Government’s IT spends tied to AI

Primary drivers for IT infrastructure investments in the next year include ransomware prevention, IT modernisation, and AI strategy support to gain flexibility and access new capabilities to improve operations and enable mission success.
Representative Image
Representative Image

BENGALURU: Public sector IT leaders expect substantial near-term adoption of multiple IT operating models, yet the current usage is slightly behind the average compared to other industries. Nutanix, a US-based hybrid multi-cloud computing firm, says in its latest report that the use of hybrid multicloud models in the industry will quadruple over the next three years. To back its forecast, it says IT decision-makers at public sector organisations are looking to modernise data centres into private clouds and preserve choice in public cloud deployments.

Primary drivers for IT infrastructure investments in the next year include ransomware prevention, IT modernisation, and AI strategy support to gain flexibility and access new capabilities to improve operations and enable mission success. “Much like other industries, public sector organisations are eager to modernise their IT infrastructure and lay the foundation to adopt new technologies to deliver better services and experiences for constituents,” says Greg O’Connell, senior director sales, public sector at Nutanix.

“In fact, 80% of the public sector said they expect to increase their investments in AI technology in the next year,” he added.

Key findings of the report:

1) Hybrid multicloud deployments lag behind other industries. The vast majority of both public sector organisations (85%) and all sectors (90%) agree that their organisations now embrace cloud-smart IT deployment strategies. However, just 8% of global public sector organisations report using a hybrid multicloud approach.

2) When public sector organisations are investing in IT infrastructure, protection from ransomware is the primary driver.

3) Security and compliance are the biggest drivers of application relocation and the top priority for CIO/CTOs, as public sector organisations recover from high rates of ransomware attacks. The vast majority of ECI respondents -- 92% in the public sector group and 95% globally-- say they had moved one or more applications to a different IT environment in the past 12 months.

4) AI use is going up, though issues concerning data privacy and best practices persist. Though AI support ranked fairly low on public sector infrastructure purchasing criteria, respondents show high levels of interest in the technology elsewhere.

5) Top challenges involve multi-environment storage, operations, security, and sustainability. Managing multiple IT environments creates operational challenges often related to interoperability and data management across infrastructures with dissimilar underlying technologies.

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