Cloud computing has ushered in many innovations that have resulted in accelerated digital transformation for many industries. For companies that have incorporated cloud technology into their digital business plans, the result is usually a significant improvement in growth and efficiency.
The cloud technology industry is expected to accelerate in growth in the medium term. Valued at around $429.5 billion in 2021, it is projected to reach $1.025 trillion by 2028, at a compound annual growth rate (CAGR) of 15.8 percent. With the increased cloud computing capabilities, more tech companies will become empowered and able to create innovative products.
Cloud technology is now a standard for businesses that expect it to be part of their everyday operations. They expect more efficient and powerful solutions that enable smoother workflows. Enterprises of all sizes should watch out for these essential cloud computing trends.
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Multicloud and Hybrid Cloud Computing
Cloud customers previously only had the option of public or private cloud deployments. The public cloud was more affordable and offered pay-as-you-go services. On the other hand, private cloud systems offer more data storage and security integrity.
Hybrid cloud solutions offer the best of both public and private clouds. For example, Microsoft Azure now allows you to store some data on public servers for customers who need it frequently and efficiently. However, you have the option of keeping sensitive data on your private servers to monitor and control it.
Also called the hybrid data center approach combines on-premises and cloud environments, enabling applications to be shared between these data sets on the enterprise network. This can even bridge public and private clouds, along with on-prem deployments, providing highly flexible workload provisioning and unified resource management.
Meanwhile, multi-cloud services allow you to use different solutions from different providers. Customers can connect applications between Azure and Oracle Cloud, for example, enjoying the best of both systems. It’s possible to create a customized tech environment that is aligned with your long-term business goals, thanks to hybrid and multi-cloud services.
Artificial Intelligence
AI and machine learning have already become commonplace in business solutions and back-end operations. This enables real-time analysis and decision-making from multitudes of data points and inputs.
Analysis by Zion Market Research forecasts the global market for AI services to grow at a compound average growth rate of 39.4 percent from 2022 to 2028–or $422.37 billion by 2028.
“Businesses are exploring completely autonomous robots that can sense, interact, and conceive the environment around them in order to stay ahead in a global market. Industries are searching for reliable and experienced technology associates as they initiate to direct this current technological transformation,” the study reads.
“Deep learning models handle enormous amounts of data, such as photos, texts, and sounds, using artificial neural networks to provide correct results,” it adds.
For enterprises, cloud technology provides the opportunity to scale and maintain these platforms across growth cycles. Meanwhile, AI can be incorporated into the process in order to provide sophisticated decision-making and analytical capabilities based on customer and other inputs from the market.
Through cloud computing, AI is made more affordable and accessible, even to organizations that have limited budgets. According to the Zion study, this growth in AI services will be driven by natural language processing, machine learning, and computer vision–all made accessible by service providers.
Serverless Cloud Technologies
Serverless cloud technology can help you streamline IT management by automating certain tasks and maintaining your server infrastructure. Serverless cloud technology allows you to have more storage and bandwidth flexibility without imposing a predetermined price.
Serverless cloud technology is being adopted by companies at an increasing rate. Demand for serverless cloud technologies is projected to maintain a CAGR of 21.71 percent for the forecast period 2021 to 2028. It is expected to reach a value of $36.84 billion by 2028, according to The Enterprise Storage Forum.
Serverless doesn’t require you to invest a lot of capital or resources upfront. This makes cloud technology more accessible. It removes the barriers that prevent it from being used by small businesses and startups, making cloud use accessible to everyone.
Companies can scale quickly with serverless cloud technology while reducing costs. You only pay for the actual usage, which means you only spend what you use. Investing time and resources in managing and procuring server infrastructure is also unnecessary. You can customize it to meet your business needs.
This enables organizations to focus more on developing applications rather than network administration.
Cloud Computing Security
Organizations also need to intensify their efforts to improve cloud security in light of the increased endpoint exposure and use of untrusted devices that the cloud may entail. The market for cloud security services will grow to $106.02 billion from 2022 to 2029, at a CAGR of 18.1%, according to Fortune Business Insights.
This is driven by the rise in data monitoring solutions and the rising demand for massive storage applications. Additionally, the rising adoption of managed container services and solutions coupled with increasing cyber-attacks will increase the demand for cloud security. There is also an ongoing trend of crypto-jacking, which will fuel the growth of the market towards an extended boundary.
Sustainability
Cloud computing is more sustainable than local computing. It can also reduce a company’s carbon footprint as well as physical waste. A Google paper shows that companies could cut down on energy consumption by 87% by moving their most-used software to the cloud.
Cloud computing can still have a negative impact on the environment. Climate activist group Greenpeace estimates that technology could consume 20 percent of all electricity worldwide by 2025. Computing currently contributes 1.4 percent to the global greenhouse gas footprint, but it is predicted to reach 14 percent in 2040.
With the rise of cloud computing, solutions providers will also need to adapt their services and infrastructure to ensure sustainability in operations toward the protection of our planet.
The takeaway
Cloud computing is evolving and expanding to other technologies, implementations, and domains. It is helping simplify the IT landscape and will continue to do so well into the medium and long run.
That said, organizations need to consider the business issues related to these cloud trends. Secure and efficient cloud adoption should be a goal for your company. You should ensure that you use the correct security and compliance tools and automate as many processes as possible. Your organization’s cloud will also need to consider sustainability and impact.
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