AI and Cloud Transformation Take Center Stage in IT Investment for 2024, Reveals Rackspace Technology Survey with VMware

As technology rapidly evolves, businesses face the ongoing challenge of recruiting and training IT professionals who can keep pace. Rackspace Technology, in collaboration with VMware, has released new research indicating that companies remain dedicated to investing in IT for 2024, focusing particularly on artificial intelligence (AI) and cloud technology as avenues for transformation despite the current economic climate.

AI Leads the 2024 IT Priorities

The 2024 IT Outlook Report, which gathered insights from 1,420 IT experts globally, unveiled that 63% of organizations are set to adjust their IT investments next year. A notable 65% have identified AI as the key technology likely to positively impact their operations in the following 12 months. A shift towards edge computing, private cloud, and public cloud solutions was also observed, suggesting a decline in the reliance on traditional data centers and mainframes.

The Rise of Generative AI and Private Clouds

Generative AI is gaining momentum, with a third of surveyed organizations moving prototypes into production or expanding existing projects. Another two-thirds are actively considering the potential of generative AI. Usage expectations are high, with 67% predicting the integration of generative AI into their processes within a year. Although AI is mainly utilized for foundational tasks, the greatest anticipated benefits are seen in security, product development, and operational efficiency. However, companies do acknowledge the obstacles in adopting AI, such as proving its value, lack of supportive infrastructure, and a shortage in skilled professionals.

Regarding cloud adoption, private cloud use is projected to rise, reflecting a nuanced approach to handling critical workloads. Additionally, edge computing is anticipated to be a part of 30% of organizations' IT infrastructure within the next year. Meanwhile, 75% of companies currently employ hybrid cloud strategies, acknowledging challenges like resource shortages, security concerns, and resistance to change.

Confronting the IT Talent Shortage

The need for skilled IT professionals continues to press organizations, with 69% of survey participants citing this as their top concern. The rapid technological progress contributes to higher labor costs in IT, as companies compete to fill essential roles. Rackspace Technology emphasizes the necessity for a workforce strategy that values adaptability, problem-solving, and continuous learning in addition to technical proficiency.

The extensive research also discusses IT infrastructure trends, cloud transition challenges, and the commitment to AI and cloud investment, signifying a critical period of technological evolution for businesses worldwide.

AI, cloud, investment