Cloud investment levels put AI initiatives at risk

cloud-investment-levels-put-ai-initiatives-at-risk
Cloud investment levels put AI initiatives at risk
Cloud money spending

A new global survey of more than 2,300 senior decision-makers across 33 countries, highlights a paradox as cloud takes on a new and critical role as the execution layer of the AI operating model. While 99 percent of organizations say AI is increasing demand for cloud investment, 88 percent say current cloud investment levels are putting AI, cloud-native and modernization initiatives at risk.

The study from NTT DATA shows that AI demand is rising, yet alignment is uneven. CAIOs are 22 percent more likely than CIOs and CTOs to say AI increases cloud investment needs. Additionally, AI is cited as the top cloud skills gap.

“AI is accelerating faster than enterprise cloud maturity,” says Charlie Li, president, global head of cloud and security at NTT DATA. “Cloud has moved well beyond infrastructure and is now the execution layer for AI. Organizations that fail to evolve their cloud foundations risk constraining the growth and value of their AI investments. Our clients who are succeeding are treating cloud as a value creator, not a technology initiative.”

With cloud deployment choices now directly influencing cloud outcomes, organizations are increasingly adopting a mix of public, private, hybrid and sovereign cloud models. Nearly all expect private cloud growth and sovereign cloud adoption is projected to grow 50 percent in two years.

While AI is critical for helping organizations shift from technical to business metrics for cloud initiatives, adoption remains uneven. 47 percent of cloud leaders say they used AI in their last cloud migration project, compared with 35 percent of all others.

Security is the top cloud investment priority, but confidence levels vary. 68 percent of leaders are highly confident, compared to 36 percent of all others. Leaders are also much more likely to define clear roles and responsibilities backed by regular audits, reinforcing the importance of the fundamentals as technology ecosystems grow more complex.

You can get the full report from the NTT DATA site.

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