Cloud vs AI: Why Enterprises Prioritise Data Management

For years, modern technologies like cloud and AI have been reshaping how businesses operate, innovate and compete. Cloud computing has revolutionised data storage, processing and accessibility, enabling unprecedented scalability and flexibility. Meanwhile, AI has promised to unlock new realms of automation, insight and decision-making capabilities.

As businesses navigate the complex terrain of digital transformation and particularly hype around generative AI (Gen AI), a surprising trend has emerged. Despite the AI rush and its potential to revolutionise industries, many enterprises are prioritising cloud initiatives over AI investments.

Cloud still reigns supreme: Why enterprises are prioritising cloud over AI

In an era where AI continues to dominate headlines and capture imaginations, one might assume that enterprises are racing to implement AI solutions across their operations. However, recent research from Nasuni, a leading enterprise data platform for hybrid cloud environments, reveals a different reality. According to the company’s 2024 report, ‘The Era of Hybrid Cloud Storage,’ cloud data management is ahead of adopting AI in enterprise investment priorities.

The study, which surveyed over 1,000 IT purchasing decision-makers across the US, UK, and DACH regions, found that 54% of businesses consider cloud data management a key investment area for the next 18 months, compared to 48% for AI. This highlights a crucial insight: enterprises are recognising the importance of getting their data infrastructure in order before diving headfirst into AI initiatives.

“As hybrid cloud storage takes centre stage, organisations need strategies to capitalise on their most valuable asset: data,” emphasises David Grant, President of Nasuni. “In tandem, they need strategies for addressing critical IT issues including ransomware attacks and the introduction of AI integrations to the market.”

The prioritisation of cloud over AI is driven by several factors. 

1. Data Security and Privacy Concerns: The research reveals that 42% of organisations cite data security and privacy as the biggest roadblock to developing or implementing AI solutions. By focusing on cloud infrastructure, enterprises can address these concerns and create a secure environment for future AI deployments.

2. Hybrid Cloud Adoption: A staggering 65% of companies plan to implement a hybrid cloud storage model within the next year. This shift towards hybrid cloud solutions demonstrates a recognition that flexible, scalable data management is crucial for future growth and innovation.

3. Data Recovery and Business Continuity: In an age of increasing cyber threats, 59% of organisations see cloud initiatives as delivering better data security and disaster recovery times. This focus on resilience is critical for maintaining business operations and protecting valuable data assets.

4. Foundation for AI: While AI may not be the top priority right now, 60% of organisations are targeting advanced data management and visibility through AI in the future. By investing in cloud infrastructure today, enterprises are laying the groundwork for successful AI implementation tomorrow.

5. Skills Shortage: The study found that 35% of organisations face skills shortages when it comes to AI development and implementation. Cloud technologies, being more established, have a larger talent pool to draw from, making them a more immediately actionable investment.

The emphasis on cloud over AI doesn't mean that enterprises are ignoring the potential of artificial intelligence. Rather, it reflects a mature, strategic approach to digital transformation. By first establishing a robust, secure and flexible cloud infrastructure, organisations are positioning themselves to leverage AI more effectively in the future.

“Legacy storage solutions cannot keep up with these demands,” David comments. “Nasuni’s ‘The Era of Hybrid Cloud Storage’ report gives organisations the necessary industry and peer insights to understand and take action in a rapidly evolving cloud landscape.”

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