India and Australia Lead in GenAI Adoption, but Face Infrastructure and Skills Challenges

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Nutanix's Enterprise Cloud Index report reveals high GenAI adoption rates in India and Australia, outpacing global trends. However, both countries face challenges in infrastructure modernization and skills development.

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India and Australia Lead Global GenAI Adoption

Nutanix's seventh annual Enterprise Cloud Index (ECI) report reveals that India and Australia are at the forefront of Generative AI (GenAI) adoption, outpacing global trends. The report, which surveyed 1,500 IT and DevOps/Platform Engineering decision-makers worldwide, provides insights into cloud adoption, GenAI trends, and the challenges organizations face during implementation

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Indian Enterprises Embrace GenAI

In India, 86% of enterprises have already developed a GenAI strategy, with 66% actively implementing it. This surpasses both global (55%) and Asia-Pacific-Japan (APJ) (60%) averages. The rapid adoption reflects India's commitment to AI-driven innovation and its ambition to lead in the global AI landscape

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Australia's GenAI Momentum

Australia is also moving faster than its global peers, with over 80% of organizations having a GenAI strategy in place and 61% actively implementing it. Common use cases in Australia include customer support solutions (55%) and code generation tools (48%)

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Infrastructure and Security Challenges

Despite the rapid adoption, both countries face significant challenges:

  1. Infrastructure Modernization: 85% of Indian respondents and 83% of Australian respondents recognize the need for significant improvements in their IT infrastructure to support cloud-native applications effectively

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  2. Security Concerns: In India, 95% of organizations believe more must be done to enhance the security of their GenAI models and applications

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  3. Scaling Challenges: 98% of Indian organizations face difficulties in scaling GenAI workloads from development to production, with integration into existing IT infrastructure identified as the primary hurdle

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Skills Gap and Workforce Development

Both countries recognize the need for skilled talent to support GenAI initiatives:

  1. In India, 52% of enterprises plan to invest in IT training, while 48% aim to hire new talent

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  2. In Australia, only 53% of respondents feel they have the necessary skills to support cloud-native apps/containers, which is 10 points lower than the APJ average of 63%

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Containerization Trends

Both countries show strong trends in containerizing applications:

  1. In India, 99% of enterprises are in the process of containerizing applications

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  2. In Australia, 100% of surveyed organizations are at least in the process of containerizing their applications, with 31% stating all newly developed applications are containerized

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Future Outlook and Investments

Despite challenges, both countries show optimism about GenAI's potential:

  1. In India, 90% expect IT costs to rise due to GenAI, but 75% anticipate a positive return on investment within 1-3 years

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  2. Australian organizations are focusing on upskilling existing engineers and developers to bridge the skills gap and make smarter infrastructure decisions

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