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What Neoclouds Are and Why They Matter to Enterprises

Blog

|May 29, 2025

Scaling the Future with Zayo’s Infrastructure

Innovative technologies like artificial intelligence (AI) and machine learning (ML) are transforming entire industries. But this progress depends on infrastructure that can scale efficiently and handle immense workloads. The need for compute power to drive AI models is growing fast, and traditional hyperscalers alone can’t keep up. To keep innovation moving forward, we need smarter, faster solutions.

That’s where neoclouds come in. They’re the next evolution of cloud providers, built specifically to handle today’s complex AI workloads. Neoclouds offer the scalability and efficiency modern businesses need as they integrate AI into their companies. As the digital landscape evolves, neoclouds provide innovative, specialized, and cost-effective solutions that drive progress and fuel innovation.

What Are Neoclouds?

Neoclouds represent an evolution of traditional cloud computing. They integrate specialized hardware (like graphics processing units (GPUs) and tensor processing units (TPUs)), AI-first architecture, and intelligent orchestration to support next-gen applications such as machine learning, IoT, autonomous systems, and real-time analytics. They give organizations fast, flexible access to powerful GPUs without building infrastructure from scratch.

How Neoclouds Work 

Neoclouds empower industries to tackle computationally intensive problems by leveraging GPU-based infrastructure in a flexible, scalable, and efficient manner. This synergy of cloud scalability and GPU acceleration is pivotal in advancing AI-driven innovation across industries.

By enabling specialized Infrastructure-as-a-Service, neoclouds provide industry-tailored solutions. 

Why They’re Important 

Neoclouds are revolutionizing digital infrastructure by addressing the challenges of traditional CPU-based clouds and meeting the needs of advanced technologies. These GPU-based clouds solve problems like limited parallel processing, slow training times, and high latency often found with CPUs. Instead, neoclouds harness the power of advanced GPUs and TPUs to deliver faster, more efficient processing, unlocking immense potential for cutting-edge applications.

The rapid rise of neoclouds is fueled by a convergence of technological evolution and business demands. Neoclouds fill a vital gap in modern infrastructure by delivering AI-native, GPU-powered, and scalable computing platforms. Their architecture is purpose-built for the era of intelligent applications, positioning them as essential infrastructure for digital transformation across industries. They support and accelerate the adoption of advanced technologies, bridging the performance and scalability gaps left by traditional cloud systems.

Here’s how neoclouds are driving progress:

Accelerated AI/ML Training: Neoclouds drastically reduce training times for complex models, cutting timelines from weeks to just hours. This empowers teams to develop and deploy large language models, medical image classifiers, and more, with unmatched speed.

Real-Time Applications: By minimizing latency, neoclouds make real-time applications in fields like AR/VR, industrial automation, and autonomous systems a reality.

Edge Computing & IoT Integration: Neoclouds enable real-time analytics directly on edge devices, reducing dependence on centralized data centers. This is critical for latency-sensitive tasks and distributed systems.

What’s Driving Neocloud Growth? 

Neoclouds are a strategic response to the growing need for AI-optimized, GPU-driven, and environmentally conscious computing infrastructure. Their rapid growth reflects how digital innovation and sustainability are increasingly interconnected, shaping the next era of cloud computing.

Here are the key drivers behind their growth: 

  • Growing demand for AI-driven workloads & cloud-based Inference: AI is core to many modern applications, from chatbots and recommendation engines to computer vision and healthcare diagnostics. The GPU-as-a-Service market is projected to grow to $12.26 billion by 2030, underscoring this demand. 
  • Advances in GPUs and ML Technology: With the development of high-performance GPUs like NVIDIA’s H100, businesses can achieve faster training and inference for AI applications, making advanced cloud infrastructures indispensable. The growing use of ML in virtually every vertical — notably healthcare, retail, automotive, and finance — has created a need for cloud environments purpose-built for ML.
  • More Affordable Pricing: Unlike hyperscalers that juggle various services, neoclouds focus exclusively on GPU-based infrastructure for AI and machine learning workloads. Their specialization enables them to optimize operations while minimizing the costs and complexities associated with providing a broader range of services. According to Uptime Institute, this focused approach delivers up to 66% savings compared to hyperscalers.

Industries Leading the Charge 

Neoclouds align themselves with industries that demand specialized cloud capabilities to fuel innovation. Here’s how key sectors benefit from these advanced cloud providers. 

Healthcare 

Modern healthcare thrives on AI-powered tools, from genomics data processing to medical imaging analysis. Neoclouds allow the processing of massive datasets and real-time diagnostics without delays. 

Sequencing an individual’s genome requires advanced computational capabilities to interpret complex patterns in massive datasets. Neoclouds, with their GPU-based infrastructure, reduce delivery times significantly, enabling breakthroughs in early diagnostics and personalized medicine. 

Finance 

Fraud detection, anomaly processing, and real-time transaction monitoring require compute power and precision that only advanced AI infrastructure can support. Neoclouds are paving the way for faster financial services by allowing:

  • Real-time analysis of millions of transactions per second to detect fraud.
  • Low-latency models for high-frequency trading strategies, helping markets move efficiently.

For enterprise IT teams in finance, leveraging neocloud solutions, speed, stability, and reliability are non-negotiable for maintaining uptime during critical moments. 

Media and Entertainment 

Visual effects rendering, animation production, and game development are inherently compute-heavy processes. Neoclouds streamline these workloads by connecting artists and developers to real-time GPU rendering engines, cutting production times. 

For example, producing complex visual effects previously required large on-site render farms. With neocloud-based solutions, these can now be achieved at scale with greater efficiency, enabling faster content delivery cycles while lowering costs. 

Government and Academia 

Academic institutions and government facilities tackling research-intensive workloads often operate on grant-driven, bursty computational demands. Neoclouds provide scalable, on-demand infrastructure that adjusts based on peaks in usage. 

This is particularly beneficial for scientific simulations and modeling projects, where flexibility and cost efficiency are equally important. Remote government and research teams can also benefit greatly from edge computing solutions, which reduce latency and improve data integrity. 

Autonomous Vehicles and IoT 

The backbone of autonomous driving and IoT devices lies in real-time processing capabilities combined with edge computing. Autonomous fleets need to process traffic data as it unfolds, and IoT manufacturing devices must adapt instantly to changes on the factory floor. 

Neoclouds enable these industries by seamlessly integrating:

  • Cloud-based GPU solutions for real-time inferencing.
  • Infrastructure that scales dynamically with IoT and autonomous applications.

How Zayo Powers the Technology Behind Neoclouds 

To fuel enterprise adoption of neoclouds, the underlying infrastructure needs to be robust, scalable, and fast. That’s where Zayo’s tailored network solutions come into play. Zayo’s infrastructure delivers the agility and scale required to meet the demands of emerging technologies. 

Customized Connectivity for Enterprise Needs 

Zayo’s network empowers modern enterprises to expand rapidly by offering:

  • IP Transit: High-bandwidth connectivity backed by over 35Tb of global peering capacity. This ensures seamless traffic flows between urban hubs and rural data centers.
  • Wavelength Solutions: Ultra-low latency routes with capacities of up to 800G for demanding AI workloads.
  • Metro and Long-haul Dark Fiber: Unparalleled scalability and close-to-owner economics 
  • Route Diversity: A dual-route approach guarantees reliable connectivity, minimizing service disruptions.

For IT leaders, working with Zayo means designing infrastructure that evolves alongside your business needs.

Enhancing Real-Time Applications and Scalability 

Zayo’s solutions support the real-time and distributed demands neoclouds require, including:

  • Low Latency: Smooth, fast integration between dispersed devices and central servers.
  • Global Scalability: A network spanning 400+ markets across 19 million fiber miles, designed to meet the future head-on.

Building Connectivity in Remote Locations 

With our global fiber backbone and regional capabilities, we provide and build network connectivity solutions in remote areas with abundant energy but sparse infrastructure. This creates opportunities for sustainable growth without compromising performance. 

Redefining Digital Infrastructure with AI-Driven Innovation 

Neoclouds provide a dependable solution to meet the rising demand for AI-driven technology. By combining the power of AI-first technology with scalable, efficient solutions, these next-gen cloud providers empower industries to overcome their biggest challenges. 

For IT professionals in finance, healthcare, entertainment, and more, neoclouds and the infrastructure behind them open up new opportunities to drive innovation, improve efficiency, and expand the potential of AI. 

Interested in learning more about Zayo’s global network capabilities?

Explore our network mapbook.