Study Shows Multicloud is Here to Stay, but Complexity and Challenges Remain

Rhea-AI Summary

Nutanix (NASDAQ: NTNX) released its fourth global Enterprise Cloud Index survey, indicating that multicloud is now the dominant deployment model, projected to reach 64% adoption in three years. However, 87% of enterprises cite management complexity as a significant challenge. The survey reveals that 83% prefer a hybrid multicloud approach to address critical issues in interoperability and security. Moreover, 61% identified the pandemic as a driver for adopting flexible work arrangements, reinforcing the need for agile IT environments.

Positive

• Projected 64% adoption rate for multicloud in three years.
• 83% of enterprises favor a hybrid multicloud model to tackle interoperability and security challenges.
• 61% of organizations are focusing on flexible work setups post-pandemic.

Negative

• Complex management across cloud environments remains a challenge, with 87% of respondents acknowledging this issue.
• 49% identify managing security and data integration as top multicloud challenges.

Research by Nutanix Reveals Multicloud Deployments are on the Rise, but Enterprises Look to Hybrid Multicloud

SAN JOSE, Calif.--(BUSINESS WIRE)-- Nutanix (NASDAQ: NTNX), a leader in hybrid multicloud computing, announced the findings of its fourth global Enterprise Cloud Index (ECI) survey and research report, which measures enterprise progress with cloud adoption. The research showed that multicloud is currently the most commonly used deployment model and adoption will jump to 64% in the next three years. But the complexity of managing across cloud borders remains a major challenge for enterprises, with 87% agreeing that multicloud success requires simpler management across mixed-cloud infrastructures. To address top challenges related to interoperability, security, cost and data integration, 83% of respondents agree that a hybrid multicloud model is ideal.

(Graphic: Business Wire)

“While businesses are now viewing and using IT more strategically than ever before, the complexity of multicloud is creating challenges that are standing in the way of cloud success,” said Rajiv Ramaswami, President and CEO at Nutanix. “Solving for these complexities is giving way to a new hybrid multicloud model that makes cloud an operating model rather than a destination.”

This year, survey respondents were asked about their current cloud challenges, how they’re running business applications now and where they plan to run them in the future. Respondents were also asked about the impact of the pandemic on recent, current, and future IT infrastructure decisions and how IT strategy and priorities may change because of it.

Key findings from this year’s report include:

• Top multicloud challenges include managing security (49%), data integration (49%), and cost (43%) across cloud borders. While multicloud is the most commonly used operating model, and the only one expected to grow, most enterprises are struggling with the reality of operating across multiple clouds, private and public. This reality is not going away, and more and more IT leaders realize that there is no one-size fits all approach to the cloud, making hybrid multicloud, an IT operating model with multiple clouds both private and public with interoperability between them, ideal according to the majority of respondents.
• The pandemic has changed how nearly all organizations operate, and multicloud supports this new way of working. Well over half of respondents (61%) say they’re focused on offering more flexible work setups because of the pandemic. Most organizations report that while their remote workforces may shrink or grow, they are here to stay for the foreseeable future. Multicloud offers the most agile IT environment for supporting this flexibility by distributing data to diverse geolocations for user proximity, and business continuity.
• Application mobility is top of mind. Nearly all organizations (91%) have moved one or more applications to a new IT environment over the last 12 months. However, 80% of respondents agree that moving a workload to a new cloud environment can be costly and time-consuming. They cite security (41%) most often as the reason for the move, followed by performance (39%), and gaining control of the application (38%).
• Enterprises are growing more strategic in their use of IT infrastructure. Nearly three-fourths of respondents (72%) say they believe that the IT function in their organizations is perceived as more strategic than it was a year ago. They also cite business reasons for changing their infrastructure models, such as improving remote work and collaboration (40%), supporting customers better (36%), and strengthening business continuity (35%). Additionally, they’ve begun strategically matching each workload to the infrastructure best suited to it, based on factors such as security (41%), performance (39%), and cost (31%), likely a primary driver behind the proliferation of multicloud.

For the fourth consecutive year, Vanson Bourne conducted research on behalf of Nutanix, surveying 1,700 IT decision-makers around the world in August and September 2021. The respondent base spanned multiple industries, business sizes, and the following geographies: the Americas; Europe, the Middle East, and Africa (EMEA); and the Asia Pacific Japan (APJ) region.

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

About Nutanix

Nutanix is a global leader in cloud software and a pioneer in hyperconverged infrastructure solutions, making clouds invisible, freeing customers to focus on their business outcomes. Organizations around the world use Nutanix software to leverage a single platform to manage any app at any location for their hybrid multicloud environments. Learn more at www.nutanix.com or follow us on social media @nutanix.

© 2022 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or trademarks of Nutanix, Inc. in the United States and other countries. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This release may contain links to external websites that are not part of Nutanix.com. Nutanix does not control these sites and disclaims all responsibility for the content or accuracy of any external site. Our decision to link to an external site should not be considered an endorsement of any content on such a site. Certain information contained in this press release may relate to or be based on studies, publications, surveys and other data obtained from third-party sources and our own internal estimates and research. While we believe these third-party studies, publications, surveys and other data are reliable as of the date of this press release, they have not independently verified, and we make no representation as to the adequacy, fairness, accuracy, or completeness of any information obtained from third-party sources.

This release may contain express and implied forward-looking statements, which are not historical facts and are instead based on our 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 our 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, we assume 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/20220118005134/en/

Gabrielle Moynan

pr@nutanix.com

Source: Nutanix

FAQ

What percentage of enterprises are expected to adopt multicloud by 2025?

64% of enterprises are projected to adopt multicloud within the next three years.

What are the major challenges faced by enterprises using multicloud according to Nutanix?

Top challenges include managing security (49%), data integration (49%), and cost (43%) across cloud environments.

How has the pandemic influenced IT infrastructure decisions among organizations?

The pandemic has led 61% of organizations to prioritize more flexible work setups.

What is the preferred cloud model according to the latest Nutanix survey?

The hybrid multicloud model is preferred by 83% of enterprises to address interoperability and security issues.

When was the Nutanix Enterprise Cloud Index survey conducted?

The survey was conducted in August and September 2021, involving 1,700 IT decision-makers globally.