In this first episode of 2025, Vinay and Sanjeev Mohan, former Gartner analyst and principal analyst at SanjMo, meet for their annual discussion on the state of the cloud, exploring the transformative power of AI, the shifting dynamics of cloud repatriation, and the resurgence of traditional database technologies like PostgreSQL. They also discuss the implications of AI-driven innovations, such as DeepSeek, and how they are quickly reshaping the competitive landscape. Listen as they dive into the state of the cloud in 2025.

Key insights

⚡AI at Warp Speed: The Race for Efficiency and Accessibility

AI is advancing faster than ever, with models like DeepSeek demonstrating that high-performance AI can be achieved at a fraction of the cost. Sanjeev highlights how AI is transitioning from being a tool for prediction and summarization to powering autonomous agents that can execute tasks on behalf of users. These emerging models and workloads are driving massive investments in AI infrastructure, with companies like Google, Microsoft, and AWS pouring billions into data centers to support the growing demand for AI workloads.

⚡Cloud Repatriation: A Shift in Strategy

While cloud adoption continues to grow, there’s a noticeable trend toward repatriation—moving workloads back on-premises. Sanjeev explains that this shift is driven by the availability of cloud-like features, such as elastic scaling and pay-as-you-go models, now being offered on-premises. However, cloud is here to stay and the future lies in hybrid multi-cloud implementations.

⚡The Rise of PostgreSQL: A Multimodal Powerhouse

PostgreSQL has emerged as a breakout star in the database world, thanks to its ability to handle multiple data formats. Sanjeev predicts that specialized databases will continue to lose ground to multimodal databases like PostgreSQL, which offer flexibility without the added complexity of operating multiple database systems — organizations will continue to consolidate their data stacks.

⚡AI and the Job Market: Disruption and Opportunity

AI is set to disrupt every job, but history shows that new technologies create new opportunities. Sanjeev draws parallels to the introduction of ATMs, which reduced the need for bank tellers, but created space for advisors. Similarly, AI will take over repetitive tasks, allowing humans to focus on more strategic and creative roles. However, the transition will require upskilling and workforce adaptability.

⚡DeepSeek and the Global AI Race

The emergence of DeepSeek, a cost-effective AI model from China, has shaken the global AI landscape. Sanjeev discusses how DeepSeek’s success has forced Western tech giants to rethink their strategies, particularly in light of rising costs and regulatory challenges. The competition between US and Chinese AI models is heating up, with implications for innovation, data privacy, and global AI dominance.

Episode highlights

💡 AI’s Transformative Power: From Prediction to Action [1:53 – 2:44]

Vinay and Sanjeev discuss how AI is evolving from a tool for prediction and summarization to one powering autonomous agents. They explore the implications of this shift for businesses and the growing demand for AI infrastructure.

💡Cloud Repatriation: Why Companies Are Moving Back On-Premises [11:54 – 12:34]

Sanjeev explains the reasons behind the growing trend of cloud repatriation, including the availability of cloud-like features on-premises and the rising costs of cloud services. He also highlights the importance of hybrid multi-cloud models in the future.

💡 PostgreSQL: The Multimodal Database of the Future [28:07 – 28:53]

Vinay and Sanjeev delve into the resurgence of PostgreSQL and its ability to handle multiple data types, making it a strong contender against specialized databases. They discuss how PostgreSQL’s flexibility and scalability are driving its adoption.

💡 DeepSeek: A Game-Changer in the AI Landscape [29:43 – 32:02]

The emergence of DeepSeek, a cost-effective AI model from China, has shaken the global AI landscape. Sanjeev discusses how DeepSeek’s success has forced Western tech giants to rethink their strategies, particularly in light of rising costs and regulatory challenges.

💡 AI and the Job Market: Disruption and Opportunity [35:52 – 37:49]

Sanjeev shares his thoughts on how AI will disrupt the job market, emphasizing the need for upskilling and adaptability. He draws parallels to past technological disruptions, such as the introduction of ATMs, to illustrate how new opportunities emerge.

💡 The Future of AI: Democratization and Accessibility [33:06 – 34:17]

Sanjeev predicts that AI models will become smaller and more accessible, allowing them to run on personal devices like laptops. He discusses how this democratization of AI will drive innovation and adoption across industries.

💡 Recommendations for Navigating the AI Revolution [49:17 – 50:08]

Wrapping up, Sanjeev offers key recommendations for organizations looking to navigate the AI revolution. He emphasizes the importance of data quality, hybrid cloud strategies, and staying adaptable in the face of rapid technological change.