SINGAPORE: Singaporean businesses are highly optimistic about generative AI (GenAI) adoption, but a lag in containerization uptake could slow progress, according to the latest Nutanix Enterprise Cloud Index (ECI) report.
The report reveals that nearly 90% of organizations in Singapore anticipate breaking even or generating financial returns from their GenAI investments within one to three years. This level of confidence exceeds the 80% global average, highlighting the country’s strong commitment to AI-driven innovation.
However, while businesses recognize the transformative potential of GenAI, infrastructure challenges pose a significant roadblock to successful deployment.
A key concern is Singapore’s relatively low adoption of application containerization, a crucial technology for scaling and securing cloud-native applications.
Currently, only 60% of Singaporean businesses have embraced containerization—far behind the 80% adoption rate seen across the Asia-Pacific-Japan (APJ) region and globally. Containerized applications are essential for ensuring scalability, efficiency, and security, particularly as organizations ramp up AI deployment. The slower uptake in Singapore could hamper businesses’ ability to fully leverage GenAI capabilities.
Beyond containerization, more than 70% of Singaporean businesses struggle with infrastructure and integration issues when implementing AI solutions. Approximately 80% report that their existing IT systems require substantial upgrades, underscoring the need for modernization to support AI-driven workloads effectively.
Security concerns further compound the challenges. Less than 50% of Singaporean business leaders feel adequately prepared for security threats such as ransomware, compared to over 60% of their APJ and global counterparts.
This disparity suggests a pressing need for improved cybersecurity measures alongside AI adoption.
While Singaporean businesses demonstrate strong enthusiasm for GenAI, their ability to maximize its benefits hinges on addressing critical infrastructure gaps. Accelerating containerization adoption, upgrading IT systems, and strengthening security frameworks will be key to sustaining momentum and ensuring long-term success in AI-driven transformation.