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New research from HPE has found that only one in 20 enterprises are completely ready for changes to their virtualisation strategy, even while pressure continues to mount from AI, cost uncertainty, and performance demands.
HPE’s The Great Virtualisation Reset report showed that, despite the lack of preparedness, more than two-thirds of enterprises surveyed say they plan to make material changes to their virtualisation strategy within the next two years.
The survey of nearly 400 global enterprises, which examined how organisations are responding to virtualisation needs amid licensing changes, found that budget constraints were a main barrier for 28% of enterprises in their preparedness for the “great VM reset”.
Another 24% blamed complexity, 21% cited migration risk, while 20% blamed the skills gap as the main reasons why they have yet to prepare.
The HPE study also looked at how companies are overhauling their IT operations. It revealed that more than half – 57% – of enterprises are taking a phased approach to futureproofing their IT.
Hybrid cloud emerged as the preferred path forward, which is based on data showing that 78% of provisions are in the public cloud, 61% in virtualised clusters, 48% in private cloud and 32% at the edge.
“We’re seeing enterprise leaders reassess longstanding IT assumptions to balance cost predictability, AI readiness and performance,” said HPE Hybrid Cloud CTO Brian Gruttadauria. “This isn’t just a rush to rip and replace, but a deliberate shift toward a more flexible and simplified operating model.”
When shaping future virtualisation and private cloud strategies, the study showed 70% of enterprises said access to unified backup and cyber-recovery was very important, while another 61% said it was cross-platform governance. 55% of respondents believe integrated observability and AIOps are business critical.
“What the data makes clear is that AI readiness now depends on how well virtualisation evolves. Our role is to help customers modernise in ways that close the gap between AI ambition and operational reality,” Gruttadauria said.
