AI & sustainability to shape tech adoption in ANZ in 2024
Pure Storage, an IT pioneer that provides advanced data storage technology and services, anticipates artificial intelligence (AI) and sustainability to be the key drivers of tech adoption and talent development in Australia and New Zealand in 2024. The company's predictions are based on the continued influence of these themes amid ongoing political, social, and economic uncertainties, which compel businesses to stay circumspect about tech investment while seeking to enhance operations using AI and meet corporate sustainability goals.
The company's expectations are backed by a recent study it commissioned, titled 'Drivers of Change: Meeting the Energy and Data Challenges of AI Adoption', which underlines the necessity of reassessing data infrastructure to harness the benefits of AI sustainably and economically.
As shared in Pure Storage's Predictions for 2024, the role of AI in reshaping cloud computing is expected to be significant. With the rise of a new breed of hyperscalers, focused on AI-specific services such as Graphics Processing Unit (GPU) Cloud, the cloud computing space is predicted to face a shake-up, thereby disrupting the status quo of incumbent IaaS hyperscalers. This growth in AI-centric cloud services will be driven by GPU chip manufacturers directing demand from a wide customer base to these new cloud providers.
In addition to the AI evolution, 2024 is predicted to witness the emergence of the sovereign cloud - cloud services that comply with data location regulations. This necessary adaptation is driven by tight regulations associated with data use, particularly within the financial services sector, and complexities arising from AI systems such as GenAI. Leading this movement in Asia Pacific are Australia, New Zealand, Japan, and Indonesia.
Moreover, with growing environmental sustainability efforts, IT departments are anticipated to play a significant role in achieving corporate sustainability objectives. Collaborative efforts are expected between the Chief Technology Officer, Chief Digital Officer, and the Head of Sustainability to broaden the IT's involvement in sustainability, especially in improving energy efficiency through software standardization. It is estimated that 90% of energy is wasted due to inefficient software.
The implementation of new technologies usually leads to high demand for related skills, and AI is expected to continue this trend. The demand for talent in Generative AI and other hot areas such as cloud computing, Kubernetes, data architecture, and cybersecurity will contribute to a talent crunch, and this will likely be one of the biggest challenges to broad AI adoption. This demand extends to industries traditionally low in tech usage, such as agriculture, forestry, and fishing, as these sectors shift their focus towards data analytics.
In terms of channel-specific predictions for 2024, diverse incentive structures, partner autonomy, and skills development are slated to become the central focus of partner programs. Consultative sales, incentive programs, resource provision for skills development, and self-service tools are expected to be significant components of this focus.
Additionally, organisations channel strategy will likely shape around the development of strategic ecosystems of technology alliances, which will result in a wider market reach, enhanced solution offerings, and a more robust channel strategy.
Commenting on this outlook, Amy Rushall, Area Vice President, Australia and New Zealand, Pure Storage, stated, "It is an exciting time in our industry, but adoption can have its challenges. Key factors affecting technology adoption in the region in 2024 are financial flexibility, data center modernization and environmental sustainability priorities. AI adoption is also a driving force. Pure Storage has the technology and expertise to help organizations navigate through the challenges while maximising the outcomes for our clients."
