98% senior IT leaders struggle with increasing cloud complexity: Report

Top challenges in optimising multi-cloud environment are lower in the US, UK, India, finds NetApp

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Technology decision-makers are largely affected by cloud complexity as organisations increasingly move to multi-cloud environments, according to a report released by NetApp, a global, data-centric software company, on March 30.

The survey found that 98 per cent of senior IT leaders struggled with the increasing cloud complexity, which heightened cybersecurity risks, inconspicuous cloud strategy and lack of leadership buy-in. 

NetApp partnered with Wakefield Research to conduct the research among 1,300 tech and data executives at businesses in nine markets: US, EMEA (France, Germany, Spain, the UK), and APAC (India, Japan, Singapore, and Australia/New Zealand).  The survey, titled “2023 Cloud Complexity Report”, explored how executives are navigating cloud requirements that come from digital transformation and artificial intelligence (AI) initiatives, along with the complexity of accelerated cloud adoption.

The dilemma has reached a tipping point where demand for a clear cloud strategy has increased to simplify the complexity to steer growth. 

According to the survey, businesses are exceeding their budget by 37 per cent due to cloud complexity. Though the ripple effect of cloud complexity continues to impact businesses, varying from market to market, top challenges in optimising a multi-cloud environment are lower in the US, UK and India. 

“Our global research report highlights paradigm shifts in how technology leaders look at and manage their cloud initiatives,” said Puneet Gupta, vice president and managing director, NetApp India/SAARC, in the report. Leaders face growing pressure to juggle their priorities that directly impact their efficiency and security relating to IT performance, cost optimisation and business growth in some capacity. 

Sustainability is an integral component with nearly eight in 10 tech executives citing environmental, social and governance (ESG) outcomes as critical to their cloud strategy. 

However, return on investment (ROI) is a concern among leadership with 84 per cent expecting returns through cloud strategy across the organisation.

Tech executives look to scaling AI and automation as a possible solution to offset workforce gaps and drive business innovation. Approximately 37 per cent of senior leaders intend to implement AI-driven applications in their cloud deployments by the next year. While big enterprises straggle, small companies with fewer than 250 employees are expected to reach the 50 per cent mark in the next year, and 63 per cent by 2030.

BUSINESS IMPACT	Percentage
Cybersecurity risk	45
Scepticism over leadership	44
Suboptimal use of business applications	44
Lack of visibility into business operations	42
Going overbudget	37
Burning out staff	31

Source: 2023 Cloud Complexity Report, NetApp