GenAI’s Impact on Cloud Computing

88% of orgs prefer to run AI on-prem. Cloud-first? Not always the best fit. Generative AI isn’t just for the cloud.

In the latest installment of “Talking Tech with Travis,” my guest Scott Sinclair from Enterprise Strategy Group delved into the shifting dynamics of cloud computing and the transformative impact of generative AI. Over the years, we’ve witnessed a significant diversification in cloud adoption, with organizations strategically utilizing multiple public cloud providers alongside on-premises and hybrid solutions. This strategic approach allows companies to optimize performance, manage costs and streamline data operations based on their specific requirements.

What’s particularly intriguing is the resurgence of on-premises infrastructure, fueled by a newfound appreciation for its role in housing high-value data and critical applications. Now, with the rise of generative AI, we’re seeing a renewed focus on investing in AI capabilities across both cloud and on-premises environments. This dual approach is driven by the imperative to leverage proprietary data effectively, enhancing the precision and applicability of AI models.

“88% of organizations identify, ‘Hey, look, all things being equal, we prefer to run AI on-premises.'”
– Scott Sinclair, ESG Global

As we navigate this dynamic landscape, the key takeaway is the importance of harnessing the unique strengths of each platform to achieve operational excellence and propel innovative AI initiatives forward. Stay tuned as we continue to explore these trends in upcoming episodes of Talking Tech with Travis!

Travis Vigil

About the Author: Travis Vigil

Travis Vigil is Senior Vice President leading Portfolio and Product Management for Dell’s Infrastructure Solutions Group (ISG). He and his team are responsible for Dell’s Server, Storage, Data Protection, CI/HCI, Networking and Solutions businesses. He has over 20 years of Product Management, Marketing and Business Operations experience with technology companies including Intel and Dell. In previous roles at Dell, he served as Senior Vice President for Storage and Data Protection Product Management, and Senior Vice President for Business Operations focused on Dell’s Server, Storage and Networking Businesses. He has a B.S. from Stanford University and an M.B.A. from Northwestern University’s Kellogg School of Management.