NewKerala.com

88% Firms Risk AI Goals Due to Inadequate Cloud Spending: Report

A new global report indicates a severe misalignment, as 99% of organizations acknowledge AI is increasing cloud demand, yet 88% believe current cloud investment levels are putting their AI and modernization projects at risk. Despite nearly two decades of cloud adoption, only 14% of organizations have achieved the highest level of cloud maturity, creating a strategic bottleneck. The report warns that companies failing to evolve their cloud foundations risk constraining the growth and value of their AI investments. It emphasizes that cloud and AI strategies must be developed in tandem, with cloud-evolved leaders significantly more likely to successfully use AI in migration projects.

Key Points: AI Push Stalled by Insufficient Cloud Investment, Report Finds

  • 88% say cloud spend risks AI initiatives
  • Only 14% reached highest cloud maturity
  • AI demand is outpacing cloud foundation growth
  • Cloud leaders are better positioned to capitalize on AI
2 min read

88 pc firms say cloud spending not enough to support AI push: Report

A global report reveals 88% of firms say current cloud spending jeopardizes AI initiatives, highlighting a critical gap between ambition and infrastructure.

"AI is accelerating faster than enterprise cloud maturity. - Charlie Li, NTT DATA"

New Delhi, March 27

AI is increasing cloud dependency, yet investment levels are not aligned as only 14 per cent of organisations reached the highest level of cloud maturity despite nearly two decades of cloud adoption, a report said on Friday.

The report from NTT DATA said that 99 per cent of organisations feel AI is increasing demand for cloud investment, yet 88 per cent felt current cloud investment levels are putting AI, cloud‑native and modernisation initiatives at risk.

The findings are based on a global survey of over 2,300 senior decision‑makers across 33 countries.

Fewer than half of organisations are satisfied with cloud's impact or with their modernisation progress, signalling a disconnect between ambition and reality.

Cloud leaders, or organizations that feel "cloud evolved" - the most advanced in terms of cloud adoption and impact, with solid business performance - are significantly better positioned to capitalize on AI, the report said.

"AI is accelerating faster than enterprise cloud maturity. Cloud has moved well beyond infrastructure to the execution layer for AI. Organisations that fail to evolve their cloud foundations risk constraining the growth and value of their AI investments," said Charlie Li, President, Global Head of Cloud and Security, NTT DATA, Inc.

To turn cloud into a strategic value engine, both cloud and AI strategies need to be developed in tandem, the report said, pointing out that AI demand is rising, yet alignment is uneven. CAIOs are 22 per cent more likely than CIOs and CTOs to say AI increases cloud investment needs.

A platform-led approach is no longer optional, it said, adding with investments stalling and environments getting more complex, over half respondents cited cloud cost management challenges.

Organisations expect a threefold increase in fully managed cloud platforms, it said, urging firms to reset their cloud transformation KPIs.

Around 47 per cent of cloud leaders used AI in their last cloud migration project, compared with 35 per cent of all others, it noted.

- IANS

Share this article:

Reader Comments

P
Priya S
So true! My company just launched an AI chatbot project, but our legacy systems on the cloud are holding it back. The report is spot on – AI and cloud strategy must go hand-in-hand. You can't just bolt AI onto old infrastructure and expect magic. 🧠
V
Vikram M
Interesting that CAIOs see the need more clearly than CIOs. Maybe we need that dedicated AI leadership role in more Indian companies to bridge this gap. The threefold increase in managed platforms prediction makes sense – complexity is getting too high for in-house teams.
S
Sarah B
Working for a multinational with offices in Bangalore, I see this disconnect daily. The ambition from leadership is huge ("We must be AI-first!"), but the budget and foundational work for the cloud isn't there. It leads to half-baked implementations and frustrated teams.
R
Rohit P
Bas, yeh toh humare yahan roz ka hai! (This is our daily reality!). Everyone wants the fancy AI car, but no one wants to pay for building the proper highway (cloud) first. Hope Indian companies read this and invest properly, not just in tools but in the underlying platform.
K
Karthik V
A respectful criticism: The article/report focuses heavily on the "what" but the real challenge for us in India is the "how." How do mid-sized companies with limited capital make this strategic shift? We need more case studies and practical roadmaps, not just survey data.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50