Unpacking the Challenges Shaping Enterprise IT in 2025

A convergence of opportunities and challenges is shaping the future of enterprise IT as organisations grapple with the dual pressures of technological innovation and operational complexity. Generative AI (GenAI) and hybrid multicloud architectures are emerging as transformative forces, promising new levels of productivity and agility. Yet, the journey to realising these benefits is far from straightforward. Critical barriers such as infrastructure integration, data security, and acute talent shortages threaten progress for many businesses.

CIOs clearly have GenAI pegged as an area they need to start paying a lot more attention to. This can be clearly seen in the feedback in the 7th Annual Nutanix Enterprise Cloud Index (ECI) Report, a report we commissioned Vanson Bourne to conduct amongst 1,500 IT, DevOps, and Platform Engineering decision-makers. 

The results? Nearly 98% of IT leaders report struggles with scaling GenAI workloads from development to production, a challenge compounded by the growing need to modernise infrastructure and adopt cloud-native solutions. Meanwhile, 95% of organisations recognise that GenAI demands new rigour in data security and governance as they work to balance innovation with compliance. These operational and strategic issues require leaders to rethink aligning technology investments with business goals.

The Infrastructure Revolution: Hybrid Multicloud and Cloud-Native Standards

Hybrid multicloud has emerged as the backbone of enterprise IT, offering unparalleled flexibility, scalability, and efficiency. The ECI Report highlights that over 50% of organisations fully containerise their applications, with another 44% actively transitioning. This widespread adoption underscores containerisation’s role as the “gold standard” for modern IT infrastructures. By enabling seamless, secure access to data across hybrid and multicloud environments, containerisation has become a critical enabler for enterprises aiming to scale operations and support next-generation workloads.

Kubernetes plays a central role in this transformation, with 98% of respondents leveraging it for orchestration. As a foundational technology, Kubernetes ensures enterprises can manage cloud-native applications with agility and consistency. Its dominance reflects the growing emphasis on operational flexibility and the ability to integrate seamlessly across public, private, and edge environments.

GenAI as a Business Game-Changer

The rapid adoption of GenAI marks a shift in how organisations approach productivity, automation, and innovation. Over 85% of enterprises have developed a GenAI strategy, with 55% actively implementing solutions. While initial use cases focus on customer support and experience, organisations are swinging towards more sophisticated applications such as cybersecurity, fraud detection, and data protection. Over 51% plan to prioritise these areas within 1–3 years, signalling GenAI’s evolution into a business-critical capability.

This accelerated adoption is underpinned by a growing recognition of GenAI’s transformative potential. Beyond operational efficiency, it can unlock new revenue streams, enhance decision-making, and drive customer-centric innovation. However, realising these benefits demands alignment with strategic business objectives and a robust infrastructure to support scalability and resilience.

Challenges in Scaling GenAI

Despite its promise, scaling GenAI workloads from development to production remains a significant hurdle. Nearly all respondents (98%) report challenges, with 54% citing integration with existing IT infrastructure as the top barrier. Skills shortages (53%) and limited visibility into ROI (52%) further compound the difficulties. Additionally, only 75% of organisations have tools or processes to manage the lifecycle of GenAI models, highlighting gaps in readiness.

To address these challenges, enterprises must focus on modernising their IT infrastructure and adopting lifecycle management tools. Automated monitoring and optimisation are also critical, yet only 41% of respondents currently leverage such tools for GenAI. Moreover, clear strategies for hardware deployment are essential, as 60% of organisations have plans for GenAI-specific hardware while 40% remain in exploratory phases. For leadership, these challenges present an opportunity to invest in foundational capabilities that enable scalable and sustainable GenAI deployments.

Data Security in the GenAI Era

The rise of GenAI has introduced new complexities to data security and governance. According to the report, 95% of organisations agree that security and privacy are top priorities for GenAI implementation. Privacy concerns, particularly around sensitive data usage, rank as the primary challenge for 38% of respondents. Despite this awareness, 95% believe their organisation could do more to secure GenAI models and applications.

These findings highlight a dual challenge for C-level leaders: maintaining traditional security standards while addressing emerging risks associated with GenAI. Investments in cybersecurity, data governance, and talent development are essential. While only 21% of organisations report readiness in GenAI-related skills, 69% are actively hiring to address gaps, and 53% of employees view GenAI advancements as an opportunity to upskill. By prioritising robust governance frameworks and workforce development, enterprises can mitigate risks and ensure compliance in a rapidly evolving landscape.

Regional Variances: Adapting to Global Trends

Regional differences in cloud and GenAI adoption emphasise the importance of tailored strategies for global organisations. The report reveals that APJ leads in GenAI strategy implementation, with 60% actively executing plans. However, the region lags in containerisation readiness, with 16% still transitioning. Conversely, the Americas dominate Azure AKS usage (56%), while EMEA leads in Google GKE adoption (54%).

Challenges also vary by geography. Integration with IT infrastructure is the top issue in the Americas (59%) and APJ (58%), whereas EMEA respondents cite a lack of skills (52%) as the primary barrier. These disparities underscore the need for region-specific approaches to technology investments, workforce development, and strategic planning. For C-level leaders, aligning strategies with regional strengths and gaps is critical for achieving consistent performance and resilience across markets.

The Call to Action for Leadership

The 2025 ECI Report provides a clear mandate for C-level executives: embrace hybrid multicloud and GenAI as foundational pillars of enterprise IT. To succeed, organisations must address the convergence of technology and people. This includes prioritising investments in containerisation, cybersecurity, and talent acquisition, as well as fostering a culture of innovation and agility.

As the report highlights, the path forward is not without challenges. Yet, by aligning IT strategies with business objectives and adopting scalable, future-ready technologies, enterprises can unlock the full potential of hybrid multicloud and GenAI. The rewards are significant: enhanced productivity, operational efficiency, and a competitive edge in a rapidly changing digital landscape.