NetApp’s 2024 Cloud Complexity Report Reveals AI Disrupt or Die Era Unfolding Globally
23 Avril 2024 - 2:00PM
Business Wire
Study highlights the divide between AI leaders
and AI laggards illustrating value of unified data approach
NetApp® (NASDAQ: NTAP), the intelligent data infrastructure
company, today released its second annual Cloud Complexity Report.
The report analyzes 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.
“AI is only as good as the data that fuels it,” said Pravjit
Tiwana, General Manager and Senior Vice President of Cloud Storage
at NetApp. “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.”
There is a Significant Divide Between AI Leaders and AI
Laggards
The report found a clear divide between AI leaders and AI
laggards across several areas including:
- Regions: 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).
- Industries: Technology leads with 70% of AI
projects up and running or in pilot, while Banking & Financial
Services and Manufacturing follow with 55% and 50%, respectively.
However, Healthcare (38%) and Media & Entertainment (25%) are
trailing.
- Company size: 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).
Both AI leaders and AI laggards show a difference in their
approach to AI:
- Globally, 67% of companies in AI-leading countries report
having hybrid IT environments, with India leading (70%) and Japan
lagging (24%).
- AI leaders are also more likely to report benefits from AI,
including a 50% increase in production rates, 46% in the automation
of routine activities, and a 45% improvement in customer
experience.
“The rise of AI is ushering in a new disrupt or die era,” said
Gabie Boko, Chief Marketing Officer at NetApp. “Data-ready
enterprises that connect and unify broad structured and
unstructured data sets into an intelligent data infrastructure are
best positioned to win in the age of AI.”
AI Laggards Must Swiftly Innovate to Stay Competitive
Despite the divide, there is notable progress among AI laggards
in preparing their IT environments for AI, but the window to catch
up is closing rapidly.
- A significant number of companies in AI-lagging countries (42%)
have optimized their IT environments for AI, including Germany
(67%) and Spain (59%)
- Companies in some AI-lagging countries already report seeing
the benefits of a unified data infrastructure in place, such as:
- Easier data sharing: Spain (45%), Australia/New Zealand
(43%), Germany (44%)
- Increased visibility: Spain (54%) and Germany (46%)
IT Costs and Data Security Emerge as Top Challenges but Won’t
Impede AI Progress
Rising IT costs and ensuring data security are two of the
biggest challenges in the AI era, but they will not block AI
progress. Instead, AI leaders will scale back, cut other IT
operations, or reallocate costs from other parts of the business to
fund AI initiatives.
- 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.
- Year over year, “increased cybersecurity risk” jumped 16% as a
top concern from 45% to 61%, while all other concerns
decreased.
- To manage AI project costs, 31% of companies globally are
reallocating funds from other business areas, with India (48%), UK
(40%), and US (35%) leading this trend.
Security, AI, and CloudOps Drive 2024 Cloud
Investments
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.
- Increasing data security investments is a global priority,
jumping 25% from 33% in 2023 to 58% in 2024.
Methodology
In March 2024, NetApp partnered with Savanta to conduct a
quantitative research study of 1,300+ tech and data executives at
businesses in 10 markets: 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 NetApp and Steve McDowell of NAND Research for a LinkedIn
Live event on April 23 at 11am ET.
https://www.linkedin.com/events/netapp2024cloudcomplexityreport7186755671692873730/theater/
Additional Resources
2024 Cloud Complexity Report: The AI Divide Cloud Complexity
Report Infographic
About NetApp
NetApp is the intelligent data infrastructure company, combining
unified data storage, integrated data services, and CloudOps
solutions to turn a world of disruption into an opportunity for
every customer. NetApp creates silo-free infrastructure, harnessing
observability, and AI to enable the industry’s best data
management. As the only enterprise-grade storage service natively
embedded in the world’s biggest clouds, our data storage delivers
seamless flexibility. In addition, our data services create a data
advantage through superior cyber resilience, governance, and
application agility. Our CloudOps solutions provide continuous
optimization of performance and efficiency through observability
and AI. No matter the data type, workload, or environment, with
NetApp you can transform your data infrastructure to realize your
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240423896186/en/
Media Contact: Kenya Hayes NetApp
kenya.hayes@netapp.com
Investor Contact: Kris Newton NetApp
kris.newton@netapp.com
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