Navigating Economic Uncertainty: APJ’s IT Investment Trends
Despite the economic uncertainty, companies in the Asia-Pacific and Japan (APJ) area are planning to invest heavily on IT upgrades in 2024. According to research from Rackspace Technology, Dell, and VMware, this trajectory is defined by a heavy focus on game-changing technologies like cloud computing and artificial intelligence (AI).
Deciphering the 2024 IT Outlook Report
The 2024 IT Outlook Report, encompassing the perspectives of 1,420 global IT professionals, paints a picture of resilience and foresight. About 65% of organizations in the APJ region are gearing up to amplify their IT investments in the coming year. Artificial intelligence stands out as a beacon of progress, with 59% of respondents from the region identifying it as a catalyst for positive change in their organizations. The report also casts light on the evolving cloud landscape, noting a shift towards edge computing, private cloud, and public cloud infrastructures.
“These results highlight a decisive shift in artificial intelligence from the technical curiosity and pilot programs in 2023 to accelerating business outcomes through the industrialisation of Responsible AI solutions in 2024,” expressed Srini Koushik, President of Technology and Sustainability at Rackspace Technology. He further delved into the nuances of cloud infrastructure, noting a trend towards sophisticated, workload-aware strategies.
The Rising Tide of Generative AI in 2024
The report also brings into focus the transformative role of generative AI in the region. Sandeep Bhargava, SVP, Global Services and Solutions, Public Cloud Business Unit at Rackspace Technology, reflected on the alignment of AI and cloud solutions with Malaysia’s National Artificial Intelligence Roadmap 2021-2025. He underscored the evolution of AI from experimental phases to a force driving tangible business outcomes in 2024.
AI: Adoption and Associated Challenges
The survey unveils that 33% of organizations are either scaling up their generative AI projects or transitioning prototypes into production. Meanwhile, a significant 65% are either contemplating or planning to embark on generative AI ventures. The anticipated benefits span across security enhancements, new product development, and boosts in productivity and revenue streams. However, the path to AI integration is strewn with challenges, including the demonstration of AI’s value, infrastructural support, and a scarcity of skilled IT professionals.
Cloud and Edge Computing: Emerging Frontiers
Edge computing is emerging as a key player, with 30% of organizations anticipating its integration into their IT infrastructure within a year. The survey also highlights a widespread adoption of hybrid cloud strategies, with 79% of respondents currently employing them. Transitioning to the cloud, however, is not without its hurdles, including security concerns, resource limitations, and budgetary overruns.
The Talent Search Conundrum
As AI and cloud technologies take center stage, the hunt for skilled talent becomes more pressing. A striking 77% of respondents point to a talent shortage as a primary concern. Therapid evolution of technology is inflating IT labor costs, with 42% of respondents in the APJ region acknowledging the need to increase salaries to attract essential talent. The most sought-after roles in this technological renaissance include 5G Specialists, Data Engineers, Cybersecurity Experts, and Data Scientists.
“The sustained pace and magnitude of technology advancements in AI, Cloud, Security, and other technologies demand an adaptable workforce that embraces lifelong learning,” Koushik emphasized. He highlighted the importance of a workforce strategy that values adaptability, problem-solving, and continuous learning as much as technical expertise.
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Survey Methodology: A Comprehensive Approach
This insightful survey, conducted by Coleman Parkes in the latter months of 2023, reached out to 1,420 senior IT decision-makers across diverse sectors in the USA, LATAM, EMEA, and APAC. Coleman Parkes, renowned for its expertise in B2B market research, particularly in the IT and technology realm, targeted a wide array of senior decision-makers in various global sectors.
The 2024 IT Outlook Report by Rackspace Technology, in collaboration with Dell and VMware, offers a revealing glimpse into the IT investment landscape of the APJ region. It underscores a resolute shift towards AI and cloud technologies, despite prevailing economic challenges. The report also brings to light the critical need to address talent shortages and technological infrastructure to support this transformative journey.
For an in-depth exploration of the survey findings, the comprehensive 2024 IT Outlook Whitepaper and Infographic are accessible here.
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