Report indicates that rising complexity of cloud environments has a negative impact on IT performance.

A recent report states that a significant number of senior IT leaders, around 98 percent, have experienced negative effects due to the rising complexity of cloud technology. These adverse impacts may include compromised IT performance, reduction in earnings, and hindrances to the progress of businesses.

The 2023 Cloud Complexity Report by NetApp examined how technology leaders are handling cloud needs related to digital transformation and AI advancements as well as the intricacies of multicloud settings.

Matthew Hurford, who is the Vice President and Managing Director at NetApp in Australia and New Zealand, has noted that cloud complexity has reached an unprecedented level. This means that organizations in these two countries are experiencing constant pressure to manage their cyber risk, adopt emerging technologies, and optimize their budgets.

Even though the information states that the management of cyber risks is a top priority in all regions, the data from ANZ implies that the tech teams there are not fully utilizing applications. This presents a significant chance for improvement.

According to recent research, businesses in Australia and New Zealand are experiencing a variety of challenges due to the growing complexity of their cloud environments. Cybersecurity risk is at the top of the list, with 54% of respondents expressing concern. Additionally, more than half of those surveyed reported that staff were not fully utilizing business applications, while 45% expressed skepticism about the cloud from leadership. Finally, nearly half of all businesses cited a lack of visibility into their operations as a major challenge.

Ronen Schwartz, who is the Senior Vice President and General Manager of Cloud Storage at NetApp, states that their research report has revealed changes in the way technology leaders approach and handle their cloud projects on a global scale. This shift in thinking is considered a paradigm shift.

With the growing pace of cloud adoption and the need for businesses to innovate faster to stay competitive, technology leaders are increasingly feeling the heat to juggle numerous priorities at the same time. Due to this pressure, many are reconsidering how they can effectively manage the balance between efficiency and security in this new and ever-evolving environment.

Gabie Boko, who holds the position of Chief Marketing Officer at NetApp, has explained that our survey from around the world proves that IT systems have become extremely complex in the modern era. Technology executives are faced with immense pressure to show that cloud investments have generated measurable outcomes.

"At NetApp, we've made complicated things easy with our system. It lets technology leaders quicken innovating processes and decrease expenses. It also enhances uniformity, adaptability, and swiftness in both on-site and cloud settings."

Important discoveries from the report consist of:

Companies across the world are facing a significant challenge when it comes to managing the complexities of data stored in the cloud. The executives responsible for technology are under immense pressure to find ways to manage this complexity and limit its negative effects on the business. However, many are finding that they're facing significant difficulties in implementing their cloud strategies due to both technical and organizational roadblocks. A vast majority, about 88%, are struggling to work across different cloud platforms, while nearly one-third (32%) are finding it challenging to align leadership to have a clear vision.

Around the world, various regions have identified different areas of concern when it comes to managing data complexity. Cybersecurity is the primary worry for France, Spain, and Australia/New Zealand. Leadership scepticism is a prominent issue in the minds of those in France, Spain, and Japan, while Australia/New Zealand has expressed concerns regarding inefficient use of data across their organizations. Finally, Japan has highlighted a lack of visibility when it comes to managing data complexity.

NetApp reports that sustainability is proving to be a surprising motivator for cloud technology, as almost 80% of tech leaders claim that environmental, social, and governance (ESG) results are vital to their cloud approach. Nevertheless, company leaders remain worried about the return on investment (ROI), as 84% of technology executives expect their cloud plan to deliver positive results throughout the entire organization.

About 49% of tech bosses stated that cost issues are frequently or always mentioned when conversing about cloud strategies. Cloud adoption is also influenced by rules regarding data and compliance, with multiple local regulations advocating the use of a multicloud approach some or most of the time.

Down under in Australia and New Zealand, a whopping 86% of tech bosses are feeling the heat to prove the return on investment for their cloud expenditures. This may come in the form of generating more income or cutting expenses, and the expectation is that this ROI will materialize quickly.

Seventy-one percent of tech executives hailing from Australia and New Zealand have stated that their decision to implement a multicloud strategy is primarily motivated by their need to comply with data sovereignty regulations.

Tech leaders are exploring AI as a potential resolution. According to a recent survey, 37% of tech executives anticipate using AI-powered apps to support at least 50% of their cloud deployments over the next year. Smaller establishments with less than 250 employees are more optimistic, with nearly half predicting to achieve the same goal in the next twelve months, and 63% hoping to attain it by 2030. In contrast, larger companies appear to be behind on this trend.

According to a recent study by NetApp, there is a discrepancy between executives in IT and those outside of IT. Leaders working towards implementing cloud services are dealing with issues related to cost and complexity, while those outside IT are not fully aware of these concerns. This has led to challenges for the leaders in the process of transitioning to the cloud. Vendors have the chance to help address these issues as customers express their concerns about the implementation of cloud services. By offering solutions to simplify the process, vendors can assist in easing these challenges. Senior Strategist & Analyst at the Evaluator Group, Randy Kerns, stated that these developments provide an opportunity for vendors to offer useful and effective solutions to customers.

According to Matthew Swinbourne, who is the CTO of Cloud Architecture at NetApp Asia Pacific, leaders in the APAC region understand how important cloud technology is for achieving critical business goals, such as data sovereignty and sustainability. To fully take advantage of the benefits the cloud offers and stay competitive, organisations need to tackle the complexities associated with it. NetApp can help these customers by using their know-how, capabilities, and partnerships with hyperscalers to provide a flexible cloud solution designed to meet their specific needs in terms of cost, efficiency, sustainability, and risk management.

According to NetApp, as more companies adopt multi-cloud systems, it aims to help resolve productivity issues by offering IT leaders a unified user interface. By enhancing its cloud strategy, the company leads the way in modern cloud management and storage solutions, offering teams the means to stay up to date with upcoming trends mentioned in the research report, such as expense optimization, risk analysis, and sustainable operation.

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