model, the x402 Foundation will let developers, financial institutions, cloud providers, and other members collaboratively shape the protocol’s development.

“This open structure ensures that payments remain highly secure and adaptable, supporting multiple payment types, from traditional cards to stablecoins, without vendor lock-in,” the statement added.

Technology vendors have introduced AI agents that can search for information, generate code, analyze documents, and interact with external applications. Many of those systems also rely on APIs and cloud-based services to complete tasks.

According to the Linux Foundation, x402 is designed to provide a standard way for those applications and agents to pay for services during a transaction rather than relying on separate purchasing or billing processes. The foundation said developers can integrate payment capabilities into applications using open web standards across different payment providers and software platforms.

Growing ecosystem

The launch comes as technology vendors begin adding payment capabilities to AI agent platforms.

In May, AWS introduced Amazon Bedrock AgentCore Payments in preview, enabling AI agents to autonomously pay for APIs, Model Context Protocol (MCP) servers, web content, and other agents. AWS had then said the service uses the x402 protocol to negotiate HTTP 402 payment requests while handling wallet authentication, spending controls, and transaction logging.

The Linux Foundation said the x402 Foundation will serve as the neutral home for the protocol as organizations contribute technical specifications, implementation guidance, and future extensions. The Linux Foundation and Coinbase did not respond to requests for additional comment by publication time.

The article originally appeared on InfoWorld.

Meta is reportedly planning a cloud business that would sell access to AI computing power and models, extending its internal infrastructure into a commercial service for outside developers and enterprises. Reuters, citing Bloomberg’s reporting, noted that the planned offering would allow customers to access AI models hosted on Meta’s infrastructure and pay based on usage, effectively positioning the company in the infrastructure-as-a-service and AI platform markets. On the surface, this seems like a logical next step. If you are already spending enormous amounts of money to build AI infrastructure, there is a natural temptation to ask whether some of that investment can be monetized beyond your own internal use.

I have seen this pattern before. A company builds sophisticated internal systems, recognizes their value, and then begins to imagine that becoming a cloud provider is simply a matter of exposing those capabilities to external customers. It sounds straightforward, especially given the excitement around AI and the demand for high-performance infrastructure. But cloud computing is not just another distribution model. It is not simply a matter of offering on-demand multitenant services and charging a fee. It is a deeply operational, trust-based business in a market that punishes companies that do not fully understand what enterprise customers require.

A crowded neocloud market

The first problem Meta faces is that this is not an open opportunity. The neocloud space, meaning purpose-built AI infrastructure delivered as a service, is already crowded and increasingly difficult to enter. Amazon, Microsoft, and Google dominate the conversation for obvious reasons. They have years of cloud operating experience, broad service portfolios, global reach, mature ecosystems, and deeply established enterprise relationships. Oracle remains a serious player as well, especially in enterprise applications, data platforms, and performance-sensitive workloads. IBM still matters in hybrid cloud, operations, and industries where governance and regulatory rigor remain central.

That list alone should give Meta pause. These companies are not just infrastructure vendors. They are experienced cloud operators. They have spent years building not only the underlying platforms, but also the native capabilities enterprises now expect by default. Those capabilities include security, governance, identity management, observability, support, compliance, billing controls, resilience planning, and integration with the broader enterprise technology estate. These are not secondary features. They are part of the core value proposition.

This is why late entry into the cloud market is so hard. A new provider is not just competing on price or capacity. It is competing against accumulated trust. Enterprises are not casual buyers. They are selecting long-term operating environments for applications, data, AI models, and business-critical processes. They want confidence that the provider understands how these services will be consumed, governed, and supported over time. Meta is entering a market where the incumbents already have a major head start on all of those fronts.

Harder than it looks

Over the years, I have had many technology companies come to me and say they wanted to reposition their technology in the cloud space, either as software as a service or infrastructure as a service. In the beginning, enthusiasm is always high. The technology is impressive. The market size looks attractive. The revenue models appear compelling. Investors love the story. Then we begin to walk through what it really means to operate as a cloud provider, and the optimism usually fades fast.

The questions become very practical and very uncomfortable. How will tenants be isolated? How will identity and access controls work across different kinds of customers? What governance models will be built in natively? How will workloads be monitored, optimized, and secured? What does support look like 24 hours a day, across regions, across industries, across compliance boundaries? How will outages be handled, communicated, and remediated? How will the platform integrate with existing customer tools for operations, policy management, and security response? How much investment will it take just to become credible before you even begin to differentiate?

Once companies fully understand the complexities, market dynamics, and the capital and execution required to compete even with secondary players, many of them back off. They realize that cloud technology is not a packaging exercise. It is a transformation in how a company designs, operates, supports, sells, and evolves technology. That is why I remain skeptical when any company assumes it can translate internal infrastructure excellence into external cloud success without a very long, disciplined commitment.

Meta’s market readiness

Of course, Meta is not lacking in financial resources. If any company can afford to spend aggressively in this space, it is Meta. The company has the capital to build infrastructure, absorb losses, hire experienced talent, and stay in the market long enough to make a serious attempt. I would never argue that Meta is too small or too poor to try. Quite the opposite. If there is any non-traditional entrant with the financial scale to force itself into the conversation, Meta would be high on the list.

But money does not erase complexity. It only gives you the chance to confront it. The real question is not whether Meta can afford to become a cloud provider. The question is whether Meta has what it takes to become an excellent cloud provider. Those are two very different things. Enterprises are not going to move meaningful workloads to a new platform simply because the company behind it is wealthy or technically famous. They are going to ask whether the provider understands enterprise consumption patterns, enterprise risk, enterprise governance, and enterprise operations.

That is where the challenge becomes much more serious. Meta has extensive experience running infrastructure for itself. That is valuable, but internal operating excellence is not the same thing as external service maturity. Running systems for your own workloads allows a high degree of control over architecture, standards, priorities, and operating assumptions. Running systems for paying customers requires flexibility, consistency, transparency, and support across a wide range of use cases that you do not control. Those are very different disciplines, and companies often underestimate the gap between them.

What exactly is Meta?

Another concern here is strategic clarity. Meta already has a complicated market identity. It is a social media company, an advertising platform company, a hardware company, an AI company, and still, in the minds of many, the company that spent billions pursuing the metaverse. If it now wants to be viewed as a serious cloud infrastructure provider, it will need to explain not only what it is offering, but why customers should believe this is a durable long-term commitment and not just another adjacent experiment.

That uncertainty can be damaging. Customers want stable providers with clear strategic intent. They do not want to architect important systems around a platform if they suspect the provider may lose interest, shift direction, or reframe the business after a few years of uneven results. Cloud computing requires patience, consistency, and deep customer orientation. It is not a market where strategic ambiguity helps.

This could become confusing for Meta internally as well. Building a true cloud business demands focus. It demands years of investment in areas that may not be glamorous but are absolutely necessary, such as governance, operations, controls, support frameworks, partner programs, and enterprise sales alignment. If the company is not willing to make those sacrifices fully and for the long term, the initiative will struggle.

The Linux Foundation has launched the x402 Foundation, a new industry body that will oversee the x402 payment protocol, an open standard designed to let AI agents, applications, and APIs pay for digital services over HTTP.

The x402 protocol, originally developed by Coinbase, embeds payment capabilities directly into web interactions, allowing AI agents, APIs, and applications to send and receive payments as part of standard HTTP requests rather than through separate checkout or billing systems, according to the Linux Foundation. The protocol supports multiple payment types, from traditional cards to stablecoins.

“Under the neutral governance of the Linux Foundation, the x402 Foundation will allow developers, financial institutions, cloud providers, and other community members to collaboratively shape the protocol’s development,” the Linux Foundation said in a statement. “This open structure ensures that payments remain highly secure and adaptable, supporting multiple payment types, from traditional cards to stablecoins, without vendor lock-in.”

Forty organizations have joined the x402 Foundation since the Linux Foundation announced plans for the project in April, the statement added.

Members include Amazon Web Services (AWS), Google, Visa, Mastercard, Stripe, American Express, Cloudflare, Coinbase, Fiserv, Ripple, and Shopify, representing cloud providers, payment companies, and financial services firms.

Foundation targets a gap in agent-to-agent commerce

The announcement comes as software vendors add AI agents to business applications and developer platforms. Many of these agents are designed to call APIs, access third-party services, and complete tasks on behalf of users, creating demand for ways to pay for digital services without relying on separate payment systems.

Jim Zemlin, CEO of the Linux Foundation, said AI agents and automated systems are becoming active participants in the global economy but have lacked a native, secure way to transact.

“By bringing together leading companies across finance, technology and more, we’re ensuring that the payment layer of the internet remains neutral, highly interoperable and ready to support digital commerce,” he said in the statement.

The protocol addresses what several founding members described as a structural gap in how the web handles machine-initiated transactions.

How the protocol works

The x402 protocol is based on the HTTP 402 “Payment Required” status code, which was originally defined for internet payments but has seen limited use.

The protocol is intended for transactions involving paid APIs, AI services, cloud computing resources, digital content, and other online services that require payment. The Linux Foundation said it also supports machine-to-machine payments between software applications and can work with multiple payment methods, including traditional payment cards and stablecoins.

Today, developers typically monetize APIs and online services through subscriptions, prepaid credits, API keys, or account-based billing systems. The Linux Foundation said x402 is designed to standardize payment directly within HTTP interactions, allowing applications and AI agents to complete transactions without separate payment flows or custom billing integrations.

Governance structure spans payments, cloud and blockchain sectors

Under the Linux Foundation’s neutral governance model, the x402 Foundation will let developers, financial institutions, cloud providers, and other members collaboratively shape the protocol’s development.

“This open structure ensures that payments remain highly secure and adaptable, supporting multiple payment types, from traditional cards to stablecoins, without vendor lock-in,” the statement added.

Technology vendors have introduced AI agents that can search for information, generate code, analyze documents, and interact with external applications. Many of those systems also rely on APIs and cloud-based services to complete tasks.

According to the Linux Foundation, x402 is designed to provide a standard way for those applications and agents to pay for services during a transaction rather than relying on separate purchasing or billing processes. The foundation said developers can integrate payment capabilities into applications using open web standards across different payment providers and software platforms.

Growing ecosystem

The launch comes as technology vendors begin adding payment capabilities to AI agent platforms.

In May, AWS introduced Amazon Bedrock AgentCore Payments in preview, enabling AI agents to autonomously pay for APIs, Model Context Protocol (MCP) servers, web content, and other agents. AWS had then said the service uses the x402 protocol to negotiate HTTP 402 payment requests while handling wallet authentication, spending controls, and transaction logging.

The Linux Foundation said the x402 Foundation will serve as the neutral home for the protocol as organizations contribute technical specifications, implementation guidance, and future extensions. The Linux Foundation and Coinbase did not respond to requests for additional comment by publication time.

It’s been several years since generative AI and large language models (LLMs) took the world by storm. LLMs surpassed earlier natural-language systems at generating text, while diffusion models enabled generating images, music, and videos.

These generative AI models work well in the digital world, but on their own, they have limited capabilities to comprehend the three-dimensional physical world and other spaces. This includes the objects occupying an area, how they relate to each other, tracking movement, and answering complex questions requiring an understanding of dimensions, distances, motion, and collisions.

Spatial intelligence is an AI capability that allows models to reason about three-dimensional space. These models can generate 3D scenes of the world and other spaces. This content can then be displayed through traditional renderers, game engines, or AR/VR systems that use spatial computing techniques. But it’s the spatial intelligence model’s ability to connect natural language with 3D models that has the most applications in robotics, manufacturing, construction, and other physical environments.   

Dr. Fei-Fei Li, often called the godmother of AI, published a manifesto on how spatial intelligence is AI’s next frontier, contrasting it with LLMs. “While current state-of-the-art AI can excel at reading, writing, research, and pattern recognition in data, these same models bear fundamental limitations when representing or interacting with the physical world,” wrote Dr. Li. “Our view of the world is holistic—not just what we’re looking at, but how everything relates spatially, what it means, and why it matters. Understanding this through imagination, reasoning, creation, and interaction—not just descriptions—is the power of spatial intelligence.”

The concept of spatial intelligence isn’t new and was described in Howard Gardner’s book, Frames of Mind, in 1983. Recent breakthroughs, including the launch of World Labs’ Marble and its $1 billion funding round, and competing approaches from Google’s Genie 3 and Nvidia Cosmos, should put spatial intelligence and world models on more R&D road maps.

What are spatial intelligence models?

It’s important to develop AI literacy and understand the terminology and concepts related to the physical world and 3D AI technologies: 

• Spatial intelligence encompasses specialized approaches such as geospatial models for mapping the physical world and building information modeling (BIM) for modeling physical structures. It also extends to generative 3D, robotics, and physical reasoning applications.
• World models are a class of neural network architectures and are currently a prominent approach to building spatial intelligence.
• Digital twins are live, virtual replicas of physical assets that combine 3D models with real-time sensor data. Spatial intelligence, an emerging capability of digital twins, adds natural-language prompting, generative scenario exploration, and physics-aware reasoning.
• Spatial computing refers to digital content anchored in and interacting with physical space, sensed and rendered in three dimensions and delivered through AR/VR and mixed-reality systems.

“Spatial intelligence models go beyond pixels to understand the 3D structure of the world—how objects are positioned, how they move, and how they interact,” says David Fattal, founder and CTO at Leia. “This enables applications like more realistic video generation, spatial computing interfaces, and AI systems that can reason about physical environments. As real-world 3D data becomes more available, these models will become foundational to the next generation of visual AI.”

Monitoring the built environment

To better understand spatial intelligence, let’s consider physical infrastructure such as bridges and buildings. The American Society of Civil Engineers estimates a $9.1 trillion investment is needed from 2024 through 2033 to achieve a state of good repair. When maintenance and monitoring lag, it can lead to major failures such as the 2022 collapse of the Fern Hollow Bridge in Pittsburgh.

Spatial intelligence and the development of digital twins may help identify issues earlier and prioritize where investments are needed. “Spatial intelligence models serve as the 4D digital blueprints for our built environment, allowing us to visualize and predict the complex interactions between aging assets and the shifting ground beneath them,” says Patrick Cozzi, chief platform officer at Bentley Systems. “By synthesizing disparate geospatial data into a living digital twin, these models provide the foresight necessary to mitigate the hidden risks of structural fatigue and subsurface instability.”

There’s a significant challenge in bridge health monitoring and transitioning from manual, infrequent structural inspections to leveraging sensors, digital twins, and spatial intelligence. Cozzi adds, “This integration of continuous field data moves beyond static documentation, empowering agencies to evolve from reactive repairs to proactive, resilient asset management that safeguards the long-term integrity of our most critical public systems.”

Avoiding collisions

Bridges are largely static, but the real world is increasingly being occupied by autonomous systems such as self-driving cars, robots, and drones. And where there are moving systems, there is a risk of collisions.

“Spatial intelligence models are AI systems that reason about the physical world by combining vision, sensor data, and contextual cues to understand space, motion, and object relationships,” says Sudeep George, CTO at iMerit. “The value of spatial intelligence models lies not just in perceiving an environment, but in enabling machines to act within it safely and in real time. That is especially important in robotics and autonomous systems, where decisions must be made in complex, multimodal, fast-changing settings.”

To see one example, this tutorial for simulating robotic environments combines Nvidia Isaac Sim, an open source robotics reference framework, with spatial intelligence in Marble from World Labs. 

Today’s collision detection systems, such as those used in autonomous vehicles, typically rely on modules for sensing, perception, planning, and control. Spatial intelligence models may offer improvements by assessing the collision risks of unidentified objects or by tracking objects that move out of sensor view. For example, Waymo’s World Model, built on Genie 3, is a simulator that generates complex weather conditions and other critical safety events.

For an out-of-this-world example, James Urquhart, field CTO and technology evangelist at Kamiwaza, has delivered several examples of spatial intelligence applications, including one for satellite collision detection and conflict analysis. Urquhart says, “Models that specialize in these types of data sets, as well as the physics and geography of the real world, enable faster and more accurate decision-making for tasks that depend on them.”

Applying spatial intelligence

Recent spatial intelligence announcements include creating 3D worlds from image or text prompts with Marble and simulating water physics, lighting, weather, and animal behavior with Genie 3. But difficulties remain in bringing spatial intelligence to physical-world use cases.

“Spatial intelligence and world models are laying the groundwork for future AI agents that will be able to interact in and with our physical world,” says Jason Corso, cofounder and chief scientist at Voxel51. “These models are significantly more challenging to develop and test, largely because the data underlying their development is complex, and it’s hard to handle all of the combinatorics involved in the physical world.”

In addition to learning the models and prototyping with them, development and data leaders need to review the data assets that will feed spatial intelligence models. “Spatial intelligence models translate location signals into a structured understanding of the real world, but they’re only as reliable as the data beneath them,” says Dan Adams, executive vice president and general manager of Enrich at Precisely. “The real unlock isn’t the model—it’s the reference layer with persistent identifiers, confidence metadata, and source lineage that lets AI reason about places, not just match strings.”

Even once applications are developed, there will be infrastructure challenges in deploying them at the edge. Ali Kayyam, principal research scientist at BrainChip, says, “The key to unlocking spatial intelligence at scale is having the low-power, event-driven hardware that can run it at the sensor in real time where it matters most.”

Where to get started

My suggestions for developers looking to get hands-on with spatial intelligence and world models:

• To try out Marble, review their API documentation and case studies, and then experiment with a developer-focused React application.
• Review the Nvidia Cosmos developer hub, documentation, and cookbook of case studies and learning paths.
• You can get an overview of Genie 3, but access is currently restricted through Project Genie, which requires a Google AI Ultra subscription.

It’s been several years since generative AI and large language models (LLMs) took the world by storm. LLMs surpassed earlier natural-language systems at generating text, while diffusion models enabled generating images, music, and videos.

These generative AI models work well in the digital world, but on their own, they have limited capabilities to comprehend the three-dimensional physical world and other spaces. This includes the objects occupying an area, how they relate to each other, tracking movement, and answering complex questions requiring an understanding of dimensions, distances, motion, and collisions.

Spatial intelligence is an AI capability that allows models to reason about three-dimensional space. These models can generate 3D scenes of the world and other spaces. This content can then be displayed through traditional renderers, game engines, or AR/VR systems that use spatial computing techniques. But it’s the spatial intelligence model’s ability to connect natural language with 3D models that has the most applications in robotics, manufacturing, construction, and other physical environments.   

Dr. Fei-Fei Li, often called the godmother of AI, published a manifesto on how spatial intelligence is AI’s next frontier, contrasting it with LLMs. “While current state-of-the-art AI can excel at reading, writing, research, and pattern recognition in data, these same models bear fundamental limitations when representing or interacting with the physical world,” wrote Dr. Li. “Our view of the world is holistic—not just what we’re looking at, but how everything relates spatially, what it means, and why it matters. Understanding this through imagination, reasoning, creation, and interaction—not just descriptions—is the power of spatial intelligence.”

The concept of spatial intelligence isn’t new and was described in Howard Gardner’s book, Frames of Mind, in 1983. Recent breakthroughs, including the launch of World Labs’ Marble and its $1 billion funding round, and competing approaches from Google’s Genie 3 and Nvidia Cosmos, should put spatial intelligence and world models on more R&D road maps.

What are spatial intelligence models?

It’s important to develop AI literacy and understand the terminology and concepts related to the physical world and 3D AI technologies: 

• Spatial intelligence encompasses specialized approaches such as geospatial models for mapping the physical world and building information modeling (BIM) for modeling physical structures. It also extends to generative 3D, robotics, and physical reasoning applications.
• World models are a class of neural network architectures and are currently a prominent approach to building spatial intelligence.
• Digital twins are live, virtual replicas of physical assets that combine 3D models with real-time sensor data. Spatial intelligence, an emerging capability of digital twins, adds natural-language prompting, generative scenario exploration, and physics-aware reasoning.
• Spatial computing refers to digital content anchored in and interacting with physical space, sensed and rendered in three dimensions and delivered through AR/VR and mixed-reality systems.

“Spatial intelligence models go beyond pixels to understand the 3D structure of the world—how objects are positioned, how they move, and how they interact,” says David Fattal, founder and CTO at Leia. “This enables applications like more realistic video generation, spatial computing interfaces, and AI systems that can reason about physical environments. As real-world 3D data becomes more available, these models will become foundational to the next generation of visual AI.”

Monitoring the built environment

To better understand spatial intelligence, let’s consider physical infrastructure such as bridges and buildings. The American Society of Civil Engineers estimates a $9.1 trillion investment is needed from 2024 through 2033 to achieve a state of good repair. When maintenance and monitoring lag, it can lead to major failures such as the 2022 collapse of the Fern Hollow Bridge in Pittsburgh.

Spatial intelligence and the development of digital twins may help identify issues earlier and prioritize where investments are needed. “Spatial intelligence models serve as the 4D digital blueprints for our built environment, allowing us to visualize and predict the complex interactions between aging assets and the shifting ground beneath them,” says Patrick Cozzi, chief platform officer at Bentley Systems. “By synthesizing disparate geospatial data into a living digital twin, these models provide the foresight necessary to mitigate the hidden risks of structural fatigue and subsurface instability.”

There’s a significant challenge in bridge health monitoring and transitioning from manual, infrequent structural inspections to leveraging sensors, digital twins, and spatial intelligence. Cozzi adds, “This integration of continuous field data moves beyond static documentation, empowering agencies to evolve from reactive repairs to proactive, resilient asset management that safeguards the long-term integrity of our most critical public systems.”

Avoiding collisions

Bridges are largely static, but the real world is increasingly being occupied by autonomous systems such as self-driving cars, robots, and drones. And where there are moving systems, there is a risk of collisions.

“Spatial intelligence models are AI systems that reason about the physical world by combining vision, sensor data, and contextual cues to understand space, motion, and object relationships,” says Sudeep George, CTO at iMerit. “The value of spatial intelligence models lies not just in perceiving an environment, but in enabling machines to act within it safely and in real time. That is especially important in robotics and autonomous systems, where decisions must be made in complex, multimodal, fast-changing settings.”

To see one example, this tutorial for simulating robotic environments combines Nvidia Isaac Sim, an open source robotics reference framework, with spatial intelligence in Marble from World Labs. 

Today’s collision detection systems, such as those used in autonomous vehicles, typically rely on modules for sensing, perception, planning, and control. Spatial intelligence models may offer improvements by assessing the collision risks of unidentified objects or by tracking objects that move out of sensor view. For example, Waymo’s World Model, built on Genie 3, is a simulator that generates complex weather conditions and other critical safety events.

For an out-of-this-world example, James Urquhart, field CTO and technology evangelist at Kamiwaza, has delivered several examples of spatial intelligence applications, including one for satellite collision detection and conflict analysis. Urquhart says, “Models that specialize in these types of data sets, as well as the physics and geography of the real world, enable faster and more accurate decision-making for tasks that depend on them.”

Applying spatial intelligence

Recent spatial intelligence announcements include creating 3D worlds from image or text prompts with Marble and simulating water physics, lighting, weather, and animal behavior with Genie 3. But difficulties remain in bringing spatial intelligence to physical-world use cases.

“Spatial intelligence and world models are laying the groundwork for future AI agents that will be able to interact in and with our physical world,” says Jason Corso, cofounder and chief scientist at Voxel51. “These models are significantly more challenging to develop and test, largely because the data underlying their development is complex, and it’s hard to handle all of the combinatorics involved in the physical world.”

In addition to learning the models and prototyping with them, development and data leaders need to review the data assets that will feed spatial intelligence models. “Spatial intelligence models translate location signals into a structured understanding of the real world, but they’re only as reliable as the data beneath them,” says Dan Adams, executive vice president and general manager of Enrich at Precisely. “The real unlock isn’t the model—it’s the reference layer with persistent identifiers, confidence metadata, and source lineage that lets AI reason about places, not just match strings.”

Even once applications are developed, there will be infrastructure challenges in deploying them at the edge. Ali Kayyam, principal research scientist at BrainChip, says, “The key to unlocking spatial intelligence at scale is having the low-power, event-driven hardware that can run it at the sensor in real time where it matters most.”

Where to get started

My suggestions for developers looking to get hands-on with spatial intelligence and world models:

• To try out Marble, review their API documentation and case studies, and then experiment with a developer-focused React application.
• Review the Nvidia Cosmos developer hub, documentation, and cookbook of case studies and learning paths.
• You can get an overview of Genie 3, but access is currently restricted through Project Genie, which requires a Google AI Ultra subscription.

Ask any medical doctor, and they’ll tell you that prevention is better than cure. It’s more cost-effective and it has better outcomes.

The same is true in cybersecurity. But we believe that our industry has veered too far away from this simple concept. We observe that most new tools are detection-focused, and we are calling for cyber innovators and venture capital to re-emphasize and invest resources into blocking rather than just discovering problems.

The reasons that cybersecurity relies on detection are understandable, and they are based on the history of networked systems. Early systems were fragile. Recovery was slow and downtime was costly. So, the first security controls were designed to restrict unauthorized access. They blocked execution and prevented exploitation, because if an attack succeed – such as a computer virus running successfully – the consequences might have been irreversible.

When the internet exploded in the 1990s, prevention solutions multiplied. Vendors developed firewalls and antivirus platforms to stop threats before they started.

But attackers adapted, of course, and networks grew more complex. Perimeter controls were no longer good enough on their own. The cyber industry responded with intrusion detection systems and later with Security Information and Event Management. Detection got a boost from large-scale log aggregation and analytics.

This was a great complement to prevention. But it was never meant to replace it.

Detection didn’t reduce risk

Security today focuses on visibility, alerting and response. Executives use metrics like mean-time-to-detect and mean-time-to-respond, and compromise is often assumed to be inevitable. But as detection improves, this has not caused a proportional decline in compromise rates.

IBM’s Cost of a Data Breach Report consistently shows that faster identification and containment reduce financial impact. But the average global cost of a breach is still millions of dollars – because detection does not prevent the initial compromise.

The initial problem continues to come from the usual places: known vulnerabilities, stolen credentials or misconfigurations. In other words, detection reduces impact in the short term, but it does not reduce structural risk.

The limits of a detection-first model

When we gather for industry forums like the RSAC Conference, the topics include automation, AI-driven response and operational resilience. These are certainly important, but they have limits. Detection produces false positives and noise. The volume of alerts begins to outpace human capacity to sift through it for the genuine issues. Alert fatigue is real, and talent shortages continue.

We observe that the ratio of detection tools versus prevention tools is getting bigger. RSAC Conference runs the largest startup competition in cybersecurity. Over the past three years more than 500 new cybersecurity companies have entered the competition, and we estimate that more than 70 percent of these companies are shipping detection tools, not prevention tools.

Detection activates only after a failure has occurred, and unfortunately modern adversaries now operate at machine speed. Vulnerabilities are attacked through automation, and artificial intelligence generates phishing campaigns at a massive scale.

As AI lowers barriers to entry and speeds up capabilities, the attack surface will expand even more. Advances in some of the frontier AI models, such as Anthropic’ s Mythos and OpenAI’s GPT-5.5, may unearth previously unknown zero-day risks while chaining together various low-risk vulnerabilities.

If that’s not enough, quantum computing raises concerns about cryptographic resilience. Relying primarily on faster alerting is not the best response to all these threats that will simply multiply faster.

Prevention changes the economics

On the other hand, prevention changes defensive economics. To shrink the problem space, a professional can do these things: enable phish-resistant multifactor authentication (MFA), block malicious execution, segment networks and proactively manage vulnerabilities.

As exposure decreases, alert volume declines. Detection becomes more effective because noise is reduced.

Research shows that organizations have fewer high-impact breaches when they have mature identity governance, proactive patching and zero trust principles. Preventative maturity correlates with reduced incident severity and lower long-term costs. It doesn’t require perfection to be valuable.

We think that security leaders, therefore, should reconsider how to define success. Reducing dwell time – the time an attacker is inside your systems – is important. Reducing entry points is fundamental. But when budgets favor post-compromise visibility over preventive architecture and governance, cybersecurity is not fulfilling its original mandate.

AI will only amplify the imbalance, as capabilities that once required years of training can now be deployed quickly. Offensive toolkits are readily available.

Achieving a better balance

We believe that scalable prevention architectures and capabilities present a better path forward than expanding analyst headcount.

Cyber threats will accelerate and detection will remain essential. But our profession shouldn’t be defined by how efficiently we observe compromise. It should be defined by how effectively we reduce the likelihood of compromise in the first place.

This article is published as part of the Foundry Expert Contributor Network.
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Europe is sweltering. The summer of 2026 has seen historic heat waves that have taken a significant toll on infrastructure. In recent weeks, across the continent, problems have been reported in the power grid, telecommunications, and rail transportation. IT infrastructure has not been spared from the situation.

“The heat affects equipment long before anyone notices a problem,” explains Ricardo Román, sales director at Fracttal, in an email. “Every piece of equipment has a temperature range within which it is designed to operate, and when it operates above that range, it begins to degrade silently,” he says. A process of wear and tear begins that will eventually take its toll. With technology, this happens much faster. “In a data center, this effect is amplified because there’s no margin for error,” he notes. When something starts to fail, everything grinds to a halt.

In fact, this latest heat wave has already had negative impacts on data centers outside of Spain. In the United Kingdom, high temperatures shut down hospital data centers and caused the University of Cambridge’s Dawn supercomputer to go offline, as its cooling systems were unable to cope with the temperatures. That’s the crux of the problem. “In IT, heat isn’t a computing problem—it’s a problem of maintaining the assets that support the data center,” explains Román. 

Heat thus becomes yet another risk for the IT industry and, in particular, for data centers.

Temperatures are a clear and growing concern when it comes to corporate risk prevention. “I see it in conversations with clients: In the past, the maintenance team was the one monitoring the temperature in a technical room,” Román says. “Today, management also monitors it, because they know that if that goes down, the service goes down—and behind the service is the end customer,” he adds. Maintenance has gone from being a cost “to a lever for business continuity that no one dares to touch.”

As a World Economic Forum analysis warns, we’re experiencing a boom in AI-driven data centers, but the impact of climate risks on them is being overlooked. Their estimates suggest these risks could result in an additional annual cost of $81 billion by 2035 and $168 billion by 2065. These calculations include all kinds of threats, such as floods or droughts, but most of the impact comes from extreme heat.

These projections are confirmed by data from the industry itself: Over the past three years, extreme weather events have accounted for one-third of the losses incurred by the U.S. division of the data center company Zurich. According to projections by the climate risk analysis firm First Street, 79% of global data centers will face increased risks from extreme weather. MapleCroft estimated in 2025 that 56% of major data centers had a high or very high risk rating for extreme heat, and that this figure would rise to 80% by 2080.

These percentages cannot be easily extrapolated to Europe in general—and to Spain in particular—as one might think, although they do make the trend clear. Guillermo Benito, CTO of Nabiax, points out during a video call that these studies are based on global samples and thus place significant weight on the capacity of Asia and the United States. “We represent a small percentage there, but that said, all countries will have to adapt. The two major challenges for data centers are energy and cooling,” Benitonotes.

Spain: A pioneer in heat?

In late June, French Labor Minister Jean-Pierre Farandou proposed taking a training course in Spain to learn how to prevent high temperatures from paralyzing a country. Although Spain’s climate varies by region, high summer temperatures are common in many areas (though climate change has made them more extreme and frequent in recent years), and the infrastructure of knowledge and solutions that Farandou wanted to learn about has been established. The big question is whether this also applies to data centers. Is Spain better prepared than other European regions?

“Heat waves are becoming increasingly intense and frequent. What used to happen once every two years now happens two, three, or four times a year,” Benito says. Speaking from his own experience, he adds: “In Spain, data centers already take these factors into account.” When it comes to redundancy, monitoring, or maintenance, these factors are already factored in. “It’s not like it’s an unforeseen event. It’s already been taken into account, and we build in a lot of redundancy—a wide safety margin,” he says.

The difference compared to central or northern Europe is that some haven’t considered this possibility. Benito points out that the same thing happens with homes. “For many years, they’ve been designing with two assumptions: that they have plenty of water because their climates are humid, and that it never gets hot,” he says. And this is a problem, because their summer temperatures have risen significantly during extreme heat waves. “Temperatures in the UK have gone up by 10 or 15 degrees, and their data centers aren’t prepared for that,” he says. In fact, he shares an anecdote about “a certain hyperscaler that, a few years ago, when its data centers in the United Kingdom went down, held a global conference to figure out how this had happened and draw lessons from it.” The curious thing is that what they learned was something that was already well known in Spain.

It was already getting hot in southern Europe, and preparations were needed. Now, temperatures are becoming a topic of conversation outside the region, and climate change has made its way into IT strategy. Benito confirms that, yes, the conversation is more visible in global settings. “For several reasons. The first is because, obviously, it affects operations. Another is the market. Customers also demand that you address this.” Before, the focus was on power capacity and square meters. Now, the expert points out, people are asking where the electricity comes from and whether it’s clean, and they’re demanding emissions guarantees. The sector is making significant investments to become sustainable, he argues.

Beyond consumption data and the improvements that can be made, the big question is whether these high temperatures are already impacting decision-making—whether decisions on where to locate data centers (or not) are already being made with heat in mind.

Industry representatives explain that while the climate can have an impact and is already taken into account when deciding where to locate a data center, it is not yet the sole factor or the most decisive one. In other words, many other factors must be considered, and these carry much more weight in the decision-making process. One such factor is energy, which is essential for these infrastructures and must be constant, resilient, and have a low carbon footprint. It is also an area where cooling plays a major role. As Román points out, cooling can account for between 30 and 40% of energy consumption, “and in poorly managed facilities, that figure approaches 50%.” Energy efficiency and cooling efficiency are thus essential—and not just for sustainability reasons. “It’s a matter of the bottom line.”

Another factor is space. As Benito says, you need “stable locations where you can grow.” This isn’t just about whether the infrastructure fits, but also about how it aligns with the needs of its customers. As this expert points out, the concentration of data centers near Madrid or Barcelona isn’t “just a whim,” but because you need to be close to large population centers to provide them with low latency. “Other supercomputing applications can be located farther away, and that’s already happening,” he explains, but generally speaking, you can’t just put data centers anywhere. You have to strike a balance between needs and available space.

How to survive the heat

So, how can we survive the heat, especially when projections suggest that the future will bring even higher temperatures? The key is to understand that this is no longer a curiosity or an occasional incident. As Román points out, air-conditioning systems are running longer and longer. What worked 10 years ago will now barely suffice—it’s “pushed to its limits.” “Heat is shifting from being an August blip to a variable that must be monitored year-round. One you endure; the other you manage.”

“By the time the room’s thermometer rises, it’s already too late. What you need to monitor isn’t the room—it’s the equipment—and you have to do it sooner,” he says. Román recommends a three-step strategy. First, don’t measure the environment; instead, measure the equipment and its variations in temperature, vibrations, and energy consumption. Next, take action on any deviations: Don’t wait for a failure, but instead act on early indicators that things aren’t normal. And finally, keep a comprehensive record of historical data, which will be key to anticipating issues and learning from them. “And here I’m going to be honest, because this is what I see every day: The technology to do all this already exists and isn’t expensive,” he asserts. “Many critical facilities are still managed using an Excel spreadsheet and the memory of a technician who’s been there for twenty years,” he warns. And that’s a problem.

In the specific case of data centers, Spain has done its homework. The high temperatures (which exceeded those recorded in the United Kingdom, where some data centers did shut down) did not bring them to a halt during this heat wave.

Unlike what might happen in other countries, Spain has optimized its cooling systems to be efficient and sustainable, as Benito explains, noting that the country must also contend with water stress. “In other countries, I can use water and let it evaporate as I please because I know it’s going to rain again—or at least that was the case until recently. In Spain, we’ve known for a long time that this isn’t the case,” he says. That’s why we work with closed-loop systems. “Most of us operators don’t use any water,” he says. The same water, mixed with certain cooling agents, circulates continuously. “Once the loop is filled, we don’t lose a single drop,” he asserts.

What this expert is now seeing at international conferences is that in other countries where water wasn’t an apparent problem, people are starting to talk about working this way—”as a technical innovation.” “That’s where we say, ‘Yes, just like the ones we have in Spain or Portugal,’” he remarks with a touch of humor. “Water, like energy, is a challenge,” he says, so everything has already been designed with that in mind. It isn’t wasted, it doesn’t evaporate, and it isn’t consumed, he says.

AI-driven hyperscale data centers are creating a new generation of risks and challenges that extend well beyond power shortages and chip supply, according to a new report from Zurich North America.

The unprecedented scale, speed and complexity of AI data center construction are exposing the industry to new threats previously unknown to the older generation of data centers, ranging from severe weather and energy constraints to insurance capacity, labor shortages and geopolitical disruptions, in its report, “Data Center Risks Right Now: Six Critical Questions to Enable a Resilient Buildout.”

The report states that hyperscalers are prepared to spend an estimated $710 billion in capital expenditures during 2026, and global investment in data centers is projected to top $7 trillion by 2030. New capacity added between 2026 and 2030 is expected to total roughly 100 gigawatts, equivalent to the peak electricity demand of about nine New York Cities.

Much of that is because these new data centers are not like any previous generations of  data center development in that modern AI campuses can span up to 20 buildings, consume as much as 2,000 megawatts of electricity and house billions of dollars’ worth of servers and cooling equipment.

In addition, insurance providers are struggling to keep pace with the massive growth in projected value of these data centers.  Zurich says the average value of the data centers it insured has jumped from roughly $150 million five years ago to about $3 billion today, while the largest campuses can be measured in the tens of billions of dollars.

The report cited six areas of concern, the primary of which is growing: severe weather.   Severe weather has surpassed fire as leading construction threat due to changing geography. Zurich states that 64% of U.S. data center capacity currently under construction is located outside traditional markets such as Northern Virginia, in areas are known for bad weather.

They include West Texas, Tennessee, Wisconsin and Ohio, where tornadoes, hailstorms and high winds present new hazards. Zurich says severe weather has become the largest source of losses in its U.S. builders-risk portfolio over the past three years, surpassing fire as the industry’s dominant construction threat. Weather accounts for 32% of losses in Zurich’s data center portfolio, followed by fire and equipment damage.

The second issue is compressed construction schedules. Operators are increasingly beginning operating portions of a campus where construction is complete and while construction continues elsewhere. That means welding and other, heavy equipment plus incomplete fire protection coexist with active server halls containing sensitive computing equipment.

Beyond construction and to absolutely no surprise, Zurich identifies energy infrastructure as one of the defining challenges facing AI expansion. The report notes that U.S. data center electricity demand increased roughly 22% in a single year and is expected to nearly triple to approximately 134 gigawatts by 2030.

Likewise, water availability is becoming equally important as power as AI workloads generate more heat and require increasingly sophisticated cooling systems. The report notes that many operators are deploying closed-loop water recycling systems or shifting toward air cooling where possible in a bid to reduce water consumption.

Downtime has become more expensive because so much expensive equipment is involved, even minor operational failures can become multimillion-dollar events.

The report also warns that replacement equipment often requires months to arrive, citing industry estimates that switchgear may take up to 85 weeks to replace and generators as long as 100 weeks.

Workforce shortages have raised operational concerns as the AI construction boom is straining the labor market, and they don’t mean The IT staff to run the place, they need people to build it. Zurich cited a report from Associated General Contractors of America that 92% of U.S. construction firms are having difficulty finding qualified workers.

The report concludes that geopolitical tensions, regulatory scrutiny and emerging technologies will increasingly influence where and how data centers are built. Among the trends Zurich identifies are growing political concern over electricity prices and water consumption, increased reliance on nuclear energy, interest in integrating future quantum computing systems and even early proposals for orbital data centers supported by solar power.

If you’re a software developer or architect, you might wonder if programming certifications are still worth the effort, especially in the era of rapid AI-driven evolution. The short answer is, it depends.

“Certifications are shifting from a checkbox to a compass. They’re less about proving you memorized syntax and more about proving you can architect systems, instruct AI coding assistants, and solve problems end-to-end,” says Faizel Khan, lead AI engineer at Landing Point, an executive search and recruiting firm.

“In the AI era, fewer students will get trained on the job, which means they have to train themselves,” Khan says. “Certifications—especially architectural ones like AWS, Kubernetes, Terraform—are still the clearest path to do that.”

Pros and cons of programming certifications

It’s not all black and white when it comes to deciding whether to pursue programming certifications. The effort involves both pros and cons.

“In terms of pros, certifications concretely demonstrate that you have a skillset at a documented level,” says Chris Riccio, vice president of engineering at Uplevel, an engineering optimization system provider. “They also show that you’ve put in the time and effort to learn, study, and prepare.”

Programming certifications are “a useful way to validate foundational skills and show that someone understands core concepts,” says Greg Fuller, vice president of Skillsoft’s training provider, Codecademy. “They’re especially helpful for people entering the field or shifting from adjacent roles.”

Certifications offer a structured path to demonstrate proficiency, and they can confirm your ability to build and deploy in various environments, Fuller says.

These types of certifications often demonstrate baseline proficiency and continuous learning, says Reshmi Ramachandran, head of partnerships and GTM strategy for Cprime, a consultancy. “These are often key indications of proficiency for companies looking to filter large candidate pools,” she says.

Certifications really do two things, Khan adds. “First, they force you to learn by doing,” he says. “If you’re taking AWS Solutions Architect or Terraform, you don’t pass by guessing—you plan, build, and test systems. That practice matters. Second, they act as a public signal. Think of it like a micro-degree. You’re not just saying, ‘I know cloud.’ You’re showing you’ve crossed a bar that thousands of other engineers recognize.”

But there are cons, too. “In tech, employers don’t just want credentials, they want proof you can deliver,” says Kevin Miller, CTO at IFS, a maker of factory automation software. “Programming certifications can be a valuable indicator of your baseline knowledge and competencies, especially if you’re early in your career or pivoting into tech, but their importance is dwindling.”

AI tools that can generate, debug, and optimize code are already performing tasks once done by entry-level developers, “which means fewer traditional programming roles are available,” Miller says. “As a result, the job market is becoming more competitive, and certifications aren’t seen as the noteworthy achievement they once were.”

What’s more, not all certifications carry the same weight, Riccio says. “Some may reflect only familiarity rather than true expertise,” he says. “Certifications also often measure ‘book knowledge’ rather than practical experience, and they don’t always map clearly to the requirements of a specific role.”

Programming certifications “can be a helpful signal, especially for confirming baseline knowledge in areas like cloud, security, or devops, but they’re not the full picture,” says Morgan Watts, vice president of IT at 8×8, a contact center platform developer.

“I’m more interested in a candidate’s attitude and aptitude: what problems they’ve solved, what they’ve built, and how they’ve approached challenges,” Watts says. “Certifications can show commitment and discipline, and they’re especially useful in highly specialized roles. But I’m cautious when someone presents a laundry list of certifications with little evidence of real-world application.”

A certification without experience doesn’t carry much weight, Watts says, and over-certification can sometimes signal the wrong focus. “Ultimately, it’s the ability to apply knowledge, collaborate, and adapt that sets great developers apart,” he says.

Finally, certifications can age fast, Khan says. “Tech stacks evolve and a badge from two years ago may already feel dusty,” he says. “And some certifications are paper-thin—multiple-choice exams that don’t prove you can debug production at 2 a.m. So, the risk is you collect badges but still can’t ship.”

Which certifications will get you noticed?

Despite the drawbacks, certifications are still very much in demand, and some carry more weight than others.

The most in-demand certifications are typically platform-based—Amazon Web Services (AWS), Google Cloud Platform (GCP), Microsoft Azure, and others, Riccio says. “Many of these platforms provide managed services that integrate with existing systems or serve as the glue between them,” he says. “Today’s engineering teams aren’t just building standalone systems in isolation; they’re using other systems to store data, orchestrate business workflows, and connect applications.”

A certification that demonstrates the ability to build solutions on these platforms can put a development professional ahead of the competition, Riccio says.

“The certifications I see in highest demand tend to reflect the evolving tech landscape,” Watts says. “Cloud certifications from AWS, Azure, and GCP are incredibly valuable, especially as distributed systems become the norm.”

Also in demand are certifications for devops and CI/CD tools including Kubernetes, Docker, and Jenkins, Watts says, “because deployment automation and reliability are critical at scale. Also, with AI reshaping development, we’re seeing growing interest in certifications around machine learning, data science, and AI model integration. These certifications stand out because they align directly with the skills that teams need to move faster and more intelligently.”

On the AI front, certifications in TensorFlow and other machine learning platforms are gaining traction as organizations look to embed AI across the development process, Watts says. “These are the certifications that align closely with where modern engineering is headed—scalable, secure, and AI-enabled,” he says.

And then there are cybersecurity credentials that continue to be in high demand. Security certifications, such as CompTIA Security+ or Certified Ethical Hacker, “have become essential as every company faces increasing cyber threats and compliance requirements,” Miller says.

“Core programming certifications are still a bit niche, but the adjacent skills, like those that help developers deploy, secure, and scale their code, are driving demand,” Fuller says. “Companies want developers who understand the full lifecycle, not just how to write code.”

Also see: The best Java certifications for software developers.

Certifications in the hiring process

Experts are clear that programming certifications alone will not get you the job. But they do play a role in the hiring process.

“The information technology world is characterized by rapid and continuous evolution, including the skills and knowledge required to work in the field,” says Diane Rafferty, managing director of the National Technology Group at Atrium, a global talent solutions and extended workforce management firm.

“Certifications not only prove that you have the skills and knowledge needed, but they also show employers that you’re invested in your education and career growth,” Rafferty says. “They can give you a competitive edge when looking for a job, as many companies now require candidates to have them.”

Certifications are one part of the hiring equation, “but never the only part,” Watts says. “They help validate that a candidate has taken the time to build foundational knowledge, and that’s a good sign. But I put more weight on how a person thinks, solves problems, and contributes to the team. I look for people who are curious and proactive, who are learning because they want to, not just because a course told them to.”

Certifications can also play a valuable role in retention, Watts says. “I encourage team members to pursue growth, and when they invest in their own development, the whole organization benefits,” he says. “But again, it’s that balance of knowledge, attitude, and applied experience that really moves the needle.”

Certifications “may allow you to breeze through the initial résumé screening process, potentially getting you to the next stage faster,” Riccio says. “At a minimum, they will set your profile apart from the rest of the pack. They also demonstrate that you’ve reached a baseline level of expertise, allowing hiring managers to quickly evaluate whether you have the skills for the role.”

Employers today “care far less about whether someone has passed an exam and far more about whether they can apply knowledge effectively in real-world situations, leverage AI tools, and solve complex problems,” Miller says. “A certification might get someone an interview, but being able to demonstrate problem-solving skills, teamwork, and adaptability will really make them stand out.”

Popular programming certifications

The following certifications consistently rose to the top in my conversations with tech leaders and hiring managers.

AWS Certified Developer—Associate

Showcases skills and knowledge in developing, optimizing, packaging, and deploying applications, using CI/CD workflows, and identifying and resolving application issues, according to AWS. This certification is said to be a good starting point on the AWS certification journey for professionals in IT or cloud developer job roles.

Azure Developer Associate

This certificate from Microsoft is intended for developers participating in all phases of cloud development, including design, deployment, maintenance, and monitoring. The course teaches developers how to create end-to-end solutions in Microsoft Azure, using the Microsoft Learn Sandbox environment to access Azure resources and services.

Certified Kubernetes Application Developer (CKAD)

This certification was created by the Linux Foundation and Cloud Native Computing Foundation. It demonstrates that candidates can design, build, and deploy cloud-native applications for Kubernetes.

Certified Secure Software Lifecycle Professional (CSSLP)

This certification, from ISC2, focuses on secure software development practices. It recognizes leading application security skills and demonstrates advanced technical skills and knowledge needed for authentication, authorization, and auditing throughout the software development lifecycle.

Databricks Certified Machine Learning Professional

Professionals learn about the latest data and AI techniques and how they can use the Databricks Data Intelligence Platform to build a variety of solutions across data engineering, data warehousing, data science, and AI.

Professional Cloud Architect

This certification from Google assesses the ability to design and plan a cloud solution architecture, manage and provision the cloud solution infrastructure, design for security and compliance, analyze and optimize technical and business processes manage implementations of cloud architecture, and ensure solution and operations reliability.

Terraform Associate

This certification from HashiCorp is for cloud engineers specializing in operations, IT, or development who know the basic concepts and skills associated with Terraform. It validates foundational skills in using Terraform for infrastructure as code development.

Over its more than 15 years in the wild, Google’s Go programming language has evolved from a curiosity for alpha geeks to the battle-tested programming language behind some of the world’s most important cloud-native software projects.

If you’ve ever wondered why Go is the language of choice for projects like Docker and Kubernetes, this article is for you. We’ll discuss Go’s defining characteristics and how it differs from other programming languages. You will also learn what kinds of projects Go is best suited for, including the state of Go development for AI-powered tools. We’ll conclude with an overview of Go’s feature set, some limitations of the language, and where it may be going from here.

Also see: Golang tutorial: Get started with the Go language.

Go is small and simple

Go, or Golang as it’s often called, was created by Google employees—chiefly longtime Unix guru and Google distinguished engineer Rob Pike—but it’s not strictly speaking a “Google project.” Rather, Go is a community-developed open source project, spearheaded by leadership with strong opinions about how Go should be used and the direction the language should take.

Go is meant to be easy to learn and straightforward to use, with syntax that is simple to read and understand. Go does not have a large feature set, especially when compared to languages like C++. Go’s syntax is reminiscent of C, making it relatively easy for longtime C developers to learn. That said, many features of Go, especially its concurrency and functional programming features, harken back to languages like Erlang.

As a C-like language for building and maintaining cross-platform enterprise applications of all sorts, Go has much in common with Java. And as a means for enabling rapid development of code that might run anywhere, you could draw a parallel between Go and Python, though the differences outweigh the similarities.

The Go documentation describes Go as “a fast, statically typed, compiled language that feels like a dynamically typed, interpreted language.” Even a large Go program will compile in a matter of seconds. Plus, Go avoids much of the overhead of C-style include files and libraries.

Advantages of the Go language

Go is a versatile, convenient, fast, portable, interoperable, and widely supported modern language. These characteristics have helped to make it a top choice for large-scale development projects. Let’s look more closely at each of these positive qualities of Go.

Go is versatile and convenient

Go has been compared to interpreted languages like Python in its ability to satisfy many common programming needs. Some of this functionality is built into the language itself, such as goroutines for concurrency and thread-like behavior, while additional capabilities are available in Go standard library packages, like the http package. Like Python, Go provides automatic memory management capabilities including garbage collection.

Unlike interpreted languages, however, Go code compiles to a fast-running native binary. And unlike C or C++, Go compiles extremely fast—fast enough to make working with Go feel more like working with an interpreted language than a compiled one. Further, the Go build system is less complex than those of other compiled languages. It takes few steps and little bookkeeping to build and run a Go project.

Go is faster than many other languages

Go binaries run more slowly than their C counterparts, but the difference in speed is negligible for most applications. Go performance is as good as C for the vast majority of work, and generally much faster than other languages known for speed of development—including JavaScript, Python, and Ruby.

Go is portable and interoperable

Executables created with the Go toolchain can stand alone, with no default external dependencies. The Go toolchain is available for a wide variety of operating systems and hardware platforms, and can be used to compile binaries across platforms. What’s more, Go delivers all of the above without sacrificing access to the underlying system. Go programs can talk to external C libraries or make native system calls. In Docker, for instance, Go interacts with low-level Linux functions, cgroups, and namespaces to work container magic.

Go is widely supported

The Go toolchain is freely available as a Linux, macOS, or Windows binary, or as a Docker container. Go is included by default in many popular Linux distributions, such as Red Hat Enterprise Linux and Fedora, making it somewhat easier to deploy Go source to those platforms. Support for Go is also strong across many third-party development environments, from Microsoft’s Visual Studio Code to ActiveState’s Komodo IDE.

Also see: 8 reasons developers love Go—and 8 reasons they don’t.

Optimal use cases for the Go language

No language is suited to every job, but some languages are suited to more jobs than others. Go shines brightest in cloud-native development projects, distributed network services, and for developing utilities and stand-alone tools. Let’s consider the qualities that make Go especially well-suited to each of these project types.

Cloud-native development

Go’s concurrency and networking features, and its high degree of portability, make it well-suited for building cloud-native apps. In fact, Go was used to build several cornerstones of cloud-native computing including Docker, Kubernetes, and Istio.

Distributed network services

Network applications live and die by concurrency, and Go’s native concurrency features—goroutines and channels, mainly—are well suited for such work. Consequently, many Go projects are for networking, distributed functions, and cloud services. These include APIs, web servers, Kubernetes-ready frameworks for microservices, and much more.

Utilities and standalone tools

Go programs compile to binaries with minimal external dependencies. That makes them ideally suited to creating utilities and other tools, because they launch quickly and can be readily packaged up for redistribution. One example is an access server called Teleport, which can be deployed on servers quickly by compiling it from source or downloading a prebuilt binary.

Limitations of the Go language

Now let’s consider some of the limitations of Go. For one, it omits many language features developers may desire. It also packs everything into its binaries, so Go programs can be large. Furthermore, Go’s garbage collection mechanism delivers automatic memory management at the cost of absolute performance. The language also lacks a standard toolkit for building GUIs, and it is unsuited to systems programming.

Let’s look at each of these issues in detail.

Go omits many desirable language features

Go’s opinionated set of features draws both praise and criticism. Go is designed to err on the side of being small and easy to understand, with certain features deliberately omitted. The result is that some features that are commonplace in other languages simply aren’t available in Go. This is purposeful, but it’s still a drawback for some types of projects.

One thing Go omits that you will find in other languages is macros, commonly defined as the ability to generate program code at compile time. C, C++, and (the rising star) Rust all have macro systems. Go does not have macros, or at least not of the same variety as those languages. What Go does have is a tool command, go generate, which looks for magic comments in Go source and executes them. This can be used to generate Go source code, or even run other commands, but its main use is to programmatically generate code, usually as a precursor to the build process. (Technical blogger Eli Bendersky explains the ‘go generate’ command in detail.)

Another longstanding complaint with Go was, until recently, the lack of generic functions, which allow a function to accept many different types of variables. Go’s development team held out against adding generics to the language for many years because they wanted a syntax and set of behaviors that complemented the rest of Go. But as of Go 1.18, released in early 2022, the language includes a syntax for generics. Because go generate and its code-generation abilities emerged as one possible way to partially address the lack of generics, this functionality is no longer as commonly used in Go.

The fact is that Go adds major language features rarely, and only after much consideration. This works to preserve broad compatibility across versions, but it comes at the cost of slower innovation.

Also see: What you need to know about Go, Rust, and Zig.

Go’s binaries are large

Another potential downside to Go is the size of the generated binaries. Go binaries are statically compiled by default, meaning that everything needed at runtime is included in the binary image. This approach simplifies the build and deployment process, but at the cost of a simple “Hello, world!” weighing in at around 1.5MB on 64-bit Windows. The Go team has been working to reduce the size of those binaries with each successive release. It is also possible to shrink Go binaries with compression or by removing Go’s debug information. This last option may work better for standalone distributed apps than for cloud or network services, where having debug information is useful if a service fails in place.

Go’s garbage collection is resource hungry

Yet another touted feature of Go, automatic memory management, can be seen as a drawback, as garbage collection requires a certain amount of processing overhead. By design, Go doesn’t provide manual memory management, and garbage collection in Go has been criticized for not dealing well with the kinds of memory loads that appear in enterprise applications.

That said, each new version of Go seems to improve the memory management features. For example, Go 1.8 brought significantly shorter lag times for garbage collection, and Go 1.25 introduced a new, experimental garbage collector. While Go developers can use manual memory allocation in a C extension, or by way of a third-party manual memory management library, most prefer native solutions.

Go doesn’t have a standard GUI toolkit

Most Go applications are command-line tools or network services. That said, various projects are working to bring rich GUIs for Go applications. There are bindings for the GTK and GTK3 frameworks. Another project is intended to provide platform-native UIs across platforms, although it focuses on Go 1.24 forward only. But no clear winner or safe long-term bet has emerged in this space. Also, because Go is platform-independent by design, it is unlikely any project in this vein will become a part of the standard package set.

You shouldn’t use Go for systems programming

Finally, although Go can talk to native system functions, it was not designed for developing low-level system components such as kernels, device drivers, or embedded systems. After all, the Go runtime and the garbage collector for Go applications are dependent on the underlying operating system. (Developers interested in a cutting-edge language for that kind of work might look into using Rust.)

The future of the Go language

Go’s development is turning more toward the wants and needs of its developer base, with Go’s minders changing the language to better accommodate this audience rather than leading by stubborn example. A case in point is generics, which were finally added to the language after much deliberation about the best way to do so.

The 2024 Go Developer Survey found developers were overall satisfied with Go. Challenges that surfaced were generally due to the verbosity of error handling, missing or immature frameworks, and using Go’s type system—areas ripe for future development.

Like most languages, Go has gravitated to a core set of use cases over time, finding its niche in network services. In the future, Go is likely to continue expanding its hold there. Other use cases cited in the developer survey include creating APIs or RPC services (74% of respondents), followed by CLI applications (63%), web services (45%), libraries/frameworks (44%), automation (39%), and data processing (37%). While only 4% of respondents mentioned using Go to develop AI technologies, those who did reported that Go was a strong platform for running AI-powered workloads in production. For those wanting to develop ML/AI with Go, lack of tooling (23%) and the fact that Python is the default choice for such work (16%) topped the reasons why.

It remains to be seen how far Go’s speed and development simplicity will take it into other use cases, especially those dominated by other languages and their existing use cases. Rust covers safe and fast systems programming (a space Go is unlikely to enter); Python is still a common default for ML/AI, prototyping, automation, and glue code; and Java remains a stalwart for enterprise applications.

But Go’s future as a major programming language is already assured—certainly in the cloud, where the speed and simplicity of Go ease the development of scalable infrastructure that can be maintained over the long run.

Also see: Go language evolving for future hardware, AI workloads.

A portmanteau of “development” and “operations,” devops emerged as a way of bringing together two previously separate groups responsible for the building and deploying of software.

In the old world, developers (devs) typically wrote code before throwing it over to the system administrators (operations, or ops) to deploy and integrate that code. But as the industry shifted towards agile development and cloud-native computing, many organizations reoriented around modern, cloud-native practices in the pursuit of faster, better releases.

This required a new way to perform these key functions in a more streamlined, efficient, and cohesive way, one where the old frustrations of disconnected dev and ops functions would be eliminated. With two groups working together, developers can rapidly roll out small code enhancements via continuous integration and delivery rather than spending years on “big bang” product releases.

Devops was born at cloud-native companies like Facebook, Netflix, Spotify, and Amazon; but it’s become one of the defining technology industry trends of the past decade, primarily because it bridges so many of the changes that have shaped modern software development.

As agile development and cloud-native computing have become ubiquitous, devops has enabled the entire industry to speed up its software development cycles. Thus, devops has now thoroughly infiltrated the enterprise, especially in organizations that rely on software to run their business, such as banks, airlines, and retailers. And it’s spawned a host of other “ops” practices, some of which we’ll touch on here.[JF1] 

Devops practices

Devops requires a shift in mindset from both sides of the dev and ops divide. Development teams should focus on learning and adopting agile processes, standardizing platforms, and helping drive operational efficiencies. Operations teams must now focus on improving stability and velocity, while also reducing costs by working hand in hand with the developer team.

Broadly speaking, these teams need to all speak a common language and there needs to be a shared goal and understanding of each other’s key skills for devops to thrive.

More specifically, engineers Damon Edwards and John Willis created the CALMS model to bring together what are commonly understood to be the key principles of devops:

• Culture: One that embraces agile methodologies and is open to change, constant improvement, and accountability for the end-to-end quality of software.
• Automation: Automating away toil is a key goal for any devops team.
• Lean: Ensuring the smooth flow of software through key steps as quickly as possible.
• Measurement: You can’t improve what you don’t measure. Devops pushes for a culture of constant measurement and feedback that can be used to improve and pivot as required, on the fly.
• Sharing: Knowledge sharing across an organization is a key tenet of devops.

“Who could go back to the old way of trying to figure out how to get your laptop environment looking the same as the production environment? All these things make it so clear that there’s a better way to work. I think it’s very tough to turn back once you’ve done things like continuous integration, like continuous delivery. Once you’ve experienced it, it’s really tough to go back to the old way of doing things,” Kim told InfoWorld.

What is a devops engineer?

Naturally, the emergence of devops has spawned a whole new set of job titles, most prominent of which is the catch-all devops engineer.

Generally speaking, this role is the natural evolution of the system administrator — but in a world where developers and ops work in close tandem to deliver better software. This person should have a blend of programming and system administrator skills so that he or she can effectively bridge those two sides of the team.

That bridging of the two sides requires strong social skills more than technical. As Kim put it, “one of the most important skills, abilities, traits needed in these pioneering rebellions — using devops to overthrow the ancient powerful order, who are very happy to do things the way they have for 30 to 40 years — are the cross-functional skills to be able to reach across the table to their business counterparts and help solve problems.”

This person, or team of people, will also have to be a born optimizer, tasked with continually improving the speed and quality of software delivery from the team, be that through better practices, removing bottlenecks, or applying automation to smooth out software delivery.

The good news is that these skills are valuable to the enterprise. Salaries for this set of job titles have risen steadily over the years, with 95% of devops practitioners making more than $75,000 a year in salary in 2020 in the United States. In Europe and the UK, where salaries are lower across the board, 71% made more than $50,000 a year in 2020, up from 67% in 2019.

Key devops tools

While devops is at its heart a cultural shift, a set of tools has emerged to help organizations adopt devops practices.

This stack typically includes infrastructure as code, configuration management, collaboration, version control, continuous integration and delivery (CI/CD), deployment automation, testing, and monitoring tools.

Here are some of the tools/categories that are increasingly relevant in 2025, and what is changing:

• CI/CD and delivery automation: Traditional tools like Jenkins remain in many stacks, but newer orchestration tools and CLI-driven or GitOps-centric platforms are growing in importance (e.g. ArgoCD, Flux, Tekton). Also, platforms that integrate more tightly with monitoring, secrets management, drift detection, and policy enforcement are gaining traction.
• Security, compliance, and devsecops tooling: Security tools are increasingly integrated into devops pipelines. Expect to see more use of static analysis (SAST), dynamic testing (DAST), dependency and supply chain scanning (SCA), secret management, and policy as code. The push is toward embedding security earlier and bridging gaps between dev, security, and machine learning teams. (InfoWorld:)
• AI  and automation augmentation: AI-assisted tools are increasingly part of tooling stacks: auto-suggestions in CI/CD, anomaly detection, predictive scaling, intelligent test suite selection, and more. The hope is that these tools will reduce manual interventions and improve reliability. Tools that are “AI ready”—that is, they integrate well with AI or have mature built-in automation or assistance—increasingly stand out from the pack.

Devops challenges

Even as devops becomes more widely adopted, there remain real obstacles that can slow progress or limit impact. One major challenge is the persistent skills gap. The modern devops engineer (or team) is expected to master not just source control, CI/CD, and scripting, but also cloud architecture, infrastructure as code, security best practices, observability, and strong cross-team communication. In many organizations these capabilities are uneven: some teams excel, others lag behind. A 2024 survey showed that while 83% of developers report participating in devops activities, using multiple CI/CD tools was correlated with worse performance — a sign that complexity without deep expertise can backfire.

Toolchain fragmentation and complexity is a related issue. Devops toolchains have sprouted into a sometimes bewildering array of packages and techniques to master: version control, CI build/test, security scanning, artifact management, monitoring, observability, deployment, secret management, and more.

The more tools you have, the more difficult it becomes to integrate them cleanly, manage their versions, ensure compatibility, and avoid duplicated effort. Organizations often get stuck with “tool sprawl” — tools chosen by different teams, legacy systems, or overlapping functionalities — which introduce friction, maintenance burden, and sometimes vulnerabilities.

Finally, although devops has spread far and wide, there is still cultural resistance and alignment. Devops isn’t just about tools and processes; it’s about collaboration, shared responsibility, and continuous feedback. Teams rooted in traditional silos (dev vs ops, or security separate) may resist changes to roles and workflows. Leadership support, communication of shared goals, trust, and allowance for continuous learning are all necessary.

Many CIOs focus too much on tools or implementation first, rather than organizational culture and behaviors; but without addressing culture, even the best tools or processes may not yield the hoped-for velocity, quality, or reliability. Organizations that succeed here tend to have proactive strategies: dedicated training programs, mentorship, internal “guilds,” pairing junior and senior engineers, and making sure leadership supports ongoing learning rather than one-off bootcamps.

Why do devops?

Whoever you ask will tell you that devops is a major culture shift for organizations, so why go through that pain at all?

Devops aims to combine the formerly conflicting aims of developers and system administrators. Under its principles, all software development aims to meet business demands, add functionality, and improve the usability of applications while also ensuring those applications are stable, secure, and reliable. Done right, this improves the velocity and quality of your output, while also improving the lives of those working on these outcomes.

Does devops save money — or add cost?

Devops teams are recognizing that speed and agility are only part of success — unchecked cloud bills and waste undermine long-term sustainability. Waste in devops often comes in the form of “devops debt”— idle cloud capacity, dead code, or false-positive security alerts—which was called a “hidden tax on innovation” in recent Java-environment studies.

 Embedding finops practices can help fight these costs. Teams should shift left on cost: estimating costs when spinning up new environments, resizing instances, and scaling down unused resources before they become runaway expenses.

How to start with devops

There are lots of resources for help getting started with devops, including Kim’s own Devops Handbook, or you can enlist the help of external consultants. But you have to be methodical and focus on your people more than on the tools and technology you will eventually use if you want to ensure lasting buy-in across the business.

A proven route to achieving this is a “land and expand” strategy, where a small group starts by mapping key value streams and identifying a single product team or workload for trialing devops practices. If this team is successful in proving the value of the shift, you will likely start to get interest from other teams and from senior leadership.

If you are at the start of your devops journey, however, make sure you are prepared for the disruption a change like this can have on your organization, and keep your eye on the prize of building better, faster, stronger software.

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More on devops:

• Devops debt: The hidden tax on innovation
• 10 big devops mistakes and how to avoid them
• Smarter devops: How to avoid deployment horrors

What is cloud native? Cloud native defined

The term “cloud-native computing” encompasses the modern approach to building and running software applications that exploit the flexibility, scalability, and resilience of cloud computing. The phrase is a catch-all that encompasses not just the specific architecture choices and environments used to build applications for the public cloud, but also the software engineering techniques and philosophies used by cloud developers.

The Cloud Native Computing Foundation (CNCF) is an open source organization that hosts many important cloud-related projects and helps set the tone for the world of cloud development. The CNCF offers its own definition of cloud native:

Cloud native practices empower organizations to develop, build, and deploy workloads in computing environments (public, private, hybrid cloud) to meet their organizational needs at scale in a programmatic and repeatable manner. It is characterized by loosely coupled systems that interoperate in a manner that is secure, resilient, manageable, sustainable, and observable.

Cloud native technologies and architectures typically consist of some combination of containers, service meshes, multi-tenancy, microservices, immutable infrastructure, serverless, and declarative APIs — this list is not exhaustive.

This definition is a good start, but as cloud infrastructure becomes ubiquitous, the cloud native world is beginning to spread behind the core of this definition. We’ll explore that evolution as well, and look into the near future of cloud-native computing.

Cloud native architectural principles

Let’s start by exploring the pillars of cloud-native architecture. Many of these technologies and techniques were considered innovative and even revolutionary when they hit the market over the past few decades, but now have become widely accepted across the software development landscape.

Microservices. One of the huge cultural shifts that made cloud-native computing possible was the move from huge, monolithic applications to microservices: small, loosely coupled, and independently deployable components that work together to form a cloud-native application. These microservices can be scaled across cloud environments, though (as we’ll see in a moment) this makes systems more complex.

Containers and orchestration. In could-native architectures, individual microservices are executed inside containers — lightweight, portable virtual execution environments that can run on a variety of servers and cloud platforms. Containers insulate the developers from having to worry about the underlying machines on which their code will execute. That is, all they have to do is write to the container environment. 

Getting the containers to run properly and communicate with one another is where the complexity of cloud native computing starts to emerge. Initially, containers were created and managed by relatively simple platforms, the most common of which was Docker. But as cloud-native applications got more complex, container orchestration platforms that augmented Docker’s functionality emerged, such as Kubernetes, which allows you to deploy and manage multi-container applications at scale. Kubernetes is critical to cloud native computing as we know it — it’s worth noting that the CNCF was set up as a spinoff of the Linux Foundation on the same day that Kubernetes 1.0 was announced — and adhering to Kubernetes best practices is an important key to cloud native success. 

Open standards and APIs. The fact that containers and cloud platforms are largely defined by open standards and open source technologies is the secret sauce that makes all this modularity and orchestration possible, and standardized and documented APIs offer the means of communication between distributed components of a larger application. In theory, anyway, this standardization means that every component should be able to communicate with other components of an application without knowing about their inner workings, or about the inner workings of the various platform layers on which everything operates.

DevOps, agile methodologies, and infrastructure as code. Because cloud-native applications exist as a series of small, discrete units of functionality, cloud-native teams can build and update them using agile philosophies like DevOps, which promotes rapid, iterative CI/CD development. This enables teams to deliver business value more quickly and more reliably.

The virtualized nature of cloud environments also make them great candidates for infrastructure as code (IaC), a practice in which teams use tools like Terraform, Pulumi, and AWS CloudFormation, to manage infrastructure declaratively and version those declarations just like application code. IaC boosts automation, repeatability, and resilience across environments—all big advantages in the cloud world. IaC also goes hand-in-hand with the concept of immutable infrastructure—the idea that, once deployed, infastructure-level entities like virtual machines, containers, or network appliances don’t change, which makes them easier to manage and secure. IaC stores declarative configuration code in version control, which creates an audit log of any changes.

How the cloud-native stack is expanding

As cloud-native development becomes the norm, the cloud-native ecosystem is expanding; the CNCF maintains a graphical representation of what it calls the  cloud native landscape that hammers home to expansive and bewildering variety of products, services, and open source projects that contribute to (and seek to profit from) to cloud-native computing. And there are a number of areas where new and developing tools are complicating the picture sketched out by the pillars we discussed above.   

An expanding Kubernetes ecosystem. Kubernetes is complex, and teams now rely on an entire ecosystem of projects to get the most out of it: Helm for packaging, ArgoCD for GitOps-style deployments, and Kustomize for configuration management. And just as Kubernetes augmented Docker for enterprise-scale deployments. Kubernetes itself has been augmented and expanded by service mesh offerings like Istio and Linkerd, which offer fine-grained traffic control and improved security

Observability needs. The complex and distributed world of cloud-native computing requires in-depth observability to ensure that developers and admins have a handle on what’s happening with their applications. Cloud-native observability uses distributed tracing and aggregated logs to provide deep insight into performance and reliability. Tools like Prometheus, Grafana, Jaeger, and OpenTelemetry support comprehensive, real-time observability across the stack.

Serverless computing.  Serverless computing, particularly in its function-as-a-service guise, offers to strip needed compute resources down to their bare minimum, with functions running on service provider clouds using exactly as much as they need and no more. Because these services can be exposed as endpoints via APIs, they are increasingly integrated into distributed applications, operating side-by-side with functionality provided by containerized microservices. Watch out, though: the big FaaS providers (Amazon, Microsoft, and Google) would love to lock you in to their ecosystems.  

FinOps. Cloud computing was initially billed as a way to cut costs — no need to pay for an in-house data center that you barely use — but in practice it replaces capex with opex, and sometimes you can run up truly shocking cloud service bills if you aren’t careful. Serverless computing is one way to cut down on those costs, but financial operations, or FinOps, is a more systematic discipline that aims to aligns engineering, finance, and product to optimize cloud spending. FinOps best practices make use of those observability tools to best determine what departments and applications are eating up resources.

How cloud-native architecture is adapting to AI workloads

Enterprises deploy larger AI models and make use of more and more real-time inference services. That’s putting demands on cloud-native systems and forcing them to adapt to remain scalable and reliable.

For instance, organizations are re-engineering cloud environments around GPU-accelerated clusters, low-latency networking, and predictable orchestration. These needs align with established cloud-native patterns: containers package AI services consistently, while Kubernetes provides resilient scheduling and horizontal scale for inference workloads that can spike without warning.

Kubernetes itself is changing to better support AI inference, adding hardware-aware scheduling for GPUs, model-specific autoscaling behavior, and deeper observability into inference pipelines. These enhancements make Kubernetes a more natural platform for serving generative AI workloads.

AI’s resource demands are amplifying traditional cloud-native challenges. Observability becomes more complex as inference paths span GPUs, CPUs, vector databases, and distributed storage. FinOps teams contend with cost volatility from training and inference bursts. And security teams must track new risks around model provenance, data access, and supply-chain integrity.

Application frameworks for building distributed cloud-native apps

Microsoft’s Aspire is one of the most visible examples of a shift towards application frameworks to simplify how teams build distributed systems. Opinionated frameworks like Aspire provide structure, observability, and integration out of the box so developer don’t need to stitch together containers, microservices, and orchestration tooling by hand.

Aspire in particular is a prescriptive framework for cloud-native applications, bundling containerized services, environment configuration, health checks, and observability into a unified development model. Aspire provides defaults for service-to-service communication, configuration, and deployment, along with a built-in dashboard for visibility across distributed components.

While Aspire was originally aligned with Microsoft’s .NET platform,Redmond now sees it as having a  polyglot future. This positions Aspire as part of a broader trend: frameworks that help teams build cloud-native, service-oriented systems without being locked into a single language ecosystem. Several other frameworks are gaining traction: Dapr provides a portable runtime that abstracts many of the plumbing tasks in cloud-native distributed applications, and Orleans offers an actor-model-based framework for large-scale systems in the .NET world, and Akka gives JVM teams a mature, reactive toolkit for elastic, resilient services.

Frameworks and tools in the expanding cloud-native ecosystem

While frameworks like Aspire simplify how developers compose and structure distributed applications, most cloud-native systems still depend on a broader ecosystem of platforms and operational tooling. This deeper layer is where much of the complexity—and innovation—of cloud-native computing lives, particularly as Kubernetes continues to serve as the industry’s control plane for modern infrastructure.

Kubernetes provides the core abstractions for deploying and orchestrating containerized workloads at scale. Managed distributions such as Google Kubernetes Engine (GKE), Amazon EKS, Azure AKS, and Red Hat OpenShift build on these primitives with security, lifecycle automation, and enterprise support. Platform vendors are increasingly automating cluster operations—upgrades, scaling, remediation—to reduce the operational burden on engineering teams.

Surrounding Kubernetes is a rapidly expanding ecosystem of complementary frameworks and tools. Service meshes like Istio and Linkerd provide fine-grained traffic management, policy enforcement, and mTLS-based security across microservices. GitOps platforms such as Argo CD and Flux bring declarative, version-controlled deployments to cloud-native environments. Meanwhile, projects like Crossplane turn Kubernetes into a universal control plane for cloud infrastructure, letting teams provision databases, queues, and storage through familiar Kubernetes APIs. These tools illustrate how cloud-native development now spans multiple layers: developer-focused application frameworks like Aspire at the top, and a powerful, evolving Kubernetes ecosystem underneath that keeps modern distributed applications running.

Advantages and challenges for cloud-native development

Cloud native has become so ubiquitous that its advantages are almost taken for granted at this point, but it’s worth reflecting on the beneficial shift the cloud native paradigm represents. Huge, monolithic codebases that saw updates rolled out once every couple of years have been replaced by microservice-based applications that can be improved continuously. Cloud-based deployments, when managed correctly, make better use of compute resources and allow companies to offer their products as SaaS or PaaS services. 

But cloud-native deployments come with a number of challenges, too:

• Complexity and operational overhead: You’ll have noticed by now that many of the cloud-native tools we’ve discussed, like service meshes and observability tools, are needed to deal with the complexity of cloud-native applications and environments. Individual microservices are deceptively simple, but coordinating them all in a distributed environment is a big lift.
• Security: More services executing on more machines, communicating by open APIs, all adds up to a bigger attack surface for hackers. Containers and APIs each have their own special security needs, and a policy engine can be an important tool for imposing a security baseline on a sprawling cloud-native app. DevSecOps, which adds security to DevOps, has become an important cloud-native development practice to try to close these gaps.
• Vendor lock-in: This may come as a surprise, since cloud-native is based on open standards and open source. But there are differences in how the big cloud and serverless providers works, and once you’ve written code with one provider in mind, it can be hard to migrate elsewhere.
• A persistent skills gap: Cloud-native computing and development may have years under its belt at this point, but the number of developers who are truly skilled in this arena is a smaller portion of the workforce than you’d think. Companies face difficult choices in bridging this skills gap, whether that’s bidding up salaries, working to upskill current workers, or allowing remote work so they can cast a wide net. 

Cloud native in the real world

Cloud native computing is often associated with giants like Netflix, Spotify, Uber, and AirBNB, where many of its technologies were pioneered in the early ’10s. But the CNCF’s Case Studies page provides an in-depth look at how cloud native technologies are helping companies. Examples include the following:

• A UK-based payment technology company that can switch between data centers and clouds with zero downtime
• A software company whose product collects and analyzes data from IoT devices — and can scale up as the number of gadgets grows
• A Czech web service company that managed to improve performance while reducing costs by migrating to the cloud

Cloud-native infrastructure’s capability to quickly scale up to large workloads also make it an attractive platform for developing AI/ML applications: another one of those CNCF case studies looks at how IBM uses Kubernetes to train its Watsonx assistant. The big three providers are putting a lot of effort into pitching their platforms as the place for you to develop your own generative AI tools, with offerings like Azure AI Foundry,Google Firebase Studio, and Amazon Bedrock. It seems clear that cloud native technology is ready for what comes next.

Learn more about related cloud-native technologies:

• Platform-as-a-service (PaaS) explained
• What is cloud computing
• Multicloud explained
• Agile methodology explained
• Agile development best practices
• Devops explained
• Devops best practices
• Microservices explained
• Microservices tutorial
• Docker and Linux containers explained
• Kubernetes tutorial
• CI/CD (continuous integration and continuous delivery) explained
• CI/CD best practices

Cloud computing continues to be the platform of choice for large applications and a driver of innovation in enterprise technology. Gartner forecasts public cloud spending alone to the public cloud services market alone will reach $1.42 trillion in current U.S. dollars, driven by AI workloads and enterprise modernization.

Driving this growth are the rise of AI and machine learning on the cloud, adoption of edge computing, the maturation of serverless computing, the emergence of multicloud strategies, improved security and privacy, and more sustainable cloud practices.

What is cloud computing?

While often used broadly, the term cloud computing is defined as an abstraction of compute, storage, and network infrastructure assembled as a platform on which applications and systems are deployed quickly and scaled on the fly.

Most cloud customers consume public cloud computing services over the internet, which are hosted in large, remote data centers maintained by cloud providers. The most common type of cloud computing, SaaS (software as service), delivers prebuilt applications to the browsers of customers who pay per seat or by usage, exemplified by such popular apps as Salesforce, Google Docs, or Microsoft Teams.

5 top trends in cloud computing

1. Agentic cloud ecosystems: The shift from AI as a tool to AI as an autonomous operator within cloud environments.
2. Sovereign and localized clouds: Meeting strict national data residency and digital sovereignty laws.
3. Specialized AI hardware access: Navigating the GPU capacity crunch through reserved instances and boutique AI clouds.
4. Integrated greenOps: Merging cost optimization with mandatory carbon-footprint reporting.
5. Industry-specific walled gardens: The maturation of vertical clouds into highly regulated, precompliant environments for finance and healthcare.

Next in line is IaaS (infrastructure as a service), which offers vast, virtualized compute, storage, and network infrastructure upon which customers build their own applications, often with the aid of providers’ API-accessible services.

When people refer to the “the cloud” today, they most often mean the big IaaS providers: AWS (Amazon Web Services), Google Cloud Platform, or Microsoft Azure. All three have become ecosystems of services that go way beyond infrastructure and include developer tools, serverless computing, machine learning services and APIs, data warehouses, and thousands of other services. With both SaaS and IaaS, a key benefit is agility. Customers gain new capabilities almost instantly without the capital investment in hardware or software on-premises — and they can instantly scale the cloud resources they consume up or down as needed.

According to Foundry’s Cloud Computing Study, 2025, enterprises are moving to the cloud to improve security and/or governance, increase scalability​, accelerate adoption of artificial intelligence and machine learning and other new technologies, replace on-premises legacy technology, ​improve employee productivity, and ensure disaster recovery and business continuity.

Hyperscalers now dominate cloud services

The largest cloud service providers are often described as hyperscalers, due to their capability to provide large-scale data centers across the globe. Hyperscalers typically offer a wide range of cloud services, including IaaS, PaaS, SaaS, and more.

As mentioned above, notable hyperscalers include Amazon Web Services (AWS), Google Cloud Platform, and Microsoft Azure. They offer the following capabilities.

• Scalability: Hyperscalers can handle massive workloads and scale resources up or down quickly.
• Cost-effectiveness: Hyperscalers often offer competitive pricing and economies of scale.
• Global reach: Hyperscalers operate data centers around the world, providing low-latency access to customers in different regions.
• Innovation: Hyperscalers are at the forefront of cloud innovation, offering new services and features.

Challenges of working with hyperscalers

• Vendor lock-in: Relying heavily on a single hyperscaler can create vendor lock-in, making it difficult to switch to another provider and charging large egress fees if you do move.
• Complexity: Hyperscalers offer a vast array of services, which can be overwhelming for some customers.
• Security concerns: Because hyperscalers handle sensitive data, security is a major concern.

AI, Agents, and the Sovereign Cloud

The AI-enabled enterprise has moved beyond simple chatbots. The focus has shifted to agentic workflows — autonomous systems that reside in the cloud and possess the authority to execute business processes, manage cloud spend, and self-patch security vulnerabilities without human intervention.

The shift to agentic infrastructure

Cloud providers are no longer just selling compute. They are selling inference-as-a-service. Modern cloud budgets are now dominated by the high cost of specialized GPU clusters (such as Nvidia’s Blackwell architecture). This has led to the rise of boutique AI clouds that compete with hyperscalers by offering bare-metal access to the latest silicon specifically for model training and fine-tuning.

Data sovereignty and private AI

A major shift in late 2025 is the move away from public AI models for sensitive data. Organizations are increasingly using retrieval-augmented generation (RAG) within walled garden environments. This ensures that a company’s proprietary data never leaves their specific cloud instance to train a provider’s base model.

Furthermore, sovereign AI has become a requirement for global operations. Governments now demand that the AI models processing their citizens’ data be hosted on infrastructure that is owned, operated, and governed within their own borders.

The challenges of ghost AI

Just as shadow IT plagued the 2010s, ghost AI—unauthorized AI agents running on corporate cloud accounts — has become a primary security risk. Managing these autonomous entities requires a new layer of AI governance, where the cloud provider automatically audits the intent and permissions of every running agent to prevent runaway costs or data leaks.

Cloud computing definitions

In 2011, NIST posted a PDF that divided cloud computing into three “service models” — SaaS, IaaS, and PaaS (platform as a service) — the latter being a controlled environment within which customers develop and run applications. These three categories have largely stood the test of time, although most PaaS solutions now are made available as services within IaaS ecosystems rather than as dedicated PaaS clouds.

Two evolutionary trends stand out since NIST’s threefold definition. One is the long and growing list of subcategories within SaaS, IaaS, and PaaS, some of which blur the lines between categories. The other is the explosion of API-accessible services available in the cloud, particularly within IaaS ecosystems. The cloud has become a crucible of innovation where many emerging technologies appear first as services, a big attraction for business customers who understand the potential competitive advantages of early adoption.

SaaS (software as a service) definition

This type of cloud computing delivers applications over the internet, typically with a browser-based user interface. Today, most software companies offer their wares via SaaS — if not exclusively, then at least as an option.

The most popular SaaS applications for business are Google’s G Suite and Microsoft’s Office 365. Most enterprise applications, including giant ERP suites from Oracle and SAP, come in both SaaS and on-premises versions. SaaS applications typically offer extensive configuration options as well as development environments that enable customers to code their own modifications and additions. They also enable data integration with on-prem applications.

IaaS (infrastructure as a service) definition

At a basic level, IaaS cloud providers offer virtualized compute, storage, and networking over the internet on a pay-per-use basis. Think of it as a data center maintained by someone else, remotely, but with a software layer that virtualizes all those resources and automates customers’ ability to allocate them with little trouble.

But that’s just the basics. The full array of services offered by the major public IaaS providers is staggering: highly scalable databases, virtual private networks, big data analytics, AI and machine learning services, application platforms, developer tools, devops tools, and so on. Amazon Web Services was the first IaaS provider and remains the leader, followed by Microsoft Azure, Google Cloud Platform, IBM Cloud, and Oracle Cloud.

PaaS (platform as a service) definition

PaaS provides sets of services and workflows that specifically target developers, who can use shared tools, processes, and APIs to accelerate the development, testing, and deployment of applications. Salesforce’s Heroku and Salesforce Platform (formerly Force.com) are popular public cloud PaaS offerings; Cloud Foundry and Red Hat’s OpenShift can be deployed on premises or accessed through the major public clouds. For enterprises, PaaS can ensure that developers have ready access to resources, follow certain processes, and use only a specific array of services, while operators maintain the underlying infrastructure.

FaaS (function as a service) definition

FaaS, the original and most basic version of serverless computing, adds another layer of abstraction to PaaS, so that developers are insulated from everything in the stack below their code. Instead of futzing with virtual servers, containers, and application runtimes, developers upload narrowly functional blocks of code, and set them to be triggered by a certain event (such as a form submission or uploaded file). All of the major clouds offer FaaS on top of IaaS: AWS Lambda, Azure Functions, Google Cloud Functions, and IBM Cloud Functions. A special benefit of FaaS applications is that they consume no IaaS resources until an event occurs, reducing pay-per-use fees.

Private cloud definition

A private cloud downsizes the technologies used to run IaaS public clouds into software that can be deployed and operated in a customer’s data center. As with a public cloud, internal customers can provision their own virtual resources to build, test, and run applications, with metering to charge back departments for resource consumption. For administrators, the private cloud amounts to the ultimate in data center automation, minimizing manual provisioning and management.

VMware remains a force in the private cloud software market, but the acquisition by Broadcom has created confusion and raised concerns among some customers about potential changes in pricing, licensing, and support. This could lead some organizations to explore alternative solutions.

OpenStack continues to be a popular open-source choice for building private clouds. It offers a flexible and customizable platform that can be tailored to specific needs. However, OpenStack can be complex to deploy and manage, and it may require significant expertise to maintain.

Kubernetes, a container orchestration platform that has gained significant traction in recent years, is often used in conjunction with other technologies like OpenStack to build cloud-native applications. Red Hat OpenShift is a comprehensive cloud platform based on Kubernetes that provides a managed experience for deploying and managing container-based, applications.

Many cloud providers offer their own cloud-native platforms and tools, such as AWS Outposts, Azure Stack, and Google Cloud Anthos.

Common factors to consider when evaluating private cloud platforms include the following:

1. Pricing: The initial cost of deployment and ongoing maintenance costs.
2. Complexity: The level of technical expertise needed to manage the platform.
3. Flexibility: The ability to customize the platform to meet specific needs.
4. Vendor lock-in: The degree to which the organization is tied to a particular vendor.
5. Security: The security features and capabilities of the platform.
6. Scalability: The capability to expand the platform to meet future needs.

Hybrid cloud definition

A hybrid cloud is the integration of a private cloud with a public cloud. At its most developed, the hybrid cloud involves creating parallel environments in which applications can move easily between private and public clouds. In other instances, databases may stay in the customer data center and integrate with public cloud applications — or virtualized data center workloads may be replicated to the cloud during times of peak demand. The types of integrations between private and public clouds vary widely, but they must be extensive to earn a hybrid cloud designation.

Public APIs (application programming interfaces) definition

Just as SaaS delivers applications to users over the internet, public APIs offer developers application functionality that can be accessed programmatically. For example, in building web applications, developers often tap into the Google Maps API to provide driving directions; to integrate with social media, developers may call upon APIs maintained by Twitter, Facebook, or LinkedIn. Twilio has built a successful business delivering telephony and messaging services via public APIs. Ultimately, any business can provision its own public APIs to enable customers to consume data or access application functionality.

iPaaS (integration platform as a service) definition

Data integration is a key issue for any sizeable company, but particularly for those that adopt SaaS at scale. iPaaS providers typically offer prebuilt connectors for sharing data among popular SaaS applications and on-premises enterprise applications, though providers may focus more or less on business-to-business and e-commerce integrations, cloud integrations, or traditional SOA-style integrations. iPaaS offerings in the cloud from such providers as Dell Boomi, Informatica, MuleSoft, and SnapLogic also let users implement data mapping, transformations, and workflows as part of the integration-building process.

IDaaS (identity as a service) definition

The most difficult security issue related to cloud computing is managing user identity and its associated rights and permissions across data centers and pubic cloud sites. IDaaS providers maintain cloud-based user profiles that authenticate users and enable access to resources or applications based on security policies, user groups, and individual privileges. The ability to integrate with various directory services (Active Directory, LDAP, etc.) and provide single sign-on across business-oriented SaaS applications is essential.

Leaders in IDaaS include Microsoft, IBM, Google, Oracle, Okta, Capgemini, Okta, Junio Corporation, OneLogin, and JumpCloud.  

Collaboration platforms

Collaboration solutions such as Slack and Microsoft Teams have become vital messaging platforms that enable groups to communicate and work together effectively. Basically, these solutions are relatively simple SaaS applications that support chat-style messaging along with file sharing and audio or video communication. Most offer APIs to facilitate integrations with other systems and enable third-party developers to create and share add-ins that augment functionality.

Vertical clouds

Key providers in such industries as financial services, healthcare, retail, life sciences, and manufacturing provide PaaS clouds to enable customers to build vertical applications that tap into industry-specific, API-accessible services. Vertical clouds can dramatically reduce the time to market for vertical applications and accelerate domain-specific B2B integrations. Most vertical clouds are built with the intent of nurturing partner ecosystems.

Other cloud computing considerations

The most widely accepted definition of cloud computing means that you run your workloads on someone else’s servers, but this is not the same as outsourcing. Virtual cloud resources and even SaaS applications must be configured and maintained by the customer. Consider these factors when planning a cloud initiative.

Cloud computing security considerations

Objections to the public cloud generally begin with cloud security, although the major public clouds have proven themselves much less susceptible to attack than the average enterprise data center.

Of greater concern is the integration of security policy and identity management between customers and public cloud providers. In addition, government regulation may forbid customers from allowing sensitive data off-premises. Other concerns include the risk of outages and the long-term operational costs of public cloud services.

Multicloud management considerations

To enhance their operational efficiency, reduce costs, and improve security, many companies are increasingly turning to multicloud strategies. By distributing workloads across multiple cloud providers, organizations can avoid vendor lock-in, optimize costs, and leverage the best-of-breed services offered by different providers.

This multicloud approach also improves performance and reliability by minimizing downtime and optimizing latency. Additionally, multicloud strategies strengthen security by diversifying the attack surface and facilitating compliance with industry regulations. Finally, by replicating critical workloads across multiple regions and providers, companies can establish robust disaster recovery and business continuity plans, ensuring minimal disruption in the event of catastrophic failures.

The bar to qualify as a multicloud adopter is low: A customer just needs to use more than one public cloud service. However, depending on the number and variety of cloud services involved, managing multiple clouds can become complex from both a cost optimization and a technology perspective.

In some cases, customers subscribe to multiple cloud services simply to avoid dependence on a single provider. A more sophisticated approach is to select public clouds based on the unique services they offer and, in some cases, integrate them. For example, developers might want to use Google’s Vertex AI Studio on Google Cloud Platform to build AI-driven applications, but prefer Jenkins hosted on the CloudBees platform for continuous integration.

To control costs and reduce management overhead, some customers opt for cloud management platforms (CMPs) and/or cloud service brokers (CSBs), which let you manage multiple clouds as if they were one cloud. The problem is that these solutions tend to limit customers to such common-denominator services as storage and compute, ignoring the panoply of services that make each cloud unique.

Edge computing considerations

You often see edge computing incorrectly described as an alternative to cloud computing. Edge computing is about moving compute to local devices in a highly distributed system, typically as a layer around a cloud computing core. There is typically a cloud involved to orchestrate all of the devices and take in their data, then analyze it or otherwise act on it. 

To the cloud and back – why repatriation is real

While public cloud offers scalability and flexibility, some enterprises are opting to return to on-premises infrastructure due to rising costs, data security concerns, performance issues, vendor lock-in, and regulatory compliance challenges. While the public cloud offers scalability and flexibility, on-premises infrastructure provides greater control, customization, and potential cost savings in certain scenarios leading some technology decision-makers to consider repatriation. However, a hybrid cloud approach, combining public and private cloud, often offers the best balance of benefits.

More specific reasons to repatriate including the following:

• Unanticipated costs, such as data transfer fees, storage charges, and egress fees, can quickly escalate, especially for large-scale cloud deployments.  
• Inaccurate resource provisioning or underutilization can lead to higher-than-expected costs.
• Stricter data privacy regulations require organizations to store and process data within specific geographic boundaries.  
• For highly sensitive data, companies may prefer to maintain greater control over security measures and access permissions. 
• On-premises infrastructure can offer lower latency, particularly for applications requiring real-time processing or high-performance computing.  
• Overreliance on a single cloud provider can limit flexibility and increase costs. Repatriation allows organizations to diversify their infrastructure and reduce vendor dependency.  
• Industries with stringent compliance requirements may find it easier to meet standards with on-premises infrastructure.  
• On-premises environments offer greater control over hardware, software, and network configurations, allowing for customized solutions.  

Benefits of cloud computing

The cloud’s main appeal is to reduce the time to market of applications that need to scale dynamically. Increasingly, however, developers are drawn to the cloud by the abundance of advanced new services that can be incorporated into applications, from machine learning to internet of things (IoT) connectivity.

Although businesses sometimes migrate legacy applications to the cloud to reduce data center resource requirements, the real benefits accrue to new applications that take advantage of cloud services and “cloud native” attributes. The latter include microservices architecture, Linux containers to enhance application portability, and container management solutions such as Kubernetes that orchestrate container-based services. Cloud-native approaches and solutions can be part of either public or private clouds and help enable highly efficient devops workflows.

Cloud computing, be it public or private or hybrid or multicloud, has become the platform of choice for large applications, particularly customer-facing ones that need to change frequently or scale dynamically. More significantly, the major public clouds now lead the way in enterprise technology development, debuting new advances before they appear anywhere else. Workload by workload, enterprises are opting for the cloud, where an endless parade of exciting new technologies invite innovative use.

SaaS has its roots in the ASP (application service provider) trend of the early 2000s, when providers would run applications for business customers in the provider’s data center, with dedicated instances for each customer. The ASP model was a spectacular failure because it quickly became impossible for providers to maintain so many separate instances, particularly as customers demanded customizations and updates.

Salesforce is widely considered the first company to launch a highly successful SaaS application using multitenancy — a defining characteristic of the SaaS model. Rather than each Salesforce customer getting its own application instance, customers who subscribe to the company’s salesforce automation software share a single, large, dynamically scaled instance of an application (like tenants sharing an apartment building), while storing their data in separate, secure repositories on the SaaS provider’s servers. Fixes can be rolled out behind the scenes with zero downtime and customers can receive UX or functionality improvements as they become available.

IBM is looking to expand the reach of its foundational mainframe portfolio by adding new single frame and rack mounted versions of its Z and LinuxONE systems.

The IBM z17 portfolio adds a single frame and rack mount versions that bring mainframe capabilities into smaller, customizable footprints. The LinuxONE Rockhopper family gets a single frame and rack mount models, plus a new Express rack mount offering, that target new and smaller clients, according to Tina Tarquinio, chief product officer, IBM Z & LinuxONE.

Specifically, the new hardware includes:

• z17 single frame is a fully packaged box in an IBM rack with intelligent power distribution units, delivered as a complete enclosed unit ready to deploy at the edge or other strategically important customer sites.
• z17 rack mount lets customers install IBM Z components directly into their own industry-standard rack, with built-in flexibility for co-location with other technologies.
• LinuxONE Rockhopper 5 is a multi-drawer LinuxONE system for high-density workloads, with on-chip AI acceleration, confidential computing, and postquantum cryptography available in both single frame and rack mount configurations.
• Rockhopper 5 rack mount and Express offerings deliver enterprise-grade Linux, confidential computing, and on-chip AI acceleration in a compact 18U configuration. Designed for organizations supporting a smaller set of workloads, the offering provides a cost-efficient entry point that can scale as business grows, while prioritizing security, resiliency, and performance.

The new IBM z17 and IBM LinuxONE 5 Rockhopper configurations support up to 82 cores and 18 TB of memory across two processor drawers, representing about a 20% increase in core count and 12% increase in memory capacity over current systems, IBM stated. Single processor capacity of an IBM z17 ME2 provides full speed IBM z/OS configurations including 10% greater throughput per core than IBM z16 A02 with some variation based on workload and configuration, according to Tarquinio.

Both systems feature a 5.5 GHz IBM Telum II processor and a built-in AI accelerator that IBM says will let customers run more than 450 billion inferencing operations in a day with one millisecond response time. In addition, the 32-core Spyre AI accelerator is designed to handle all manner of AI workloads.

The idea is to bring the core strengths of IBM Z to a broader range of deployment models while offering the security, resilience, and performance enterprises depend on, Tarquinio said. 

“As always, we’re continuing to innovate to deliver more with less, including up to 20% more capacity than IBM z16 to help process transactions faster and support growing AI-driven workloads,” Tarquinio said.  “Even the newest and smallest member of the IBM z17 family delivers the performance, efficiency, and scalability organizations need as they balance growth ambitions with real-world resource constraints.”

The Linux-based system, Rockhopper 5 is for organizations that have moved past the evaluation question and are ready to consolidate a substantial portion of their x86 estate, said Marcel Mitran, IBM Fellow and CTO of IBM LinuxONE. 

Rockhopper 5 is designed to bring a smaller physical footprint and a software licensing model that reflects actual workload boundaries rather than physical server counts, Mitran said.

The LinuxONE 5 Express is a preconfigured system designed to get organizations running on LinuxONE quickly, with a defined bill of materials and a predictable starting cost, on the same architecture that the largest enterprises in the world depend on, Mitran said.

“It is built for organizations that want to consolidate a modest x86 estate, evaluate LinuxONE for the first time, or deploy a specific workload such as digital assets, AI-infused transaction processing, or confidential computing, without committing to the footprint of the larger model,” Mitran said.

Some of the mainframes’ software features were also bulked up. For example, IBM said that Post Quantum Cryptography security is now standard on the z17 and LinuxONE Rockhopper 5 systems letting customers start to utilize cryptography to protect core resources for the future.

The idea is to help customers protect long-lived, mission-critical data while reducing the cost and complexity of future cryptographic migration, IBM stated. 

In that vein, IBM said it was bringing Crypto Discovery & Inventory, which lets security teams see what has been encrypted across the enterprise. In addition, IBM announced an Infrastructure Management for Z and LinuxONE package that would let customers administer, monitor, automate, and provision IBM Z and LinuxONE systems from a central location.

IBM said it wants to reduce operational complexity for customers by making automating day-to-day operations to ultimately lower administrative costs and concerns. With the new flexible form factors, IBM continues to target hybrid and AI infrastructure buildouts with the Big Iron. In the AI world, the z17 is being utilized for AI inferencing, transactions, training, and key security applications such as fraud detection and insurance claims.

“Enterprise infrastructure is entering a new phase. Organizations need platforms that can support AI-driven growth while navigating resource constraints, evolving business requirements, and increasingly complex hybrid environments,” Tarquinio said. “They are being asked to deploy new AI capabilities while learning new skills, controlling operational costs, and maximizing the value of existing applications and infrastructure.”

A recent IBM Institute study on mainframe usage stated that embedding mainframe to support AI in executing transactions is not temporary: 75% of executives expect mainframe-based applications to remain central to digital transformation, and 60% say mainframe-based platforms are essential to enabling AI innovation.

”Mainframe-anchored systems of record are becoming systems of intelligent execution—not as general‑purpose AI platforms, but as environments where AI acts directly within transactions and in support of them,” the study reported.

Gartner wrote in its “The State of the IBM Mainframe in 2026” report that IBM’s willingness to make significant investments ensure the mainframe modernizes to remain a vital and thriving component of enterprise IT.  

“Most mainframe customers are now prioritizing the reduction of technical debt and adopting platform innovations to future-proof their mainframe environments for the coming decade,” Gartner wrote.

The new z17 single frame and rack mount configurations, LinuxONE Rockhopper 5, and LinuxONE 5 Express will all be available August 12, 2026. IBM Infrastructure Management for IBM Z and IBM LinuxONE will be available August 14.

Microsoft is warning defenders about a new backdoor that blurs the line between espionage malware and wipers.

In a technical analysis published on Thursday, Microsoft Threat Intelligence detailed GigaWiper, a Golang-based implant first observed in October 2025 intrusions that combines remote administration capabilities with multiple disk-wiping and ransomware routines.

Rather than building a new destructive tool from scratch, the operators assembled GigaWiper from several existing malware families, embedding them as modular commands inside a single backdoor.

“GigaWiper is particularly notable for its makeup,” Microsoft researchers said. “The consolidation of multiple destructive capabilities into a modular backdoor reflects a notable shift in wiper malware, which are typically designed purely to destroy rather than to extort and carry real-world consequences.”

Malware capabilities of the backdoor included multiple disk wiping logics, an irreversible Crucio ransomware encryption, persistence, and RabbitMQ and Redis-based communication.

A backdoor for destruction on demand

According to Microsoft, GigaWiper exists in two forms. A standalone wiper and a larger backdoor whose command set embeds the standalone wiping functionality alongside numerous administrative features.

Written in Go, the malware supports 20 command codes that enable operators to execute PowerShell commands, manage Windows services and processes, manipulate the registry, capture screenshots, record displays, clear event logs, and remotely control infected systems through a Virtual Network Computing (VNC)-like capability.

Persistence is established through a scheduled task posing as a “OneDrive Update,” while command-and-control (C2) relies on RabbitMQ for receiving instructions and Redis for returning command output. This architecture allows attackers to quietly maintain access and selectively activate destructive functionality when an objective has been achieved, the researchers added.

The backdoor combines three malware families

Microsoft researchers found that GigaWiper integrates destructive code from multiple malware families instead of relying on a single wiping mechanism.

These integrations show up in the form of separate commands that the backdoor supports.

One command performs raw physical disk wiping by overwriting drives and removing partition metadata. Another borrows from the Crucio ransomware family, encrypting files with randomly generated keys that are intentionally never stored, making recovery impossible despite presenting itself like ransomware.

A third command recreates the functionality of FlockWiper, implementing secure multi-pass wiping in Go to permanently erase data on Windows systems.

“We tied GigaWiper to both Crucio and FlockWiper based on code analysis, shared execution flow, function naming, and unique strings,” the researchers said. “Crucio’s code was the base for GigaWiper command 3, and FlockWiper was re-coded in Golang and updated for GigaWiper command 12,” they noted, referring to the 20 listed commands the backdoor supports.

The standalone wiper was implemented as command 1 from the list.

Microsoft recommended hardening endpoints and identities, enabling behavioral detection and endpoint detection and response (EDR) capabilities, and using attack surface reduction controls to limit compromise risks.

The company also urged defenders to maintain offline or otherwise resilient backups, as destructive malware like GigaWiper is designed to irreversibly wipe or encrypt data. To support detection, the researchers shared a list of indicators of compromise (IOCs), which included FlockWiper and Crucio file hashes and a couple of C2 IP addresses.

Every few years, some new technology comes along that promises to revolutionize how we do business, and enterprises pile in headfirst without asking how much it’s going to cost. I’ve been watching this movie for 30 years. Cloud computing was the first act. Now it’s generative AI, and the bill is arriving faster than anyone expected.

The latest data shows that many enterprises are seeing their AI token costs run 10 to 20 times higher than initial projections. That’s not a rounding error. That’s a strategic miscalculation that CFOs are starting to notice, and they’re not happy about it.

Here’s the thing: This crisis was entirely predictable. We’ve been through this before with cloud computing, and we learned some hard lessons about what happens when you deploy technology without rigorous cost management. The good news is that enterprises are finally applying those lessons, reaching back to their cloud finops playbooks to wrangle this new breed of spending.

The 50x problem

Let me explain the scale of what’s happening. Goldman Sachs has estimated that AI agents consume roughly 50 times more computing power per task than traditional prompt-based chatbots. That’s a fundamental shift in how resources get consumed. When you multiply that across an enterprise that’s deploying dozens or hundreds of AI agents, the math gets ugly fast.

The token problem compounds because AI costs are inherently variable. Unlike traditional software licensing or infrastructure contracts, you pay per token, and per-token usage can fluctuate wildly based on user behavior, query complexity, and the sheer volume of requests flowing through these systems. This is exactly the same problem we faced with cloud computing. Every time someone spins up a new instance or stores data in the wrong tier, the bill goes up.

Enterprises expected to deploy AI and see costs stabilize. Instead, costs are climbing month after month, often exceeding projections by an order of magnitude. The business case that looked compelling in the conference room is looking considerably less attractive in the finance committee.

Lessons from the cloud playbook

Here’s where it gets interesting. Cloud providers and the managed service providers who work with them have spent the better part of two decades building disciplines around financial operations—finops, if you want to use the buzzword. These are the practices, tools, and organizational structures that make cloud spending visible, controllable, and ultimately justifiable to the business.

Those same disciplines are now being applied to AI token costs, and enterprises with mature finops programs are faring better than those without. The playbook is essentially the same:

• Make spending visible.
• Attribute costs to the right teams.
• Set guardrails and alerts.
• Create feedback loops that encourage efficient behavior.

Companies like Priceline have deployed dashboards that provide executives with real-time visibility into token consumption, with monthly reports delivered directly to the CFO and CTO. Smartsheet has implemented similar approaches, providing department-level dashboards that let managers see exactly how their teams are consuming tokens, with automated alerts when consumption approaches predefined thresholds.

The accountability piece is critical. When developers and business users can see exactly how their AI usage translates to dollars, they tend to make better decisions about which models to use, how to structure prompts, and when to rely on human judgment instead of AI processing.

The show-back revolution

One of the most effective techniques emerging from this crisis is the “show back” approach to AI cost management. Rather than simply reporting costs to individual departments, companies are now attributing AI spending to the teams and individuals responsible for driving that consumption. This creates accountability without the organizational complexity of full chargeback models.

OpenText has reported that implementing show-back and chargeback approaches can reduce token costs by 20% to 30% within a few months. That’s not trivial. If you’re spending $5 million a month on AI tokens, that’s a $1.5 million savings just by making people aware of what they’re spending.

The mechanism is straightforward: When development leaders understand that their team has consumed $200,000 in tokens this month, they start asking questions. Why are we using the most expensive model for that task? What if a smaller model could handle 80% of these queries? Are prompts being repeated unnecessarily? These questions lead to optimization, and optimization leads to savings.

Model smarts

Another lesson from the cloud experience is that the most expensive option is rarely the best option. This sounds obvious, but organizations tend to default to the largest, most capable AI model for every task, regardless of whether that capability is actually required.

The emerging best practice is to match model capability to task requirements. A simple classification task doesn’t need a frontier model. A straightforward text-generation job might be handled perfectly by a smaller, cheaper model running locally or via a less expensive API tier. The efficiency gains from this approach can be substantial.

Some enterprises are going further, adopting older models or open source alternatives for appropriate use cases. Qualcomm, for instance, has invested in running models on its own hardware rather than relying exclusively on cloud-based model providers. This approach requires more technical sophistication but can dramatically reduce per-token costs for high-volume applications.

The real challenge

Here’s what concerns me most about the current situation. Many enterprises deployed AI without putting adequate cost management infrastructure in place up front. They got caught up in the excitement of the technology, the competitive pressure to move fast, and the belief that the benefits would justify whatever the costs turned out to be. That approach worked when AI projects were small-scale experiments. Now that AI is becoming core to business operations, the lack of financial controls is becoming a serious problem. We need to bring the same rigor to AI procurement and deployment that we’ve brought to every other significant technology investment.

The organizations that succeed will treat AI token costs as a managed operational expense rather than an unpredictable variable. That means deploying the same tools and disciplines that have worked for cloud cost management: visibility, accountability, optimization, and continuous improvement.

Cloud providers and the managed service partners who work with them have been doing this for years. They built the tools, developed the best practices, and trained the workforce that can now apply those skills to the AI cost challenge. If your organization is struggling with AI spending, finding partners with deep finops experience might be the fastest path to control.

The good news is that this crisis is solvable. But it requires acknowledging the problem, investing in the right capabilities, and accepting that technology deployment without financial discipline is a path to trouble.

Get smart about your AI spending. The CFO will thank you.

A researcher has an idea worth testing before lunch. The model is ready. The data is sitting right there. But the data is sensitive — regulated, proprietary; the kind that legal has been very clear cannot leave the building. So it can’t go to the cloud cluster. And even if it could, the GPU queue is hours deep, the meter is running, and by the time the run finishes and the bill lands, the spark of the idea has cooled into a ticket in a backlog. 

This is the unglamorous reality behind a lot of enterprise AI. Not a shortage of talent or ambition, but friction — the quiet tax paid every time a brilliant question has totravel a long way to find the computer that can answer it. We’ve spent the better part of a decade assuming that distance didn’t matter, that everything important would happen in some vast facility hundreds of miles away. For a whole class of work, that assumption is now the thing holding teams back. 

The last mile of AI 

Cloud and hyperscale data centers did something extraordinary: they made a near-infinite compute available to anyone with a credit card. That scale is genuinely irreplaceable for training frontier models. But scale solved the wrong problem for a surprising number of teams. 

Because a lot of real AI work isn’t a once-a-quarter mega run, it’s iteration — fine-tuning, experimenting, debugging, testing an agent’s behavior, running a model against data that’s too sensitive or too large to keep shipping back and forth. That work rewards immediacy and control, not raw scale. And on those two axes, the cloud-only model starts to strain in three ways. 

Governance is the first. The most valuable enterprise data is often the data that’s hardest to move — patient records, financial details, proprietary source code, designs under NDA. Sending it to a shared, off-premises environment can mean a compliance review, a risk sign-off, or simply a “no.” When the data can’t travel, neither can the AI work that depends on it — unless the compute comes to the data instead. 

Velocity is the second. AI progress is a function of how many experiments a team can run per week. Every cloud queue, every cold start, every round trip between a workstation and a remote cluster adds latency not just to a job but to learning. The teams that win aren’t the ones with the biggest single run; they’re the ones who can iterate fastest, privately, without asking permission. 

And then there’s the missing middle. Until recently, professionals had two options, and a chasm between them. On one side, a traditional workstation — convenient and local, but utterly unable to hold a trillion-parameter model in memory. On the other, a data center you don’t own, don’t control, and have to wait in line for. There was nothing in between: no way to put genuine, data-center-class AI power directly under the desk of the person doing the work. 

That gap is exactly where the next wave of productivity is hiding. 

When the supercomputer comes back to the desk 

Computing has always swung between the central and the personal. The mainframe gave way to the PC. Now, after a decade of centralizing intelligence in the cloud, the pendulum is swinging again — and the supercomputer is coming back to the desk, this time built specifically for AI. 

The implications for IT leaders are strategic, not just technical. A local, private AI supercomputer means sensitive workloads stay under the organization’s own governance. It means a predictable cost instead of a variable cloud meter. It means teams iterate at the speed of their own curiosity. And it means the data center is still there when a workload genuinely needs to scale — connected, not replaced. The goal isn’t to abandon the cloud. It’s to close the last mile. 

The deskside AI supercomputer: ASUS ExpertCenter Pro ET900N G3 

This is the gap the ASUS ExpertCenter Pro ET900N G3 is engineered to close. Built on NVIDIA DGX Station architecture and powered by the NVIDIA GB300 Grace Blackwell Ultra Desktop Superchip, it brings data-center-class AI to a system that fits on a standard desk — a deskside AI supercomputer purpose-built for the way AI teams actually work. 

What that delivers, mapped to the friction it removes: 

• Run the big models locally. With 748GB of coherent unified memory and up to 20 PFLOPS of AI performance, the ET900N G3 can develop and run trillion-parameter models and autonomous AI agents right at the deskside — far beyond the reach of a conventional workstation, and without a trip to a shared cluster. 

• Keep sensitive work private. Because the compute lives where the team and the data do, sensitive and regulated workloads can stay on-premises under the organization’s own governance. Full compatibility with NVIDIA AI Enterprise and NVIDIA NemoClaw enables enterprises to build and run always-on AI assistants and agents within a secure, local environment. 

• Iterate without waiting. A 72-core NVIDIA Grace CPU paired with an NVIDIA Blackwell Ultra GPU over high-bandwidth NVLink-C2C interconnect puts supercomputer-class iteration at a developer’s fingertips — no queue, no cold start, no round-trip. 

• Scale out when you need to. An integrated NVIDIA ConnectX-8 SuperNIC provides up to 800 Gbps of networking, so the deskside system bridges cleanly to data center infrastructure when a workload outgrows the desk. 

• Run it around the clock. Data-center-grade thermal design built for sustained 24/7 operation means the system maintains peak performance through long training and inference runs rather than throttling when the work gets serious. 

And it runs the NVIDIA AI software stack out of the box, giving development teams a turnkey environment for training, fine-tuning, inference, and agentic AI from day one. 

The question worth asking now 

For years, the strategic question in AI infrastructure was how big a cluster can we reach. For a growing share of the work that actually moves a business forward, the better question is: how close can we put the power in the hands of the people doing the work? 

The idea was never the bottleneck. The distance was. Closing it is the next advantage. 

Discover how the ASUS ExpertCenter Pro ET900N G3 brings data-center-class AI to the deskside. Visit us here to learn more.  

Quantum computers are still two to five years away from full-scale production, but early users like the Cleveland Clinic and Mitsubishi Chemical are already seeing benefits, particularly when quantum is used in conjunction with AI and high-performance computing.

“We are starting to see real applications of it,” says Lara Jehi, chief research information officer at Cleveland Clinic, and one of the keynote speakers at the Quantum Tech World conference in Boston in late June.

And the technology is moving faster than anyone could have predicted, she tells Network World. For example, in the fall of 2024, the largest simulation that quantum computers could handle was just ten atoms, she says. “Roadmaps in the industry were hypothesizing that getting past the 10,000-atom threshold would take another five to seven years.”

This year, the Cleveland Clinic simulated protein complexes of up to 12,635 atoms. “We would not have been able to do the same analysis classically,” she says.

But even a protein of this size is still too small to be clinically relevant, she adds. For something with real-world applications, you’d need to be in the ballpark of a million atoms. And that’s not out of reach. “I think we’re very close, I’m very confident,” she says. “One or two years.”

And even today, by combining quantum computing with AI running on classical computers, it’s possible to do interesting work. For example, simulating how well a compound will bind to a protein in real time is too big a problem for either AI or a quantum computer to handle on its own.

“But AI can do a good job identifying where in that large molecule are the particular spots where you need that extra layer of accuracy,” she says. “We use classical computing up front to identify these highest tier fragments and then zoom in to those fragments with the higher resolution that quantum can provide for better simulation.”

Mitsubishi Chemical has been experimenting with quantum computing since 2018, for quantum chemical calculations and optimization problems, and the technology works.

“We want to try to have it in production use by the end of this year, or maybe the beginning of next year,” says Qi Gao, distinguished scientist in the materials design laboratory of the Mitsubishi Chemical Corporation Science and Innovation Center. The first use cases will be in advanced semiconductor materials, helping design new materials for computer chips.

“Two-nanometer chips require high energy resolution, which is impossible for classical computer simulations,” he says. “So, we have to use quantum computers.”

The plan is to simulate metal oxide, which is a photo-resistant material used in etching patterns into computer chips. This is a simulation that cannot be done classically, Gao says. It will take a couple of years to fully develop the algorithms to make it work, he says, but the industry is moving towards practical business use.

“Every company is looking at 2028, 2029, or 2030,” he says. “We think 2028 and 2029 will be very important years in quantum computing.”

SoftBank Corp. is looking at a similar timeframe for commercializing its quantum computing offerings. The company connects customers to IBM and Quantinuum machines at Riken through its AI data center, with 21 pilot projects now ongoing with pilot customers.

“Within our AI data center, we have already built the supercomputer level,” says Nobushige Oguri, director of the quantum business planning department of the quantum technology divisions at SoftBank Corp. “It’s a world-class supercomputer, but it’s just set up for processing AI. The quantum computer will be the new accelerator to enhance current AI capability.”

It’s this hybrid use of AI and quantum together that will accelerate adoption, he tells Network World. Juliette Peyronnet, U.S. general manager at Alice & Bob, agrees that the hybrid approach is the best bet, with quantum computers augmenting today’s technology, not replacing it.

“Quantum processing units are very specialized devices,” she says. “They can’t solve your everyday problems. They’re really bad at doing basic math.”

Instead, just like the way that CPUs do the bulk of computing work and GPUs are used for AI-related tasks, quantum processors will be used to handle the challenges that traditional computers can’t tackle.

“We know that quantum computers are not going to work in isolation,” she says.

A maturing ecosystem

Another sign that quantum computing is starting to move out of the laboratory and into real-world use is the emergence of a quantum ecosystem, with multiple hardware and software providers filling in all the gaps.

“I’ve been 15 years in field, as a researcher and now as a CEO, and it’s been changing dramatically and accelerating very fast,” says Marta Estarellas, CEO at Qilimanjaro Quantum Tech, a quantum computing company based in Spain that makes superconducting qubits. And, today, quantum computing companies no longer need to make every single component from scratch, she says.

“Now what you see are a lot of spinoffs and startups starting to build different layers of the supply chain,” she tells Network World. “Which is great. Players like ours don’t have to think about building the full stack and can delegate to third parties—and that really helps push forward the technology.”

The Quantum Tech World conference showcases this ecosystem, she says. According to conference organizers, more than 1,300 people attended this year, and there were more than one hundred sponsors. Among them were multiple quantum computer makers, including Quantum Computing Inc., a maker of room-temperature photonic computers, which ran a real-time demo of a fraud detection algorithm that beat the best classical method and scales linearly with data set size instead of quadratically. There were also software companies, consulting firms, and other specialized providers.

“Our booth has been packed,” says Jason Silbergleit, head of Americas at Classiq, an orchestration software company that provides an abstraction layer that makes it easier for non-scientists to build quantum applications. “More and more users want to take advantage of the platform. Even in the past six months—three months—the amount of acceleration and interest is growing.”

“We’re shifting from very fundamental and exploratory, building one-off kinds of systems and devices, to making things that are scalable,” says Celia Merzbacher, executive director at the Quantum Economic Development Consortium. “And within a timeframe that private investors and end users are willing to start to engage.”

The momentum is apparent on a number of fronts, she tells Network World. Quantum companies are getting new rounds of investment, and governments are making commitments.

According to a report her organization released in April, there are now 556 pure-play quantum companies and more than 7,000 “quantum-engaged” organizations. The quantum industry saw $1.9 billion in revenues in 2025, up 30% from the year before. There was also $12.7 billion in new government funding commitments last year, up more than 300% from 2024, and $4.9 billion in new private venture capital investment, an increase of nearly 200%.

“And the number of people who are really rolling up their sleeves and doing the work that needs to be done to advance the hardware and the software—I think there’s just a momentum that is quite visible,” she says.