This research examines the strategic positioning of public cloud service providers to leverage artificial intelligence (AI) capabilities and monetize their service offerings. The report highlights the growing importance of public cloud providers in the AI ecosystem, given the increasing shift in enterprise and consumer data residing in the cloud. Cloud service providers aim to leverage their scalable compute and storage infrastructure capabilities to move up the value chain and offer AI tools and technologies.Convergence of AI and Cloud Accelerates Future Transformational Growth
The report identifies two channels for cloud service providers to monetize AI offerings - by addressing key AI implementation challenges and enabling application development through tools and prebuilt AI services. Survey findings show that the public cloud will emerge as a major AI deployment model followed by the edge model. The report identifies four growth opportunity areas for public cloud service providers to create an AI-driven competitive advantage: improving scalability, performance, and speed; aligning future growth strategy with the edge environment; developing the ability to support machine learning and deep learning workloads; and strengthening hardware and infrastructure capabilities.
Table of Contents
Strategic Imperatives- Why is it Increasingly Difficult to Grow?
- The Strategic Imperative 8™
- The Impact of the Top Three Strategic Imperatives on Public Cloud Services
- Growth Opportunities Fuel the Growth Pipeline Engine™
- Growth Environment
- Enterprises are Becoming Data Centric
- Organizations Perceive Cloud as an Essential Technology
- Why Organizations Choose to Deploy Apps in the Public Cloud
- Public Cloud Service Providers Play a Pivotal Role in the AI Ecosystem
- Why Cloud Service Providers Are Emerging as a Key Point of Contact to Procure AI Solutions
Growth Opportunity Analysis
- Monetizing the AI Growth Opportunity
1. Cloud Service Providers are Well Positioned in the Data Ecosystem to Address Key AI Implementation Challenges
2. Cloud Service Providers Enable Application Development Using Tools and Pre-built AI Services
- AI Growth Strategy
- Amazon Web Services
- Google Cloud
- Microsoft
Way Forward
- Public Cloud to Emerge as a Major AI Deployment Model
- Critical Steps for Public Cloud Service Providers to Create AI-driven Competitive Advantages
- Public Cloud Service Providers Must Leverage AI to Meet Evolving Customer Needs and Improve Operational Capabilities
Growth Opportunity Universe
- Growth Opportunity 1: Leveraging AI for Secure Public Cloud
- Growth Opportunity 2: Strengthening Hardware or Infrastructure Capabilities to Support AI Workloads
Appendix
- Respondent Profile
- List of Exhibits
- Legal Disclaimer
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
Microsoft
