The Gartner IT Symposium/Xpo™ took place in Barcelona in November. It is the world's most important meeting for CIOs and many other top decision-makers. Over 6,400 participants learned about technologies and trends and how they can use them to shape the future of digitalization and business. We were right in the thick of things and gathered important insights for our customers. Conclusion: cloud, AI, and sustainability continue to be important business drivers.
Some positive news first: despite the multiple crises at present, decision-makers are confident and are investing in digitalization and cloud computing to remain competitive and increase sales. IT expenditure in Europe is forecast to grow by 8.7 percent to a total of 1.28 trillion U.S. dollars in 2025.1 IT services expenditure on AI solutions in particular is expected to grow by 21 percent in 2025. In addition to AI, European CIOs are increasingly investing in the public cloud and cyber security.
Other key findings that I have taken from the Symposium: by 2028, around 80 percent of companies will use powerful public cloud services to shape their digital transformation and drive innovation. For comparison: in 2023, this figure was only 60 percent. In addition, almost 70 percent of large organizations will use managed services for cloud-native architectures and operations by 2028. Because companies need more and more support for their complex hybrid environments, among other things, the market for cloud services is growing continuously. This includes consulting, cloud implementation and deployment, as well as cloud migration, operation, and the further development of cloud services; in short: professional services.
We are currently noticing that many customers are rethinking their cloud strategies. Some companies are considering whether they should move everything to the cloud. However, as not all solutions in the cloud are cost-efficient, they need support with cost control and the optimization of their IT landscapes in order to examine various possible scenarios. In addition to our Cloud Transformation Consulting offering, FinOps Services provide various methods and tools to optimize cloud spending, cost transparency, and efficiency in multi-cloud environments. Our FinOps Cloud Services support companies in introducing robust governance models to make cloud costs transparent and to reduce them.
Let's take a look at the AI trend: according to market analysts, more and more CIOs are creating added value for their business with generative AI (GenAI).2 By the end of 2027, more than 80 percent of companies will want to use AI. The aim is to consistently integrate AI tools into work processes so that employees have more time for relevant topics and innovation. By using GenAI, employees save an average of 3.37 hours per week. We are also noticing that companies that are increasingly relying on AI are also achieving benefits that go beyond productivity. These include improvements at operational and process level, such as the automation of important business processes, or at business level, leading to new sources of revenue.
Data readiness is a key factor for the success of AI. However, data that conforms to traditional standards and a lack of data management often act as brakes on companies’ AI ambitions. This is because the current data management practices are too slow and too rigid, causing bottlenecks in AI initiatives. In order to create real added value with AI, the necessary data must first be processed and made accessible and “usable.” With this in mind, AI-ready data must be contextualized for specific use cases and technologies. We offer suitable solutions for this and can provide an assessment to determine steps that need to be taken. Our experts are on hand for subsequent advice and implementation.
In addition, the costs of AI can quickly spiral out of control. In another survey of market analysts, more than 90 percent of CIOs said that cost management limits their ability to add business value with AI.3 Meaning: costs are just as big an AI risk as safety or hallucinations. The solution: with proofs of concept, those responsible can check at an early stage how the costs for AI are stacking up – and not just how AI solutions are working. There is also the impact of GenAI on employees. Some feel a strong affinity for AI; others feel rather uncomfortable with it. It is, therefore, crucial that those responsible manage the effect of AI on the corporate culture with the same care as the technological and business impact.
No matter where you are in your transformation – whether you are introducing AI solutions, need a secure cloud, have to meet the requirements of regulated industries to be on the safe side in terms of data protection and compliance (sovereignty), or want to make the company more sustainable – we are by your side. T-Systems’ Cloud Professional Services are directly linked to business advice and address individual customer needs in a targeted manner by planning and implementing the solution with their experts. We demonstrate how companies can achieve their business goals – such as moving their IT to the cloud. In our Cloud Transformation Assessment, we determine what customers need to know and do to continue their cloud journey successfully. We advise on all key transformation topics – such as increasing efficiency and optimizing costs – and support you in achieving your business goals so that you can concentrate fully on your core competencies.
If you want to solve current challenges with cloud computing, we can help you: if one of your specialist areas is imposing new requirements; if you want to use AI to boost your innovative strength, protect personal data, and meet regulatory requirements, or if you need a faster time-to-market to remain competitive. The challenge: those responsible often lack a valid basis for decision-making because there is a lack of transparency, shadow IT exists, or there are too many knowledge gaps. This is where you can leverage T-Systems’ extensive experience and expertise, built up over many years in numerous customer projects and capable of developing sustainable and innovative solutions.
We plan, launch, and support you on your transformation journey. With a Cloud Transformation Assessment, we determine what you need for this. It creates the necessary transparency and is the basis for a successful transformation: which workloads can be migrated to the cloud and how? To what extent? What are the costs – including in subsequent operation? How is a secure cloud guaranteed? How are industry-specific regulations complied with? How can the cloud be compliant and conform with data protection requirements? We find the right cloud governance model during the assessment. And we know which topics customers will be concerned with when it comes to cloud operation.
That is by no means all. As part of our Cloud Professional Services, we also support you with downstream topics such as:
Reducing your carbon footprint and complying with ESG regulations at both national and EU level: sustainability continues to be a high priority for companies. Cloud services can contribute to this:
In an assessment, we can examine how you can position yourself more sustainably with the help of the cloud. If a company has many workloads that are no longer used, these can be excluded before the migration. This means that nothing is migrated that does not later run in the public cloud and that is therefore not actually used. It helps companies to subsequently switch off unused resources in the data center as well. Our cloud services help address sustainability issues and ensure that you can comply with regulatory standards and adopt green IT practices.
The year 2025 will be exciting. Generative AI will drive automation and accelerate decision-making. Cloud solutions and AI-based analyses are not only a must for long-term competitiveness, but also offer the flexibility and scalability that modern companies need. At the same time, Sovereign Cloud usage and sustainability are becoming increasingly important in order to stand out from the competition. Use these trends to future-proof your company and secure added value.
Find out from Nicole Berg how T-Systems can drive your cloud transformation.
1, 2, 3 Gartner IT Symposium/Xpo™, Barcelona, November 2024
