Top 8 Trends In Cloud Computing And How Companies Can Prepare For 2020

In this post, we take a closer look at the current state of Cloud Computing and identify several emerging trends that leaders should be mindful of in 2020.

Cloud Computing: Current Trends 

By now, it is a safe assumption that techies and non-techies alike have heard of Cloud Computing and its associated benefits:  cost savings, increased efficiency, improved agility, opportunities for growth and innovation, and the list goes on.  When analysing the technology trends for the next decade, specifically related to Cloud Computing, the more inevitable it seems that companies will need to adopt the Cloud in order to scale and innovate at the rate of their competitors.  Some additional statistics include: 

  • 83% Of Enterprise Workloads Will Be In The Cloud By 2020, of which 41% of enterprise workloads will be run on public cloud platforms
  • Public cloud services is projected to grow 18% in 2019, totalling upwards of $215b, up from $180b from 2018
  • Financial Services had progressed the furthest to advance cloud adoption beyond basic cloud maturity compared to insurance and healthcare

Public Cloud Drivers


Cloud Computing:  A View of Tomorrow 

As the end of 2019 approaches, budgets are being renewed, and strategic plans for FY 2020 are being rolled out, it is worth noting the Top 8 trends in Cloud Computing and how companies can prepare and invest into specific areas to maximize their ROI for the future: 

1. The Rise of Quantum Computing

  • As technological advancement increases, capacity and compute power will have to increase as well to meet future demand.  Enter - quantum computing.  
  • Quantum computing will allow computers and servers to process information at rapid rates compared to current standards. As the backbone of cloud computing is built upon rapid network systems that do not get backlogged, cloud computing will play a pivotal role in the increase of computational power and compute efficiency .
  • The increase in compute capability due to the agility of the Cloud is directly correlated to the adoption and increased use of blockchain transactions.
  • Cloud will become integral as the doorway to innovation for organisations that want to process massive amounts of data in an economically viable, environmentally sustainable and socially responsible way.

2. All Things Blockchain

  • As Cloud Computing is decentralised and scalable by nature, blockchain technology is a natural fit when it comes to cloud development.  Many Fintechs are already harnessing the power of blockchain, specifically when it comes to cryptocurrency analysis and validation.  
  • The cloud will become the go-to hosting solution for initial coin offerings (ICOs) and other applications that utilise blockchain, specifically in the areas of cryptographical analysis and data security. 
  • It is not just applicable to the financial sector.  Companies can and will continue to utilise blockchain technology to bring servers into the Cloud, build custom applications, do large scale data analysis, and produce outcome-based tangible results.

3. The Kids are Alright - Increase of digital natives

  • The workforce continues to evolve and so too do the expectations of its workers.  By 2020, the number of individuals joining the workforce would already be well-versed with cloud and its benefits.  
  • Called “digital natives”, these workers will likely band together which will create two distinct groups within organisations:  those who are used to digital best practices and those who are not.  
  • In order to retain workers in the second group, practices such as ‘reverse mentoring’ will become common place to train the previous generation in social media tools and modern communication practices.  Businesses will need to adopt cloud computing and other technological advancements to bridge the gap and integrate the two working groups into one unified workforce.  

4. Increased Mobility as a Global Standard

  • Correlated to the increase of “digital natives,” mobility will become the number one requirement to attract top talent and retain loyal employees.  Workers that have been accustomed to “Bring your own device” policies will come to expect this as the norm, in addition to the ability to work on the go from anywhere at anytime.  Cloud will continue to and increasingly be used as an enabler for meeting the global mobility expectations of its workers and customers.  

5. Edge Computing

  • The primary advantage of cloud computing is its distributed infrastructure. Organizations that require instant access to data and computing power to serve their customers will continue to utilise and rely on edge computing to provide increasingly lower latency and a sustainable infrastructure to meet customer expectations.
  • Edge computing will also be a key door opener for companies to adopt Cloud technologies, as it significantly lowers costs and allows for accessing data rapidly and frequently.

6. AI: Not just a fad

  • AI offers organizations the ability to automate and manage their processes in addition to scaling and adapting to the changing needs of the business
  • Differentiation with AI comes from the strategic use of key capabilities within AI, such as machine learning, pattern recognition and intelligent robotics. Applied to large volumes of data, these capabilities unlock new value from internal and external data, both structured and unstructured.

AI Capabilities

From "The Future Is All Cloud And AI" by Cynthya Peranandam on
  • As edge computing and AI adoption rise, so too will the adoption of IoT and other systems that access data in real-time to provide predictive insights about customers and industries.

7. Mainstream Serverless Adoption

  • Serverless computing will continue to be adopted and developed together with a growing number of use cases.  Although available solutions tend to lock customers into a specific cloud provider, a growing number of open source solutions in this space will provide more use cases for serverless computing across the industry.
Serverless computation is going to fundamentally change not only the economics of what is back-end computing, but it's going to be the core of the future of distributed computing” -- Satya Nadella , Chief Executive Officer at Microsoft

8. Ecosystems of Data Centers

  • Hardware will be commoditized and software abstracted to be consumed as a service rather than license based subscriptions.  Cloud Data Centers will bring once disparate parts together to enhance overall data center performance.  
  • Overarching systems will also be able to manage software and hardware components from a single point, enabling task automation, self correction and operation.  This should result in targeted function based output and measured results, decreasing inefficient processes and redundancy.

The conclusion is unanimous:  not only is Cloud adoption here for the long haul, but as more features are developed, the future is only looking brighter for the adoption of Cloud in industries that have been slower to change.  Although there are still areas that may give enterprises pause, the potential to innovate using technologies that function only as a part of Cloud adoption (blockchain technologies, edge computing, AI, just to name a few), far outweigh the risks of not utilising the benefits of Cloud.  Ultimately, companies will have to face a choice - adopt the Cloud to meet consumer demand or be left behind, as ‘digitally native’ customers will not accept anything less.

For more information on how you can kick-off your Cloud Adoption journey, read our eBook "Accelerate Cloud Adoption". To download your copy, click here.

If you would like to speak with a member of our team, get in touch here.

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