Microsoft recently unveiled new data showing that nearly 70% of enterprise AI workloads will operate outside traditional data centers by 2027 (IDC Report). This shift has massive implications for the global cloud market, where Microsoft’s hybrid model is emerging as the defining architecture of the post-hyperscale era.  Unlike the centralized AI models that dominated early adoption, Microsoft’s approach blends Azure OpenAI Service, Azure Arc, and Azure’s Edge Stack into a cohesive “hybrid intelligence layer” — designed to move compute closer to the user. The push is both strategic and existential: as AI inference costs skyrocket, proximity, latency, and sovereignty have…

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