We live in a world with mercurial socioeconomic conditions that have a direct impact on technology, particularly cloud adoption. The current economic downturn has solidified how businesses approach cloud spending. This is because the cloud’s agile and scalable characteristics have created a safe environment for continuous innovation and progress.
As we approach the end of 2022, cloud computing shows no signs of slowing down, and this trend is likely to continue in 2023. According to the latest Gartner forecast, “Worldwide end-user spending on public cloud services is forecast to grow 20.7% to total $591.8 billion in 2023, up from $490.3 billion in 2022”.
The question is, where are you in your cloud journey, and are you ready to face 2023 on the cloud front?
Gartner observes, “Moving operations to the cloud also reduces capital expenditures by extending cash outlays over a subscription term, a key benefit in an environment where cash may be critical to maintaining operations.”
We can expect existing cloud-powered companies to continue to outperform in 2023, as well as a new wave of companies to adopt the cloud environment. Here’s a list of such trends that are going to play a crucial part in the cloud space.
As we move to a more complex cloud environment, it is critical to emphasize security and compliance, possibly adopt a vendor-neutral approach, and obtain SaaS solutions with fewer blind spots to avoid future cyber-attacks, threats, or setbacks on your compliance standards. To avoid such hiccups on your cloud journey, data privacy and security are given top priority. This has also sparked interest among businesses in adopting sovereign clouds, which are designed for a specific geographic region and adhere to the governing body’s data protection standards.
According to Forrester, the move to sovereign cloud solutions is being led by German financial services providers and other European countries. As a result, it is safe to predict that increasing focus on cloud security will be one of the leading trends in 2023. This could signal the arrival of AI to predict threats and the adoption of managed “security-as-a-service” providers.
In 2022, we saw an increase in hybrid cloud adoption, and 2023 is expected to set the stage for multi-cloud environments. Designing your solutions around multiple cloud service providers, such as AWS, Google, or Azure, can increase flexibility and security while decreasing reliance on a single ecosystem and maximizing the value of each system. According to multiple reports, by the end of 2023, 84% of mid-to-large companies will have adopted a multi-cloud strategy, making it the year’s most happening trend.
According to McKinsey & Company’s 2021 AI survey, 64% of “high performers” – those seeing the greatest bottom-line impact from AI adoption – run their AI workloads on a public or hybrid cloud, compared to 44% at other organizations. AI and machine learning are widely used to gain a competitive advantage in organizations through increased efficiency and innovation. AI, a relatively expensive service that necessitates a large amount of computing power and storage space, is delivered as a cloud service, making it more cost-effective. More AI capabilities, such as natural-language speech and facial recognition, are also available in the public cloud and could be used in a variety of fields ranging from security and compliance to data analytics. Keep an eye out for some cool AI-powered cloud innovations from the big players.
In a world where people are more concerned about climate change, carbon footprints, and how they affect the environment we live in, major businesses are also doing the responsible thing and keeping their policies more inclined towards sustainability. According to an IDC survey, 83% of respondents believe that the most important factor in IT purchasing decisions is sustainability. The report further states that, by 2025, 85% of organizations will have increased their sustainable efficiencies by 35% through the use of software and cloud-based infrastructures. Cloud-based data centers are more efficient and have a lower carbon footprint, making them more sustainable and the preferred option compared to on-prem centers.
The apparent increase in cloud adoption and the decentralized model of delivery has resulted in an exponential increase in cloud spending. Businesses will need to start controlling cloud costs as cloud usage grows by streamlining expenses that aren’t being used to their full potential and eliminating duplicate spending or unnecessary overheads. In 2023, active integrations with cloud cost optimization service providers that can provide discrete insight into their hybrid network and provide unified cost management will be at the top.
We are past the point where the idea of moving into the cloud is being discussed. We are now at the point where we are debating how to best utilize the cloud’s capabilities and investigate future trends to spark innovation. Again, the question is whether you are prepared to face the challenges and accelerate your cloud journey. In any case, businesses simply cannot afford to ignore the cloud.
In the coming years, we can witness great changes in the mainstream cloud with groundbreaking offerings from the cloud service providers, and enterprises making strategic moves with a better grip on security and compliance, understanding the nuances of AI and ML, to remain in competition with the power of the cloud.