In 2023, organizations have confronted an unprecedented degree of strain to digitally rework with the rise of generative AI in addition to imperatives reminiscent of sustainability, labor productiveness and safety. The “Cloud Transformation Report,” a brand new world 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 gas enterprise transformation, together with modernization, agility, safety, sustainability and the flexibility unlock the ability of generative AI.
Right here’s a have a look at the important thing drivers that impacted cloud transformation over the previous 12 months and what they imply for corporations on their cloud modernization journey:
Issues for adopting generative AI
This 12 months, generative AI captured the eye of enterprise leaders—however it additionally raised questions together with what’s the precise basis to speed up and scale impression? For a lot of organizations, the reply is a hybrid cloud strategy. The brand new examine 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 information. Whereas this could gas large enterprise improvements, it additionally requires strategic concerns. When executing an AI technique, enterprises want to contemplate their present compute capability, the place information resides—within the cloud, on premises, on the edge—how information is accessed, needed safety controls, and the right way to use current know-how investments successfully. Along with serving to ship enhanced reliability and efficiency, a hybrid cloud strategy can allow elevated agility with the flexibility to attach cloud and on-premises environments, eradicating obstacles to versatile AI workflows.
Addressing safety and compliance considerations
Relating to generative AI, enterprises are additionally involved in regards to the potential publicity of delicate information. For instance, 45% of cloud leaders cited considerations about cybersecurity or privateness and confidentiality of information 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, reminiscent of safety, when contemplating the know-how. These organizations are much less prone 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 know-how to this point.
For extremely regulated industries which are tasked with safeguarding essential information, there’s quite a bit 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 abilities challenges
The report additionally reveals persistent obstacles to extra widespread cloud adoption — maybe none as nice as the continued abilities hole. For instance, 58% of world determination makers say that cloud abilities stay a substantial problem and 72% of organizations have created new positions to satisfy the necessity for cloud abilities. Inside particular person industries, this deficiency is even better: 79% in extremely regulated industries reminiscent of banking and monetary markets, in addition to 81% in transportation and journey, and 79% in chemical compounds and petroleum.
Placing sustainability initiatives within the highlight
Not too long ago, sustainability has been tied to broader enterprise objectives and turn into a bigger precedence for know-how investments for organizations throughout industries. But as generative AI grows, the rise in information processing required for AI workloads does too. This may current new challenges for organizations that want to cut back their greenhouse fuel (GHG) emissions.
With the precise instruments in place, cloud may help enterprises monitor, handle and report on sustainability objectives — together with for companions and third events. In reality, our findings decided that 42% of world determination makers verify they’re already utilizing the cloud to assist deploy, monitor and handle sustainability objectives internally.
Seeking to the longer term
With extra enterprises embarking on their AI journeys, it’s going to turn into essential for these organizations to make sure they’ve the precise infrastructure and expertise in place to assist these initiatives. Organizations that shift to an agile, safe information construction with a hybrid cloud structure will seemingly be the winners of tomorrow — armed with a powerful basis from which to compete sooner or later AI-driven panorama.
View the complete IBM Institute for Business Value findings. Fascinated with getting began in your transformation journey? Listed below are some sources:
 This examine was performed in partnership with Harris Ballot, an impartial analysis agency.