AI and sustainability driving changes in technology adoption and talent development in Asia Pacific and Japan in 2024

Pure Storage, the IT pioneer that delivers the world’s most advanced data storage technology and services, has shared its outlook on 2024. AI and sustainability, two defining themes in 2023, will continue to drive changes in technology adoption and talent development in Asia Pacific and Japan in 2024.

With uncertain political, social and economic conditions persisting into 2024, businesses will continue to stay pragmatic on their technology investments while looking for opportunities to improve their operations with AI as well as stay the course on their corporate environmental sustainability goals.

Pure Storage’s outlook is backed up by findings from a recent study that it commissioned. The study, “Drivers of Change: Meeting the Energy and Data Challenges of AI Adoption,” reveals the importance of reassessing data infrastructure to truly reap the benefits of AI and to keep energy costs in line. Here are Pure Storage’s predictions for 2024.

AI will cause a shakeup in cloud computing
We expect to see a shakeup in the cloud computing space with the emergence of a new generation of specialized cloud providers concentrated on AI-specific services such as Graphics Processing Unit (GPU) Cloud will disrupt the established status quo of IaaS hyperscalers.

-- This new breed of hyperscalers will grow rapidly on the back of GPU chip manufacturers channeling demand from a broad base of customers to cloud providers.
-- This space will also see M&A activities as the incumbent IaaS hyperscalers move to acquire AI cloud capabilities.

2024 will see the rise of the sovereign cloud
There is increasing desire for sovereign cloud based on tightening of regulations pertaining to the use and location of data, especially within industries such as financial services. Additionally, AI systems like GenAI, raise issues of sovereignty during the training process.

-- 2024 will see the rise of the sovereign cloud, as more organizations respond to government regulations requiring them to store data within their own jurisdictions for greater data control.
-- Countries that are taking the lead include Australia, New Zealand, Japan and Indonesia.

In 2024, IT departments will be asked to play a bigger role in company-wide environmental sustainability goals
As environmental sustainability efforts intensify, IT departments will be increasingly asked to play a bigger role in meeting corporate sustainability goals. While previously they were asked to get their own house in order with regards to energy efficiency, there is a growing recognition that IT can and must play a role in improving energy efficiency throughout the company.

-- We will start to see greater collaboration between the Chief Technology Officer, Chief Digital Officer and the Head of Sustainability to ensure that ITs role in sustainability goals is broadened.
-- One area where IT will show immediate impact is by standardizing software. Some estimates indicate that 90% of energy is wasted on inefficient software.

2024 will see another talent crunch, this time focused on AI
Whenever new technologies emerge, we see demands for talent and skills in those areas shoot up and it's no different with Generative AI. The war for talent will cause salaries to rise and we will also see many AI projects stall because of the talent crunch.

-- Besides Generative AI, the talent crunch will also persist in hot areas such as cloud computing, Kubernetes, data architecture, and cybersecurity.
-- This war for talent will be waged even in traditionally less tech-driven industries such as agriculture, forestry, and fishing as they shift towards data analytics. Professionals skilled in IoT, data analytics, AI, and environmental technology will be highly sought after in these industries.
-- This will become one of the biggest headwinds for the broad adoption of AI.

In 2024, diverse incentive structures, partner autonomy, and skills development will become the core focus of partner programs
-- Resellers will increasingly pivot towards consultative sales and delivering expert guidance to address the changing requirements of customers.
-- To boost partner engagement and drive revenue, organizations will invest in incentive programs such as rebates for booking deals and exciting channel contests.
-- Partner programs will prioritize delivering comprehensive resources, encompassing demo units, online and virtual labs dedicated to partner skill development, and tailored Proof of Concept (POC) support, which aim to empower partners with enhanced tools for success.
-- Vendors will make substantial investments in self-service tools designed to empower partners by streamlining the quote generation process. This shift towards self-service tools is driven by the increasing demand for agility and efficiency in value chains.

Ecosystem approach to shape organizations’ channel strategy
-- Organizations will work towards building strategic ecosystems of technology alliances, establishing interconnected relationships that extend beyond individual partnerships. This ecosystem-oriented approach will result in a broader market reach, enhanced solution offerings (especially in emerging fields such as AI), and a more robust channel strategy, driving the promotion and sales of integrated solutions.

Ramanujam Komanduri, Country Manager, India, Pure Storage, said: “Three key factors that are going to affect technology adoption in India in 2024 are financial inclusion, data center modernization and India’s commitment to the Paris Convention. AI adoption is also going to be a driving force. Pure Storage has the technology and expertise to help organizations in India navigate through the challenges and maximize the opportunities.”