Why Cloud Modernization Is Critical to Unlock the Potential of AI: Insights from Informatica PowerCenter Customers

Last Published: Mar 12, 2024 |
Sampa Choudhuri
Sampa Choudhuri

Director, Product Marketing

After becoming a popular buzzword in 2023, what’s the current state of artificial intelligence (AI) adoption? Specifically, what role does generative AI (GenAI) play in business in 2024 and beyond? And how can you prepare your organization to unlock the full potential of AI?

These questions were all top of mind as we conducted the Informatica State of Cloud Modernization Report 2024 survey. And the results underscore a pivotal technological turn: one where data and AI are increasingly intertwined with cloud modernization. The insights from our Informatica PowerCenter customers reveal a picture of the current cloud modernization landscape. Beyond that, they also cast a forward-looking view of what businesses can expect and how they can harness the potential of AI in the cloud.

The survey gathered responses from 300 senior data leaders and corporate and IT executives at companies using Informatica PowerCenter in North America, Europe and the Asia Pacific region.

Below are four key takeaways from the survey:

1) AI Takes Center Stage

2023 witnessed a surge in the personalization of GenAI, marking the early stages of proactive AI becoming more accessible on an individual level. This was aided mainly by the expansive growth of large language models (LLMs) and tools like ChatGPT, Google Bard and GitHub Copilot. This has a significant impact moving forward, as 84% of data leaders surveyed said they will implement AI to garner better insights into their applications and radically transform how they work in 2024. Additionally, they plan to use AI to generate better analytics of cloud-based applications and operations.

2) Cloud Modernization Is Critical to Thrive in the AI Era

The Informatica report gained a near-unanimous agreement (90%) that modernization to the cloud is essential for improving efficiency, driving innovation and ensuring scalability. Notably, 56% of data leaders attributed the main drivers of cloud modernization initiatives to the executive board, leadership, and C-suite, indicating top-down leadership as key in this strategic shift.

3) Delaying Cloud Modernization Can Impair Your AI Ambitions

With cloud modernization being an imperative step, respondents indicate that delaying their cloud modernization journey may lead to decreased efficiency (42%), slower speed and agility (37%), a reduced ability to adopt cloud-native platforms (21%) and serious integration challenges (20%). Such delays could ultimately impair your capacity to compete, innovate and satisfy your customers.

4) AI and Cloud First Mandates Go Hand-In-Hand

Corroboratively, 76% of data leaders stated that the initiative to modernize to the cloud and establish a strong AI strategy is frequently mandated by boards of directors and IT rather than being a grassroots effort from within the organization. Modernizing on-premises workloads to the cloud is forecasted to enhance compliance and reporting and bring significant benefits to businesses as they strive to address evolving data governance and technical challenges.

The State of Cloud Modernization Report 2024 highlights the growing significance of cloud modernization to unlock the potential of AI and thrive in the new AI era. For enterprises trying to remain at the forefront of technological progress, embracing cloud capabilities while navigating security, compliance and technical complexity is becoming increasingly essential.

Download the report for a more in-depth look at how PowerCenter customers plan to modernize to the cloud, or visit the Informatica PowerCenter modernization webpage for more information.

First Published: Mar 05, 2024