Retailers prefer hybrid cloud architecture to deliver flexibility, security: Nutanix report

The vast majority of retailers – 87.5 per cent – identified hybrid cloud as the ideal IT operating model, with many – 72 per cent – planning to move some public cloud applications back on-premises, a report by enterprise cloud computing firm Nutanix has found.

Retailers recognise that seamless customer experience is no longer a “nice-to-have” feature – it’s a critical factor in winning new customers and retaining existing ones – and flexible cloud infrastructure is critical to delivering it, according to the firm’s second Enterprise Cloud Index Report.

A recent IDC study noted that worldwide spending on customer experience technologies will reach $641 billion (Bt20.03 trillion) in 2022, demonstrating it is at the forefront of business leaders’ strategies. In line with broader IT industry trends, many retailers also recognise the full, long-term costs of the public cloud.

Additional findings of this year’s report include:

* Retailers focus most on agility: Unlike in the broader IT industry, where cost is the top driver, retailers ranked the ability to accelerate IT deployments (54.3 per cent) as the top factor in deciding the best cloud environment for each application.

* Security is top of mind: Nearly two-thirds of respondents (63.6 per cent) said security has significant influence on their future cloud deployments, with hybrid cloud specifically identified as the most secure (32 per cent).

* Retail leads in digital apps and IoT cloud deployments: Always innovating to keep pace with customers’ demands, retailers outpace averages in using the public cloud to run digital and Internet of Things (IoT) applications. They also run their business applications more often on the public cloud than other industries, with about 11 per cent current penetration of multiple public clouds and about 19 per cent penetration of a single public cloud.

“Staying relevant to today’s customers means having the necessary cloud infrastructure in place to embrace omnichannel retail experiences,” said Nutanix VP of Product Marketing Greg Smith.

“Retailers use data to connect the e-commerce and in-store shopping experiences, and the only way they can do this accurately and efficiently is through flexible, scalable technology. The rise of selling on social media platforms also means integrating payments into the user experience, bringing security and protection of customers’ data to the forefront of retailers’ minds. Hybrid cloud provides the portability and control needed to bring retailers into the new era of customer experience,” he added.

The 2019 respondent base spanned multiple industries and businesses around the globe – the Americas; Europe, the Middle East, Africa and the Asia-Pacific region.

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