Hybrid and multicloud strategies will continue to dominate business operations, according to HCLTech’s latest report, Cloud Evolution: Mandate to Modernize. The report stated that adoption of hybrid and multicloud by enterprises has surged, growing 2.2 times compared to three years ago.
“Cloud is not just a technology investment; it is fundamental to how businesses modernize,” said Siki Giunta, executive vice president and head of Cloud Native Center of Excellence at HCLTech. “The convergence of cloud, GenAI, and the acceleration provided by cloud-native practices is essential to how enterprises operate, enabling rapid decision-making, enhancing customer experiences, and driving competitive advantage.”
Conducted by the global analyst firm ESG, the report surveyed 500 senior business and technology leaders from various industries and regions.
One of the key findings is that 87% of enterprises are using more than one cloud provider, with an average of three cloud providers supporting their cloud infrastructure. This growing adoption is driven by the need for flexibility, redundancy, and the ability to optimize specific functions across multiple platforms.
Despite the increased adoption of public cloud technologies, many organisations still maintain significant on-premises infrastructure due to concerns over data security and regulatory compliance. In fact, 81% of the companies surveyed said they plan to keep part of their operations on-premises.
The report also underscores the importance of application modernisation in unlocking the full potential of cloud migration. A notable 80% of enterprises agree that the benefits of the public cloud are maximised when applications are modernised during migration, rather than simply being moved to the cloud as-is. Reflecting this trend, 73% of enterprises are actively refactoring their applications during migration, signifying a strong shift toward cloud-native modernisation.
Generative AI and cloud adoption
GenAI is playing a pivotal role in accelerating cloud adoption, according to the report. An impressive 98% of enterprises surveyed are exploring custom GenAI solutions on the cloud while also embracing cloud-native practices to modernise their applications.
However, 55% of companies pointed out that the data needed for custom GenAI solutions often resides on-premises. As a result, many organisations are opting to initially run some GenAI solutions on-premises before scaling to the cloud as these projects grow.
The rapid pace of cloud adoption has increased the importance of consulting firms, which are helping enterprises navigate complex cloud environments. According to the report, 83% of enterprises that partnered with third-party consultants reported significant improvements in IT efficiency and application performance.
