By Darren Bowling, Senior Advisor at Cloudreach
The last few years have been remarkable for cloud technology adoption, with progress in a variety of industries such as healthcare, sports, travel and retail. The use of cloud-based applications has grown exponentially, as more and more businesses recognise the benefits of using the cloud to store and access data.
Gartner’s recent predictions show that end-user spending on public cloud services will total over $480 billion in sales by end of 2022. This level of investment is only the beginning, as it is estimated that the global cloud computing market will be worth $1 trillion by 2028. A number of new and emerging cloud computing technologies and services are growing in popularity and, 2023 will be an even bigger year for changes in terms of how businesses will leverage the cloud – here are six trends to look out for:
- Why Cloud Native Enterprises will reach a new peak
There will be more investment in people, processes, and cloud native technologies in 2023, as opposed to other IT priorities, such as investment in end-user devices where spending will see a decrease.
The adoption of cloud native technologies offers several advantages for enterprises over traditional on-premises systems. Additionally, people and culture are big priorities for businesses today and 2023 will be no different. In the new year, it is crucial for businesses to invest in people by training them to use new cloud technologies and processes, as well as help maintain employees’ job satisfaction and motivation. These considerations will help businesses run more efficiently when adopting and implementing cloud native technologies.
- Cloud-enabled Climate action
In the new year, we will begin to see more action being taken to decarbonise digital assets using the cloud. Digital assets are increasingly being stored in the cloud, and this trend is only expected to grow in the coming years. As more businesses move their data and applications to the cloud, we will begin to see more action being taken to decarbonise these assets. By using renewable energy sources and energy-efficient data centres, cloud providers can help IT estates, enterprise organisations, and entire supply chains reduce their carbon emissions.
As the world moves towards a low-carbon future in 2023 and beyond, we’ll see an increasing number of businesses take advantage of the cloud to decarbonise their digital assets.
- Talent Crisis: Enterprises Find New Solutions to Answer a Complex Problem
As the world becomes increasingly digital, employees’ roles are changing and require new sets of technical skills to operate evolving processes. More and more organisations are looking for ways to close the skills gap and provide training and development opportunities for their employees. One way that organisations are doing this is by offering apprenticeships and training programs, which provide employees with the opportunity to learn new skills and develop their careers.
Additionally, employers are accepting more candidates with digital apprenticeships without requiring a university degree, which will also help to close the skills gap and provide more opportunities for people to enter the workforce.
- Growth in Large-Scale 5G and IoT applications Will Catapult Connection to Remote Regions
The coming year is an excellent opportunity for businesses to make use of 5G technology and IoT, for example Web 3 and the Meta-verse, to provide better connections for remote regions. Enterprises can benefit greatly from these technologies, but only if they employ cloud architectures that are flexible enough to support them in any situation, anywhere. By doing so, organisations can increase operational efficiencies, reduce costs and redundancies across their value chains, and assist with decarbonization and sustainability efforts.
- How the Role of the CIO is Evolving Beyond Technology Priorities into Business Goals and Outcomes
The role of the CIO is changing, as business priorities and objectives shift and evolve. CIOs are expanding their responsibilities to spend more time considering cultures, people, and behaviours, in addition to evaluating and managing technology.
This is because in the past, businesses would invest in technologies and the typical CIO would be responsible for managing it. However, businesses are now increasingly interested in people and culture which is a crucial element when implementing business change. In 2023, CIOs must grow the scope of their role to manage their team and technology, while evolving and leading change within an organisation.
- Driving Economic Efficiency in a Cloud-Native Enterprise
As organisations strive to become more efficient and optimise their spending, they will increasingly turn to their finance and accounting departments to lead the way. The financial quotient (FQ) of a company is a measure of its financial health and is determined by its ability to generate cash flow and profit. To improve their FQ, companies are starting to and will adopt best practices in cloud economics, such as resource and capacity planning, cost optimisation, and billing and invoicing. Migrating to the cloud or switching cloud providers can be a big decision for businesses. That’s why it’s important to study cloud economics and understand the costs, benefits and potential ROI. With this knowledge, businesses can make decisions that fit their needs and budget, and create accountability throughout their organisation.
What the future holds
For the last few years, the main focus for businesses has been on cloud computing implementation, which is the driving force behind digital transformation. In 2023, adoption of a cloud-first strategy will help organisations to achieve goals and future proof their infrastructures.
Although for many enterprises there is still a place for on-premise data storage, these trends are indicative of a growing and evolving cloud industry, including hybrid and native cloud models. Organisations see the potential and the need for cloud to take their business to the next level. We will no doubt see these trends catch on and manifest in the business world, and we will see new trends and technological innovation emerge.