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When cloud computing first exploded into mainstream business use, the conversation was dominated by scale, speed, and cost savings. Companies rushed to migrate their systems, wagering on the adaptability that cloud platforms promised. Now, however, a new worry is arising that may decide which companies succeed in an increasingly globalized world: cloud interoperability.
Interoperability—the ability of different cloud platforms, systems, and applications to talk to each other effortlessly—is rapidly becoming a differentiator of strategy. As companies like yours are spreading workloads across multiple clouds, the mobility to move processes, applications, and data frictionlessly across platforms is no longer a nice-to-have, but a competitive need. A Gartner study found that 90% of businesses now operate in hybrid or multicloud environments. Gartner also predicts that data synchronization across these environments will be among the most urgent challenges to address in 2025.
This article will explore why this innovation is rising to the top of boardroom agendas in 2025, what challenges companies must overcome, and how forward-thinking businesses are turning interoperability into a competitive edge.
The multicloud reality is here — and it’s messy
In theory, moving to the cloud should have simplified IT operations. In reality, most organizations today don’t rely on a single cloud provider. Consistent with the Flexera 2024 State of the Cloud Report, 89% of companies now operate in multicloud environments, combining the strengths of various cloud platforms to enhance flexibility, performance, and risk reduction. Hybrid clouds, a mix of private and public cloud infrastructures, allow firms to host sensitive workloads on-premises while leveraging cloud scalability and services from AWS, Microsoft Azure, Google Cloud, and niche providers.
However, while multicloud provides flexibility and resiliency, it introduces a new level of complexity. For instance, applications in different clouds can struggle to communicate with each other. Data can become siloed with different formats, compliance regulations, and access controls, forming fragmented systems that stifle innovation and increase costs.
Businesses are realizing that the future is an interoperable multicloud, and without seamless integration between clouds, they’re creating bottlenecks.
Why interoperability is becoming a board-level concern
For the most part, in the past, technical leaders largely shouldered cloud decisions. Today, interoperability issues are making their way into C-level and boardroom conversations—but it’s for good reason.
Speed to market, data-based decision-making, compliance, and even M&A are becoming increasingly reliant on how well companies manage distributed environments. For instance, say two companies need to merge; their systems need to integrate, often across entirely different clouds. An Accenture study show that high-interoperability organizations increased revenue by 600% versus their low-interoperability counterparts, rolling out more new products to market than firms grappling with cloud silos.
In highly competitive industries like finance, manufacturing, and healthcare, those time advantages directly impact bottom lines.
In addition to this, regulatory requirements and data sovereignty (such as the General Data Protection Regulation, the Health Insurance Portability and Accountability Act, and emerging AI governance law) are pushing organizations not only to secure data but also to make it transferable from one system to another. The cost for many businesses alike is that failure to demonstrate absolute control over cloud environments could mean huge fines and reputational losses that no organization could ever withstand.
The rise of interoperability-focused technologies
Noting these obstacles, cloud providers and tech innovators are hurrying to develop solutions aimed at making interoperability easier.
One key trend is the development of open standards, enabling the use of standardized components while preserving the best aspects of traditional frameworks. Initiatives like the Cloud Native Computing Foundation’s Open Cloud initiative, along with projects such as Kubernetes and Istio, are driving this shift. Kubernetes automates the deployment, scaling, and management of containerized applications. Istio builds on that by providing advanced traffic management and security features for Kubernetes environments.
Another emerging technology is cloud orchestration platforms. These solutions, such as HashiCorp’s Terraform or Google Anthos, enable companies to manage and deploy resources across multiple clouds from a single control point, reducing complexity and increasing operational speed.
Think of interoperability as the highway system for your cloud applications. Without unified roads and rules, you wouldn’t be able to efficiently get from point A to point B.
How global brands are winning with interoperability
Some companies are already treating cloud interoperability as a full-fledged business strategy.
Take the Volkswagen Group, for example. The automotive giant recently expanded the Volkswagen Industrial Cloud, built in collaboration with AWS and Siemens, to bring more than 100 suppliers onto a single digital platform. Using open APIs and standardized data models, the company is creating an ecosystem where manufacturing data can flow securely and efficiently and reducing downtime across its global operations.
Similarly, Pfizer, in the race to streamline pharmaceutical R&D, has leaned heavily into cloud interoperability. By enabling seamless data sharing across Azure, AWS, and private cloud environments, their research teams can collaborate faster, securely share trial data, and reduce the time needed to bring new drugs to clinical testing.
Both cases show that cloud interoperability isn’t just a technical convenience but a business enabler—and in some cases, a market accelerator.
Shared challenges to cloud interoperability
Despite the clear advantages, achieving actual interoperability is not easy. Companies face a few challenges, including:
Vendor lock-in: Cloud providers have a clear incentive to keep users in their own environments, so support for other platforms is challenging.
Legacy systems: Older software may not be designed to operate in modern cloud infrastructures, much less multicloud deployments.
Security and governance complexities: Sharing data between environments increases the attack surface and compliance burden.
Skill gaps: Interoperable systems require advanced skills that many IT organizations are still in the process of developing.
Best practices to build an interoperability-first cloud strategy
To successfully implement within this new paradigm, B2B companies should keep in mind a few important principles:
Design for openness from the start. Choose cloud-native technology that prefers portability and standardization.
Invest in cross-cloud management tools. Solutions like Terraform, Anthos, or Azure Arc might make orchestration simpler across environments.
Adopt a data-centric security model. Protect the data itself, not the perimeters, to facilitate free flow across clouds.
Prioritize API governance. Governed APIs are critical for systems that interoperate. Treat them as infrastructure basics.
Reskill your people. Invest in cloud architects and engineers who have hybrid and multicloud know-how.
What’s next: Cloud without borders?
In the years ahead, companies foresee a “cloud without borders”—where workflows, data, and applications freely travel between providers, geographies, and partners.
The trend toward interoperability can even redefine competitive forces within the cloud marketplace itself, as providers that encourage open environments and support interoperability will be the preferred option.
It’s no longer about winning the cloud race with the best products but about having the most adaptable and compatible ecosystems. Those B2B businesses that recognize this trend early and adapt to it will not only survive but also lead the next wave of digital transformation.
Final thoughts
As enterprises grow more dependent on distributed, data-driven operations, cloud interoperability is quickly becoming the silent engine behind business agility, innovation, and competitive advantage. Those who master it will not only stay afloat but also set the pace for their industries.
Are you ready to make cloud interoperability your edge?
