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Manufacturers could outpace hybrid cloud adoption: Report

  • Posted on Thursday 13th, June 2019.

A recent report shows that the manufacturing industry’s hybrid cloud usage and plans outpace the global average across industries.

A hybrid cloud is a computing environment that uses on-premises, private cloud and third-party public cloud services with coordination between the two platforms.

The deployment of hybrid clouds in manufacturing and production companies has currently reached 19 per cent penetration, slightly ahead of the global average. Also, manufacturers are reported to plan more than double their hybrid cloud deployments to 45 per cent penetration in two years; outpacing the global average by four per cent, according to the Nutanix Enterprise Cloud Index 2018.

Nutanix measures manufacturing company’s plans for adopting private, public and hybrid clouds.

The company claims that manufacturers have a desire to innovate and drive transformation but legacy IT systems have the potential to constrain their ability to do so.

“The opportunity for manufacturers to embrace digitisation efforts including ‘Industry 4.0’ initiatives can break the impasse, but executives must focus on new opportunities to create value and not only prioritise traditional business operations,” Nutanix said in a statement. “Manufacturing organisations face the constant challenge of trade-offs: they are under pressure to meet current productivity and operational goals in an increasingly global and highly competitive marketplace, but they also need to invest in future growth.”

The Enterprise Cloud Index findings indicate that manufacturing leaders are aggressively adopting new technology to embrace modernisation. The distributed cloud model is reported to offer a solution that delivers speed, flexibility, and localisation, allowing manufacturers to improve efficiency without compromising quality.

While 91 per cent of survey respondents reported hybrid cloud as the ideal IT model, today’s global average hybrid cloud penetration level is at 18.5 per cent, according to Nutanix, where the os disparity due in part to challenges of transitioning to the hybrid cloud model.

Manufacturing industries reported barriers to adopting hybrid cloud that mirrored global roadblocks, including limitations in application mobility, data security/compliance, performance, management and a shortage of IT talent. Compared to other industries, manufacturers reported greater IT talent deficits in Artificial Intellience and Machine Learning (AI/ML), hybrid cloud, blockchain, and edge computing / Internet of Things (IoT).

“Manufacturing is a key component of Australia’s economic engine, adding over 10,000 new jobs in the past quarter alone,” according to Nutanix Managing Director Australia, Jamie Humphrey.

“As the industry frees itself from the shackles of outdated processes and systems, technology has become an integral part of doing business. New technologies will require digital infrastructure if they are to help the industry thrive into the future. Building a future-ready and relevant industry on a tech infrastructure designed over 25 years ago may undermine that momentum and our future competitiveness.

“The good news is that the industry sees this and has already begun embracing hyperconverged infrastructure and hybrid cloud to ensure the foundations are in place to build Australia’s digital future.”

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