Rapid GenAI Adoption Drives Cloud Infrastructure Modernization and IT Investments

Rapid GenAI Application Adoption Drives New Era Of Application And Infrastructure Modernisation

Nutanix study reveals that GenAI is changing organisations priorities, with security and privacy being a primary concern San Jose, California - February 6, 2025- Nutanix (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced the findings of its seventh annual Enterprise Cloud Index (ECI) survey and research report, which measures global enterprise progress with cloud adoption. This year's report sheds light on Generative Artificial Intelligence (GenAI) adoption, investment priorities, and benefits along with key challenges organisations face to meet the demands of these emerging workloads. As GenAI application adoption and implementation move at a blasing pace, the ECI uncovered that while the majority of organisations have already implemented a GenAI strategy, implementation targets vary significantly. Organisations are eager to leverage GenAI for productivity, automation, and innovation, but they also face critical hurdles in the form of data security, compliance, and IT infrastructure modernisation. Further, 90% of respondents expect their IT costs to rise due to GenAI and modern application implementation. But promisingly, 70% of organisations expect to make a return on their investment from GenAI projects over the next two to three years. "Many organisations have reached an inflection point with GenAI implementation and deployment," said Lee Caswell, SVP, Product and Solutions Marketing at Nutanix. "This year's ECI revealed key trends that we're hearing from customers as well, including challenges with scaling GenAI workloads from development to production, new requirements GenAI creates for data governance, privacy, and visibility, and integration with existing IT infrastructure. To successfully unlock ROI with GenAI projects, organisations need to take a holistic approach to modernising applications and infrastructure and embrace containerisation." Key findings from this year's report include: For the seventh consecutive year, Nutanix commissioned a global research study to learn about the state of global enterprise cloud deployments, application containerisation trends, and GenAI application adoption. In the Fall of 2024, U.K. researcher Vanson Bourne surveyed 1,500 IT and DevOps/Platform Engineering decision-makers around the world. The respondent base spanned multiple industries, business sizes, and geographies, including North and South America; Europe, the Middle East and Africa (EMEA); and Asia-Pacific-Japan (APJ) region. To learn more about the report and findings, please download the full seventh Nutanix Enterprise Cloud Index, here. About Nutanix Nutanix is a global leader in cloud software, offering organizations a single platform for running applications and managing data, anywhere. With Nutanix, companies can reduce complexity and simplify operations, freeing them to focus on their business outcomes. Building on its legacy as the pioneer of hyperconverged infrastructure, Nutanix is trusted by companies worldwide to power hybrid multicloud environments consistently, simply, and cost-effectively. Learn more at www.nutanix.com or follow us on social media @nutanix.

GenAI development is pushing along cloud adoption at a record pace

90% of firms expect costs to rise, but 70% are hopeful for an ROI in the next 2-3 years Sky-high rates of GenAI adoption are leading to sky-high rates of cloud adoption, a new report by Nutanix has claimed, saying four in five (80%) organizations have already implemented a generative AI strategy. The study found the majority (94%) of respondents agree their organization now benefits from adopting cloud-native applications and containers, with nine in 10 (90%) reporting that at least some applications are containerized. However, Nutanix flags the usual suspects when it comes to what's holding businesses back, and that largely boils down to their existing IT infrastructure. Central to the discussion around cloud adoption is security, with nearly all (95%) respondents citing security and privacy as a primary concern with generative AI. Nine in 10 (90%) subsequently prioritized data privacy when they implement GenAI solutions, but even more (95%) believe that they could do better. "Many organisations have reached an inflection point with GenAI implementation and deployment," said Nutanix's SVP for Product and Solutions Marketing, Lee Caswell. "To successfully unlock ROI with GenAI projects, organisations need to take a holistic approach to modernising applications and infrastructure and embrace containerisation." Given that an overwhelming majority (98%) of respondents face challenges when it comes to scaling generative AI workloads, IT infrastructure was chosen as the number one area for investment in order to support AI. When global cloud spend hit $78.2 billion in Q2 2024, up 19% year-over-year, Canalys VP Alex Smith commented: "Hyperscalers hope that AI-powered services become the next compelling reason for customers to transition to the cloud." Later, in Q3 2024, IDC found that spending on compute and storage infrastructure products for cloud deployments, including dedicated and shared IT environments, increased 115.3% year-over-year in the three-month period, accounting for $57.3 billion. "Cloud infrastructure spending growth continues being driven by accelerated servers related investments that not only aim to cover AI initiatives but also support large HPC projects that were unveiling recently," said Juan Pablo Seminara, Director for IDC's Worldwide Enterprise Infrastructure Trackers. Half (52%) also believe IT training is necessary, with 48% suggesting that hiring new talent could help. The foundation work sounds expensive, and for many (90%), IT costs are expected to rise, however there is plenty of hope that the expenses could be worth it, with 70% expecting to make a return of their investment within the next two to three years. On a more personal level, more than half (53%) of respondents believe that GenAI advancements will provide them with an opportunity to become an AI expert.