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Right-Cloud Retail
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The landscape
Retail has spent the past few years putting AI to work in the store aisles: computer vision for loss prevention, demand forecasting that adjusts by the hour, personalization that follows a shopper across channels. The retailers who have made it work are pulling away from the ones still running pilots. In fact, AI deployers achieve 2.3 times the sales growth and 2.5 times the profit growth of their peers, while fewer than a quarter of retailers have scaled AI1. McKinsey sizes the generative-AI opportunity in retail at $240 to $390 billion a year2. And the gap is widening, not closing.
What separates the two groups is rarely the AI itself. It is whether the systems underneath can get that AI the current information int needs, right at the store, the moment it is needed. An AI tool is only as good as the data reaching it, and most store networks were never built to move that much, that fast. The cost of getting this wrong is easy to see: retailers are sitting on $1.73 trillion stock in the wrong place at the wrong time1, and the fix is less about smarter forecasting than about seeing what is selling and where, as it happens. Getting AI to work in the store is a network problem before it is a math problem.
AI is the sharpest problem every retailer now has. Hybrid cloud has quietly become the default operating model, which is to say running workloads across on-premises, private and public cloud as one estate. Gartner expects 90% of organizations to adopt a hybrid approach by 20273, and 87.5% of IT decision-makers already call it the ideal model4. Spending on private and hybrid cloud is growing nearly twice as fast as public cloud, pushed along by cost control, data sovereignty and the slow drift of workloads back from public cloud where the economics or the compliance never quite met expectations. Right-cloud is not a single destination. It is the discipline of running each workload where it performs best.
For retailers the workload list keeps growing. Cloud-hosted POS such as Oracle MICROS and Shopify, cloud ERP led by SAP S/4HANA and its 2027 migration deadline, cloud warehouse and order management systems, AI and machine-learning models, e-commerce platforms, loyalty programs and customer data platforms. Each one needs managed infrastructure that reaches across the store edge, private cloud and public cloud. IDC expects 90% of the top 2,000 retailers to run edge computing, processing data at or near the store rather than backhauling it to a central cloud, and projects global edge spending to reach $450 billion by 20296.
$1.73T
90%
of the top 2,000 retailers will run edge computing
annual generative-AI opportunity in retail
McKinsey, 2024
The challenges for retail
Latency kills real-time AI
Two migrations at once
SAP S/4HANA’s 2027 deadline forces ERP and network modernization into the same window, with no slack for either to slip.
Peaks you pay for all year
Cloud runs ahead of the team
In retail, cloud has stopped being a place you send workloads. It is the operating model the business runs on, and the retailers who get placement right can say yes to AI in every store and triple capacity for a flash sale, in weeks rather than quarters.
Where GTT comes in
GTT operates one managed hybrid cloud across the store edge, private cloud and public cloud, built on the GTT Envision platform. The operating principle to put to a customer is direct: you decide what runs where, and GTT runs it, secures it and keeps it performing, under one operating model and one accountable team. Network and cloud are not separate layers stitched together after the fact. Where most providers assemble hybrid cloud on top of a network, GTT operates hybrid cloud through it, on a global Tier 1 backbone GTT owns and runs.
That matters because hybrid cloud performance starts with connectivity, and the path from a store to a cloud application is only as good as the network beneath it. GTT already runs the network for most of the retailers it serves: more than 90% of GTT’s distributed customers run their networking as a managed service through GTT. Right-cloud extends that same managed model up the stack, to the compute and the applications, so a retailer adds cloud capability as a partner relationship rather than another set of suppliers to manage.
The retailers pulling ahead are not the ones with the most cloud. They are the ones who run any workload wherever it performs best, under one operating model.
The approach
Most retail cloud estates were not designed. They accumulated. A POS supplier moved to its own cloud, a marketing team spun up another and ERP modernization added a third. Each arrived with its own contract, console and bill, and no single team owns the result end to end. GTT starts from the other end, with one operating model that decides placement on purpose.
| Fragmented multi-cloud | GTT: one operating model |
|---|---|
| Network and cloud bought and run as separate layers | Network and cloud operated as one platform, on GTT's global Tier 1 backbone |
| Placement decided ad hoc, supplier by supplier | Placement decided on purpose: edge, private or public, by performance and compliance |
| Variable consumption billing no one can forecast | Simple, predictable pricing finance can budget against |
| Specialist cloud skills the retail IT team has to hire | Cloud Advisory and a 24/7 managed service stand in for the skills gap |
| Several contracts, consoles and bills | One accountable team, one platform view in GTT EnvisionDX |
| Compliance posture varies by environment | Consistent governance and data residency across every environment |
Where each workload belongs
| At the store edge | In private cloud | In managed public cloud |
|---|---|---|
| Computer vision, POS failover, real-time inventory and analytics | PCI-scoped systems, ERP steady-state, in-region customer data | Black Friday and Singles Day burst, dev and test, AI and ML model training |
| Latency-sensitive, and the data needs to stay local | Predictable performance, compliance and data residency | Elastic scale on demand, with no year-round over-provisioning |
From cloud sprawl to one operating model
The shift is less about moving more workloads to the cloud and more about running the ones a retailer already has under a single model. GTT takes operational responsibility for provisioning, monitoring, patching, backup, disaster recovery, security governance and cost optimization, while the retailer keeps ownership and control through GTT EnvisionDX. Public cloud is the clearest example: GTT runs the day-to-day, and the retailer keeps its direct relationship with AWS or Azure rather than reselling capacity through anyone. One model, applied consistently, is what turns an accumulated estate into a designed one.
The solution
GTT Managed Hybrid Cloud is our managed service that runs workloads across edge, private and public cloud as a single system. It is built from a small set of building blocks, all operated under one model and one platform, so a retailer can place each workload where it belongs without taking on a new way of working for each one.
At the store, edge cloud puts compute close to where data is created, for low-latency AI, POS failover and local data control. Retailers run their own workloads, computer vision, demand forecasting, POS failover, directly on the same GTT EnvisionEDGE device that handles networking and security, with no extra hardware in the aisle.
In managed private cloud, you get shared or dedicated capacity sized and secured to each workload, on GTT EnvisionCloud CORE for shared multi-tenant needs or GTT EnvisionPOD for the tier-1 retailer that requires fully isolated, dedicated infrastructure. The shared private cloud holds a PCI DSS v4.0.1 Attestation of Compliance assessed in January 2026, alongside ISO 27001, ISO 20000, ISO 22301, SOC 2 and CREST.
For elastic scale, managed public cloud lets GTT run the day-to-day across AWS, provisioning, monitoring, patching, backup, disaster recovery, security governance and cost optimization. Google Cloud and Azure are reachable today over Cloud Connect peering, with managed operations on the roadmap, so as a Google- or Azure-primary estate are connected now, they can be managed as the service expands. GTT does not resell hyperscaler capacity; the retailer keeps its direct provider relationship while GTT owns the operational outcome. Underneath it all, Cloud Connect keeps the path between environments private and low-latency over GTT’s global Tier 1 l backbone, and database services run the e-commerce, loyalty, customer and AI training data that sit behind the storefront.
Around those blocks sit the managed capabilities retail asks for first: encrypted Backup-as-a-Service for POS, inventory and customer data across hundreds of stores; Disaster-Recovery-as-a-Service that replicates critical workloads with cross-region snapshots for GDPR-, HIPAA- and ISO 27001-bound systems; VMware- and Kubernetes-as-a-Service for application consistency across edge, private and public; and GPU compute for training demand-forecasting and computer-vision models. The commercial design is the part buyers tend to remember. Where most providers bill on variable consumption, Managed Hybrid Cloud services give retail finance one clear view of spend and a budget that holds. Predictable, which is rarer in cloud than it should be.
That predictability is not a billing trick, it is an operating model. GTT manages capacity planning, cost governance and continuous optimization across every environment, watching for idle capacity, oversized instances and the slow creep of un-optimized spend that pushes retail cloud budgets an average of 17% over target5. Spend, anomalies and optimization actions surface in GTT EnvisionDX next to the network view, so finance and IT are reading from the same numbers rather than reconciling a stack of hyperscaler invoices after the fact.
Core capabilities of Managed Hybrid Cloud services
Edge (GTT EnvisionCloud EDGE): compute at stores and distributed sites for in-store AI, POS failover, real-time analytics and local data control, with no added per-store hardware.
Private Cloud (GTT EnvisionCloud CORE shared, EnvisionPOD dedicated): sized to each workload; shared cloud PCI DSS v4.0.1 attested (Jan 2026) plus ISO 27001, ISO 20000, ISO 22301, SOC 2 and CREST.
Public Cloud: GTT runs AWS and Azure day-to-day, with the retailer keeping the hyperscaler relationship; Google Cloud reachable via Cloud Connect and on the roadmap.
Cloud Connect: private peering to AWS Direct Connect, Microsoft ExpressRoute, Google Cloud Interconnect and Oracle FastConnect from 15 VDC nodes, scalable to 400Gbps.
Database Services: managed databases for e-commerce, loyalty, customer and AI training data
Hybrid Cloud and VDC: 15 global Virtual Data Center locations across three continents; PCI-DSS compliant infrastructure-as-a-service with European data residency and free inter-zone transfer.
Value-add services: Backup-as-a-Service, Disaster-Recovery-as-a-Service, VMware-as-a-Service, Kubernetes-as-a-Service and GPU compute, all under one operating model.
The GTT platform advantage
Right-cloud works because the cloud runs on the same platform as the network, not beside it. Cloud operations live in GTT EnvisionDX next to networking and security, on infrastructure GTT owns end to end.
The proof
Distrelec: Cloud applications that hold under load
Kiabi: Compliant cloud infrastructure across the estate
Also proven
Greenyard consolidated 30-plus providers to one across 70 sites in 25 countries, saving €1M a year, the network foundation a managed hybrid estate sits on
HMY doubled bandwidth and cut cost 22% across four continents in a six-month migration
Cloetta runs a reliable global WAN on GTT, the connectivity layer every cloud workload depends on
Why GTT
Connect a global Tier 1 backbone and flexible access
Secure one platform for cloud and network
Simplify end-to-end delivery ownership
GTT runs the cloud the way it runs the network: co-managed, with GTT owning provisioning, monitoring, patching, backup, disaster recovery and cost optimization while the retailer keeps full control and visibility through GTT EnvisionDX. Cloud Advisory guides what runs where, Professional Services run the large migrations including SAP S/4HANA, and the commercial model replaces variable consumption billing with one predictable number finance can budget against. For a lean retail IT team, that is the difference between hiring cloud-architect, Kubernetes and FinOps specialists and pointing the people they have at the work that differentiates the business. One accountable team, not a contract for every layer.
This is also what separates GTT from the obvious alternatives. A hyperscaler’s own managed service runs only its own cloud and stops at the edge of its network; a reseller marks up someone else’s capacity and owns none of the path. GTT owns the backbone, runs the cloud on top of it and stands behind both with a single SLA, which is why the retailer gets one accountable team for the whole route from store to application rather than a different number to call for each layer.
Retail sub-verticals served
Right-cloud shows up differently in each corner of retail. Where the workloads live changes. The operating model does not.
| Sub-vertical | Where right-cloud shows up |
|---|---|
| Grocery & Food Retail | Edge compute for demand forecasting and perishable waste reduction across thousands of stores, with cloud ERP modernization underway in most large chains. |
| Fashion & Apparel | Returns AI and clienteling models that need GPU compute and customer-data platforms close to the storefront, scaled elastically for seasonal peaks. |
| General Merchandise & Big Box | Computer vision for shelf monitoring and loss prevention at the edge, with public-cloud burst capacity for high-volume e-commerce peaks. |
| Luxury & Specialty | Clienteling data kept in-region in private cloud for residency, with the personalization models luxury buyers expect run close to the boutique. |
| Health, Beauty & Pharmacy | HIPAA- and GDPR-bound customer and prescription data protected by DRaaS and in-region private cloud, with edge compute for in-store services. |
| Convenience & Fuel | Forecourt and POS failover at the edge, where lost connectivity stops payment, with cloud-managed estate visibility across thousands of sites. |
| Consumer Electronics | Cloud-hosted ERP and high-traffic e-commerce proven at Distrelec, with elastic public-cloud capacity for launch-day and promotional spikes. |
| Wholesale & Distribution | Edge compute at warehouses and distribution centers for real-time fulfillment, with EDI (electronic data interchange, the structured messaging that moves orders between trading partners) and order-management workloads run across private and public cloud under one model. |
Next steps
Right-cloud is a placement decision before it is a procurement one. GTT starts with where the workloads should run, then runs them.
- Assess. GTT maps the current estate, what runs at the edge, in private cloud, in public cloud and on-premises, and identifies the workloads where placement is costing performance, money or compliance headroom.
- Place. Cloud Advisory recommends the right home for each workload by latency, cost, performance and data residency, and sequences any migration, including SAP S/4HANA, against the retailer’s peak-trading calendar so nothing moves during the trading window that matters most.
- Talk to GTT. One conversation covers the full four-pillar suite, resilient connectivity, security, right-cloud and simplified operations, with a complimentary cloud workload-placement and TCO assessment to put concrete numbers against the move.
1 IHL Group, “Retail Inventory Crisis Persists Despite $172B in Improvements,” September 2025.
2 McKinsey, “LLM to ROI: How to scale gen AI in retail.”
3 Gartner, worldwide public cloud forecast, November 2024.
4 Nutanix, Enterprise Cloud Index, 2026
5 Flexera, State of the Cloud Report, 2026.
6 IDC FutureScape: Worldwide Retail Predictions.
7 IDC. Global edge computing spending to reach $450 billion by 2029, growing at ~15% CAGR.
8 SAP, S/4HANA 2027 end-of-life
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