Rackspace Technology (NASDAQ: RXT) has released its '2025 State of Cloud Report', revealing significant shifts in cloud strategy among IT leaders. The survey of 1,400+ IT decision-makers shows that over 90% plan major cloud strategy changes in the next two years, with 48% prioritizing hybrid cloud deployment. Key findings include that 69% of organizations have considered repatriating workloads from public to private clouds, citing security, compliance, and cost savings. Only 16% of respondents have fully integrated cloud adoption into their business strategy. The survey also highlights that 84% of respondents are integrating AI with their cloud strategies, primarily to enhance operational efficiency ( 49% ) and improve data analytics ( 45% ). Major challenges include talent shortages ( 40% ) and insufficient budgets ( 37% ). Future priorities include Cloud Enabled 5G services ( 50% ), Cloud Native AI/ML Services ( 47% ), and Cloud Based Robotics ( 40% ).