Generative AI Surge in Cloud Investments, Wipro Report Reveals

Generative AI is a key driver behind increased cloud investments, with hybrid and public cloud adoption on the rise.

A new report from Wipro, titled “The Pulse of Cloud: Quarterly Report July 2024,” highlights that generative AI is a major catalyst for cloud investment. The study, conducted among 500 senior executives in North America and Europe, finds that more than half of organizations (54%) are investing more in cloud services due to the influence of AI.

According to the report, both hybrid (54%) and public cloud (56%) investments are on the rise as companies prepare for an AI-driven future. While cloud adoption currently outpaces AI adoption for most respondents (55%), a significant portion (35%) is advancing both technologies concurrently.

Jo Debecker, Managing Partner and Global Head of Wipro FullStride Cloud, emphasized the critical role of cloud infrastructure in supporting AI’s data demands. “Cloud’s scalability and processing power are essential for managing the large volumes of data AI requires,” Debecker said. “Thus, cloud investment decisions are increasingly driven by the need to support AI.”

The report also notes a growing emphasis on cloud cost management, with 54% of organizations utilizing tools for utilization analysis and automation, and 59% employing unified cloud management strategies.

As enterprises align their infrastructure strategies to harness AI benefits, unified cloud cost management is becoming increasingly vital, reflecting the evolving landscape of cloud and AI integration.