As organizations create, store and tap into data more and more for AI/ML applications, storage migration pose a major challenge
According to Wasabi’s latest APAC Cloud Index study, a significant challenge is in managing cloud budgets as emerging technologies like generative AI make budget control that much harder.
46% of APAC respondents identified storage migration for AI/ML workloads as a primary challenge. AI adoption is undeniably changing the way businesses do storage. Put simply: the object storage market is becoming hotter, as businesses increasingly tap into their data resources for more frequent access to fuel AI/ML applications.
Unsurprisingly, industry data shows that close to 50% of stored volume was in the warm, cool zone (Goldilocks Zone) as compared to 5 years ago, when the number of organizations in the cold zone was much higher.
DigiconAsia discussed some of these key findings with Michael King, VP & GM, Asia Pacific and Japan, Wasabi Technologies:
How is the cloud storage landscape evolving across APAC?
Michael King: The region has been undergoing a technological revolution in recent years; in 2023, the collective digital economy was valued at $100 billion. The cloud remains a significant propeller for innovation and business transformation – increasing both data generation and data storage needs at the same time.
This is fueling increasing reliance on the cloud – particularly for public cloud storage – with 93% of businesses in the region set to increase their usage of public cloud storage this year alone. Ultimately, as businesses actively embrace the cloud, the scalability, flexibility, and efficiency it brings to data storage and management cannot be disputed.
Specifically, this growth is driven by an increasing number of businesses leveraging emerging technologies such as Artificial Intelligence (AI) – with 99% of businesses planning to adopt or are already implementing AI/ML solutions.
As AI becomes foundational for operational efficiency and competitiveness, this will result in a surge in data volume and processing demands – after all, AI relies on large data sets and the continued expansion of these data sets to consistently deliver accurate predictions and insights. The result? A skyrocketing demand for scalable storage solutions to accommodate this ever-growing data deluge.
With AI being widely adopted by organizations, cloud storage needs are growing tremendously. How should organizations balance innovation with cloud spend prudence?
King: While data needs are increasing, businesses are simultaneously faced with complex and/or hidden fees that exacerbate the risk of overspending. The same report found that 51% of businesses in the APAC exceeded their storage budget in 2023 – with Singapore proving to be the biggest overspender at 66%.
Furthermore, 48% of these storage budgets were not even spent on storage – the service they are ostensibly paying for – but instead for ancillary charges they cannot predict and must abide by. With the mobility of data as critical for businesses to consistently extract value from the explosion of data they are expected to generate, enterprises must then rethink their cloud storage solutions.
Businesses who want to continue their adoption of emerging technologies will need to rein in their budgets. Without the ability to predict costs and the flexibility to scale as needed, businesses may struggle to optimize their cloud operations, hindering the ability to achieve maximum returns and realize the cost savings initially promised.
Especially for small and medium-sized enterprises (SMEs) who typically operate on a tighter budget, striking a balance between storage costs and the imperative to adopt new technologies is crucial.
Businesses should then prioritize selecting their cloud providers prudently – particularly providers that charge no additional fees for egress or API operations so that they can access the data they own whenever they need to.
This way, businesses can effectively manage their budgets and mitigate risks of unexpected costs associated with fluctuating storage fees. These make affordable, cost-predictable storage solutions the baseline for businesses in an AI-driven digital era.
What are some key considerations for businesses to recalibrate their cloud strategies with growing AI/ML adoption?
King: Undeniably, businesses operating without AI-inclusive cloud strategies face significant repercussions, including challenges such as cloud waste stemming from insufficient planning, over-provisioning, underutilization, and unforeseen costs. The efficacy of a robust cloud strategy is the determining factor in whether the cloud serves as a potential risk or a catalyst for achieving their business goals.
As data volume continues to swell, the absence of clear direction in cloud investments to gauge Return on Investment (ROI) may hinder businesses from optimizing their cloud operations efficiently.
Businesses must actively engage in developing and reassessing their cloud strategies to grasp current and future cloud usage patterns – to ensure agility, data security, and prudent management of cloud expenditure.
Key considerations include:
- Data security: Already a region susceptible to cybercrime, ransomware today remains a substantial threat, both in Singapore and globally, as cybersecurity vendors observe a 13% surge in ransomware incidents worldwide in 2022. Neglecting data protection can have severe repercussions for businesses, particularly in today’s environment where attacks are inevitable, and viruses or equipment failures can cause irreversible damage to operations and reputation. Choosing cloud vendors that can provide immutable backups or Multi-User Authentication (MUA), can protect businesses from data loss and facilitate rapid backup deployment following ransomware or accidental modifications.
- Cost management: Having a clear view on the predicted cloud expenses, to avoid stalled digital initiatives owing to insufficient resources. To that end, prioritizing cloud vendors that offer price predictability and cost transparency will ensure resource utilization and expense control, avoiding budgetary surprises.
- Sustainability: Businesses’ digital transformation ambitions must consider the environmental impact of the shift to digital. Although cloud adoption is generally less carbon-intensive than on-premise solutions, data centres still contribute up to 5% of global carbon emissions. Opting for cloud vendors that offer carbon tracking capabilities is one way businesses can monitor their carbon footprint effectively. Unsurprisingly, sustainability ranks as the top consideration when selecting a cloud storage provider, particularly in Singapore.
