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Cloud Computing trends in 2023

Cloud technologies, artificial intelligence (AI), Internet of Things (IoT), remote and hybrid work culture are all key drivers to the elevation of the global economy today. More advanced technologies like virtual and augmented reality (VR/AR), the metaverse and quantum computing are believed to be paving the way for a revolutionized digital era as well.

Of all the technological advancements, the innovative and dynamic cloud is expected to help enterprises initiate and drive digital transformations at a rapid pace. As per Gartner, global public cloud spending will reach its all-time high by 2025, with an increase from $490.3 billion in 2022 to $591.8 billion in 2023, which is already up by 20.7%

With cloud not being optional anymore, it is evident that cloud technologies are set to make a major impact in the near future. Let us have a sneak peek at the predominant tech trends set to make a definite entry in 2023.

Top cloud computing trends in 2023 –

1. Adoption of FinOps practices

As businesses spend more on the cloud over the next few years, a close monitoring of cloud costs is vital, especially as inflation continues to drive up business costs as a whole. Enterprises would want to invest heavily in FinOps practices and resources to ensure apt usage, minimal wastage and optimized costs. According to Forrester, enterprises will turn to third-party cloud cost management and optimization platforms to gain a comprehensive and unbiased view of multicloud cloud environment spends. FinOps is a long-term, collaborative process that must be integrated at the very beginning of a cloud initiative. It enables better consumption of cloud resources, helps achieve optimized costs and monetizes cloud transformations to gain maximum value from cloud.

2. Rise of AI and ML integration into cloud

More and more businesses are integrating AI (artificial intelligence) and ML (machine learning) into their cloud transformation strategies. Few companies have the resources to build their own AI or ML infrastructure while others opt for Rent-as-a-Service to have a more cost-effective option. Cloud service providers use AIML technologies to manage vast distributed networks, improve cybersecurity, regulate power and cooling systems in data centres, etc. In 2023, the big 3 cloud service providers will continue to innovate and grow in this area to offer efficient and economical cloud services.

3. Cloud Sustainability

By 2023, cloud will act as a key enabler for businesses to meet their sustainability objectives. 83% of IDC survey participants believe sustainability is the most crucial factor when choosing any IT solution. By leveraging software and cloud-based infrastructure, 85% of enterprises will experience a 35% boost in sustainable efficiencies by 2025. Running an application workload on the cloud as compared to on-prem is always eco-friendlier and more cost effective. Operating entire data centers on cloud further reduces carbon footprint, making businesses sustainable, clean and green.

4. Increase in the use of Containers and Kubernetes

Although Kubernetes and container technology have already gained widespread adoption with up to 94% of surveyed enterprises claiming to have deployed it in some form, it is believed that by 2023, a much larger percentage of workloads will be using Kubernetes. These technologies help in large-scale deployments that offers high availability and scalability, facilitates flexibility in sharing cloud resources while working out to be cost efficient. The trend setting in is for enterprises to use latest versions of docker that have built-in Kubernetes. It enables automation and management of all container-based applications that are built using dockers.

5. XaaS maturation

In 2023, cloud investments will also be influenced by the “everything-as-a-service” also known as XaaS or Anything-as-a-Service, referring to an extensive range of products and services offered to customers over the web. According to research firm IMARC Group, the global XaaS market that includes storage, security, and network as-a-service is expected to reach US$624.1 billion by 2027. Cost savings through flexible payment structures as well as flexibility, scalability, and speed of operations are the key benefits of XaaS. Instead of paying for upfront licencing fees and on-site equipment, businesses simply pay for what they really use. Transitioning to an XaaS model enables businesses to offer integrated solutions at scale, where users pay for outcomes rather than duration of projects.

6. Adoption of sovereign and industry cloud

The sovereign or independent cloud is fast gaining importance with the need to fulfil the increasing data privacy requirements especially with the changes in the geopolitical environment. It is a trusted cloud that supports data protection standards of region-specific governing bodies, enabling seamless operations within the specified country or region. Similarly, the demand for customized industry cloud like specialized apps designed for telecom or retail, to meet industry-specific needs is growing steadily. According to Gartner, more than half of the enterprises will use industry cloud solutions by 2027.

7. Growing cloud native strategies

Forrester reports on infra cloud survey reveal that 40% of enterprises are looking to adopt cloud-native first strategies in 2023 to increase agility, cost-effectiveness and operational efficiencies. This shifts the focus on modernizing software application development with the help of containers, microservices, declarative APIs and service meshes. Kubernetes help orchestrate container-based apps at scale to run more effectively when integrating with technologies like IoT, AIML and 5G.

Conclusion

Enterprises no more contemplate on just moving to cloud. The idea is to leverage modern technologies and accelerators to maximize value from cloud. 2023 will help enterprises look at gaining a competitive edge as well as find stability in times of economic turbulence, while the cloud services continue to strategically evolve and provide future-fit offerings.

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