New data suggests that demand for generative AI services is rapidly accelerating cloud adoption across businesses. According to a survey by Wipro, 54% of organisations report the rollout of AI services as the primary driver behind their increased investment in cloud infrastructure. Much of this funding, too, is being targeted at hybrid cloud solutions, said the IT consultancy.

“Our survey findings further confirm that [the] cloud continues to be the primary transformational platform for the enterprise, empowering organisations to innovate and stay competitive,” said Wipro FullStride Cloud’s managing partner and global head, Jo Debecker. The importance of an effective cloud strategy is only amplified with the increasing focus on AI.”

Generative AI driving cloud adoption among businesses

The Wipro FullStride Cloud report draws on insights from a survey of over 500 senior executives and decision-makers across North America and Europe representing industries such as banking, manufacturing, retail, healthcare, and energy.

The report indicates that 54% of organisations plan to enhance their hybrid cloud infrastructure, while 56% are focusing on expanding public cloud environments over the next six to twelve months. This trend highlights the preference for hybrid cloud solutions, which remain the most widely adopted approach, with 60% of organisations utilising this model.

The dominance of hybrid cloud reflects the need for flexible IT solutions that balance on-premises infrastructure with public cloud services, offering a combination of data sovereignty, legacy system integration, and cost optimisation.

According to the Pulse of Cloud: Quarterly Report July 2024, the banking, manufacturing, and retail sectors are particularly enamoured with generative AI, with 62%, 61%, and 55% of these sectors respectively driving their cloud investments based on a perceived need to deploy more AI-based services.

AI not necessarily driving all new cloud adoption

Despite the focus on AI, cloud adoption continues to outpace AI adoption, with 55% of organisations reporting that their cloud initiatives are ahead of AI implementations. However, 35% of organisations are advancing both technologies at an equal pace, reinforcing the integral role of cloud infrastructure as the foundation for AI deployments.

“As enterprises rethink their infrastructure to reap the benefits of AI, they are also seeing increased value in adopting a cloud economics approach,” said Debecker. “Our survey shows that as data migration and the adoption of AI-related applications increasingly drive cloud investment, unified cost management strategies are also growing in importance.”

The report also highlights a strong emphasis on cloud cost management, with 54% of organisations leveraging automation tools and utilisation analysis to manage expenses effectively. Additionally, 59% of respondents, particularly in the banking and financial services sector (75%), have adopted unified cloud cost management strategies, indicating a maturing approach to managing cloud resources.

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