AI ambitions at risk as only 11% of African enterprises fully realise cloud value

NTT DATA, a global leader in artificial intelligence, digital business and technology services, has released its new report, “Cloud-led innovation in the era of AI: The new rules for driving value with cloud” – revealing that just 14% of global organisations and 11% of African organisations have reached the highest level of cloud maturity, despite nearly two decades of cloud adoption.

Based on a global survey of more than 2 300 senior decision-makers (including 125 leaders from Africa) and across 33 countries, the findings highlight a paradox as cloud takes on a new and critical role as the execution layer of the AI operating model.

While 99% of organisations say AI is increasing demand for cloud investment, 88% say current cloud investment levels are putting AI, cloud-native and modernisation initiatives at risk.

Additionally, while cloud is seen as essential for innovation, fewer than half of organisations are satisfied with its impact or with their modernisation progress, signalling a disconnect between ambition and reality as expectations rise.

Cloud leaders, or organisations that indicated they are ‘cloud evolved’ – the most advanced in terms of cloud adoption and impact, with solid business performance – are significantly better positioned to capitalise on AI.

“AI is accelerating faster than enterprise cloud maturity,” says Charlie Li, president and global head of Cloud and Security at NTT DATA, Inc. “Cloud has moved well beyond infrastructure and is now the execution layer for AI. Organisations that fail to evolve their cloud foundations risk constraining the growth and value of their AI investments. Our clients who are succeeding are treating cloud as a value creator, not a technology initiative.”

Adds Murray Campbell, managing director of Cloud and Security, MEA: “AI is moving fast, and the cloud needs to keep pace. Across the African continent we see strong ambition, but many organisations still need to modernise and secure their cloud environments to unlock real value.

“When the basics are in place, cloud becomes a powerful enabler – helping AI deliver meaningful impact and business growth.”

Six imperatives for driving value with cloud in the era of AI

NTT DATA outlines six rules organisations must adopt to turn cloud into a strategic value engine:

1. Cloud and AI strategies need to be developed in tandem

AI demand is rising, yet alignment is uneven. Chief AI officers are 22% more likely than chief information officers and chief technology officers to say AI increases cloud investment needs. Additionally, AI is cited as the top cloud skills gap.

2. Cloud architecture choices will make or break your success

With cloud deployment choices now directly influencing cloud outcomes, organisations are increasingly adopting a mix of public, private, hybrid and sovereign cloud models. Nearly all expect private cloud growth and sovereign cloud adoption is projected to grow 50% in two years.

3. Reimagine how you drive business value with modern applications

Despite widespread agreement that cloud should drive innovation, half say legacy applications and data platforms are holding it back. Modernisation is the top priority for the next two years.

4. A platform-led approach is no longer optional

As investments stall and environments become more complex, more than half cite cloud cost management challenges and organisations expect a threefold increase in fully managed cloud platforms.

5. Reset your cloud transformation key performance indicators

While AI is critical for helping organisations shift from technical to business metrics for cloud initiatives, adoption remains uneven. 47% of cloud leaders used AI in their last cloud migration project, compared with 35% of all others.

6. Make cloud secure with a focus on the basics

Security is the top cloud investment priority, yet confidence remains uneven: 68% of leaders are highly confident, versus 36% of all others. Leaders are also much more likely to define clear roles and responsibilities backed by regular audits, reinforcing the importance of the fundamentals as technology ecosystems grow more complex.

Together, these imperatives provide a framework for unlocking value in an AI-driven world. To explore the full findings, download the report here.

About the report

Respondents include C-suite, senior executives and other senior staff from enterprises spanning technology, manufacturing, banking, financial services, healthcare, consumer and other sectors.

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