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  • Modernize your IT with cloud services

Modernize your IT with cloud services

April 24, 2026•
Resource type: E-book
Download PDF

Introduction: The value of managed cloud services

Adopting flexible technology that supports changing modernization needs, including traditional virtualization and future AI workloads, is key to staying competitive.

Navigating evolving demands with emerging technologies—including integrating complex AI capabilities or modernizing virtualized applications—has made hybrid and multicloud approaches even more vital.

As organizations turn their focus to modernizing IT operations, these cloud architectures have become even more popular for the agility and flexibility they provide, with 73% of organizations currently using a hybrid cloud approach.1

But this move to the cloud has also brought new challenges. 

New skills, processes, and resources are required to manage, oversee, and maintain applications in cloud environments. This has become more pronounced with the added complexity of AI.

These challenges have left many organizations struggling to manage cloud operations, leading to rising costs when not properly controlled. Increased cloud spend likely played a large part in organizations exceeding their budgets by 17% in 2026.1

Not surprisingly, managing cloud spend was listed as the top cloud challenge in 2026—alongside security, governance, and a lack of resources and expertise—and more organizations are turning to managed cloud services to address these challenges. In fact, 60% of organizations already use managed service providers (MSPs) for their public cloud use in some capacity.1

Many organizations are looking for expert support to simplify their cloud operations management and advance their business, as well help provide access to solutions that meet their AI and virtualization needs while providing the flexibility to adapt as those needs change.

Cloud services offer simplified management, helping organizations increase efficiency

Cloud services allow organizations to offload their complex management burden, reducing the need to dedicate valuable resources to managing infrastructure, and instead allowing them to focus those resources on innovation and building strategic business applications.

Many organizations turn to managed cloud services to: 

  • Boost operational efficiency.
  • Increase scalability.
  • Control cloud costs.
  • Accelerate time to market.
  • Support their IT modernization journey. 

Before deciding if cloud services are right for your organization, start by establishing your cloud management strategy. The right cloud management strategy—with the support of the right application platform—can help you develop, deploy, manage, and scale innovative, modernized applications across a hybrid or multicloud environment.

73%

of businesses use a hybrid cloud approach1

a white cloud with a polished chrome border

Managing spend, security, governance, and a lack of resources and expertise were listed as top cloud challenges by at least 73% of organizations,1 leaving many looking for expert support to help navigate their modernization journey.

Chapter 1: Establish your cloud management strategy

To successfully navigate the modernization journey, IT leaders need to ask key questions about critical aspects of their organization.

As your organization advances its modernization goals with a hybrid or multicloud strategy, it is important to address operational concerns such as security and compliance, IT complexity, and the existing skills of current staff. Assessing these areas will help determine if you have the expertise and time to manage, maintain, upgrade, and monitor security for cloud infrastructure, or if managed cloud services are the better option for your organization.

One popular approach organizations have taken to manage their hybrid or multicloud environments—as well as the increasing complexity of integrating AI models and tools—is the adoption of container and orchestration technology, such as Kubernetes. This shift in management strategy has also prompted many organizations to modernize their existing virtual machines (VMs) by converting virtualized workloads into modern containerized applications. 

In fact, 82% of organizations already use Kubernetes in production—a rise from 80% in 2024 and 66% in 2023—while an additional 12% of organizations are piloting or actively evaluating Kubernetes in test environments.2 

The recent surge in AI adoption has also led a majority of organizations to turn to Kubernetes to help them implement complex AI technologies, with 66% using Kubernetes to deploy and manage their gen AI workloads.2

Despite increased adoption, many still struggle to manage and secure containers effectively, with 67% of organizations reporting they delayed or slowed down deployment due to Kubernetes security concerns.3

Organizations looking for 24x7 support, increased observability and reliability, and access to expert talent as they navigate their modernization journey, should consider outsourcing the creation and operation of a modern application platform through managed cloud services.

black laptop

82%

of organizations use Kubernetes in production.2

66%

of organizations use Kubernetes to run gen AI workloads.2

Chapter 2: Choose the right cloud service provider for you

The right cloud service should help your organization reduce complexity, boost efficiency, and increase consistency and reliability across your IT environment.

More than ever, IT teams—including operations, developers, platform engineers, and data scientists—are under pressure to be responsive in a rapidly changing and increasingly complex operating environment. 

Cloud services offer a path to overcome these pressures by delivering managed IT solutions—commonly preintegrated into your IT environment and paired with expert support—that help you navigate IT complexity to boost productivity and accelerate time to value when adopting new technologies.

The right cloud service provider should help you: 

  • Get started more quickly. Cloud service providers that offer managed IT services as ready-to-use solutions help your organization bypass lengthy setup so you can start building value sooner.
  • Reduce IT complexity. With a cloud service provider that offers capabilities that abstract the complexity of IT processes, you minimize human error to increase consistency and mitigate risk across your organization.
  • Increase operational efficiency. Managed cloud services help reduce costly downtime and free IT teams from managing the underlying technology, allowing them to focus on core competencies.
  • Adapt to changing business needs. Cloud services that offer expert support can help you onboard new technology with minimal disruption as your organization adapts to changing business needs and customer demands.

Chapter 3: Help IT teams do more with Red Hat OpenShift cloud services

Reduce IT complexity and streamline your application modernization journey with Red Hat.

Red Hat® OpenShift® cloud services offer a fully managed, ready-to-use application platform for building and deploying virtualized, containerized, and AI-powered workloads with consistency across hybrid and multicloud environments—delivered in partnership with major public cloud providers.

These jointly operated and supported offerings remove the burden of building and managing your own application platform, and help streamline application development, deployment, and management, with all of the required tooling and a consistent experience for all workloads across IT environments. 

Choosing Red Hat OpenShift cloud services provides your organization with:

  • Development and deployment across infrastructure. Red Hat OpenShift cloud services offer a ready-to-use platform with consistent development and deployment and integrated tooling throughout the stack, both on premise and across cloud infrastructure. This helps you get started more quickly and simplifies how you build strategic business applications across your hybrid or multicloud environment.
  • A modern application platform. Red Hat OpenShift cloud services help you modernize existing applications while developing new, innovative applications, with robust and streamlined access to expert support and a comprehensive range of integrated developer tools. This includes programming languages and runtimes, build tools, continuous integration and deployment (CI/CD), and telemetry.
  • Streamlined VM migration and modernization. Red Hat OpenShift Virtualization comes included with Red Hat OpenShift cloud services to help you move away from traditional virtualization options, while offering a clear path to VM modernization beyond migration. Red Hat OpenShift cloud services offers a unified application platform that delivers streamlined and automated migration capabilities along with consistent management tools for all types of workloads across your hybrid or multicloud environment. Red Hat also provides access to expert support and emerging technology to help you advance VM modernization at your own pace.
  • Accelerated AI innovation. Red Hat OpenShift cloud services help you accelerate AI innovation to turn your valuable business insights into a competitive advantage. These fully managed modern application platform offerings provide the expertise and integrated tooling you need to build, train, deploy, and manage innovative AI models and AI-powered applications at scale across hybrid or multicloud environments, which helps you get into production more quickly.
  • Always-on expertise and management. Red Hat OpenShift cloud services offer the reliability and peace of mind of a managed platform, backed by robust access to deep technical expertise, to help you boost productivity and innovation as you modernize for the future. With Red Hat abstracting the technical details, you can operate confidently and allow your IT teams to focus on building business value and creating new opportunities through innovation.

Using Red Hat OpenShift cloud services has allowed organizations to achieve:4

  • 468% return on investment (ROI).
  • Less than 6 months to payback.
  • 50% improvement in operational efficiency.
  • 70% shorter development cycle.
  • 20% of developer time recaptured.
  • Improved security and reduced risk.
  • Reduced total cost of ownership (TCO).

Rely on a proven hybrid and multicloud application platform

  • Red Hat was named a Leader in the 2025 Gartner® Magic Quadrant™ for Cloud-Native Application Platforms5 and Container Management6 for Red Hat OpenShift.
  • Red Hat OpenShift has been recognized as a Leader in The Forrester Wave™: Multicloud Container Platforms, Q3 2025.7

Red Hat offers jointly developed and fully managed platform options on the major public clouds—including Amazon Web Services (AWS)—that provide consistent, reliable, and streamlined operations across hybrid and multicloud environments.

Learn more

Chapter 4: Modernize operations with Red Hat OpenShift Service on AWS

Organizations looking for a managed cloud service on AWS can turn to Red Hat OpenShift Service on AWS, an AWS-native application platform, accessible on demand directly from the AWS console.

With joint management and support from both Red Hat and AWS, this cloud service streamlines how you build, deploy, and manage applications in the AWS public cloud on a unified application platform for containers, VMs, and AI workloads.

Red Hat OpenShift Service on AWS offers more flexibility and consistency for your hybrid or multicloud environment with:

  • An AWS-native experience.
  • The ability to purchase, procure, and access the service from the AWS console.
  • Full integration with other AWS cloud-native services, including modern application development tools.
  • Joint support and engineering from Red Hat and AWS.
  • A single, unified invoice with on-demand, hourly, or annual billing.
  • The option to purchase with AWS committed spend.

To further improve both operational and cost efficiencies, clusters are deployed in a hosted control plane architecture that streamlines cluster operations by abstracting control plane management. Teams offload the complex management and security monitoring of the Kubernetes control plane and its underlying infrastructure to Red Hat, allowing teams to focus on running applications while benefiting from faster provisioning, optimized infrastructure usage, and enhanced scalability. 

Red Hat OpenShift Service on AWS also provides a range of build and automation tooling—including container image repositories, monitoring solutions, and prescriptive security—to help you navigate your application modernization journey.

Focus on building innovative applications instead of infrastructure management 

Get the tools and support you need to accelerate innovation, deliver high-quality customer experiences, and scale to changing demand.

Red Hat OpenShift Service on AWS streamlines application development and modernization with: 

  • A hosted and managed application platform by Red Hat. Teams can begin developing right away and be assured that their platform is always available, always up to date, and backed by 24x7 site reliability engineering (SRE) support.

  • A consistent experience anywhere. Increase productivity with a unified application platform and consistent development tools across hybrid and multicloud environments, so your teams don’t need to learn new tools, processes, or environments.
  • A developer-first platform. Developers gain full-stack access to their choice of languages and tools, while a clear separation between administrative tasks and user features simplifies the building, testing, and deployment of modern applications. Boost productivity using Red Hat Developer Hub to centralize software templates and Red Hat OpenShift Dev Spaces for preconfigured, web-based integrated development environments (IDEs). 
three 3D red cubes; small, medium, and larger in size

Navigate cloud complexity and improve security posture with expert support

Red Hat works in tandem with AWS to offer the support and engineering needed to confidently build and maintain a modern application platform in a hybrid or multicloud environment, allowing you to get started quickly and accelerate time to value.

Red Hat OpenShift Service on AWS offers 24x7 support delivered through an integrated support experience for accelerated resolution. This provides always-on access to the technical expertise your organization needs to optimize application development and modernization.

This AWS-native offering is further supported by Red Hat’s global team of SREs—who bring a breadth and depth of Red Hat OpenShift knowledge and established relationships with cloud providers—and a 99.95% service-level agreement (SLA). 

Read more about Red Hat’s approach to site reliability engineering, and how they help manage the security, observability, performance, and scalability of your IT systems.

Learn more

This SRE team is available to automate the deployment, management, and maintenance of managed Red Hat OpenShift clusters, so that your organization can focus on application innovation.

In addition to this comprehensive expertise and always-on support, a multilayered focus on security has been built in by both Red Hat and AWS, with certification for key security standards, including FedRAMP High (on AWS GovCloud), ISO 27001, Payment Card Industry Data Security Standard (PCI DSS), and SOC 2 Type 2.

The platform security is further supported by a trusted software supply chain from Red Hat, as well as both organizations continually monitoring for common vulnerabilities and exposures (CVEs) to help identify updates and fixes before issues arise.

Migrate and modernize your VMs on a unified platform 

Red Hat OpenShift Virtualization on Red Hat OpenShift Service on AWS provides modern virtualization capabilities that help your organization migrate its VMs onto a unified application platform that supports both virtualized and containerized workloads.

Running both workload types on the same platform optimizes your operations and improves infrastructure efficiency by eliminating the need to maintain separate environments. This unified approach helps your organization optimize resource usage, lower operational costs, and maintain greater consistency across hybrid and multicloud environments, while creating a foundation for ongoing modernization.

Migrating workloads from traditional virtualization platforms can be complex, but Red Hat OpenShift Service on AWS helps streamline the process with expert migration support, warm migration capabilities, the migration toolkit for virtualization, and integration with Red Hat Ansible® Automation Platform to automate VM and infrastructure migration at scale.

Once workloads are running on the same platform, your organization can improve cost efficiency by consolidating infrastructure and aligning resource consumption with actual workload demand.

Your teams can introduce modern operational practices—such as CI/CD pipelines, GitOps workflows, service mesh capabilities, and advanced observability—to VM-based workloads without requiring application changes. As priorities evolve, the same platform helps organizations containerize, refactor, or rebuild applications when the time is right, supporting both today’s VM workloads and future cloud-native and AI-powered innovation.

Build and scale AI-powered applications in less time

Red Hat OpenShift Service on AWS offers a foundation for turning AI/machine learning (AI/ML) experiments into transformative, security-focused applications. It supports your organization’s AI goals by helping manage infrastructure complexity to reduce time to production, improve graphics processing unit (GPU) usage, and innovate confidently without constraints.

Red Hat OpenShift AI builds on top of Red Hat OpenShift to provide an AI platform for building, training, tuning, deploying, and monitoring AI-powered applications and predictive and foundation models at scale across hybrid and multicloud environments. It bridges DevOps, AI governance, and risk management with native CI/CD and GitOps, allowing data scientists, AI engineers, and developers to collaborate with a consistent and security-focused platform.

OpenShift AI delivers a consistent and streamlined experience for AI projects of all sizes. It offers GenAIOps/MLOps capabilities to help manage and automate AI-powered workloads, and all the tools your organization needs to operationalize AI at scale. This helps reduce complexity, optimize costs, maintain compliance across IT environments, and accelerate time to value.

Red Hat OpenShift AI includes a core set of development features—including AI/ML libraries and frameworks, AI pipelines, and support for multiple IDEs—to help data scientists build predictive AI models, tune gen AI models, and deploy them both into production. It also includes vLLM inferencing, agentic AI tooling, distributed training capabilities, and hardware acceleration support for managing the lifecycle of large language models (LLMs).

Red Hat OpenShift Service on AWS helps your organization further optimize the costs of building and deploying AI/ML-powered workloads, with GPU Capacity Reservations providing instant access to GPU-enabled clusters whenever a project requires them. This eliminates bottlenecks that lead to provisioning delays or idle resources during peak cycles or short-term, GPU-intensive projects—allowing your organization to only pay for what you actively use and freeing up valuable capital for strategic initiatives.

Your organization may also require access to multiple AI models and tools. Red Hat OpenShift Service on AWS supports and integrates a diverse range of AI platforms, giving you the flexibility to choose the right platforms for your needs, including Red Hat OpenShift AI, AWS Bedrock, and many others.

Learn how Red Hat OpenShift helps improve focus on security for all workloads across IT environments, with a trusted software supply chain, container-specific security tools, and a zero trust identity framework.

Learn more
A glossy red cloud icon

Learn how Red Hat OpenShift Virtualization on Red Hat OpenShift Service on AWS helps bring VMs and containers together on a unified, managed platform—with full support for VM migration and a clear path to application modernization.

Learn more

Learn more: Red Hat OpenShift Service on AWS

Build modern applications with confidence. Let Red Hat manage the rest.

Speak to a Red Hatter to learn more about how Red Hat OpenShift Service on AWS can help your organization modernize IT operations on a ready-to-use hybrid and multicloud application platform with advanced virtualization and AI capabilities.

  1. “2026 State of the Cloud Report.” Flexera, 18 Mar. 2026. 

  2. Lawson, Adrienn, et al. “CNCF Annual Cloud Native Survey.” Cloud Native Computing Foundation, 20 Jan. 2026.

  3. Red Hat e-book. “The state of Kubernetes security report: 2024 edition,” 11 June 2024.

  4. IDC Business Value Snapshot, sponsored by Red Hat. “The Business Value of Red Hat Hybrid Cloud Solutions.” 

  5. Gartner. “2025 Gartner® Magic Quadrant™ for Cloud-Native Application Platforms.” 7 Aug. 2025.

  6. Gartner. “2025 Gartner® Magic Quadrant™ for Container Management.” 11 Aug. 2025.

  7. Forrester Research. “The Forrester Wave™: Multicloud Container Platforms, Q3 2025.” 30 July, 2025.

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