The Pulse of Cloud: Quarterly Report July 2024 from Wipro reveals a significant surge in cloud investments, driven by advancements in artificial intelligence (AI) and generative AI (GenAI). The report, which surveyed 500 business leaders across the US and Europe, highlights that 54% of organisations plan to enhance their hybrid cloud infrastructure, while 56% aim to increase spending on public cloud solutions within the next six to twelve months. This surge underscores the critical role that cloud infrastructure plays in supporting AI applications and the growing emphasis on cost management strategies across organisations.

Cloud adoption leads as AI integration accelerates

The Pulse of Cloud: Quarterly Report July 2024 from Wipro indicates that cloud adoption is outpacing AI integration for many organisations, with 55% reporting that their cloud initiatives are ahead of their AI implementations. However, 35% of these organisations are advancing both technologies at an equal pace, reflecting the essential role of cloud as the backbone of AI deployments. According to Jo Debecker, Managing Partner and Global Head of Wipro FullStride Cloud, these findings confirm that cloud continues to be the primary platform for enterprise transformation. Debecker emphasized that an effective cloud strategy is becoming increasingly vital as organisations focus on AI, with the cloud’s scalability and processing power crucial for managing the vast amounts of reference data required by AI. Consequently, cloud investment decisions are increasingly driven by the need to support AI.

AI and cloud investments drive industry shifts

The Pulse of Cloud: Quarterly Report July 2024 from Wipro shows that AI and GenAI are the primary drivers of cloud investments, with 54% of organisations citing these technologies as the main reasons for increasing their cloud budgets. The report identifies the banking, manufacturing, and retail sectors as particularly focused on AI, with 62%, 61%, and 55% of organisations respectively viewing AI as essential for maintaining competitiveness and improving operations. The dominance of hybrid cloud solutions is evident, with 60% of organisations currently adopting this approach to balance on-premises infrastructure with public cloud services, allowing for data sovereignty, legacy system integration, and cost optimisation.

The growing importance of cloud cost management

As detailed in the Pulse of Cloud: Quarterly Report July 2024 from Wipro, cost management has become a critical aspect of cloud investments. The report indicates that 54% of organisations are utilising automation tools and utilisation analysis to manage expenses effectively. Jo Debecker highlighted that as enterprises rethink their infrastructure to harness the benefits of AI, they are recognizing the growing value of adopting a cloud economics approach. He pointed out that as data migration and the adoption of AI-related applications increasingly drive cloud investment, unified cost management strategies are becoming more important. The report notes that 59% of respondents, particularly in the banking and financial services sector, have adopted unified cloud cost management strategies, signalling a maturing approach to managing cloud resources.

The manufacturing sector anticipates the largest increase in both hybrid and public cloud investments, with expectations of 69% and 68%, respectively. This surge is likely driven by Industry 4.0 initiatives and the need for scalable computing power to support IoT and AI applications. The health and life sciences sector also stands out, with 41% of organisations progressing at the same pace with both cloud and AI, reflecting the data-intensive nature of the field. Meanwhile, the retail sector leads in cloud adoption, driven by the demands of e-commerce and customer data management.

The Pulse of Cloud: Quarterly Report July 2024 from Wipro highlights the future of IT landscapes

The Pulse of Cloud: Quarterly Report July 2024 from Wipro illustrates how cloud and AI technologies are reshaping IT landscapes across industries. As AI and GenAI applications emerge as the top drivers of cloud investment, organisations with established cloud infrastructures are rapidly adopting AI solutions.

Hybrid cloud remains the most widely used environment, with a shift from single-cloud to hybrid and multi-cloud strategies driven by the need to avoid vendor lock-in and leverage the strengths of different cloud providers.

Analyzing the Findings of the Pulse of Cloud: Quarterly Report July 2024 from Wipro

The Pulse of Cloud: Quarterly Report July 2024 from Wipro provides a comprehensive overview of the current landscape of cloud and AI adoption across industries, highlighting key trends and their implications. One of the most striking findings is the increasing reliance on cloud infrastructure as a foundational element for AI deployments. This trend is not just a reflection of the growing importance of AI in driving business transformation but also of the critical role that cloud plays in enabling AI’s potential.

The strategic importance of cloud in AI adoption

The report’s emphasis on cloud as the primary platform for enterprise transformation underscores the strategic importance of cloud investments. Cloud computing offers the scalability, flexibility, and processing power needed to handle the massive datasets that AI systems require. As businesses increasingly adopt AI to gain a competitive edge, the demand for robust cloud infrastructure is likely to grow. This is particularly evident in sectors such as banking, manufacturing, and retail, where the integration of AI is seen as essential for improving operations and maintaining competitiveness.

Unified cost management: A critical factor

Another key insight from the report is the growing importance of unified cloud cost management strategies. As cloud investments continue to rise, organisations are recognizing that effective cost management is critical to maximising the return on these investments. The report notes that 59% of respondents have adopted unified cost management strategies, particularly in the banking and financial services sector, where regulatory pressures and the need for comprehensive oversight are driving this trend.

The adoption of unified cost management strategies indicates a maturing approach to cloud resource management, with organisations increasingly looking to optimise their cloud expenditures while maintaining the flexibility to scale their infrastructure as needed. This trend is likely to continue as more businesses adopt AI and other data-intensive applications, further driving the need for sophisticated cost management tools and practices.

Industry-specific trends and future outlook

The Pulse of Cloud: Quarterly Report July 2024 from Wipro also highlights industry-specific trends that provide valuable insights into how different sectors are leveraging cloud and AI technologies. For example, the health and life sciences sector’s simultaneous advancement of cloud and AI reflects the industry’s unique needs for data-intensive processing and advanced analytics. Similarly, the retail sector’s prioritisation of cloud over AI indicates a focus on meeting e-commerce demands and managing customer data more effectively.

Looking ahead, the report suggests that the adoption of hybrid and multi-cloud strategies will continue to grow as organisations seek to avoid vendor lock-in and leverage the strengths of different cloud providers. This shift towards more diversified cloud environments is likely to drive further innovation in cloud services and infrastructure, creating new opportunities for businesses to enhance their IT capabilities.

In conclusion, the Pulse of Cloud: Quarterly Report July 2024 from Wipro provides a clear picture of how cloud and AI technologies are reshaping the IT landscape. As organisations continue to invest in these technologies, the importance of strategic cloud adoption and effective cost management will only increase. By staying ahead of these trends, businesses can ensure they are well-positioned to leverage the full potential of cloud and AI, driving innovation and maintaining competitiveness in an increasingly digital world.

  AI, banking sector, cloud adoption, cloud cost management, Cloud Infrastructure, cloud investments, Europe, GenAI, health and life sciences, hybrid cloud, Industry 4.0, IoT, IT infrastructure, manufacturing sector, Public Cloud, Pulse of Cloud, retail sector, US, Wipro, Wipro FullStride Cloud