The Critical Role of Hybrid Multicloud and Other Key Takeaways for CXOs from the Sixth Annual Nutanix Enterprise Cloud Index Report

The pivot to a hybrid multicloud environment must form part of a CIO’s infrastructure strategy to take full advantage of next-generation solutions.

The key for CIO’s and other C-level executives is to plan for and enable this critical eventuality in their enterprise. The compelling business case for adopting the shift to hybrid multicloud is highlighted in the sixth annual Enterprise Cloud Index (ECI) report1.

The findings of the ECI report reveal a notable increase in the planned deployment of hybrid multicloud infrastructure, which spans private IT infrastructure (on-premises and hosted), public clouds and edge locations.

The key takeaways for CXOs according to the ECI report include the following:

1. Hybrid multicloud infrastructure deployments will become an infrastructure standard

Hybrid multicloud infrastructures are becoming a standard, with 90% of IT leaders adopting a cloud-smart strategy to optimize application hosting across datacenters, clouds and edge environments.

This approach, driven by the clear benefits recognized by over 80% of organizations, has positioned hybrid IT infrastructure as a critical priority for nearly half of CIOs.

Currently, 46% of organizations employ a hybrid or multicloud model. The reason? IT must enhance flexibility, cost efficiency, app performance, and increase the speed of deploying new apps and workloads.

For CXOs, the key takeaway is the strategic importance of fostering a secure, efficiently managed hybrid multicloud environment to stay competitive and agile. The evolution toward hybrid multicloud infrastructure underscores the urgent need for integrated management tools and robust security frameworks.

2. Ransomware: The persistent threat to modern IT organizations

Ransomware is a serious challenge, with over 42% of IT decision-makers indicating it is a top security concern. This is confirmed by 92% of businesses, which unanimously agree on the urgent need to strengthen ransomware defenses and enhance security.

With 78% of organizations planning to increase their security budgets, the focus is on developing a robust, multilayered defense that strengthens resilience against attacks, improves detection and ensures rapid recovery.

Essentially, digital solutions demand more flexible and sophisticated defense mechanisms. This is further amplified by the experiences of 89% of companies, each having faced at least one ransomware attack in the last three years, 96% of which significantly impacted business operations.

For CXOs, the facts point to a need to prioritize investment in advanced security measures to safeguard organizational resilience against ransomware and ensure business continuity and integrity in an increasingly vulnerable digital ecosystem.

3. Data and applications continue to move in search of equilibrium

Today, 95% of organizations navigate a complex maze of options to select the ideal infrastructure for workloads and apps. All so they can ensure the best fit across on-premises, cloud, edge, and hybrid platforms. This continuous migration is influenced by the need to enhance security and ensure compliance.

For DevOps and platform engineering teams, the balance between data access, security and the integration of cloud-native apps dictates the speed and direction of this migration amid high cost and integration hurdles.

However, the ECI report emphasizes that considerations such as security, data protection, performance, and scalability overshadow cost management in IT decision-making. The report suggests a maturity in IT teams regarding the importance of long-term strategic benefits over immediate cost savings.

For CXOs, the message is clear: Be sure to make  infrastructure choices according to app, workload and data movement while ensuring flexibility and visibility. This will reduce the risks associated with executing complex app migrations.

4. Sustainability initiatives drive infrastructure modernization and migration

According to the ECI report, 98% of organizations are committed to sustainability and concrete actions are being taken to minimize the environmental impact of IT operations. Over half of respondents are working to make their IT infrastructure more sustainable, focusing on energy efficiency and reducing carbon footprints.

Indicating a shift in IT strategy, 32% of businesses are moving apps to meet sustainability objectives. This reflects a broader trend where IT decisions are increasingly aligned with environmental goals, marking sustainability as a central consideration in the planning and execution of IT infrastructure.

For CXOs, integrating sustainability into IT strategies extends beyond  environmental responsibility. It is also about future-proofing the business. By embracing sustainable technologies, CXOs can benefit from competitive differentiation, operational efficiency, compliance, innovation, cost reductions, and improve the corporate image.

5. AI solution adoption will drive infrastructure modernization

CXOs recognize AI's role in driving IT infrastructure modernization. Integrating AI into business operations became a priority in 2023, underscoring the need to re-evaluate and enhance existing IT investments to support AI apps. But 37% of businesses say that the state of their current infrastructure is a challenge.

The benefits of AI extend to edge computing and data management practices that deliver real-time analytics and support decision-making. In fact, 90% of organizations acknowledge the need to bolster edge strategies, with 72% planning increased edge investments to bring processing capabilities closer to data sources.

CXOs who are vigilant about AI must prioritize IT modernization and edge deployments to create a business with the infrastructure required to support the needs of AI-infused operations.

Future outlook

Embracing the inevitability of hybrid multicloud as the new norm demands a reimagined approach from CXOs. This reimagined infrastructure challenges leaders to dismantle silos, fortify against cyberthreats, and ensure seamless performance across diverse platforms, all while tailoring solutions to the demands of their business.

To learn more about how Nutanix can lead your organization on a successful path to hybrid multicloud, visit our website or contact your local Nutanix account executive. You can view the complete 6th Annual Nutanix Enterprise Cloud Index here.

¹ For the sixth consecutive year, Nutanix commissioned a global research study to learn about the state of enterprise cloud deployments and identify the biggest IT infrastructure and cloud-related data management initiatives and challenges. In December 2023, U.K. researcher Vanson Bourne surveyed 1,500 IT and DevOps/platform engineering decision-makers around the world. The respondent base spanned multiple industries, business sizes, and geographies, including North and South America, Europe, the Middle East and Africa (EMEA), and the Asia-Pacific-Japan (APJ) region.