AI is increasing cloud dependency, yet investment levels are not aligned
As legacy applications and data hold back innovation, modernization emerges as a top cloud priority
Technology ecosystem complexity puts a spotlight on security investments and the need to focus on fundamentals
LONDON--(BUSINESS WIRE)--NTT DATA, a global leader in AI, digital business and technology services, today released its new report, Cloud-led innovation in the era of AI: The new rules for driving value with cloud, revealing that just 14% of organizations have reached the highest level of cloud maturity despite nearly two decades of cloud adoption.
Based on a global survey of more than 2,300 senior decision-makers across 33 countries, the findings highlight a paradox as cloud takes on a new and critical role as the execution layer of the AI operating model. While 99% of organizations say AI is increasing demand for cloud investment, 88% say current cloud investment levels are putting AI, cloud-native and modernization initiatives at risk.
Additionally, while cloud is seen as essential for innovation, fewer than half of organizations are satisfied with its impact or with their modernization progress, signaling a disconnect between ambition and reality as expectations rise.
Cloud leaders, or organizations that indicated they are “cloud evolved” — the most advanced in terms of cloud adoption and impact, with solid business performance – are significantly better positioned to capitalize on AI.
“AI is accelerating faster than enterprise cloud maturity,” said Charlie Li, President, Global Head of Cloud and Security, NTT DATA, Inc. “Cloud has moved well beyond infrastructure and is now the execution layer for AI. Organizations that fail to evolve their cloud foundations risk constraining the growth and value of their AI investments. Our clients who are succeeding are treating cloud as a value creator, not a technology initiative.”
Six imperatives for driving value with cloud in the era of AI
NTT DATA outlines six rules organizations must adopt to turn cloud into a strategic value engine:
- Cloud and AI strategies need to be developed in tandem: AI demand is rising, yet alignment is uneven. CAIOs are 22% more likely than CIOs and CTOs to say AI increases cloud investment needs. Additionally, AI is cited as the top cloud skills gap.
- Cloud architecture choices will make or break your success: With cloud deployment choices now directly influencing cloud outcomes, organizations are increasingly adopting a mix of public, private, hybrid and sovereign cloud models. Nearly all expect private cloud growth and sovereign cloud adoption is projected to grow 50% in two years.
- Reimagine how you drive business value with modern applications: Despite widespread agreement that cloud should drive innovation, half say legacy applications and data platforms are holding it back. Modernization is the top priority for the next two years.
- A platform-led approach is no longer optional: As investments stall and environments become more complex, more than half cite cloud cost management challenges and organizations expect a threefold increase in fully managed cloud platforms.
- Reset your cloud transformation KPIs: While AI is critical for helping organizations shift from technical to business metrics for cloud initiatives, adoption remains uneven. 47% of cloud leaders used AI in their last cloud migration project, compared with 35% of all others.
- Make cloud secure with a focus on the basics: Security is the top cloud investment priority, yet confidence remains uneven: 68% of leaders are highly confident, versus 36% of all others. Leaders are also much more likely to define clear roles and responsibilities backed by regular audits, reinforcing the importance of the fundamentals as technology ecosystems grow more complex.
Together, these imperatives provide a framework for unlocking value in an AI-driven world. To explore the full findings, download the report: Cloud-led innovation in the era of AI: The new rules for driving value with cloud.
About the report
Respondents include C-suite, senior executives and other senior staff from enterprises spanning technology, manufacturing, banking, financial services, healthcare, consumer and other sectors.
About NTT DATA
NTT DATA is a $30+ billion business and technology services leader, serving 75% of the Fortune Global 100. We are committed to accelerating client success and positively impacting society through responsible innovation. We are one of the world’s leading AI and digital infrastructure providers, with unmatched capabilities in enterprise-scale AI, cloud, security, connectivity, data centers and application services. Our consulting and industry solutions help organizations and society move confidently and sustainably into the digital future. As a Global Top Employer, we have experts in more than 70 countries. We also offer clients access to a robust ecosystem of innovation centers as well as established and start-up partners. NTT DATA is part of NTT Group, which invests over $3 billion each year in R&D. Visit us at nttdata.com.
