The video explores the transformative role of Artificial Intelligence and hybrid cloud technology in modern business. It discusses how these technologies are shifting from mere tools to fundamental drivers of business value, emphasizing the need for organizations to adopt an intentionally designed IT infrastructure to maximize AI's potential. The shift from a 'hybrid by default' to a 'hybrid by design' strategy is crucial for leveraging AI capabilities effectively.

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Key Vocabularies and Common Phrases:

1. paradigm [ˈpærəˌdaɪm] - (noun) - A model or pattern for something that may be copied. - Synonyms: (model, pattern, prototype)

The explosion of AI over the past couple years has tipped the scales on a long developing paradigm shift.

2. hybrid cloud [ˈhaɪ.brɪd klaʊd] - (noun) - A computing environment using a mix of on-premises, private cloud, and public cloud services. - Synonyms: (mixed cloud, combined cloud, dual cloud)

To fully capitalize on AI's potentials, organizations need a solid hybrid cloud foundation.

3. legacy estate [ˈleɡəsi ɪsˈtāt] - (noun) - The old or outdated IT infrastructure and systems still in use by an organization. - Synonyms: (old systems, outdated infrastructure, traditional setup)

Yet many businesses are still grappling with transforming their legacy estate and building the necessary foundation to foster that innovation.

4. fragmentations [ˌfræɡmənˈteɪʃənz] - (noun) - The process or state of breaking or being broken into small or separate parts. - Synonyms: (divisions, separations, splits)

This has resulted in fragmentations and silos across the organization.

5. intentionality [ɪnˌtɛnʃəˈnælɪti] - (noun) - The quality of being deliberate or purposive. - Synonyms: (purposefulness, deliberateness, intentionalism)

IT addresses that intentionality and consistency across AI platforms.

6. symbiotic [ˌsɪmbaɪˈɑːtɪk] - (adjective) - Involving interaction between two different organisms living in close physical association. - Synonyms: (mutualistic, interdependent, cooperative)

hybrid cloud and AI have a symbiotic relationship and when developed together, fuels business innovation.

7. generative ai [ˈjɛnəˌreɪtɪv aɪˈaɪ] - (noun) - A type of artificial intelligence capable of generating content like text and images. - Synonyms: (content-creating AI, creative AI, productive AI)

Now, there's no question hybrid cloud is the right choice for many organizations looking to be competitive and leverage generative ai

8. architecture [ˈɑːrkɪˌtɛk.tʃər] - (noun) - The complex or carefully designed structure of something. - Synonyms: (structure, framework, composition)

Two, they build an intentional architecture for core competencies

9. operational consistency [ˌɑːpəˈreɪʃənəl kənˈsɪstənsi] - (noun) - Uniformity in operations that ensures smooth, efficient functioning. - Synonyms: (uniformity, stability, reliability)

IT also provides operational and development consistency for productivity and scale.

10. modernization [ˌmɒdərnɪˈzeɪʃən] - (noun) - The process of adapting something to modern needs or habits. - Synonyms: (updating, renovation, innovation)

GENAI provides more effective ways to amplify hybrid cloud value, providing accelerated migration, modernization, cost management insight.

Transforming Business with AI and Hybrid Cloud - A Hybrid by Design Approach

The explosion of AI over the past couple years has tipped the scales on a long developing paradigm shift. Technology is no longer just another tool to support business objectives. It's a fundamental driver of business value. To maximize this value and join the AI revolution, organizations need an IT foundation that's built intentionally. Adopting a hybrid by design strategy.

The AI era holds great promise for unlocking new business opportunities and driving efficiencies. But to fully capitalize on AI's potentials, organizations need a solid hybrid cloud foundation. Yet many businesses are still grappling with transforming their legacy estate and building the necessary foundation to foster that innovation. Why is that? Well, as organizations have evolved, they have adopted technology in pockets across various environments, now managing on premise, multiple clouds and even edge. This has resulted in fragmentations and silos across the organization, leading to a variety of issues. Complex IT environments, unrealized business use cases and outcomes, cloud and technology sprawl, overspending, the inability to scale. And this is what we're defining as hybrid by default.

Now, there's no question hybrid cloud is the right choice for many organizations looking to be competitive and leverage generative ai. But to do so requires building an IT ecosystem that is intentional and consistent for business needs. With that in place, organizations then can harness the power of hybrid and AI to achieve speed, flexibility and innovation. What we are defining as hybrid by design.

Based on conversations with a wide range of companies, we've seen five common patterns emerge in organizations that operate a successful hybrid by design strategy. One, they embrace a product centric mindset for enabling business needs. Two, they build an intentional architecture for core competencies. Three, they create a consistent development and operational experience across their platforms. Four, they empower their product teams. And five, lastly, they harness the power of their data and scale generative ai.

Now, an intentionally designed hybrid cloud provides that blueprint to more effectively harness these desired capabilities so organizations can accelerate their transformation and maximize their return on IT investments. So how do we achieve this? Well, we can break down the approach to a hybrid by design strategy into three key transformation, product led by design, integration by design and technology by design.

The first transformation area product led by design, focuses on better business and IT alignment. Aligning all of IT processes around the value to products and services with purpose and consistency. Positioning business products and services as the primary driver for all of IT operations. With an intentionally designed operating model around what brings the most value to your end customers. IT also provides operational and development consistency for productivity and scale to meet the needs of the business and those products and services.

The second, transformation area, technology by Design focuses on intentional architectural choices across the IT stack that enable agility and innovation for your business needs as well as consistency across environments to empower and scale your product teams. IT addresses that intentionality and consistency across AI platforms, data platforms, common application platforms and your infrastructure, maximizing the advantages of your technology and focusing them for your business.

The last area, Integration by design, focuses on unifying your IT ecosystem, really the glue between your people and your technology, harmonizing systems and people across the architecture to ensure seamless data flow and collaboration across the company. So how do you prioritize these transformation areas and get started? Well, successful organizations will start with their business objectives.

Is IT cost savings, business growth, time to market, new product development, or all four? Every enterprise's situation demands different levels of capabilities to address and to achieve these business objectives. Organizations, though they have limited budgets and resources and so creating a prioritized roadmap is important to focus on what brings your organization the most value.

As we break down each transformation area, we can pinpoint the essential changes and priorities that align to your business objectives and reprioritize your digital transformation. Let's explore each in product led by design, an organization needs to focus on capabilities like product centricity, process and organization, people and culture, platform operations, while integration by design, an organization needs to focus on things like their integration experience, human to machine integration, their integration platforms, machine to machine integration, and in technology by design, organizations need to focus on things like security and compliance, gen AI models and platforms, data sharing and governance, kubernetes and hosting platform and operating platform.

By always aligning to your business objectives, you can determine which capabilities are most important to achieve your desired outcomes. Then you'll be better equipped to understand where you are now and where you need to aspire to be. Simply put, executing an efficient and effective transformation means looking tactically, holistically and business first, which in turn will maximize your business outcomes.

AI and specifically generative ai has become a critical puzzle piece in the success of this digital transformation journey. GENAI provides more effective ways to amplify hybrid cloud value, providing accelerated migration, modernization, cost management insight, increased observability, enhanced security, but at the same time hybrid cloud provides the means to leverage and scale GENAI more effectively. Gen AI users need an effective development platform across environments, cross environment management and optimization, cross stack security, an enterprise wide data platform, all of which a robust hybrid cloud platform can provide.

hybrid cloud and AI have a symbiotic relationship and when developed together, fuels business innovation and outcomes. A shift to this scope is never comfortable with AI integration and adoption now an absolute mandate. Enterprises no longer have a choice. It's necessary to recalibrate your hybrid cloud transformation programs to better align to business imperatives and leverage generative ai to amplify the value of cloud and accelerate your digital transformation. Hybrid by Design becomes the blueprint to maximize the value of hybrid cloud with and for generative ai.

ARTIFICIAL INTELLIGENCE, BUSINESS, TECHNOLOGY, HYBRID CLOUD, DIGITAL TRANSFORMATION, IT INFRASTRUCTURE, IBM TECHNOLOGY