Research shows Australian enterprise leading the world in AI adoption

Aaron White, general manager and vice president, Nutanix APJ

Sixth annual Nutanix Enterprise Cloud Index finds “cloud smart” infrastructure modernisation accelerating Australia’s AI and sustainability agendas

SYDNEY – Australian enterprises are vastly ahead of their global counterparts in infrastructure modernisation and a shift to hybrid multicloud in the country is underway, with AI and sustainability goals being the primary drivers. These are the key Australian findings from the sixth annual Nutanix Enterprise Cloud Index released today.

The ability to support AI had a considerably higher impact on the infrastructure choices Australian organisations made, with 44 per cent of respondents citing this as a primary driver, compared with 35 per cent of global respondents.

According to the research, this AI desire led to 99 per cent of Australian respondents following a ‘cloud-smart’ infrastructure strategy  – leveraging the best environment (e.g., a private datacentre, public cloud, or edge) for the unique requirements of each workload – compared with 90 per cent worldwide.

Aaron White, general manager and vice president, Nutanix APJ, said this year’s findings made it clear Australian organisations were ahead of the pack when it came to infusing their businesses with AI.

“It’s clear the interest in AI can no longer be chalked up to FOMO or hype as Australian enterprises aren’t wasting any time getting their businesses ready for the age of AI,” White said. “While to the casual observer familiar with ChatGPT, it might seem that ‘AI’ is just a website you visit, but for an enterprise to become AI-ready there’s a lot of work that needs to be done – and that starts at the infrastructure level.”

With Australia’s ‘cloud-smart’ approach well entrenched, 100 per cent of local respondents reported moving applications from one environment to another over the past year, compared with 90 per cent globally.

When asked the primary reason for shifting applications between environments, Australia’s AI aspirations were again made clear. More than half (58 per cent) of local respondents said they had shifted applications to integrate with cloud-native services such as AI and ML, making it the highest driver among Australian businesses. In comparison, only 40 per cent of global respondents reported migrating applications to integrate with such services.

“Australia is in pole position when it comes to enterprise AI adoption and this appears to be due to the heavy-lifting that’s been done with infrastructure modernisation,” White said. “While many nations struggle with a technical skills gap, it’s more pronounced in Australia. This could be a strong motivator to implement AI as it promises to level the playing field and increase competitiveness on the world stage.”

Further key findings from this year’s Australian results include:

• Sustainability is front of mind: 100 per cent of Australian organisations agreed sustainability was a priority. Furthermore, 45 per cent of Australian respondents said their organisation would “significantly increase” investment in sustainability efforts and technologies in 2024. Infrastructure modernisation and remote work were two of the top sustainability initiatives focused on by both Australian and global respondents. However, unlike the global average, far more Australian organisations reported “using more renewable energy sources” over the past year (52 per cent vs 39 per cent).

• Massive shift to hybrid multicloud underway. All global regions exhibited a similar expected decline in the proportion of on-premises datacentre, private cloud, and hybrid cloud models deployed over the next few years. In Australia, the proportion of hybrid multicloud IT models is forecast to increase significantly, from 14 per cent today to 55 per cent in the next 1-3 years.

• Ransomware keeping business up at night despite progress: Significantly more Australian organisations reported the ability to fully restore their operations following a ransomware attack in just a few hours compared with the global average (41 per cent vs 29 per cent). Despite this seemingly above-average result, 100 per cent of Australia respondents agree their organisation could make improvements to its ransomware protection stance. Further, 90 per cent of Australian respondents believed ransomware and malware protection remained a “significant to moderate challenge” for their organisation to manage.

For the sixth consecutive year, Vanson Bourne conducted research on behalf of Nutanix, surveying 1,500 IT and DevOps/Platform Engineering decision-makers around the world in December 2023. The respondent base spanned multiple industries, business sizes, and geographies, including North and South America; Europe, the Middle East and Africa (EMEA); and Asia-Pacific-Japan (APJ) region.

To learn more about the report and findings, please download the full sixth Nutanix Enterprise Cloud Index, here.

About Nutanix

Nutanix is a global leader in cloud software, offering organizations a single platform for running apps and data across clouds. With Nutanix, companies can reduce complexity and simplify operations, freeing them to focus on their business outcomes. Building on its legacy as the pioneer of hyperconverged infrastructure, Nutanix is trusted by companies worldwide to power hybrid multicloud environments consistently, simply, and cost-effectively. Learn more at www.nutanix.com or follow us on social media @nutanix.

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