The alterations in the socio-economic environment due to a global pandemic and stay-at-home mandates, digital transformations and cloud technologies became the driver of the worldwide economy. The shift from traditional information technology infrastructure to cloud-based applications has been really quick. It became the only available means to move businesses forward, support remote work style and satisfy customer needs.
It all started in 2020 and as the end of 2022 closes, these transformations remain in the driver’s seat and there is no going back in 2023.
According to Gartner, Inc. “worldwide public cloud spending in 2023 will grow 20.7% to total $591.8 billion, up from $490.3 billion in 2022.”
According to Gartner, “by 2025 enterprises will spend more on public cloud services than traditional IT solutions.”
Below is a list of top 7 cloud computing trends that will create the most impact in 2023.
Trend 1: In 2023, cloud security will see higher investment
To date, organizations have to remain focused on creating a smooth digital workflow for their workforce and customers. Creating a secure environment has also been on the agenda, but in 2023 it is expected to become a top priority.
With the increased usage of cloud technologies, companies are exposed to cyber security threats which leave their business and consumer data vulnerable. Alterations in government regulations will also compel enterprises to pay more attention to cyber security and create a resilient environment to manage the risk of data loss. This will mean greater use of AI and predictive technology created to spot threats along with using managed security-as-a-service providers in 2023.
Trend 2: Multi-Cloud is going to be the next thing
The digital transformation started a few years back with one cloud model, in 2022 it became a hybrid cloud and in 2023 it is expected to become multi-cloud.
Reports suggest that around 84% of mid-to-large companies will adopt a multi-cloud strategy by 2023 while in 2020 around 70% of the companies were using one cloud service provider
In 2023, businesses are most likely to diversify their services across multiple cloud providers. One of the primary reasons for doing so is the flexibility and security it provides. It also decreases the service risks of being tied to one cloud provider along with reducing system error probabilities.
Trend 3: Growing popularity of AI & ML-powered Cloud Services
More businesses will integrate AI (Artificial Intelligence) and ML (Machine Learning) in their cloud transformation strategy. Since few businesses have the resources to build their own AI or ML infrastructure, the rent-as-a-service is most likely to become a more cost-efficient option.
Currently, cloud service providers use these technologies to manage their vast & distributed network, enhance cyber security, regulate the power and maintain data centers. In 2023, cloud service providers such as Amazon, Google and Microsoft will continue innovation in this field to make it more efficient and cost-effective.
Trend 4: Low code or zero code cloud services
Tools or platforms allowing users to create applications or resolve issues using data but without writing any code are gaining tremendous popularity. Today, it is possible to create a website, web applications, and design using low-code or zero-code solutions. These solutions are also available to create AI-powered applications.
Several of these services are provided through the cloud, which makes them flexible and accessible from anywhere. These services are likely to gain more popularity in 2023.
Trend 5: Cloud gaming is on the way
Streaming services like Netflix, Prime Video, Spotify etc. have dramatically changed the way we consume movies. Companies like Microsoft, Sony, Nvidia and Amazon are investing heavily in video game streaming services.
It is taking a little longer to gain a foothold, but with news like Google spending millions to develop Stadia game streaming services, one can expect more innovation in the cloud gaming domain. However, it has failed to witness any commercial success, primarily because of slower networks.
Since cloud gaming requires higher bandwidth of the internet, the ongoing rollout of 5G technology and several other ultra-fast networking technologies are most likely to solve this issue. It is expected that cloud gaming will become the next big thing with 5G similar to movie streaming with 4G and music with 3G. In 2023, we can expect a lot of innovation in the cloud gaming domain.
Trend 6: Adoption of “Software-defined Everything”
“Software-defined Everything” or SDx is a concept of using software to manage a company’s vital operations such as networking, storage etc. The aim of using SDx is to automate operational activities from the beginning to the very end. With the growing use of cloud technology, one can expect increased adoption of SDx in 2023.
Trend 7: Blockchain and Kubernetes are knocking
Blockchain has been in the news for quite some time now. It has become one of the game-changing technologies that are set to transform the ways of finance. Today, several companies are working in the blockchain domain to increase its efficiency and make it more accessible.
Kubernetes is a free-to-use container orchestration platform that allows businesses to scale, deploy and manage containerized infrastructure automatically.
Blockchain is a pretty new technology and presents numerous implementation challenges. But when paired with Kubernetes it is possible to carry out quick scaling of the blockchain environments. In 2023, we can expect new changes in these innovative technologies.
The debate of whether to invest in digital and cloud or not is now over. Currently, it has boiled down to finding ways to leverage advanced technology such as AI and ML to gain a competitive edge or ease operational headaches. The world of business without cloud and digital is out of the question today.
2023 is coming and it is bringing some of the most innovative changes in the cloud computing industry. Cloud service providers are expected to evolve their services and enterprises are expected to update strategies with the inclusion of new cloud technology to fulfill their needs more efficiently.
About the author:
Amit Gupta is the Founder and CEO of Rapyder Cloud Solutions.