In 2023, organizations have confronted an unprecedented degree of stress to digitally remodel with the rise of generative AI in addition to imperatives resembling sustainability, labor productiveness and safety. The “Cloud Transformation Report,” a brand new international survey from the IBM Institute for Enterprise Worth (IBV), discovered that many main enterprises share a standard basis to digital transformation—a transparent hybrid cloud technique.¹ These companies cite a number of key advantages to utilizing a hybrid cloud strategy to gasoline enterprise transformation, together with modernization, agility, safety, sustainability and the power unlock the ability of generative AI.
Right here’s a take a look at the important thing drivers that impacted cloud transformation over the previous yr and what they imply for firms on their cloud modernization journey:
Issues for adopting generative AI
This yr, generative AI captured the eye of enterprise leaders—however it additionally raised questions together with what’s the suitable basis to speed up and scale affect? For a lot of organizations, the reply is a hybrid cloud strategy. The brand new research discovered that 68% of hybrid cloud adopters have already established formal, organization-wide insurance policies to direct their strategy to generative AI.
With the rise of generative AI comes an inflow of knowledge. Whereas this could gasoline great enterprise improvements, it additionally requires strategic issues. When executing an AI technique, enterprises want to think about their present compute capability, the place knowledge resides—within the cloud, on premises, on the edge—how knowledge is accessed, vital safety controls, and learn how to use current expertise investments successfully. Along with serving to ship enhanced reliability and efficiency, a hybrid cloud strategy can allow elevated agility with the power to attach cloud and on-premises environments, eradicating obstacles to versatile AI workflows.
Addressing safety and compliance issues
With regards to generative AI, enterprises are additionally involved in regards to the potential publicity of delicate knowledge. For instance, 45% of cloud leaders cited issues about cybersecurity or privateness and confidentiality of knowledge and knowledge as the important thing impediment of their push to implement generative AI. The findings point out that extremely regulated industries are more and more weighing dangers, resembling safety, when contemplating the expertise. These organizations are much less more likely to have a proper strategy to AI than another industries, however they’re exhibiting progress: 57% of banks and monetary markets organizations, 54% of insurers and 54% of life sciences/pharma establishments have adopted a proper strategy to the expertise to date.
For extremely regulated industries which are tasked with safeguarding important knowledge, there’s rather a lot on the road. To keep away from blind spots, a holistic safety technique that gives visibility throughout a complete hybrid cloud infrastructure is significant to mitigate threat.
Overcoming expertise challenges
The report additionally reveals persistent obstacles to extra widespread cloud adoption — maybe none as nice as the continuing expertise hole. For instance, 58% of worldwide choice makers say that cloud expertise stay a substantial problem and 72% of organizations have created new positions to satisfy the necessity for cloud expertise. Inside particular person industries, this deficiency is even better: 79% in extremely regulated industries resembling banking and monetary markets, in addition to 81% in transportation and journey, and 79% in chemical substances and petroleum.
Placing sustainability initiatives within the highlight
Not too long ago, sustainability has been tied to broader enterprise targets and grow to be a bigger precedence for expertise investments for organizations throughout industries. But as generative AI grows, the rise in knowledge processing required for AI workloads does too. This will current new challenges for organizations that wish to cut back their greenhouse gasoline (GHG) emissions.
With the suitable instruments in place, cloud may also help enterprises observe, handle and report on sustainability targets — together with for companions and third events. Actually, our findings decided that 42% of worldwide choice makers affirm they’re already utilizing the cloud to assist deploy, observe and handle sustainability targets internally.
Trying to the longer term
With extra enterprises embarking on their AI journeys, it is going to grow to be important for these organizations to make sure they’ve the suitable infrastructure and expertise in place to assist these initiatives. Organizations that shift to an agile, safe knowledge construction with a hybrid cloud structure will doubtless be the winners of tomorrow — armed with a robust basis from which to compete sooner or later AI-driven panorama.
View the complete IBM Institute for Business Value findings. Thinking about getting began in your transformation journey? Listed here are some sources:
 This research was performed in partnership with Harris Ballot, an unbiased analysis agency.