Local AI: Governance Before Hardware Purchase
Benedikt Langer
10 min readFour developments over two weeks show that locally operated AI goes far beyond the tech stack. ...
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German companies typically spend more than half of their IT budget on the cloud. This is particularly cost-effective for smaller businesses, but less so for large enterprises. This is revealed by the new “Cloud Monitor 2024” from KPMG.When it comes to the cost-benefit analysis of cloud services, there are currently some conflicting reports. The “Cloud Monitor 2024” from KPMG sheds some light on the situation. The consulting and auditing firm surveyed over 500 companies in Germany. Almost all of them, or to be precise, 98 percent, use the cloud in one form or another. More than half (55 percent) rely on hybrid cloud models. 57 percent view their own cloud as an IT security strategy and a means to digitize internal processes. 58 percent of companies spend more than half of their IT budgets on the cloud. For large enterprises, this figure rises to 64 percent.
Cloud migration pays off for most businesses
A majority of companies experience cost savings through migration. Overall, two-thirds (67 percent) of the surveyed companies have expressed positive experiences in this regard.
When choosing a cloud provider, performance and stability are crucial for 70 percent of respondents, while 69 percent prioritize trust in security and compliance. For users of the public cloud, independence from the respective provider is decisive for 62 percent.
For users of private and hybrid clouds, platform independence is less important, with 50 and 52 percent respectively. However, the location of the cloud provider is important for most companies, with over half still preferring a data center within the EU legal area. Environmental and social factors, as ESG criteria, are important for over three-quarters (77 percent) of the surveyed companies when using the cloud. This proportion is even higher for large enterprises, at 84 percent.
For the “Cloud Monitor 2024,” KPMG surveyed executives from 503 companies with at least 50 employees in June and July. The executives came from the respective management or the areas of engineering, DevOps, IT/OT operations, and FinOps, including cloud financial management, controlling, and procurement.
Source title image: Adobe Stock / Pornarun