Cloud & Infrastructure: The Unsung Heroes of the AI Revolution

One of the trends we explore in West Monroe's Tech Trends to Watch in 2024 e-book is the resurgence of cloud and infrastructure technologies. Our market research reveals a new type of space race emerging—not for the stars but for digital and physical space in cloud computing power and data storage. While this might sound like old news, it's anything but.

Why does this matter? Our analysis shows that:

• Scalable and adaptable infrastructure is crucial for staying competitive.
• Innovation in hardware and software continues to accelerate, driven by competition in the AI landscape.
• Environmental impact of emerging technologies can pose significant business risks for organizations prioritizing sustainability goals.

Our take on this trend

Updating and scaling infrastructure should be a priority if organizations want to handle the increased demand for data storage and processing that comes with innovation.[MS1] 

But companies also need to approach infrastructure investment thoughtfully by balancing several factors, including budgetary constraints, sustainability goals, environmental stewardship, and the need to ensure flexibility, scalability and resilience.

We’ve identified several actions for companies to take now:

• Determine your existing infrastructure issues.
• Embed sustainability values into your infrastructure plans.
• Build resilient plans and resilient infrastructure.
• Don’t miss the next tech wave because you’re too focused on AI.

We anticipate a future where flexible, scalable, and resilient infrastructure will be the cornerstone of competitive advantage. But this isn't a one-and-done deal. The landscape is constantly evolving, and infrastructure strategies will need to evolve with it.

One of the most intriguing findings from our report is the environmental aspect. The surge in AI usage is significantly increasing electricity demand and carbon footprints, with some estimates expecting data center power demand to grow by 160% by 2030. This underscores the need for sustainable infrastructure practices.

There’s no indication that the pace of disruption is going to slow; if anything, it will increase. New players with forward-thinking visions will come along and edge out the long-time industry leaders that are too short-sighted to invest in their own futures.

As we navigate this new era, organizations that view infrastructure as a strategic asset – not a cost center – will be the ones that thrive. It's about creating a foundation that can handle the demands of today while being flexible enough to adapt to the innovations of tomorrow.

I encourage you to dive into the full report for a more comprehensive look at this trend and its implications. The future of business is being built on these technologies. Make sure your foundation is strong enough to support your ambitions.