NetApp’s Data Complexity Report 2024 reveals what AI will make or break in the coming year | 11.12.24

Organizations around the world are bracing for a year of AI transformation, security challenges and sustainability demands

SINGAPORE – Media OutReach Newswire – December 11, 2024 – NetApp® (NASDAQ: NTAP), the intelligent data infrastructure company, has released its second annual Data Complexity Report, examining how global organizations are tackling the increasing complexity of managing their data for AI. This year’s report provides a global view of the impact AI will have on organizations in 2025 and beyond, providing insights to help companies realize the potential of AI while navigating the complexities and risks posed by this transformative technology brings.

“2025 will be a defining year for AI, as organizations move from experimentation to scaling their AI capabilities,” said Gabie Boko, Chief Marketing Officer of NetApp. “This year’s Data Complexity Report shows that companies are making significant investments to drive innovation and efficiency, but these efforts will only be successful if global technology executives can address the increasing challenges of data complexity, security and sustainability. Intelligent data infrastructure, with unified data storage at its core, will be key to unlocking the potential of AI.”

AI Investments: Will AI Break the Bank?

Two-thirds of companies worldwide report that their data is fully or largely optimized for AI. However, despite this progress, 2025 will still require investments in AI and data management. In fact, 40% of global technology executives believe that unprecedented investment in AI and data management will be required for their companies by 2025. While companies have made progress in optimizing data for AI, achieving future breakthroughs will require even greater commitment and resources.

The study classified the markets studied into AI-leading and AI-lagging countries. The four APAC markets of India, Japan, Singapore and Australia and New Zealand (A/NZ) all fall into the leading category, with the overall share of APAC respondents saying their company’s data is fully or mostly optimized for AI, average 73%. slightly above the global number.

Data Silos: Will Your Data Hinder AI’s Success?

Data unification is emerging as a critical driver for AI success, with 79% of global tech executives recognizing the importance of unifying data to achieve optimal AI outcomes. Companies that prioritize data unification are likely to achieve their AI goals by 2025, with only 23% of companies that prioritize data unification saying they will not achieve their goals, compared to 30% of companies that prioritize data unification not prioritizing data collection. Investing in data management and infrastructure has become the top priority for organizations, with executives placing twice as much emphasis on it as on other AI-related initiatives – a trend that will only increase. Looking to the future, organizations that embrace data unification will be better positioned to fully leverage the transformative power of AI, allowing them to stay ahead in an increasingly competitive landscape.

In APAC, 85% of tech executives recognized the importance of unifying data to achieve optimal AI outcomes by 2025. Every country is increasing its investments in data management or infrastructure, except India, reflecting India’s past investments and lead in AI adoption. In India, 44% of tech executives see data management or infrastructure as their current top priority, while a lower 37% see it as a future top priority. Across APAC, technology executives in Japan (42%), Singapore (49%) and A/NZ (43%) see investments in data management and infrastructure as their highest future investment priority – exceeding their current top priority. .

Data Security: Will Cyber ​​Threats Grow Along with AI?

Global tech executives are bracing for a significant increase in security threats alongside AI adoption, with 41% predicting a sharp increase by 2025. Data privacy and security concerns have remained the top challenges globally year after year, with AI leading countries like India and Japan are. Singapore and A/NZ and the United States (which are further ahead in their AI journey) face almost twice as many security challenges compared to AI-lagged countries like Germany, France and Spain. As many as 72% of APAC respondents said the increase in AI adoption has led to an increase in security challenges for their businesses.

AI-driven security challenges are weighing heavily on the minds of global technology leaders, with 59% viewing these threats as a major global stressor. Also in APAC, more than half of respondents (54%) surveyed identified AI-driven security challenges as their top stressor. This increased focus reflects the growing complexity of cyber risks. Executives at board and C-suite levels continue to prioritize cybersecurity and ransomware protection, with 38% considering it a top priority. However, there is a bright spot: the strategic measures that organizations have implemented appear to be paying off. The focus on cybersecurity as a top priority has declined by 17% since 2023 – a promising sign that progress is being made in combating these ever-evolving threats.

Data Sustainability: Is AI Endangering the Planet?

As AI adoption accelerates, 34% of global technology executives expect major shifts in companies’ sustainability processes, and 33% expect new energy policies and investments from government. AI-powered data growth is seen as a key contributor to sustainability efforts, with AI-leading countries experiencing a greater impact than AI laggards. Reducing the carbon footprint remains a top priority, especially in regions where AI is widely deployed, although the focus has decreased year on year, from 84% of companies in 2023 to 72% in 2024. The challenge for the future will be controlling the environmental costs of AI. while maximizing the potential for innovation.

In APAC, three-quarters of respondents indicated the importance of reducing their carbon footprint – slightly above the global average. Increasing data and calculations due to the rise of AI have made a significant contribution to their companies’ sustainability initiatives, with 57% of respondents reporting a “high” or “extremely high” impact.

This year’s Data Complexity Report highlights a crucial shift: companies that invest in intelligent data infrastructure and prioritize security not only future-proof their operations, but also gain a significant competitive advantage in the AI-driven landscape.

“AI’s transformative potential depends on secure, scalable and sustainable data strategies,” said Krish Vitaldevara, Senior Vice President and General Manager of NetApp. “The organizations leading the way in advanced analytics and AI are organizations that have unified and well-cataloged data, robust security for sensitive information, and a clear understanding of how data evolves. By addressing these challenges, they can drive innovation while building resilience, accountability, and up-to-date insights in the new AI era.”

“We are at an exciting point in AI innovation and it is encouraging to see APAC organizations leading the way in data readiness for AI,” said Dhruv Dhumatkar, Chief Technology Officer, NetApp Asia Pacific and Japan. “Data is the key to AI success. For organizations to capitalize on their advantage, intelligent data management capabilities are essential to unify data and make it a strategic asset for positive business outcomes.”

For more information, read the full report here: www.netapp.com/pdf.html?item=/media/120560-2024-data-complexity-survey-report.pdf

Methodology

NetApp partnered with Wakefield Research to conduct a quantitative survey of more than 1,300 IT managers in 9 markets in November 2024: US, EMEA (UK, France, Germany, Spain) and APAC (Australia/New Zealand, Singapore, India and Japan).
Hashtag: #NetApp, #datacomplexityreport

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About NetApp

NetApp is the intelligent data infrastructure company that combines unified data storage, integrated data services and CloudOps solutions to turn a world of disruption into opportunity for every customer. NetApp creates a silo-free infrastructure, leveraging observability and AI to enable the best data management in the industry. As the only enterprise-grade storage service embedded natively in the world’s largest clouds, our data storage provides seamless flexibility. Furthermore, our data services create a data advantage through superior cyber resilience, governance and application flexibility. Our CloudOps solutions provide continuous performance and efficiency optimization through observability and AI. No matter the data type, workload or environment, NetApp allows you to transform your data infrastructure to realize your business potential. More information at www.netapp.com or follow us further X, LinkedIn, FacebookAnd Instagram.

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News source: NetApp