Why Are Tech Companies Looking to Move Digital Workloads?

53% of Tech Companies Integrate Cloud Solutions With AI, According to Survey of IT Decision-Makers

Fifty-three percent of technology companies say they need a cloud strategy for emerging technologies like AI and 55% need it to reduce IT costs/optimize spending. Over half (54%) are integrating AI with the cloud in order to improve operational efficiency, according to a Rackspace Technology sponsored survey of 1,420 IT decision-makers across industries conducted in November of 2024.  
 
 Why Are Tech Companies Looking to Move Digital Workloads?  
 A majority (74%) of tech companies have considered repatriating or have repatriated workloads from the public cloud back to private or on-premise clouds to improve data security/compliance (63%), cost savings/budget constraints (53%), infrastructure/customization control (39%) and better integration (39%). Most of those that have moved digital workloads report success with performance/data sovereignty (92%), integration (90%), cost savings/budget constraint (87%), data security/compliance (84%) and unexpected cloud service downtime/reliability (73%).  
 
Challenges to Aligning AI Strategy with Revenue Goals  
The leading challenges to aligning AI strategy with revenue goals in the tech sector are lack of cross-functional collaboration (43%), resistance to change in revenue-generating units (36%), inadequate data or technology infrastructure (34%) and insufficient resources or budget (31%).    
 
What Technologies Will Be Most Important to Tech Companies Near-Term?   
 When asked what tools, platforms or methodologies are most critical to IT operations in the next year or two, data security/compliance platforms topped the list (55%), followed by:  
 
•    DBaaS (database as a service for scalable data management) (48%)  
 
•    Hybrid cloud for multi-environment deployment (39%)  
 
•    PaaS for app development and deployment (39%)  
 
•    AI/ML platforms for intelligent app development (36%)  
 
•    Edge computing for distributed apps (26%)  
 
•    Integration platforms for data transformation (23%).    
 
 
It is worth noting that data security/privacy/compliance scored high among tech companies throughout the survey in terms of:  
 
•    a key driver for adopting edge computing (62%)  
 
•    great current importance (53%)  
 
•    difficulty keeping up with cloud technologies (46%)  
 
•    a significant resource gap in managing cloud (45%)   
 
•    anticipated challenge in aligning with cloud strategy (45%)  
 
Survey Methodology  
Commissioned by Rackspace Technology, the survey was conducted by Coleman Parkes Research in October and November 2024. Findings are based on the responses of 1,420 IT decision-makers across technology, manufacturing/logistics, retail, hospitality/travel, energy, healthcare/pharma/biomedical, government, media/entertainment, and financial service sectors in the Americas, Europe, Asia, and the Middle East. Most companies/organizations polled have from 1,000 to 10,000+ employees and annual revenue between $50m and $15b.  
 
  

 

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