Study highlighted AI Disrupt or Die Era Unfolding globally and revealed the divide between AI leaders and AI laggards illustrating the value of unified data approach.
In its second annual Cloud Complexity Report, NetApp has analyzed the experiences of global technology decision makers deploying AI at scale and shows a stark contrast between AI leaders and AI laggards. This year’s report provides global insights into the progress, readiness, challenges, and momentum since last year’s report, what we can learn from both the AI leaders and AI laggards, and the critical role of a unified data infrastructure in achieving AI success.
The report found that 60% of AI-leading countries (India, Singapore, UK, USA) have AI projects up and running or in pilot, in stark contrast to 36% in AI-lagging countries (Spain, Australia/New Zealand, Germany, Japan). Larger companies (with more than 250 employees) are more likely to have AI projects in motion, with 62% reporting projects up and running or in pilot, versus 36% of smaller companies (with fewer than 250 employees).
“AI is only as good as the data that fuels it. Both the AI leaders and AI laggards show us that in the prevailing hybrid IT environment, the more unified and reliable your data, the more likely your AI initiatives are to be successful.”
Pravjit Tiwana, General Manager and Senior Vice President of Cloud Storage, NetApp
Whether companies are AI leaders or AI laggards, optimizing IT environments before deploying AI must be top of mind to see the best return from investment. As global companies, whether AI leaders or AI laggards, increase investments, they are relying on the cloud to support their goals. Companies reported that they expect to increase AI-driven cloud deployments by 19% from 2024 to 2030. 85% of AI leaders plan to enhance their CloudOps automation over the next year.
In APAC, the proportion of companies which will have more than 50% of their cloud deployments supported by AI-driven applications will increase 15% between 2024 and 2030. Two-thirds (67%) of AI leaders here plan to enhance their CloudOps automation over the next year, while data security investments are expected to jump 21% from 37% in 2023 to 58% in 2024.
“APAC leaders today recognize the efficiency and innovation gains offered by AI; however, the data shows adoption variations between industries and geographies in the region.”
Matthew Swinbourne, CTO Cloud Architecture, NetApp Asia Pacific.
AI leaders will also increase their cloud operations (CloudOps), data security and AI investments throughout 2024, with 40% of large companies saying AI projects have already increased IT costs. In APAC, 34% of companies said AI projects have already increased IT costs. 60% of respondents cited “increased cybersecurity risk” as their top concern, while 31% said they are reallocating funds from other business areas to manage AI project costs.
