The AI buzz of 2023 will continue into 2024 with increased pressure on infrastructure resources and the need to expand data center capacity. This, paired with sovereignty and sustainability requirements, puts pressure on hyperscalers to deliver. Opportunistic challengers and capital-rich startups will take advantage of this new reality, winning some major enterprise business. Hyperscalers will try to appease customers with new WebAssembly System Interface (WASI) offerings, prompt engineering services, and adherence to open source standards. Strap in for an eventful year in cloud. This report explores Forrester’s predictions for cloud computing in 2024.