GenAI projects are influencing cloud adoption: HCLTech study

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Generative artificial intelligence (GenAI) projects are influencing cloud adoption and increasing interest in cloud native practices for application modernisation as 98% of the enterprises surveyed are exploring customised solutions, says an HCLTech report.

Application modernisation is a top priority for cloud value realization and 80% of enterprises agree that the value of the public cloud can only be fully realised if applications are modernised when they are migrated (vs. just lifting and shifting them), said the report titled ‘Cloud Evolution: Mandate to Modernize’.

“Cloud is not just a technology investment; it is fundamental to how businesses modernize. The convergence of cloud, GenAI and the acceleration provided by cloud native practices is essential to how enterprises operate, enabling rapid decision-making, enhancing customer experiences and driving competitive advantage,” said Siki Giunta, executive vice president and head of cloud native center of excellence at HCLTech.

“Embracing cloud native architectures and platform engineering is essential for enterprises aiming to build a robust, future-proof IT landscape that supports continuous innovation. By refactoring applications and leveraging cloud native disciplines and practices, businesses can unlock unprecedented levels of agility, scalability and resilience,” she added.

About 55% of the enterprises said that data for custom GenAI solutions resides on-premises leading organizations to initially run some solutions on-premise and scale to cloud over time.


The report by India’s third largest IT major is a survey of 500 senior business and technology leaders across multiple industries and geographic regions. Commissioned by HCLTech, the study of the report was conducted by the global analyst firm, ESG via interviews with business and technology leaders.

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The Noida headquartered company said the report offers an analysis of how enterprises are reshaping their cloud strategies to drive innovation and business transformation.As per the report, hybrid, multicloud will continue to be the norm and enterprises today are 2.2x more likely to have a deliberate multicloud strategy than three years ago.

Despite the growing adoption of public cloud computing technologies, 81% of the enterprises acknowledged that they would maintain a significant on-premises infrastructure due to data security and regulatory needs. This highlights the importance of a hybrid cloud strategy.

It also said that 87% of enterprises are now utilising more than one cloud provider, with an average of three providers forming the backbone of their multicloud strategies. This reflects a growing recognition of the importance of flexibility and redundancy in cloud infrastructure.

Further, 85% of enterprises reported that within the next year, they will definitely or likely collaborate with additional cloud providers beyond their current engagements.

Referring to the value offered by third-party consulting, the study pointed out that 83% of enterprises that partner with third-party consultants have reported significant improvements in IT efficiency and application performance, highlighting the value of expert guidance in cloud strategy execution.

“IT operations need to be seamless across cloud environments and enterprises that invest in open solutions can enable such consistency while significantly mitigating the complexities of multicloud. The findings of our study emphasize the necessity for enterprises to approach cloud as the foundational platform for deploying AI-driven solutions that will shape the future of industries,” said Rampal Singh, vice president and global business head, hybrid cloud, HCLTech.



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