In 2023, organizations have confronted an unprecedented stage of strain to digitally rework with the rise of generative AI in addition to imperatives similar to 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 method to gasoline enterprise transformation, together with modernization, agility, safety, sustainability and the power unlock the facility 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:
Concerns 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 suitable basis to speed up and scale impression? For a lot of organizations, the reply is a hybrid cloud method. The brand new examine discovered that 68% of hybrid cloud adopters have already established formal, organization-wide insurance policies to direct their method to generative AI.
With the rise of generative AI comes an inflow of knowledge. Whereas this may gasoline great enterprise improvements, it additionally requires strategic issues. When executing an AI technique, enterprises want to contemplate their present compute capability, the place knowledge resides—within the cloud, on premises, on the edge—how knowledge is accessed, needed safety controls, and how you can use present expertise investments successfully. Along with serving to ship enhanced reliability and efficiency, a hybrid cloud method can allow elevated agility with the power to attach cloud and on-premises environments, eradicating limitations to versatile AI workflows.
Addressing safety and compliance considerations
In terms of generative AI, enterprises are additionally involved concerning the potential publicity of delicate knowledge. For instance, 45% of cloud leaders cited considerations 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, similar to safety, when contemplating the expertise. These organizations are much less more likely to have a proper method to AI than another industries, however they’re displaying progress: 57% of banks and monetary markets organizations, 54% of insurers and 54% of life sciences/pharma establishments have adopted a proper method to the expertise thus far.
For extremely regulated industries which might be tasked with safeguarding vital knowledge, there’s lots on the road. To keep away from blind spots, a holistic safety technique that gives visibility throughout a whole hybrid cloud infrastructure is important to mitigate danger.
Overcoming expertise challenges
The report additionally exhibits persistent obstacles to extra widespread cloud adoption — maybe none as nice as the continuing expertise hole. For instance, 58% of worldwide resolution 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 similar to 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
Just lately, sustainability has been tied to broader enterprise objectives and turn into 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 want to cut back their greenhouse gasoline (GHG) emissions.
With the suitable instruments in place, cloud can assist enterprises observe, handle and report on sustainability objectives — together with for companions and third events. In actual fact, our findings decided that 42% of worldwide resolution makers verify they’re already utilizing the cloud to assist deploy, observe and handle sustainability objectives internally.
Trying to the longer term
With extra enterprises embarking on their AI journeys, it’s going to turn into vital 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 probably be the winners of tomorrow — armed with a powerful basis from which to compete sooner or later AI-driven panorama.
View the total IBM Institute for Business Value findings. Fascinated by getting began in your transformation journey? Listed below are some sources:
 This examine was carried out in partnership with Harris Ballot, an unbiased analysis agency.