Annual Global CIO Report Reveals Cloud-Native Technologies Produce Explosion of Data Beyond Humans'; Ability to Manage

Rhea-AI Summary

Dynatrace (NYSE: DT) reveals the challenges organizations face in managing data overload in modern cloud ecosystems. The research highlights the need for advanced AI, analytics, and automation strategies to drive lasting business value. Key findings include increased complexity in technology stacks, multicloud environments spanning multiple platforms, and the struggle to deliver outstanding customer experiences and protect applications. The report emphasizes the importance of unifying diverse data and leveraging advanced AI techniques for smarter decision-making and efficient operations.

Insights

Market Research Analyst

Organizations are increasingly leveraging multicloud environments and cloud-native architectures, which, while offering agility and speed for transformation, also introduce significant complexity. This complexity is reflected in the reported increase in technology stack layers and the difficulty in delivering customer experiences. The proliferation of data and the reliance on multiple monitoring tools can lead to inefficiencies and hinder the delivery of secure applications.

From a market perspective, the need for advanced AI, analytics and automation strategies is clear. Companies providing solutions that can simplify multicloud management, integrate various platforms and offer actionable insights through advanced AI will likely see increased demand. This creates opportunities for investment in companies specializing in such technologies, as they are positioned to address the pain points highlighted by technology leaders.

Cybersecurity Expert

The survey's findings emphasize the cybersecurity challenges organizations face due to multicloud complexity. With 84% of technology leaders acknowledging difficulty in application protection, the importance of cybersecurity solutions that can scale with cloud-native environments is evident. Cybersecurity firms that can integrate with diverse cloud services and provide comprehensive protection will be critical for businesses looking to safeguard their digital assets.

Investors should note the potential for growth in the cybersecurity sector, especially for companies that can leverage AI-driven analytics to provide predictive and generative security measures. Such advancements could reduce the time required for threat detection and response, thus improving overall security postures.

Technology Industry Analyst

The survey underscores a significant shift in the technology landscape, with an emphasis on advanced AI capabilities that transcend traditional AIOps models. This shift is indicative of a broader industry trend towards hypermodal AI, which incorporates various AI techniques to address the volume and complexity of data produced by cloud-native stacks.

Long-term, organizations that can effectively implement such AI strategies may gain a competitive edge by optimizing their operations and fostering innovation. However, the short-term challenges include the need for skilled professionals who can manage these advanced systems and the potential for increased operational costs associated with adopting new AI technologies.

97% of technology leaders find traditional AIOps models are unable to tackle the data overload

WALTHAM, Mass.--(BUSINESS WIRE)-- Dynatrace (NYSE: DT), the leader in unified observability and security, today announced the findings of an independent global survey of 1,300 CIOs and technology leaders in large organizations. The research reveals that organizations are continuing to embrace multicloud environments and cloud-native architectures to enable rapid transformation and deliver secure innovation. However, despite the speed, scale, and agility enabled by these modern cloud ecosystems, organizations are struggling to manage the explosion of data they create. These research findings underscore the need for a mature AI, analytics, and automation strategy that moves beyond traditional AIOps models to drive lasting business value. The report, The state of observability 2024: Overcoming complexity through AI-driven analytics and automation strategies, is available for download.

Findings from the research include:

• 88% of organizations say the complexity of their technology stack has increased in the past 12 months, and 51% say it will continue to increase.
• The average multicloud environment spans 12 different platforms and services.
• 87% of technology leaders say multicloud complexity makes it more difficult to deliver outstanding customer experiences, and 84% say it makes applications more difficult to protect.
• 86% of technology leaders say cloud-native technology stacks produce an explosion of data that is beyond humans’ ability to manage.
• On average, organizations use 10 different monitoring and observability tools to manage applications, infrastructure, and user experience.
• 85% of technology leaders say the number of tools, platforms, dashboards, and applications they rely on adds to the complexity of managing a multicloud environment.

“Cloud-native architectures have become mandatory for modern organizations, bringing the speed, scale, and agility they need to deliver innovation,” said Bernd Greifeneder, CTO at Dynatrace. “These architectures reflect a growing array of cloud platforms and services to support even the simplest digital transaction. The huge amount of data they produce makes it increasingly difficult to monitor and secure applications. As a result, critical business outcomes like customer experience are suffering, and it is becoming more difficult to protect against advanced cyber threats.”

Additional findings include:

• 81% of technology leaders say manual approaches to log management and analytics cannot keep up with the rate of change in their technology stack and the volumes of data it produces.
• 81% of technology leaders say the time their teams spend maintaining monitoring tools and preparing data for analysis steals time from innovation.
• 72% of organizations have adopted AIOps to reduce the complexity of managing their multicloud environment.
• 97% of technology leaders say probabilistic machine learning approaches have limited the value AIOps delivers due to the manual effort needed to gain reliable insights.

“Without the ability to transform the high volumes of diverse data from cloud-native architectures into real-time, contextually relevant insights, IT, development, security, and business teams struggle to understand what is happening in their environment and lack the answers needed to solve issues quickly and decisively,” continued Greifeneder. “While many organizations turn to AIOps, they often encounter limited value due to reliance on probabilistic methods, which can be imprecise and time-consuming to implement. To overcome the complexity of modern technology stacks, organizations require advanced AI, analytics, and automation capabilities. By unifying diverse data, retaining its context, and powering analytics and automation with a hypermodal AI that combines multiple techniques, including causal, predictive, and generative AI, teams can unlock a wealth of insights from their data to drive smarter decision-making, intelligent automation, and more efficient ways of working.”

Methodology

This report is based on a global survey conducted by Coleman Parkes and commissioned by Dynatrace of 1,300 CIOs, CTOs, and other senior technology leaders involved in IT operations and DevOps management in large enterprises with more than 1,000 employees. The sample included 200 respondents in the U.S., 100 in Latin America, 600 in Europe, 150 in the Middle East, and 250 in Asia Pacific.

About Dynatrace

Dynatrace (NYSE: DT) exists to make the world’s software work perfectly. Our unified platform combines broad and deep observability and continuous runtime application security with Davis® hypermodal AI to provide answers and intelligent automation from data at an enormous scale. This enables innovators to modernize and automate cloud operations, deliver software faster and more securely, and ensure flawless digital experiences. That’s why the world’s largest organizations trust the Dynatrace® platform to accelerate digital transformation.

Curious to see how you can simplify your cloud and maximize the impact of your digital teams? Let us show you. Sign up for a 15-day Dynatrace trial.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240305007180/en/

Investor Contact:

Noelle Faris

VP, Investor Relations

Noelle.Faris@dynatrace.com

Media Relations:

Jerome Stewart

VP, Communications

Jerome.Stewart@dynatrace.com

Source: Dynatrace

FAQ

What is the ticker symbol for Dynatrace?

The ticker symbol for Dynatrace is 'DT'.

What are the key findings of the independent global survey conducted by Dynatrace?

The key findings include increased complexity in technology stacks, multicloud environments spanning multiple platforms, challenges in delivering outstanding customer experiences, protecting applications, and the struggle to manage data overload.

How many technology leaders were surveyed in the research conducted by Dynatrace?

The research surveyed 1,300 CIOs and technology leaders in large organizations.

What percentage of organizations mentioned that the complexity of their technology stack has increased in the past 12 months?

88% of organizations mentioned that the complexity of their technology stack has increased in the past 12 months.

What percentage of technology leaders say cloud-native technology stacks produce an explosion of data beyond humans' ability to manage?

86% of technology leaders say cloud-native technology stacks produce an explosion of data beyond humans' ability to manage.