88% of Companies Warn Insufficient Cloud Spending Threatens AI Initiatives: Study
Synopsis
Key Takeaways
New Delhi, March 27 (NationPress) The reliance on cloud technology is escalating due to AI advancements, yet the necessary investments are lagging behind. A mere 14 percent of companies have attained the pinnacle of cloud maturity after nearly two decades of cloud integration, according to a recent report.
The study conducted by NTT DATA revealed that while 99 percent of organizations acknowledge that AI is driving the demand for increased cloud investment, 88 percent believe that the current funding levels jeopardize their AI, cloud-native, and modernization projects.
These insights stem from a global survey involving over 2,300 senior executives across 33 countries.
Less than half of the organizations express satisfaction with the effects of cloud technology or their progress in modernization, indicating a gap between aspirations and actual outcomes.
Cloud leaders—entities that have successfully evolved their cloud capabilities and achieved strong business performance—are notably better equipped to harness AI effectively, the report highlights.
“AI is progressing more rapidly than enterprise cloud maturity. The evolution of cloud has transcended mere infrastructure, becoming a critical execution layer for AI. Organizations that do not advance their cloud frameworks risk limiting the potential and return on their AI investments,” stated Charlie Li, President, Global Head of Cloud and Security at NTT DATA, Inc.
To transform cloud technology into a strategic asset, organizations must develop both cloud and AI strategies concurrently, the report advises, noting the increasing demand for AI while highlighting the uneven alignment. Chief AI Officers are 22 percent more likely than Chief Information Officers and Chief Technology Officers to assert that AI intensifies the need for cloud investments.
A platform-oriented strategy is now essential, as over half of the respondents reported challenges with cloud cost management amidst stagnating investments and growing complexity in their environments.
Organizations forecast a threefold rise in fully managed cloud platforms, urging companies to realign their cloud transformation performance indicators.
Approximately 47 percent of cloud leaders incorporated AI in their most recent cloud migration projects, compared to 35 percent of other organizations, the report noted.
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