Table of Contents
Infrastructure was supposed to get simpler. Containers would streamline deployments, observability would make systems clearer, and event-driven design would reduce complexity. Instead, most organisations added more tools, expanded cloud costs, and struggled to get meaningful Gen AI results.
But 2025 revealed a different pattern. Mature platforms converged. Observability stabilised around OpenTelemetry. Kafka removed its 14-year ZooKeeper dependency. Vector search became production-grade. Kubernetes reached near-universal adoption. AI infrastructure exploded.
This shift did not come from hype. It came from real production systems processing billions of events a day.
2025: Convergence Became Real
While many organisations chased new tools, the underlying trend was convergence. Kubernetes, Kafka, Elasticsearch, and PostgreSQL all reached a predictable level of maturity. Economic pressure made twenty tool observability pipelines unsustainable. Gen AI requirements forced companies to unify data, search, and telemetry flows.
This was not vendor consolidation. It was an underlying technical alignment.
Observability Standardised Around OpenTelemetry
OpenTelemetry crossed a major milestone in 2025. Adoption reached 48.5 percent, with another 25.3 percent planning to adopt, bringing total alignment to nearly three-quarters of the market.
Large-scale validation:
- SAP operates more than 11,000 OpenSearch instances withnative OTLP ingestion.
- Google Cloud increased attribute storage limits by 256 times
- eBPF-based auto-instrumentation. began covering HTTP, gRPC, SQL, Redis, MongoDB, and Kafka with no code changes.
The ROI that closed the debate:
- The majority of organisations saw 10-20 percent ROI, and many exceeded 20 percent
- MTTR reductions averaging 52 percent
- Generation Esports: 75 percent drop in observability cost
The hidden cost: OpenTelemetry increases telemetry size by 4-5x, forcing teams to rely on tail-based sampling and tiered storage.
Vector Search Reached Production Scale
The vector database market reached roughly 3.04 billion dollars in 2025.
Market maturity indicators:
- 67 percent enterprise adoption
- 90 percent managing more than 1M vectors
- Elasticsearch shipped four major releasestransforming performance
Performance breakthroughs:
- Quantisation: 87.5 percent storage reduction
- SIMD optimisations: 6x execution speed
- Parallelisation: 50 percent latency cut
- Result: 60-80 percent cost savings for mature deployments
The production requirement: Hybrid retrieval became standard. Pure vector search misses exact matches. Pure keyword misses semantic context. RRF-based hybrid search is now mandatory for production-grade RAG.
Real-world validation: RBC’s Arcane search platform, Morgan Stanley indexing 70,000+ documents, DoorDash using LLM guardrails.
The 95% problem:Almost 95 percent of companies saw no Gen AI ROI because of poor data foundations, not model performance.
Kafka 4.0 Finally Removed ZooKeeper
Kafka 4.0 removed ZooKeeper entirely on 18 March 2025
Technical wins:
- 40-60 percent operational complexity reduction
- Millisecond controller failover times
- Simplified partition scaling
The maturity paradox:
- 72 percent of organisations use event-driven architecture
- Yet only 13 percent achieve gold-standard execution
- Just 35 percent of business stakeholders understand real-time data value
Production proof at scale:
- Netflix: 700 billion events/daywith near-zero data loss
- Uber: trillions of events daily
- Shopify: 66M messages/second peak
Business impact (127 enterprises evaluated):
- 62% reduced latency
- 47% lower infrastructure cost
- 81.2% MTTR improvement
- 4.7x deployment frequency
The AI convergence: Real-time pipelines now feed vector databases. Flink-based agents and context engines enable real-time RAG.
Kubernetes Reached 93 Percent Adoption—And Faced Reality
The saturation numbers:
- 93 percent adoption in 2025, 80 percent in production
- 15.6 million cloud-native developersglobally
- Average 2,341 containers per organisation (up from 1,140)
The crisis: In November 2025, Kubernetes SIG Networking confirmed Ingress NGINX would retire in March 2026 due to lack of maintainers and security concerns.
Service mesh maturity:
- 70 percent production adoption
- Linkerd benchmarked faster at p99 latency than Istio sidecar
- Istio Ambient: node-level proxiesreplacing per-pod sidecars
GitOps stabilisation:
- Argo CD: 97 percent production use
- Majority of users now identify as platform engineers, not DevOps
The reality: Kubernetes adoption ≠ Kubernetes mastery. Internal developer platforms are becoming essential.
AI Infrastructure Exploded, But ROI Stayed Flat
The spending surge:
- AI infrastructure: $180-190B annually(97% YoY growth)
- Hyperscalers: $200B combined CapEx in 2024
- Data centre infrastructure: $290B → projected $1T by 2030
Market dynamics:
- Hardware dominates: 63-65 percent of spend
- NVIDIA maintains leadership; TPUs, Trainium, ASICs gaining share
- Model Context Protocol emerged for AI-to-data connectivity
The ROI disconnect: 95 percent of organisations still report no meaningful Gen AI return because of weak data governance and fragmented pipelines.
What works: Companies focusing on narrow use cases with strong governance—not scaling experiments prematurely.
2026: What Now Becomes Urgent
Ingress NGINX Retirement
Deadline: March 2026—final.
Unsupported ingress controllers create serious operational and security risks.
Action required:
- Migrate to Gateway API (Kubernetes SIG recommended)
- Or alternatives: NGINX, Traefik, Contour
- Test in non-production environments now
- Validate rollback procedures
Platform Engineering Becomes Standard
Backstage, Crossplane, Argo CD, and Flux are replacing raw Kubernetes access.
Self-service platforms with guardrails are becoming the dominant pattern for safe scaling.
Observability, Hybrid Search And Streaming Must Align
The next generation of AI-assisted applications demands:
- Unified telemetry (OpenTelemetry)
- Hybrid search (vector + keyword)
- Real-time event pipelines (Kafka + Flink)
These layers must mature together, not in isolation.
Execution, Not Technology, Now Defines Winners
The real shift in 2025 was infrastructure convergence around common patterns.
The regret in 2026 will come from organisations that:
- Delay migrations
- Ignore the Ingress NGINX retirement deadline
- Scale AI on poor data
- Maintain scattered architectures instead of unified platforms
Before Planning Your 2026 Roadmap, Run This Three-Point Check:
-
Review your OpenTelemetry pipeline and data volume strategy
- Are you managing the 4-5x telemetry increase with smart sampling?
- Do you have tiered storage in place?
-
Map the impact of Ingress NGINX retirement and Kafka 4.0 readiness
- Have you tested Gateway API migration paths?
- Is your ZooKeeper-to-KRaft migration planned?
-
Build a strong data and governance foundation before Gen AI scaling
- Is your data quality preventing the 95% zero-ROI outcome?
- Do you have evaluation frameworks deployed?
If you need support in any step of this journey, Ashnik is ready to help.