APJ Businesses Prioritize AI and Cloud Investments in 2024 Survey

The 2024 IT Outlook Report for the Asia Pacific and Japan (APJ) region, presented by Rackspace Technology in collaboration with Dell and VMware, outlines key trends and priorities for businesses in the area:

IT Investment Priorities

Despite economic uncertainties, 65% of APJ organizations plan to boost IT investments in 2024. The top investment priorities are Artificial Intelligence (AI) and cloud transformation.

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AI Dominance

59% of respondents in APJ identify pervasive AI as the technology with the most significant positive impact in the next 12 months. A significant 98% of organizations plan to leverage Generative AI, indicating its evolution in the coming year.

AI Evolution

33% of organizations have completed or are taking generative AI projects into production, while 65% are ideating or planning to use it. AI is expected to provide benefits in security, new product development, increased productivity, efficiency, and revenue streams.

Challenges in AI Implementation

Challenges include demonstrating AI value (40%), insufficient technological infrastructure support (41%), shortage of skilled IT talent (30%), and data governance concerns.

Cloud and Edge Trends

Edge computing is gaining importance, with 30% of organizations planning to include it in their IT infrastructure in the next 12 months. 79% of respondents are currently employing a hybrid cloud strategy.

Challenges in Cloud Adoption

Challenges in transitioning to the cloud include security/compliance risks (37%), resource shortages (35%), cost overruns (34%), resistance to change (30%), and lack of stakeholder buy-in (23%).

Talent Search Dilemma

Shortage of skilled workers is a significant concern for 77% of respondents. 42% are willing to pay more for critical roles, with the rapid pace of technology advancements cited as the cause. Key roles difficult to hire 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. This challenge underscores the need for a different workforce strategy that prioritises adaptability, problem-solving, and continuous learning in addition to the latest technical skills to keep pace and drive innovation forward”, says Srini Koushik, President of Technology and Sustainability at Rackspace Technology.