Research with IT executives points to Generative AI as a key driver of cloud investments

A Wipro Limited'sa technology and consulting services company, announced the Pulse of Cloud 2024 Report, which highlights the evolutionary dynamics of cloud and Artificial Intelligence adoption in various sectors of the global market.The survey was made with more than 500 Senior executives and directors from the IT, finance and operations areas IOIS all involved in decision making on cloud and AI adoption. Their companies are medium and large in America and Europe, and act in banking and financial services, manufacturing, retail, healthcare, energy and public services. 

The research reveals the impact of AI on cloud investments, with more than half (54%) of organizations respondents citing this technology as the main driver of their cloud investments more than half of the respondents indicate that investments in hybrid cloud (54%) are increasing and public (56%)and while most respondents (55%) say their cloud adoption is currently outpacing AI adoption, it is more than one third (35%) affirms that they are advancing both technologies simultaneously.

Research highlights:

• Cloud investment is increasing: 54% of organizations plans to increase hybrid cloud investments and 56% plans to increase public cloud investments.
• Cloud adoption continues to be bigger than AI adoption: most organizations (55%) report that their cloud adoption is ahead of their AI adoption, while 35% say they are advancing at the same pace with both technologies.
• AI and Generative AI are driving cloud investment: 54% of organizations cite AI or Generative AI as the primary driver of cloud investment, peaking in banking (62%), manufacturing (61%) and retail (55%).
• Hybrid cloud is dominant: 60% of organizations report using hybrid cloud, reflecting the need for flexible solutions that balance on-premises and public cloud services.
• Focus on cloud cost management: 54% of respondents report using utilization analysis and automation tools for cost management.
• Interest in unified cloud cost management is growing: 59% of organizations, 75% of them in the banking and financial sectors, now have a unified strategy, indicating a more mature approach to cloud management.

The report also reveals the growing focus on cloud cost management, with 54% of organizations using utilization analysis and automation tools for cost management and 59% now using a unified cloud management strategy.

AI and Generative AI are firmly established as a key driver for the cloud across industries, reflecting their position as the transformation platform to enable future innovation and competitive advantage.“This trend should continue to strongly influence cloud adoption and investment strategies in the coming year as leading companies continue to migrate data, build LLMs, and adopt AI tools/applications that require a cloud infrastructure. At the same time, companies will continue to be under pressure to keep their cloud costs under CONTROL”, he explains Wagner Jesus, country head of Wipro in Brazil.

“As companies rethink their infrastructure to reap the benefits of AI, they are also realizing increasing value in adopting a cloud economics approach.Our research shows that as data migration and adoption of AI-related applications increasingly drive cloud investment, unified cost management strategies are also growing in importance”, he concludes Jo Debecker, Managing Partner and Global Head of Wipro FullStride Cloud.

Access “Pulse of Cloud 2024 Report” complete.