In 2023, the worldwide market for cloud computing will grow by more than 20% to be worth almost US$600 billion . This is not surprising. Done right, cloud computing offers organizations flexibility, scalability, economies of scale and cost efficiency that on-premises infrastructure finds it almost impossible to match.
But this doesn’t mean that companies can simply choose a cloud service, switch on, migrate and expect the benefits to start piling up. To get the results they want, and achieve the maximum return on cloud investment, companies must closely match the cloud services they buy to their current and future business goals.
They must also understand how the cloud market is developing, so they can get in ahead of prevailing trends. Only in this way can they be sure that the cloud services they procure will be future proof enough to give them a competitive advantage over the longest term.
So, what are the biggest trends in the cloud sector today? Here are the six trends we think will dominate 2023:
- Cloud will keep growing: as we’ve seen in Gartner’s 2023 prediction, cloud is now out of the hype cycle and into the phase of mass adoption in which its impact on entire sectors will be transformational. Driven by the flexibility and scalability that cloud offers, enterprises will continue their migration to the cloud, giving them a competitive advantage over their counterparts wedded to legacy platforms.
- The need to decarbonize will drive cloud adoption: with the right approach and the right expertise, moving on-premises infrastructure to the cloud (with suitable optimization and streamlining) can reduce IT-related emissions by up to 88% . But that’s not all. By applying cloud-based intelligence across the enterprise, you can find new opportunities to accelerate decarbonization in every area of activity.
- The talent crisis will intensify: worldwide, in a recent survey, 70% of IT leaders say that the cloud skills shortage is a matter of concern and 34% said the lack of talent had already impacted plans to launch new products and services . As the demand for cloud grows, faster than most markets are training new specialists, this talent gap can only widen.
- IoT will continue to drive cloud growth: in 2023, companies and other organizations worldwide will spend US$1 trillion on installing IoT sensors in everything from factories to car engines . To turn the data these connected sensors gather into actionable insights, organizations must process and analyze it, often in real time. This means a mass demand for compute power — most of it in the cloud.
- The role of the CIO is evolving: the increased use of cloud computing puts the onus on CIOs to develop commercial, contractual, legal and negotiating skills, even more than has been the case before. The modern CIO, even more than her predecessors, will evolve and elevate her role, taking on new functions and responsibilities. Those CIOs who do this most successfully will be the most effective.
- Cost pressure will continue to increase: with many markets tipping into recession and consumers more price conscious than ever before, business conditions are tougher than they have been for a long time. This will intensify the pressure on CIOs to find savings and efficiencies.
All these individual trends, taken together, point to one overarching trend — the cost, both literal and measured in metrics such as customer satisfaction, revenue, market share and so on — of making the wrong choice about IT infrastructure will only increase in 2023.
It’s more important than ever that CIOs not only get it right the first time but get it right for the long term — procuring systems, platforms and services today that are flexible and scalable enough to power growth tomorrow, no matter how markets evolve.
This in turn, puts the highest premium possible on finding the right cloud partner. Working with the right cloud specialist can instantly bridge the talent gap, give your company the infrastructure it needs to meet the challenges of today’s market, without prohibitive set-up costs. But it should also give you the ability to evolve your cloud technologies at the same speed as your business needs change, so that you stay one step ahead of the market.
Cloudreach, an Atos company, is the world’s leading independent multi-cloud services company, specializing in cloud application development and cloud migration. We have the experts, the tools and the technology required to transform and accelerate your business processes using the latest cloud technologies.
Get in touch today to discuss your cloud transformation.