NetApp’s 2023 Cloud Complexity Report Highlights the Shifting Demands of a Multicloud Environment

Rhea-AI Summary

NetApp has unveiled its 2023 Cloud Complexity Report, revealing that 98% of technology leaders are affected by the increasing complexity of cloud environments. This complexity may hinder IT performance, resulting in revenue loss and obstructing business growth. Key insights highlight that 84% of executives expect immediate ROI from their cloud strategies, while 37% foresee AI-driven applications supporting their cloud deployments. The survey, conducted among 1,300 tech executives across nine markets, underscores the urgent need for simplified cloud management solutions amidst escalating cybersecurity challenges.

Positive

• 98% of IT leaders affected by cloud complexity may drive demand for simplified solutions.
• 84% of tech executives expect immediate ROI from cloud strategies, indicating potential for revenue growth.
• 37% of tech execs plan to deploy AI-driven applications, enhancing future service offerings.

Negative

• Cloud complexity may lead to poor IT performance and revenue losses.
• 88% cite challenges in managing multi-cloud environments as a significant barrier.

Key findings indicate that 98% of technology leaders have been impacted by the increasing complexity of the cloud, bringing issues of cybersecurity and cost optimization to the forefront

SAN JOSE, Calif.--(BUSINESS WIRE)-- NetApp® (NASDAQ: NTAP), a global, cloud-led, data-centric software company, today released the 2023 Cloud Complexity Report, a global survey exploring how technology decision makers are navigating cloud requirements coming from digital transformation and AI initiatives and the complexity of multicloud environments. The report found that 98% of senior IT leaders have been impacted by increasing cloud complexity in some capacity, potentially leading to poor IT performance, loss in revenue and barriers to business growth.

“Our global research report highlights paradigm shifts in how technology leaders look at and manage their cloud initiatives,” said Ronen Schwartz, Senior Vice President and General Manager, Cloud Storage, NetApp. “As cloud adoption accelerates and businesses innovate faster to compete, technology leaders are facing growing pressure to juggle multiple priorities at once – causing many to rethink how they manage efficiency and security in this new environment.”

“Our global survey data demonstrates the extreme complexity of modern IT environments, and the pressure technology executives are under to show measurable outcomes from cloud investments,” said Gabie Boko, Chief Marketing Officer, NetApp. “At NetApp, we've simplified the complex through our approach, which enables technology executives to increase the speed of innovation, lower costs and improve consistency, flexibility and agility across on-premises and cloud environments.”

Key findings from the report include:

Cloud Complexity Reaches a Tipping Point

Data complexity has reached a boiling point for companies globally, and tech executives are feeling the pressure to contain its impact on the business. However, technical and organizational challenges may stunt their cloud strategies, with 88% citing working across cloud environments as a barrier, while 32% struggle just to align on a clear vision at the leadership level.

Global Context: The following regions list this as their top concern if data complexity is not managed:

• Cybersecurity: France, Spain, and Australia/New Zealand
• Leadership skepticism: France, Spain, Japan
• Inefficient use across the organization: Australia/New Zealand
• Lack of visibility: Japan

Leadership Want Cloud Results Now

Sustainability has become an unexpected cloud-driver, with nearly eight in ten tech executives citing ESG outcomes as critical to their cloud strategy. However, return on investment (ROI) is a concern among leadership, with 84% of tech executives saying their cloud strategy is already expected to show results across the organization.

Global Context:

• Nearly half of tech executives (49%) report that when cloud strategy discussions happen, cost concerns come up often or all the time.
• Data regulation and compliance is another cloud driver, with various local regulations promoting their multicloud strategy most or some of the time.

Tech Executives Consider AI as a Possible Solution

In the next year, over a third (37%) of tech executives report that half or more of their cloud deployments will be supported by AI-driven applications. Nearly half of tech executives at smaller companies – those with fewer than 250 employees – expect to reach the 50% mark in the next year, and 63% by 2030, while larger companies lag.

Global Context:

• The U.S. leads EMEA and APAC on plans to deploy AI-driven cloud applications in the next year, with France and Japan as outliers in their regions.
• Scaling AI is the top priority in EMEA and APAC, but is second in the U.S., behind meeting regulatory compliance.

“NetApp’s global research report reveals a disconnect between the executives outside of IT and those within - specifically, leaders working to execute on cloud are the ones most ingrained in the cost and complexity issues while those outside of IT have yet to fully understand. In the process of shifting to the cloud, leaders are experiencing challenges, leaving room for vendors to address these current or yet-to-be discovered issues,” said Randy Kerns, Senior Strategist & Analyst at the Evaluator Group. “As customers express concerns with cloud implementation, vendors have the opportunity to build and offer solutions to simplify the process.”

As organizations increasingly move to multi-cloud environments, NetApp aims to alleviate efficiency bottlenecks by allowing IT leaders to manage their systems on one, streamlined user interface. By taking an evolved cloud approach, NetApp is leading the charge for next generation cloud management and storage – equipping teams with the tools necessary to stay abreast of the key trends outlined in the research report above (e.g., optimizing costs, assessing risks, and operating sustainably).

To learn more and access the full report and infographic, visit 2023 Cloud Complexity Report.

Methodology

NetApp partnered with Wakefield Research to conduct a quantitative research study during November 2022, among 1,300 tech and data executives at businesses in 9 markets: US, EMEA (France, Germany, Spain, the UK), and APAC (India, Japan, Singapore, and Australia/New Zealand). At the time of completion, all participants held positions that were classified as “director-level and above” and worked across IT, IT infrastructure, cloud infrastructure and data engineering departments.

About NetApp

NetApp is a global, cloud-led, data-centric software company that empowers organizations to lead with data in the age of accelerated digital transformation. The company provides systems, software and cloud services that enable them to run their applications optimally from data center to cloud, whether they are developing in the cloud, moving to the cloud, or creating their own cloudlike experiences on premises. With solutions that perform across diverse environments, NetApp helps organizations build their own data fabric and securely deliver the right data, services, and applications to the right people—anytime, anywhere. Learn more at www.netapp.com or follow us on Twitter, LinkedIn, Facebook, and Instagram.

NETAPP, the NETAPP logo, and the marks listed at www.netapp.com/TM are trademarks of NetApp, Inc. Other company and product names may be trademarks of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230329005156/en/

Media Contact:

Kenya Hayes

NetApp

kenya.hayes@netapp.com

Investor Contact:

Kris Newton

NetApp

kris.newton@netapp.com

Source: NetApp

FAQ

What does the 2023 Cloud Complexity Report by NetApp reveal about cloud complexity?

The report indicates that 98% of technology leaders are impacted by increasing cloud complexity, which may lead to poor IT performance and revenue loss.

What percentage of tech executives expect immediate results from cloud strategies according to NetApp?

According to the report, 84% of tech executives expect their cloud strategies to show immediate results.

How many tech executives plan to use AI-driven applications in cloud deployments next year?

The report states that 37% of tech executives plan to support half or more of their cloud deployments with AI-driven applications in the next year.

What challenges do tech executives face in managing cloud environments as per NetApp's findings?

88% of tech executives cited managing multi-cloud environments as a significant challenge, impacting their cloud strategies.

What regions are highlighted in the NetApp report for having concerns regarding data complexity?

Regions such as France, Spain, Australia, New Zealand, and Japan have been identified as having top concerns related to data complexity.