Modernize or Perish - Infrastructure at a Crossroads

The following is Part 1 of a 3 part series focusing on 3 of the most impactful macro technology trends that our industry is facing and their implications for you and your firm’s infrastructure.  We will explore and provide our POV on the following:

• The AI revolution
• Broadcom/VMware acquisition implications
• Cybersecurity’s evolving threat

There are of course many more areas that, as technology decision makers, you need to manage, vet, and innovate.  These 3, however, appear to us at #TenrecX to be among the most urgent and complex, requiring a level of experience, knowledge and problem solving that we can bring to the table.

We are helping Clients navigate infrastructure upgrades and hope that we might be able to support you.

Part 1: AI Demands a New Mindset

There has been a seismic movement driven by Artificial Intelligence (AI).  It dominates our daily business news, corporate earnings, stock market reaction and international and domestic trade wars.  It's simply everywhere…and this is just the beginning.

The shift from a "functionality focus" to a "data focus" in the context of AI adoption in business is indeed a significant mindset change that organizations need to embrace. This transition is crucial for leveraging AI's full potential and creating value for both businesses and customers.

The landscape of business AI is changing. Traditionally, businesses have concentrated on developing specific functionalities in their applications and systems. However, with the advent of AI, the ability to rapidly create and deploy functionality has dramatically increased. This shift necessitates a reevaluation of priorities, placing data at the center of business strategy.

And it’s all about the data!

High-value data, especially customer-related information, has become a critical asset that AI cannot easily replicate. This data is generated through real-world interactions, customer support, and engagement, making it uniquely valuable and difficult to synthesize artificially.

Implications for a Data-Centric Approach to Business Strategy

Given this mindset shift, businesses must now prioritize:

1. Data Collection and Storage: Gathering relevant, high-quality data through customer interactions and experiences.  AI thrives on data and older systems often lack the capacity to ingest and process the sheer volume of data required for AI models.
2. Data Security and Access: Ensuring robust protection of sensitive information and the  management of who can access different types of data within the organization.
3. Value Creation: Leveraging AI to create enhanced functionality around well-understood data sets.
4. Computing Power: This is probably the biggest challenge.  Training and running AI models requires enormous computing power, particularly GPUs. Many on-premise data centers lack the necessary infrastructure and processing power, and pure electrical power - to handle AI requirements.

The bottom line is that AI should be viewed as a multiplier.  A tool to amplify the value of existing data rather than a replacement for human-generated insights. By adopting this perspective, businesses can find innovative ways to utilize AI in conjunction with their unique data assets.

Challenges and Considerations

• Data Quality: Ensuring the accuracy and relevance of data is crucial for effective AI implementation.
• Ethical Concerns: Balancing data utilization with privacy and ethical considerations is essential.
• Skill Gap: Developing AI fluency across the organization requires a significant mindset shift and training.

Moving Forward

To successfully transition to a data-focused approach, businesses should:

• Reevaluate their ecosystem and partnerships to align with AI capabilities.
• Invest in data infrastructure and management systems.
• Foster a culture of continuous learning and adaptation to AI technologies.
• Prioritize the creation and maintenance of high-quality, experiential data.

By embracing this mindset shift, businesses can position themselves to harness the full potential of AI, creating value through enhanced, AI-driven functionality built upon a foundation of well-understood and carefully curated data.

The AI Imperative

The rise of AI is a game-changer. Tech leaders must act now to modernize their infrastructure to support AI initiatives and stay competitive. Choosing the right path will depend on your specific needs, budget, and risk tolerance. But one thing is clear: standing still is not an option.

At TenrecX, our mission is to help our Clients bridge the gap between complex technology options and real business needs - simplifying their choices.  We are here to ensure you achieve efficiency, scalability and to ultimately succeed.

Get the help you need from an experienced TenrecX advisor to navigate the options with you.  As agnostic technology specialists, TenrecX advisors will work with you to find the right solution regardless of platform, brand or vendor.

Ready to transform your IT strategy? Connect with TenrecX to explore the possibilities.

Simplify.

Scale.

Succeed.

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