Nutanix Study Finds AI, Security, and Sustainability Are Major Drivers for IT Modernization

Rhea-AI Summary

Nutanix (NTNX) reveals in its sixth annual Enterprise Cloud Index report that hybrid multicloud models are set to double in adoption over the next one to three years due to the increasing pressures to modernize IT infrastructure driven by AI, security, and sustainability. Key findings include the rise of hybrid multicloud as the infrastructure standard, the importance of ransomware protection, challenges in application and data movement, and the prioritization of IT modernization and sustainability initiatives.

Positive

• Hybrid multicloud infrastructure deployments are expected to double in the next one to three years, driven by the need to modernize IT infrastructure due to AI, security, and sustainability factors.
• 90% of respondents are adopting a 'cloud smart' approach, utilizing the best environment for each application, leading to hybrid and multicloud environments becoming the infrastructure standard.
• Ransomware protection is a top priority for organizations, with 78% planning to increase investments in protection solutions.
• Application and data movement between environments is a complex challenge, with security and innovation driving the need for flexibility and visibility in infrastructure choices.
• 88% of organizations prioritize sustainability, with many actively implementing initiatives such as IT modernization to support sustainability goals.
• Increased investments in AI strategy and IT modernization are key priorities, with organizations focusing on overcoming challenges in running AI applications on current infrastructure.

Negative

• None.

CIOs are increasingly prioritizing hybrid IT strategies to manage complexity of running applications and data across clouds

SAN JOSE, Calif.--(BUSINESS WIRE)-- Nutanix (NASDAQ: NTNX), a leader in hybrid multicloud computing, announced the findings of its sixth annual Enterprise Cloud Index (ECI) survey and research report, which measures global enterprise progress with cloud adoption. This year’s ECI report revealed that the use of hybrid multicloud models is forecasted to double over the next one to three years as IT decision makers are facing new pressures to modernize IT infrastructures because of drivers like AI, security, and sustainability.

As organizations continue to grapple with the complexities of moving applications and data across environments, the ECI report highlighted the growing importance of hybrid multicloud infrastructure. The report found that security and innovation were the top drivers for moving applications from one environment to another over the past year. As AI takes center stage for businesses, ECI respondents identified increasing investments to support AI strategy as their #1 priority, followed closely by investment in IT modernization.

“Whether it be because of AI, sustainability, or security imperatives, IT organizations are facing ever-increasing pressure to modernize their IT infrastructure quickly,” said Lee Caswell, SVP, Product and Solutions Marketing at Nutanix. “80% of ECI respondents are planning to invest in IT modernization, with 85% planning to increase their investments specifically to support AI. What this year’s ECI reveals is that organizations need to support the technologies of tomorrow by future proofing their IT infrastructure today. Hybrid multicloud continues to emerge as the infrastructure standard of choice because of the flexibility it provides to support traditional VM and modern containerized applications and movement between clouds and on-prem.”

Key findings from this year’s report include:

• Hybrid multicloud infrastructure deployments will become an infrastructure standard. 90% of ECI respondents are taking a “cloud smart” approach to their infrastructure strategy – leveraging the best environment (e.g., data center, public cloud, edge) for each of their applications. Given the pervasiveness of this approach, it is no wonder that hybrid and multicloud environments have become the de facto infrastructure standard. Furthermore, over 80% of organizations believe hybrid IT environments are most beneficial to their ability to manage applications and data. Most importantly, this is now becoming an executive priority, with nearly half of respondents noting that implementing hybrid IT is a top priority for their CIO.
• Ransomware protection is top of mind for both CXOs and practitioners but most organizations continue to struggle in the wake of attacks. Ransomware and malware attacks will remain existential threats to modern enterprises, with the cat-and-mouse game between malicious actors and enterprise security professionals set to continue throughout 2024. Yet, data protection and recovery remain a challenge, as 71% of ECI respondents who experienced a ransomware attack reported taking days or even weeks to restore full operations. To help address this, 78% of organizations say they plan to increase investments in ransomware protection solutions throughout this year.
• As organizations seek equilibrium driven by security and innovation, application and data movement remains a complex challenge. Enterprise workloads – including their applications and data – often find their way into the IT environment which best suits their needs, whether that environment is an on-premises data center, the public cloud, a smaller edge location, or a mix of all three. This diversity of application placement is part of the reason why 95% of ECI respondents say they moved applications from one environment to another over the past year, with security and innovation as the top drivers for this movement. Enterprises should expect application and data movement to remain constant, and plan infrastructure choices accordingly – emphasizing flexibility and visibility. Today, organizations face significant roadblocks when it comes to executing complex application migrations, with 35% of ECI respondents saying workload and application migration is a significant challenge given their current IT infrastructure.
• IT teams aren’t just planning their sustainability programs, they are actively implementing them starting with IT modernization. 88% of ECI respondents agree that sustainability is a priority for their organization. However, unlike in the previous report where action was limited, many organizations indicate they are already taking active steps to implement sustainability initiatives, with the most common being modernizing IT infrastructure. This is a fascinating result, and one that shows the direct impact of IT infrastructure on sustainability.
• Infrastructure modernization is becoming an imperative, driven by AI, modern applications and data growth. ECI respondents identified increased investment to support AI strategy as their #1 priority, followed closely by investment in IT modernization. Furthermore, 37% of ECI respondents indicate running AI applications on their current IT infrastructure will be a “significant” challenge. In order to mitigate and overcome this challenge, organizations are prioritizing IT modernization and edge infrastructure deployments, which can facilitate faster processing and access to data. This, in turn, can help improve their ability to link data from multiple environments to give better visibility into where data resides across their sprawling ecosystems

For the sixth consecutive year, Vanson Bourne conducted research on behalf of Nutanix, surveying 1,500 IT and DevOps/Platform Engineering decision-makers around the world in December 2023. The respondent base spanned multiple industries, business sizes, and geographies, including North and South America; Europe, the Middle East and Africa (EMEA); and Asia-Pacific-Japan (APJ) region.

To learn more about the report and findings, please download the full sixth Nutanix Enterprise Cloud Index, here.

About Nutanix

Nutanix is a global leader in cloud software, offering organizations a single platform for running apps and data across clouds. With Nutanix, companies can reduce complexity and simplify operations, freeing them to focus on their business outcomes. Building on its legacy as the pioneer of hyperconverged infrastructure, Nutanix is trusted by companies worldwide to power hybrid multicloud environments consistently, simply, and cost-effectively. Learn more at www.nutanix.com or follow us on social media @nutanix.

© 2024 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. (“Nutanix”) in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release is for informational purposes only and nothing herein constitutes a warranty or other binding commitment by Nutanix. This release may contain express and implied forward-looking statements, which are not historical facts and are instead based on Nutanix’s current expectations, estimates and beliefs. The accuracy of such statements involves risks and uncertainties and depends upon future events, including those that may be beyond Nutanix’s control, and actual results may differ materially and adversely from those anticipated or implied by such statements. Any forward-looking statements included herein speak only as of the date hereof and, except as required by law, Nutanix assumes no obligation to update or otherwise revise any of such forward-looking statements to reflect subsequent events or circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240320666214/en/

Gabrielle Moynan

pr@nutanix.com

Source: Nutanix

FAQ

What is the key driver for the increase in hybrid multicloud adoption according to the Nutanix report?

The key drivers for the rise in hybrid multicloud adoption are AI, security, and sustainability pressures.

What percentage of ECI respondents are planning to invest in IT modernization?

80% of ECI respondents are planning to invest in IT modernization.

What is the top priority for organizations in terms of investments, according to the ECI report?

Investments to support AI strategy are the top priority for organizations, followed by investment in IT modernization.

What percentage of organizations believe hybrid IT environments are most beneficial for managing applications and data?

Over 80% of organizations believe hybrid IT environments are most beneficial for managing applications and data.

What is a top priority for both CXOs and practitioners in organizations according to the ECI report?

Ransomware protection is a top priority for both CXOs and practitioners in organizations.

What challenge do 35% of ECI respondents face in terms of workload and application migration?

35% of ECI respondents face challenges with workload and application migration due to their current IT infrastructure.

What is a significant challenge for 37% of ECI respondents in running AI applications?

37% of ECI respondents find running AI applications on their current IT infrastructure to be a significant challenge.

What percentage of organizations agree that sustainability is a priority?

88% of organizations agree that sustainability is a priority for their organization.

What steps are organizations taking to implement sustainability initiatives according to the ECI report?

Many organizations are actively implementing sustainability initiatives, with the most common step being modernizing IT infrastructure.

What is the focus of organizations in overcoming challenges in running AI applications according to the report?

Organizations are prioritizing IT modernization and edge infrastructure deployments to facilitate faster processing and access to data for AI applications.