Cloud computing has already changed how businesses operate, but the cloud's disruptive consequences still need to be addressed. Trends in 2023 showed that firms would continue to embrace the cloud to modernize operations and enhance IT capabilities, indicating that solid acceptance and expansion will continue.
The cloud remains an essential resource in various industries, as businesses increasingly rely on on-demand IT for anything from accounting software to full-fledged IaaS, PaaS, and SaaS solutions.
The statistics below serve to highlight the present situation of the cloud market:
- The cloud is used by businesses to process around 94% of all corporate workloads.
- 75% of those are delivered as Software-as-a-Service (SaaS).
- The worldwide cloud computing industry will be worth $623.3 billion by the end of 2022. By 2025, the figure will have surpassed $800 billion.
- By the end of 2022, global end-user spending on cloud services will be roughly $397.5 billion. This value is expected to be about $332.3 billion in 2021.
- Over 92% of businesses have a multi-cloud strategy.
- Cloud services consume almost one-third of an average company's IT budget.
- North America controls 61% of the global cloud computing business.
- Over 48% of businesses want to migrate most of their apps to the cloud by the end of 2022.
Businesses will deploy 95% of all new workloads on cloud-native platforms by 2025.
These figures demonstrate that the cloud will be critical in IT the following year(s).
Let's look at the cloud computing developments that will emerge in 2023.
1. Edge computing
The worldwide edge computing industry is anticipated to expand from $3 billion in 2020 to $12 billion by 2028, according to Statista. Edge computing processes data near its origin, resulting in faster speeds and lower latency. Although only a few organizations increasingly use a new concept, edge computing, since it provides a more efficient and safe alternative than traditional computing methods.
As Artificial Intelligence (AI) and Machine Learning (ML) grow, it is worth emphasizing that these technologies are significantly more successful when fast, low-latency data access is available. Edge computing delivers these advantages, allowing AI models to scan data and find trends faster and more efficiently than operating on a regular cloud model. With the number of edge-enabled IoT devices predicted to triple between 2020 and 2030, this is a critical factor for businesses in 2023.
2. Kubernetes and Blockchain
Blockchain is a system that provides a tamper-proof digital ledger for recording data without the need for a centralized authority. Blockchain is a game changer but has scalability issues, particularly regarding massive data storage and administration.
Kubernetes (K8s), an open-source framework for managing app deployment and scaling, aids in the quick scalability of a blockchain ecosystem. K8s also provides high availability by running many containers for a single important function.
Blockchain and K8s are an excellent match, and firms will continue to push the boundaries in 2023. Deploying blockchains and their components using cloud-native Kubernetes clusters may soon become the norm as teams seek to address blockchain's complexity and integration issues.
3. Serverless Computing
As a result of the growth of the sharing economy, serverless computing entered the computer industry. Computational resources are given as a service instead of being deployed on physical servers. This implies that instead of needing to maintain its servers, the organization merely pays for the resources it uses. Furthermore, serverless cloud hosting solutions are gaining popularity due to their ease of use and ability to design, deploy, and scale cloud systems rapidly. Overall, technology is an emerging trend that is gaining traction over time.
4. IoT platforms
The fast expansion of IoT platforms is swiftly becoming a rising trend in today's intricately connected society. According to one Gartner report, active connected devices and 'things' will reach 25 billion by 2021, up from 14.2 billion in 2019.
IoT platforms are cloud-enabling systems that integrate with practically any device, enabling cloud applications and apps to run on it. The Internet of Things is a middleman, collecting data from various devices through smart device management and remote setup. This intelligent connectivity opens the path for the Internet of Things to become a dominant trend in cloud computing.
5. Green Cloud
Cloud computing has sparked heated discussion among environmentalists, with research from 2021 indicating that data centers often spend 10 to 50 times more energy per square foot than office buildings. It accounted for 1.8% of total US energy consumption in 2014 and is expected to rise more in the future.
As a result, there is enormous demand from both within and outside the sector to minimize energy use. Environmental experts have criticized the business for a lack of openness about greenhouse gas emissions. Organizations are also under substantial internal pressure as they try to reduce the impact of the 18-month increase in energy costs.
Traditionally, cloud computing has been conducted on big data centers; however, with the rising practicality of quantum technologies and renewable energy, the environmental effect of cloud computing is reducing. Green cloud developments are unavoidable, with stakeholders, legislators, and public opinion scrutinizing the ecological impacts of cloud computing.
Bonus Advice
Data centers became the central hub for all infrastructure and operations as the cloud computing revolution gained momentum. However, in the past five years, it has become increasingly evident that more than relying on a data-center-centric approach is required.
The five trends outlined above are poised to elevate cloud computing to new heights, enabling application developers and networking specialists to circumvent some of the inherent challenges associated with cloud computing. These trends will unlock fresh opportunities for technological advancements.
What is becoming increasingly clear is that we are approaching the zenith of cloud computing adoption. Consequently, we should anticipate the emergence of more context-specific solutions that build upon this technology's foundational functionalities and advantages.
Ride the wave of cloud computing transformation with CloudOYE and be prepared to harness the full potential of these evolving trends for your business's success!