Study Shows Public Sector Organizations are Leading in Multicloud Adoption

Rhea-AI Summary

Nutanix (NASDAQ: NTNX) announced findings from its global 2022 Enterprise Cloud Index survey, revealing that the public sector is leading in multicloud adoption, with 69% in education and 47% federally implementing it. Expected growth is from 39% to 67% over the next three years. Challenges like security and cost management persist, with 75% of respondents favoring a hybrid multicloud model. Key IT priorities over the next 12-18 months include enhancing security posture and multicloud management.

Positive

• Public sector multicloud adoption projected to grow from 39% to 67% within three years.
• 69% of public education respondents use multicloud, the highest among sectors surveyed.
• 75% of respondents prefer a hybrid multicloud model to address cost, security, and interoperability challenges.
• 46% prioritize improving security posture in IT strategies over the next 12-18 months.

Negative

• 49% of public sector organizations view securing data across multiple clouds as a major challenge.
• 83% lack necessary IT skills to meet current demands, indicating workforce readiness issues.
• 75% of respondents find moving applications across environments costly and time-consuming.

Research Reveals Public Education Sub-Sector is Most Ahead, With Adoption Twice the Global Average

SAN JOSE, Calif.--(BUSINESS WIRE)-- Nutanix (NASDAQ: NTNX), a leader in hybrid multicloud computing, announced the public sector findings of its global 2022 Enterprise Cloud Index (ECI) survey and research report, which measures enterprise progress with cloud adoption, including the U.S. federal government and global public education sub-sectors. The research showed that more public sector organizations than average have adopted multicloud as a primary IT operating model, outpacing the global average. Adoption is expected to nearly double from 39% to 67% in the next three years.

Multicloud is on the rise and is now the dominant IT architecture in use worldwide, and it’s also dominant across the public sector. In fact, the global public education sub-sector reported the largest usage among all ECI respondents (69%), with adoption nearly twice the global average. The U.S. federal sub-sector is also well ahead of the average, with 47% having adopted multicloud. However, the complexity of managing across cloud borders remains a major challenge for public sector organizations as 85% agreed that to succeed, their organizations need to simplify the management of multiple clouds. To address top challenges related to cost, security, interoperability, and data integration, 75% agree that a hybrid multicloud model, an IT operating model with multiple clouds both private and public with interoperability between, is ideal.

“The evolution to a multicloud IT infrastructure that spans a mix of private and public clouds is underway across the globe, with the public sector on the fast track,” said Chip George, VP of Public Sector at Nutanix. “This evolution requires a dedication to inherent, strong platform security to fully execute on the multicloud vision and extend capabilities from the core to the tactical edge. Public sector organizations must look to hybrid multicloud solutions that meet security requirements while delivering visibility, manageability, and consistent policy-enforcement coupled with tight cost control across environments.”

Public sector survey respondents were asked about their current cloud challenges, how they’re running business and mission-critical 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:

• Public sector organizations face multicloud challenges, including securing their data across multiple clouds (49%), application mobility (47%), security (46%) and managing costs (45%). Additionally, given that nearly all (97%) of U.S. federal, 86% of public education, and 87% of all global public sector organizations cited they lack some IT skills to meet current business demands, simplifying operations is likely to be a key focus for many in the year ahead. However, IT leaders are realizing that there is no one-size-fits-all approach to the cloud, making hybrid multicloud ideal according to the majority of respondents (75%). This model will help address some of the key challenges of multicloud deployments by providing a unified cloud environment on which security and data governance policies can be applied uniformly.
• Public sector organizations are optimistic about application mobility. Application mobility is a critical multicloud and cloud-smart optimization enabler, and while 75% of public sector organizations moved one or more applications to a new IT environment over the last year, it’s well below the average across industries (91%). Those that did cited improving security and/or meeting regulatory requirements (33%), gaining control (31%), and performance (30%) as the top drivers. Moreover, 76% agreed that moving a workload to a new cloud environment can be costly and time-consuming, versus 80% of all respondents across industries, indicating that application mobility is perceived to be slightly less problematic. Public education organizations, which are ahead of the multicloud curve, were even more optimistic with only 56% agreeing on difficulty of application mobility while U.S. federal organizations had the highest level of concern, with 77% agreeing.
• Top public sector IT priorities for the next 12 to 18 months include improving security posture (46%), storage (41%), 5G implementation (39%), and improving multicloud management (39%). Global public sector respondents also said that the ongoing pandemic spurred them to increase their IT spending in certain areas that emphasize bolstering their security posture (55%), implementing AI-based self-service technology (50%), and upgrading existing IT infrastructure (40%).

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. This report is supplemental to the global Fourth Annual Enterprise Cloud Index master report and focuses on cloud deployment and planning trends in the public sector, based on the responses of 491 IT professionals in that market. It compares public sector and sub-sector cloud plans, priorities, and experiences to each other, as well as to other industries and the global response base overall. Findings in this report attributed to “public sector organizations” or “global public sector” include respondents in worldwide federal, centralized, and local government; public education; and public healthcare organizations. U.S. federal government and global public education sub-sector findings are broken out separately, where specified, for comparison purposes.

To learn more about the report and findings, please download the full 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/20220412005205/en/

Abby Evans

pr@nutanix.com

Source: Nutanix, Inc.

FAQ

What are the key findings from Nutanix's 2022 Enterprise Cloud Index for public sector?

The 2022 Enterprise Cloud Index report indicates that public sector organizations are adopting multicloud at rates higher than the global average, with significant optimism around application mobility and hybrid models.

How much is the adoption of multicloud expected to grow in the public sector?

Adoption of multicloud in the public sector is expected to increase from 39% to 67% over the next three years.

What challenges do public sector organizations face regarding multicloud management?

Key challenges include securing data across multiple clouds (49%), application mobility (47%), and managing costs (45%).

What are the top IT priorities for public sector organizations in the next 12 to 18 months?

Top priorities include improving security posture (46%), enhancing storage solutions (41%), and implementing 5G technologies (39%).