Generative artificial Intelligence (gen AI) is reshaping every aspect of business, the economy, and society with its potential, including the way organizations interact with cloud services. In short, gen AI makes it easier for organizations to extract value from cloud services. This technology not only increases the appeal of cloud services, but also creates additional value by significantly reducing the investment and time costs of cloud technology adoption while supporting new business and technology scenarios.

Currently, organizations need to update existing applications to take better advantage of cloud services, which is time-consuming and costly. Initial attempts to apply AI-assisted repair and migration have shown a 40% reduction in time and cost (further analysis is required). At the same time, enterprises can integrate AI into cloud services by: integrating AI-enabled business cases; Accelerate the migration of local trading systems to build a complete AI customer experience; Improve the cost-effectiveness of application remediation and migration with generative AI.

Mature businesses face challenges when adopting cloud computing: While cloud services are attractive, the scale of change and investment makes achieving a good return on investment (ROI) difficult. Generative AI could change that, reducing the investment and time required for cloud services and creating new value through new business and technology use cases.

Currently, only 15 to 20 percent of applications run on the cloud by large companies, even after years of using cloud services, including SaaS offerings. Cloud adoption has only grown by 5% to 10% in the past year. Still, enterprise demand for cloud services remains strong. Of the more than 80 organizations surveyed, nearly all expect to move the majority of their applications to the public cloud in the next 5-7 years, with more than two-thirds expecting 80% of their systems to run on the cloud.

In fact, extracting value from the public cloud is very complex, and over the past few decades, enterprises have been building enterprise technology organizations, processes, and architectures to adapt to local environments, requiring many changes. Can gen AI change the cloud return on Investment (ROI)? There are two key points to this transformative opportunity. First, cloud services are critical to support the gen AI project. Due to gen AI's huge demand for compute, storage, and networking resources, the cloud platform provides the necessary scaling capabilities. In addition, gen AI's complexity requires a scalable, enterprise-grade cloud platform, rather than relying on decentralized development teams and fragmented pilot projects. Second, leveraging gen AI capabilities can accelerate the implementation of cloud projects.

Currently, the investment required to make certain applications run efficiently in the cloud is equivalent to years of support and maintenance costs. Initial attempts to apply gen AI to application repair and migration show a 40 percent reduction in time and investment costs, but further research is needed to understand how these improvements apply to different types of applications. Building end-to-end, gen AI-powered workflows will incentivize businesses to migrate existing trading applications to the cloud.

Cloud computing is expected to generate about $3 trillion in EBITDA by 2030. The value of innovation brought by cloud computing is five times greater than the reduction of IT costs; The EBITDA growth potential brought by cloud computing varies greatly among industries, the high-tech industry is the largest, and the electric utility industry is the smallest. Asian companies will reap the greatest benefits from cloud computing, with EBITDA expected to reach $1.2 trillion by 2030. The United States about $1.1 trillion; About $773 billion in Europe; The average cloud company achieves a 180% return on investment, but many don't. Only 10% of companies are taking full advantage of the value of cloud computing, 50% are just beginning, and 40% are not seeing value. 40% of companies make cloud migration decisions based on "business value," up from 27% in the previous two years. Generative AI can increase ROI for cloud applications by 75-110% by unlocking new business use cases, reducing application repair and migration costs, and improving cloud productivity.

Sources of cloud value: IT productivity, business innovation and advanced technologies, and how gen AI is expanding the value of cloud adoption. Enterprises can integrate generative artificial intelligence (gen AI) into cloud initiatives by integrating gen AI-enabled business cases, accelerating on-premises trading system migrations to build end-to-end gen AI customer journeys, and leveraging gen AI to improve ROI on application fixes and migrations. To ensure that gen AI operates safely and efficiently in the cloud, it needs to be integrated into the entire cloud initiative, including the underlying platform, FinOps tools, and security features.