A new study by Dell Technologies and IDC reveals that organizations across the Asia Pacific (APAC) region are rapidly transforming their digital foundations, moving away from rigid 'cloud-first' policies toward flexible multi-hybrid cloud strategies. According to the report, modernizing private cloud infrastructure is now a business imperative to stay competitive and harness the power of artificial intelligence (AI).
Shift to Multi-Hybrid Cloud
The report highlights an unprecedented demand for IT environments that can adapt to evolving customer needs. It states that 46% of APAC organizations now prioritize cloud migration as their top infrastructure modernization strategy. Rather than relying on a single provider, leading enterprises are adopting a 'multi-hybrid' model, which combines public cloud services with modernized private clouds. This approach offers better financial control and the flexibility to place workloads where they perform optimally.
One of the most striking findings is 'workload repatriation'—the process of moving data and applications from public clouds back to private or local environments. This trend is especially pronounced in India, where 96% of organizations plan to repatriate some workloads. Key drivers include enhanced cybersecurity for sensitive data, reduced latency for high-speed tasks, and improved infrastructure efficiency.
AI's Role in Infrastructure Change and Challenges
The rise of AI is a major catalyst for these infrastructure changes. Companies require high-performance computing, massive storage, and fast networking to fully leverage AI. The study suggests that a hybrid cloud approach is the most practical way to support AI while managing costs and security requirements. By using 'disaggregated infrastructure,' firms can scale computing power and storage independently.
However, modernization comes with challenges. Tech leaders across APAC struggle to integrate new cloud solutions with legacy systems. In India, companies must balance digital growth with sustainability goals and the availability of physical power and space for data centers.
Venkat Sitaram, Senior Director & Country Head at Dell Technologies India, commented: 'Organizations are telling us that continuous modernization isn’t just an IT directive—it’s a business necessity. Companies want the freedom to choose, evolve, and innovate, backed by flexible, open architectures.'
