Everyone is noticing the same thing — businesses globally are turning to artificial intelligence (AI) to innovate and boost efficiency.
In fact, IDC’s latest Worldwide AI and Generative AI Spending Guide highlights that the Asia-Pacific region is projected to spend up to US$26 billion ($34.4 billion) by 2027 in Generative AI (GenAI) value. This investment behaviour in the region concurs with insights from our latest 2024 Nutanix Enterprise Cloud Index (ECI) report. While nine in 10 organisations in Asia Pacific (Apac) say that AI is a priority, the report found that more than one in three organisations across the region are at risk of being caught unprepared and recognise the challenge of running AI applications on their current IT infrastructure.
The evolution of AI will only accelerate as we uncover novel ways to use the technology, and organisations need to learn to leverage AI or risk getting left behind. Just like how a stable foundation is critical for skyscrapers to stand tall, how can organisations ensure their IT infrastructures are well-adapted to help them thrive in the AI era?
Adapt not replace: The secret to successful AI integrations
AI has led to an explosion of data that is generated, collected and consumed. Gartner expects Generative AI to account for up to 10% of all data produced in the next year. This overwhelming surge of data into existing services is straining data management practices and complicating daily IT operations. Such teething issues in integrations are inevitable, but success is hinged on resolving them.
At the University of Canberra, faculty researchers and leadership recognised its integration of AI and machine learning (ML) systems was putting additional stress on its IT systems. The university’s needs also grew more complex as more students moved to online learning, necessitating system upgrades to enable remote access to students and teachers.
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Instead of adopting a complex IT investment plan with wholesale replacements of IT assets, the university chose the IT modernisation paradigm — streamlining its existing infrastructure through cloud computing services, virtualisation services, and virtual machines. This approach reduced layers of complexity and trade-offs, empowering students with opportunities to use AI and ML to improve their academic outcomes while reducing the stress on the university’s infrastructure and keeping costs down.
Such general large-institution IT complexity is very similar to circumstances faced by businesses and institutions here in Southeast Asia. The university’s IT modernisation paradigm too offers a valuable lesson – better outcomes are not necessarily dictated by the size of investment. The key instead lies in flexibility and adaptability built into a solution’s inherent design with future-proofing considerations.
The fundamentals of a successful modernisation journey
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Over the next year, organisations are expected to invest heavily in their IT infrastructure. A key part of this investment will be the adoption of hybrid multicloud environments. Already, one in five organisations in Apac are running a hybrid multicloud model, and a further two in five plan to deploy in the next one to three years.
According to the ECI report, more than four in five (84%) organisations are planning to invest in modernising their IT infrastructure to better support AI. The infrastructure, with its flexibility, scalability, and cost-effectiveness, provides an ideal foundation for AI implementation.
The modernisation journey for organisations begins with a comprehensive assessment of their current IT environment. Understanding your business goals, application dependencies, and security requirements lays the groundwork for developing a tailored hybrid multicloud strategy.
Once the direction has been set, seizing AI will demand a modernised IT infrastructure, with hybrid multicloud environments playing a pivotal role. With centralised control and visibility, organisations streamline operations, monitor costs, and ensure security. Embracing AI-driven transformation empowers Apac businesses for competitive success in the digital age.
Aaron White is the GM and VP of Sales for APJ at Nutanix
