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NetApp Releases 2024 Cloud Complexity Report: A Look at the AI Revolution's 'Make or Break' Era for Businesses Worldwide
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Summarized by durumis AI
- A clear gap exists between AI leaders and laggards, with AI leaders leveraging unified data infrastructure to enhance the success probability of their AI initiatives.
- AI laggards are optimizing their IT environments for AI and enhancing data sharing and visibility through the development of unified data infrastructure.
- Increasing IT costs and securing data protection are crucial challenges for AI advancement. AI leaders plan to reallocate costs and increase investments in cloud operations, data security, and AI.
Highlighting the gap between AI leaders and AI laggards and explaining the value of a unified data approach
NetApp®, a global leader in cloud-based, data-centric software (NASDAQ: NTAP), today released its second annual Cloud Complexity Report.
The report analyzes the experiences of global technology decision-makers deploying AI at scale, revealing a stark contrast between AI leaders and AI laggards. The report provides global insights into progress, readiness, challenges, and momentum since the report was first published last year, explaining what AI leaders and laggards can learn from each other and the critical role of a unified data infrastructure in achieving AI success.
“AI is only as good as the data that fuels it,” said Pravjit Tiwana, Senior Vice President and General Manager, Cloud Storage, NetApp. “What we are seeing from both AI leaders and laggards is that, in a universal hybrid IT environment, the more unified and trusted the data, the higher the likelihood of success for AI initiatives.”
A significant gap exists between AI leaders and AI laggards
The report found a clear divide between AI leaders and AI laggards in several areas.
· Region: 60% of AI leading nations (India, Singapore, UK, USA) have AI projects running or in pilot, compared to just 36% in AI lagging nations (Spain, Australia/New Zealand, Germany, Japan).
· Industry: Technology leads the way with 70% of projects running or in pilot, followed by Banking and Financial Services (55%) and Manufacturing (50%). However, Healthcare (38%) and Media and Entertainment (25%) are lagging behind.
· Company size: Large businesses with 250+ employees were more likely to have projects running or in pilot at 62%, compared to 36% for smaller businesses with fewer than 250 employees.
Both AI leaders and AI laggards have different approaches to AI.
· Globally, businesses in AI leading nations reported having a hybrid IT environment at 67%, led by India at 70%, followed by Japan at 24%.
· AI leaders are also more likely to report benefits from AI such as 50% increase in production speed, 46% increase in automation of routine activities, and 45% improvement in customer experience.
“The rise of AI is creating a new era of innovate or die,” said Gabie Boko, Chief Marketing Officer, NetApp. “ Companies that connect broad, structured, and unstructured data sets to an intelligent data infrastructure and unify them are best positioned to succeed in the AI era.”
AI laggards must innovate rapidly to stay competitive
Despite this gap, there has been significant progress in preparing IT environments for AI among AI laggards, but the window of opportunity to catch up is closing rapidly.
· A significant number of businesses (42%) in AI lagging nations like Germany (67%) and Spain (59%) have optimized
their IT environments for AI.
· Companies in some AI lagging nations are already seeing benefits from building a unified data infrastructure,
including:
- Easier data sharing: Spain (45%), Australia/New Zealand (43%), Germany (44%)
- Increased visibility: Spain (54%) and Germany (46%)
IT costs and data security are emerging as top challenges, but not hindering AI advancements
Rising IT costs and ensuring data security are top-of-mind in the AI era, but they are not stopping AI advancement. Instead, AI leaders are scaling down, reducing other IT operations, or reallocating funding from other parts of the business to fund AI initiatives.
· AI leaders are also increasing investments in CloudOps, data security, and AI in 2024, with 40% of large businesses reporting that AI projects have already increased their IT costs.
· ‘Increase in cyber security risk’ increased by 16% from 45% to 61%, becoming the top concern, while all other concerns decreased.
· 31% of businesses globally are reallocating funds from other business areas to manage AI project costs, led by India (48%), the UK (40%), and the USA (35%).
Security, AI, and CloudOps driving cloud investments in 2024
Regardless of whether they are AI leaders or AI laggards, businesses globally are increasing investments and relying on the cloud to support their objectives.
· Businesses reported expecting a 19% increase in AI-driven cloud deployments from 2024 to 2030.
· 85% of AI leaders are planning to increase automation in their cloud operations next year.
· Increased investment in data security is a global priority, expected to rise 25% from 33% in 2023 to 58% in
2024.
Methodology
In March 2024, NetApp partnered with Savanta to conduct a quantitative study of over 1,300 technology and data executives from businesses in 10 markets: the US, EMEA (UK, France, Germany, Spain), and APAC (Australia, New Zealand, India, Singapore, Japan).
To learn more and access the full report and infographic, visit https://www.netapp.com/netapp-intelligence/cloud-complexity-report/.
Join a LinkedIn Live event on April 23rd at 11:00 AM ET with NetApp and Steve McDowell from NAND Research. Register here:
https://www.linkedin.com/events/netapp2024cloudcomplexityreport7186755671692873730/theater/
Additional Resources
2024 Cloud Complexity Report: The AI Gap
Cloud Complexity Report Infographic
About NetApp
NetApp is a data-led, intelligent infrastructure company that combines unified data storage, integrated data services, and cloud operational solutions to help customers turn the world of disruption into a world of opportunity. NetApp builds infrastructure without silos, powered by observability and AI to deliver industry-leading data management. NetApp’s data storage, the only enterprise-grade storage service natively built into the world’s largest clouds, provides seamless flexibility. Its data services deliver data advantage through superior cyber resilience, governance, and application agility. And its cloud operational solutions use observability and AI to continuously optimize performance and efficiency. Regardless of data type, workload, or environment, NetApp helps you transform your data infrastructure to enable business possibilities. Learn more at www.netapp.com or follow us on X, LinkedIn, Facebook and Instagram.
NETAPP, the NETAPP logo, and the marks listed at www.netapp.com/TM are trademarks of NetApp, Inc. Other company and product names may be trademarks of their respective owners.
Contact
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Kenya Hayes
kenya.hayes@netapp.com
Investor Relations
Kris Newton
kris.newton@netapp.com
