A new survey from Red Hat shows the planned increase in investment for two key areas next year: cloud and AI. Polling 300 IT managers in Ireland from large businesses, the research sheds light on their strategic priorities and main challenges in adopting transformative technologies.
Cloud and AI investment on the rise
93% of IT managers surveyed say their organisation plans to increase investment in cloud technology by 2025, with a majority of them (43%) planning growth by 5-20%; 38% planning growth by 21-50%, while 10% plan an increase of 51% or more.
While organisations hope to leverage cloud strategy for growth, it may also help them combat tightening purse strings. In fact, the top priority for cloud strategy for the next 18 months is cost optimisation, cited by 71% of respondents. Other priorities include cloud-native application development and DevOps (67%); security, compliance and sovereignty regulatory requirements (67%); and moving to hybrid / multi cloud, reducing dependence on a single provider (67%).
Investment in AI is set to increase over the next year for 95% of organisations, according to respondents, with a majority (42%) planning an increase in the range of 5-20% and 33% planning a 21-50% increase, while 19% plan an increase of 51% or more.
When it comes to selecting solutions for predictive and generative AI, all IT managers surveyed see benefits in adopting enterprise open source. They see the top advantage being enhanced agility in hybrid cloud environments (31%), followed by improved ecosystem collaboration and integration (30%).
Cloud innovation is a focus, yet siloed teams slow adoption
To prime their organisation for development amidst a competitive landscape, over a third (37%) of IT managers in Ireland are planning for a strong focus on innovation and new technologies in 2025. Meanwhile roughly a third (31%) will take a balanced approach, focusing equally on new technologies and enhancements to existing systems. 18% are focused on essential services only.
Regarding challenges when adopting cloud, 96% of respondents said they face siloed teams, with half (51%) saying this is a frequent issue. The most common impacts this has on cloud strategy are increased costs, limited control and visibility over cloud resources, operational inefficiencies and difficulty in implementing new technologies.
Addressing AI readiness and challenges
When asked about their ability to take advantage of the growing AI opportunity, 42% of IT managers surveyed state that their organisation has scalable, flexible and accessible IT platforms to support AI use and feel well positioned to benefit from them. This compares to 23% that have the necessary platforms but lack the right skills sets to fully harness AI’s potential. Meanwhile 34% still need new platforms.
As enterprises increasingly explore generative AI to solve existing problems or seize new opportunities, the survey looked to identify factors that determine trust in an enterprise model for generative AI. Multiple factors were shown to be important, in the 80-85% range, including: transparent, modifiable models with explainable sources; cost-effectiveness; domain-specific models (as opposed to generic LLMs); and compliance with data privacy and security standards.
While organisations are keen to invest in AI for growth, there are some obstacles preventing CTOs or equivalent decision makers from advancing generative AI initiatives. The top listed challenges were integration with existing systems (30%); concerns about data privacy and security (27%); high costs of implementation and maintenance (23%) and sustainability concerns (23%).
Ireland’s tech talent pipeline
Respondents highlighted skills gaps in key areas like AI and cloud. However, there was less strength of agreement compared to respondents in other countries in another recent Red Hat survey, which could suggest that respondents in Ireland see greater progress in filling the tech talent pipeline.
The top named skills gap from respondents in Ireland was not in technology itself, but in strategic thinking and ability to tackle business-level issues, cited by 44%. This compares to the top skills gap in the UK which was AI, cited by a majority of 88% respondents in the aforementioned survey. The next three top listed skills gap among respondents in Ireland were found to be cybersecurity (42%), AI (41%) and cloud computing (39%).
Robbie Byrne, Country manager, Ireland at Red Hat, describes the balancing-act faced by IT leaders today.
“The survey results reflect the challenging dynamics we are seeing with our customers: a keen focus on innovation as they look to drive their digital transformation to the next level, while also needing to optimise costs,” he commented. “Contemporary technologies such as automation, AI and cloud-native applications can bring efficiencies, but there are also headwinds such as internal silos, skills gaps and in some cases a lack of access to the right IT platforms.”
Byrne described how Red Hat is supporting enterprises with their modernisation efforts: “we believe that having greater choice, flexibility and independence at a platform level is going to be crucial for businesses looking to harness AI’s potential and navigate unknown disruption ahead. We see enterprise open source playing a more important role than ever as organisations seek agility in a hybrid world.”
