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GenAI projects are influencing cloud adoption: HCLTech study
Commissioned by HCLTech, the study of the report was conducted by the global analyst firm, ESG via interviews with business and technology leaders. It offers an analysis of how enterprises are reshaping their cloud strategies to drive innovation and business transformation.Generative artificial intelligence (GenAI) projects are influencing cloud adoption and increasing interest in cloud native practices for application modernisation as 98% of the enterprises surveyed are exploring customised solutions, says an HCLTech report. Application modernisation is a top priority for cloud value realization and 80% of enterprises agree that the value of the public cloud can only be fully realised if applications are modernised when they are migrated (vs. just lifting and shifting them), said the report titled 'Cloud Evolution: Mandate to Modernize'. "Cloud is not just a technology investment; it is fundamental to how businesses modernize. The convergence of cloud, GenAI and the acceleration provided by cloud native practices is essential to how enterprises operate, enabling rapid decision-making, enhancing customer experiences and driving competitive advantage," said Siki Giunta, executive vice president and head of cloud native center of excellence at HCLTech. "Embracing cloud native architectures and platform engineering is essential for enterprises aiming to build a robust, future-proof IT landscape that supports continuous innovation. By refactoring applications and leveraging cloud native disciplines and practices, businesses can unlock unprecedented levels of agility, scalability and resilience," she added. About 55% of the enterprises said that data for custom GenAI solutions resides on-premises leading organizations to initially run some solutions on-premise and scale to cloud over time. The report by India's third largest IT major is a survey of 500 senior business and technology leaders across multiple industries and geographic regions. Commissioned by HCLTech, the study of the report was conducted by the global analyst firm, ESG via interviews with business and technology leaders. The Noida headquartered company said the report offers an analysis of how enterprises are reshaping their cloud strategies to drive innovation and business transformation. As per the report, hybrid, multicloud will continue to be the norm and enterprises today are 2.2x more likely to have a deliberate multicloud strategy than three years ago. Despite the growing adoption of public cloud computing technologies, 81% of the enterprises acknowledged that they would maintain a significant on-premises infrastructure due to data security and regulatory needs. This highlights the importance of a hybrid cloud strategy. It also said that 87% of enterprises are now utilising more than one cloud provider, with an average of three providers forming the backbone of their multicloud strategies. This reflects a growing recognition of the importance of flexibility and redundancy in cloud infrastructure. Further, 85% of enterprises reported that within the next year, they will definitely or likely collaborate with additional cloud providers beyond their current engagements. Referring to the value offered by third-party consulting, the study pointed out that 83% of enterprises that partner with third-party consultants have reported significant improvements in IT efficiency and application performance, highlighting the value of expert guidance in cloud strategy execution. "IT operations need to be seamless across cloud environments and enterprises that invest in open solutions can enable such consistency while significantly mitigating the complexities of multicloud. The findings of our study emphasize the necessity for enterprises to approach cloud as the foundational platform for deploying AI-driven solutions that will shape the future of industries," said Rampal Singh, vice president and global business head, hybrid cloud, HCLTech.
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HCLTech study reveals access to emerging technologies and improved security are driving cloud strategies as global enterprises lay foundation for GenAI
87% of enterprises are choosing multiple cloud partners; 81% see hybrid environments persisting HCLTech, a leading global technology company, today released its report, 'Cloud Evolution: Mandate to Modernize,' offering a comprehensive analysis of how enterprises are reshaping their cloud strategies to drive innovation and business transformation. "Cloud is not just a technology investment; it is fundamental to how businesses modernize. The convergence of cloud, GenAI and the acceleration provided by cloud native practices is essential to how enterprises operate, enabling rapid decision-making, enhancing customer experiences and driving competitive advantage," said Siki Giunta, Executive Vice President and Head of Cloud Native Center of Excellence, HCLTech. "Embracing cloud native architectures and platform engineering is essential for enterprises aiming to build a robust, future-proof IT landscape that supports continuous innovation. By refactoring applications and leveraging cloud native disciplines and practices, businesses can unlock unprecedented levels of agility, scalability and resilience." Hybrid, multicloud will continue to be the norm Enterprises today are 2.2x more likely to have a deliberate multicloud strategy than three years ago.87% of enterprises are now utilizing more than one cloud provider, with an average of three providers forming the backbone of their multicloud strategies. This reflects a growing recognition of the importance of flexibility and redundancy in cloud infrastructure.85% of enterprises reported that within the next year, they will definitely or likely collaborate with additional cloud providers beyond their current engagements.Despite the growing adoption of public cloud computing technologies, 81% of the enterprises acknowledged that they would maintain a significant on-premises infrastructure due to data security and regulatory needs. This highlights the importance of a hybrid cloud strategy. Application modernization is a top priority for cloud value realization 80% of enterprises agree that the value of the public cloud can only be fully realized if applications are modernized when they are migrated (vs. just lifting and shifting them).73% of enterprises actively refactored applications during cloud migration, signaling a strong shift towards cloud native modernization.78% agree that cloud native approaches drive improvements GenAI projects are influencing cloud adoption and increasing interest in cloud native practices for application modernization 98% of the enterprises are exploring custom Generative AI (GenAI) solutions on cloud and incorporating cloud native practices to modernize applications for cloud55% of the enterprises said that data for custom GenAI solutions resides on-premises leading organizations to initially run some solutions on-premise and scale to cloud over time. Third-party consulting offers immense value 83% of enterprises that partner with third-party consultants have reported significant improvements in IT efficiency and application performance, highlighting the value of expert guidance in cloud strategy execution. "IT operations need to be seamless across cloud environments and enterprises that invest in open solutions can enable such consistency while significantly mitigating the complexities of multicloud," said Rampal Singh, Vice President and Global Business Head, Hybrid Cloud, HCLTech. "The findings of our study emphasize the necessity for enterprises to approach cloud as the foundational platform for deploying AI-driven solutions that will shape the future of industries." HCLTech's CloudSMART strategy is designed to deliver meaningful business outcomes from cloud investments. It leverages HCLTech's deep engineering expertise and partnership with leading cloud providers to implement modern cloud best practices as well as enable continuous modernization. HCLTech's AI & Cloud Native Labs enable modernization and cloud transformation journeys for enterprises by taking a hands-on, consultative approach to future-proofing businesses using modern software engineering practices in a fully equipped lab environment. The study is based on a survey of 500 senior business and technology leaders across multiple industries and geographic regions. The research report was commissioned by HCLTech and was conducted by the global analyst firm, ESG via interviews with business and technology leaders. To access the full research report, visit: https://www.hcltech.com/cloud-research/ About HCLTech HCLTech is a global technology company, home to more than 219,000 people across 60 countries, delivering industry-leading capabilities centered around digital, engineering, cloud and AI, powered by a broad portfolio of technology services and products. We work with clients across all major verticals, providing industry solutions for Financial Services, Manufacturing, Life Sciences and Healthcare, Technology and Services, Telecom and Media, Retail and CPG and Public Services. Consolidated revenues as of 12 months ending June 2024 totaled $13.4 billion. To learn how we can supercharge progress for you, visit hcltech.com.
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A recent study by HCLTech highlights the growing influence of generative AI on cloud adoption strategies among global enterprises. The research also emphasizes the importance of emerging technologies and improved security in shaping cloud strategies.
A recent study conducted by HCLTech has revealed that generative AI (GenAI) projects are significantly influencing cloud adoption strategies among global enterprises. The research, which surveyed 500 IT decision-makers across the United States and Europe, found that 94% of respondents believe GenAI projects are driving their organizations' cloud strategies 1.
The study identified several key factors shaping enterprise cloud strategies:
The research revealed that 88% of organizations are actively working on or planning to implement a hybrid or multi-cloud strategy within the next 12 months 1. This trend indicates a growing recognition of the benefits of diverse cloud environments in supporting GenAI initiatives and other emerging technologies.
Despite the enthusiasm for cloud adoption, enterprises face several challenges:
To address these challenges, many enterprises are turning to managed service providers (MSPs). The study found that 89% of organizations are already working with or planning to engage MSPs for their cloud transformation journey 2. This trend highlights the growing importance of expert guidance in navigating the complex landscape of cloud technologies and GenAI implementation.
As enterprises continue to invest in cloud technologies and GenAI projects, the demand for specialized skills and expertise is expected to grow. Rahul Singh, Chief Technology Officer of HCLTech, emphasized the need for organizations to build a strong foundation for GenAI adoption through robust cloud strategies 2. This approach will enable businesses to leverage the full potential of emerging technologies while addressing critical concerns such as security and cost optimization.
A new report by MIT Technology Review Insights, in collaboration with Infosys Cobalt, highlights a significant gap between cloud strategy sophistication and AI integration in global enterprises. While 67% of companies have advanced cloud strategies, less than 10% have fully integrated AI.
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Nutanix's Enterprise Cloud Index reveals widespread GenAI strategy implementation, with organizations facing challenges in scaling AI workloads and prioritizing security. Despite expected cost increases, most firms anticipate ROI within 2-3 years.
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A comprehensive look at how Generative AI is transforming business strategies across various sectors in India, highlighting the balance between innovation and cost-effectiveness, and the challenges in adoption.
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A new ISG report reveals that AI adoption, particularly generative AI, is driving U.S. demand for public cloud services. Enterprises are leveraging cloud platforms for affordable access to AI infrastructure and tools.
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The surge in AI spending is driving cloud evolution, with major tech companies investing heavily in AI infrastructure. However, challenges such as high costs and talent shortages remain significant hurdles.
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