The “State of Enterprise Tech 2024” report provides a comprehensive overview of the key trends shaping the enterprise technology landscape. This blog post will delve into the major findings and trends identified in the report, highlighting how enterprises are navigating the evolving tech environment.
1. Innovating Under Pressure
Despite external challenges such as economic uncertainties and supply chain disruptions, enterprises continue to prioritize innovation. This includes experimenting with new infrastructure, customizing AI models, and enhancing both employee and customer experiences. Senior tech leaders from companies with trillions in revenue have shared their insights, emphasizing the importance of strategic investments in technology to drive future growth.
2. Investment in Data and AI
Data Foundations and AI Integration
Enterprises are heavily investing in data warehousing, AI model development, business intelligence (BI) and analytics, AI governance, and data preparation. These investments are aimed at building robust data foundations that can support advanced AI applications. Data leaders are increasing or maintaining their budgets, with a significant focus on MLOps and Generative AI (GenAI), which saw an average budget increase of 36%.
Enterprise-Wide AI Centers of Excellence
To ensure cohesive AI strategies, 56% of data leaders have established or plan to establish hybrid AI Centers of Excellence (CoE). These centers align internal business units with a centralized AI strategy, facilitating enterprise-wide buy-in and adoption of AI technologies.
3. Infrastructure and Developer Ecosystem
Cloud Adoption and Hybrid Environments
The adoption of hybrid and multi-cloud environments is accelerating, with 91% of tech leaders increasing or maintaining their budgets for these technologies. This shift is driven by the need for scalability, resilience, and cost-efficiency.
DevOps and Serverless Computing
Enterprises are embracing DevOps practices, with 68% having implemented Continuous Integration/Continuous Deployment (CI/CD) pipelines and 62% deploying serverless technologies. These practices enhance scalability and resilience, allowing for more agile and efficient software development.
AI Integration in Development
AI copilots and agents are increasingly being used in software development to reduce coding time and improve code quality. This trend is part of a broader effort to integrate AI into various stages of the software development lifecycle.
4. Digital Experience
Customer and Employee Experience
Investments in customer experience (CX) and employee experience (EX) remain high, with 94% of executives maintaining or increasing their budgets in these areas. Key priorities include customer data management, analytics, and digital communications. There is also a stronger focus on learning and development, with 51% of leaders selecting it as a top priority for 2024.
5. Cybersecurity
Top Priority for Enterprises
Cybersecurity continues to be a top priority, with 49% of leaders identifying cloud platform security as a key budget area. Despite a slight decrease in the number of leaders increasing their cybersecurity budgets compared to 2023, there is still a strong focus on innovation and securing AI systems.
Identity and Access Management (IAM) and Application Security (AppSec)
IAM and AppSec are significant priorities, with enterprises investing in managing identities and securing applications. This focus is crucial for protecting proprietary data and ensuring regulatory compliance, especially as AI adoption increases.
6. Challenges and Strategic Focus
Data Security and Regulatory Compliance
Executives are particularly concerned about securing proprietary data and complying with regulations related to GenAI. AI governance, risk, and compliance (GRC) are top priorities, with 32% of respondents indicating investment in AI GRC as a key focus for 2024.
AI and Automation
While enterprises are investing in AI to enhance productivity and streamline workflows, they face challenges in scaling and implementing these technologies effectively. The report highlights the need for robust data foundations and governance frameworks to support AI initiatives.
7. Future Outlook
GenAI Adoption
Enterprises are in the early stages of adopting GenAI, focusing on use cases that enhance productivity and learning and development. The potential for GenAI to transform various business functions is significant, but it requires careful planning and execution to realize its full benefits.
Cybersecurity Innovation
The application of GenAI in cybersecurity is expected to enhance threat detection and response capabilities. Enterprises are exploring automated and AI-driven security measures to address the evolving threat landscape.
Conclusion
The “State of Enterprise Tech 2024” report underscores the importance of strategic investments in data, AI, cloud infrastructure, and cybersecurity. As enterprises navigate the complexities of the current tech landscape, they are prioritizing innovation and resilience to stay competitive. By focusing on building robust data foundations, integrating AI across business functions, and enhancing digital experiences, enterprises can drive significant value and achieve long-term success.
In summary, the key trends for 2024 highlight a continued emphasis on innovation, strategic investments in AI and data, the adoption of hybrid cloud environments, and a strong focus on cybersecurity. These trends are shaping the future of enterprise technology, providing a roadmap for organizations to navigate the evolving landscape and capitalize on emerging opportunities.
Also published on Medium.