Enterprise adoption of AI technologies is the main driver of growing US demand for public cloud services over the past year, according to a new research report published by Information Services Group (ISG).
The 2024 ISG Provider Lens Multi Public Cloud Services report for the US finds many firms are turning to cloud platforms for scalable, on-demand computing power, storage, tools and AI-specific services.
“AI and cloud computing have a close symbiotic relationship,” said Anay Nawathe, ISG cloud delivery lead for the Americas. “Increasing AI adoption in the coming years will create significant growth in the public cloud industry.”
GenAI is gaining traction at US enterprises, but companies are still exploring it cautiously, ISG says. Most GenAI deployments are proofs of concept to better understand the technology’s potential applications and broader implications. Enterprises are testing GenAI in several areas, including content creation and personalized marketing, but most customer-facing applications are not yet in production. Service providers are guiding clients through the early stages of this transformation.
The report says most large companies are seeking industry-specific solutions that optimize existing workloads while midsize enterprises prioritize affordability and rapid deployment of outcome-focused cloud transformations.
As US enterprises deploy more AI-related workloads, they seek immediate cost savings to balance the growing demands of digital transformation with tight budgets, the report says. While public cloud infrastructure gives companies greater flexibility, it often leads to complex billing structures and unexpected costs if not managed effectively.
