Cloud Modernization: Unleashing AI's Potential in 2023

In today's rapidly evolving technological landscape, cloud modernization has emerged as a critical factor in unleashing the potential of artificial intelligence (AI). A comprehensive survey of 1,420 IT professionals worldwide reveals that 90% of respondents consider AI a primary driver for modernizing applications and data. Furthermore, 80% believe that failing to modernize would hinder their ability to fully leverage AI's benefits.

The State of Cloud Adoption and Modernisation

As organizations increasingly recognize the importance of cloud modernization, the survey findings shed light on the current state of cloud adoption. By and by, 41% of workloads dwell in private clouds, 35% in open clouds, and 24% stay outside the cloud environment. However, respondents anticipate a shift in the next three years, with 48% of workloads expected to be in private clouds, 41% in public clouds, and only 11% remaining outside the cloud.

Key Drivers and Benefits

The primary motivators for cloud modernization include enhanced security (58%), improved efficiency (54%), and cost reduction (49%). Organizations expect modernization to yield various benefits, such as increased efficiency (30%), cost savings (29%), enhanced security (28%), and the ability to adopt advanced technologies like AI (27%).

Challenges and Mitigation Strategies

Despite the potential benefits, organizations face several challenges in their modernization journey. Limited resources (28%), resistance to change (21%), and integration challenges (16%) are among the most significant hurdles. To mitigate these issues, respondents emphasize the importance of continuous evaluation (52%), monitoring and assessing impact (46%), and developing comprehensive modernization plans (42%).

Modernising Applications and Data

The Seven Rs of Application Modernisation

When it comes to application modernization, organizations employ various strategies known as the "Seven Rs":

1. Rehost (25%)
2. Replatform (17%)
3. Refactor (13%)
4. Rebuild (13%)
5. Replace (11%)
6. Retire (10%)
7. Retain (10%)

This distribution indicates that many companies have yet to prioritize modernization fully, potentially missing opportunities for efficiency gains and cost reduction.

Overcoming Data Quality and Integration Issues

Data modernization presents its own set of challenges, with data integration (54%), data quality (49%), and budget constraints (46%) topping the list. To address these concerns, organizations plan to improve data collection methods (53%), implement data integrity checks (47%), and conduct validation checks (45%).

The Role of Expertise in Successful Modernisation

While many organizations are eager to modernize, one-third of respondents admit to lacking the necessary expertise for cloud modernization. This gap highlights the potential benefits of partnering with experienced service providers to ensure successful implementation and maximize the value of modernization efforts.

Cost savings remain a significant incentive for modernization, with 44% of organizations reporting lower post-modernization expenses. On average, companies realized annual cost savings of 4.46% through their modernization initiatives.

As the technological landscape continues to evolve, cloud modernization has become a prerequisite for effectively implementing AI and machine learning capabilities. By addressing the challenges associated with modernizing applications and data, organizations can position themselves to leverage advanced technologies, improve efficiency, enhance security, and drive innovation.

To succeed in their modernization journey, companies should consider the following strategies:

1. Develop a comprehensive modernization plan that aligns with business objectives
2. Prioritize continuous evaluation and monitoring of modernization efforts
3. Address potential compatibility and integration issues proactively
4. Invest in training and support to facilitate user adoption
5. Consider partnering with experienced service providers to bridge expertise gaps

By embracing cloud modernization, organizations can unlock the full potential of AI and position themselves for success in an increasingly digital and data-driven world.

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