The cloud market is projected to be worth $376.36 billion by 2029. This growth is not surprising, because cloud computing offers flexibility, scalability, and reduces costs that on-premises infrastructure cannot match. However, simply switching to a cloud service and migrating data is not enough for companies to reap the full benefits. To achieve maximum return on investment, companies must carefully match their cloud services to their current and future business goals and understand the developing cloud market to stay ahead of prevailing trends. This way, they can be certain that the cloud services they procure will be future-proof and provide a competitive advantage over the long term.
The aim of this article is to provide a comprehensive overview of the state of cloud computing both in 2023 and beyond. By analyzing the key trends and developments within the industry, we’ll try to offer a deeper understanding of the direction in which cloud computing is headed.
Let’s get started!
What is Cloud Computing in a Nutshell
Before we see the 2023’s top trends let’s remind briefly what we mean with cloud computing. With the term Cloud computing we refer to the ability to access everything remotely on the internet instead of locally on our devices. Everything you use like mail, music, and video streaming apps all have data that needs to be stored somewhere. That somewhere is really just a Global Network of computer clusters and servers that we call the cloud.
Cloud computing isn't a single piece of technology. Instead it's a system which is made up of three main types of services:
Software as a service represents online software applications that manage every service for you. Dropbox is a great example of this all you have to do is purchase the software and you can start uploading to the cloud.
Platform as a service providers manage pretty much everything but allow you to handle the applications and data. This makes it primarily used as a platform for software development. Heroku is the perfect example. Here developers are able to host their applications on the cloud without the need to worry about anything except the development of the application.
Lastly, infrastructure as a service is used when you want more flexibility than platform as a service and want to handle the middleware and operating system components as well. Some Cloud providers only offer one of these three services but larger Cloud Computing Services like Google Cloud, Amazon Web Services and Microsoft Azure offer options for all three types.
Top Trends of Cloud Computing for 2023
Cloud computing has been widely adopted by many companies for data storage and accessing services like AI, Quantum Computing, and Metaverse Technology. Let's look at where we are in 2023 and what are some of the key trends.
Multi-Cloud Gains Popularity
Organizations now use multiple cloud services that are offered by different providers for data storage and management, signaling the increasing adoption of multi-cloud. Multi-cloud adoption is a trend that is expected to grow in 2023 and beyond and offers a wealth of advantages for businesses.
One of the main benefits of multi-cloud is that it frees businesses from the need to rely solely on one cloud provider, reducing the risk of vendor lock-in. Using multiple cloud service providers also offers greater redundancy and disaster recovery capabilities, ensuring that businesses can continue operating even if one cloud service fails. Additionally, using multiple cloud providers may be financially wise because it gives organizations the freedom to select the best pricing and service levels for each workload and service.
Despite these advantages, it's also necessary to keep in mind that managing multiple cloud services is a laborious task that calls for specialized knowledge and equipment.
Increased Investment in Cloud Security
It is anticipated that the current shift in business operations toward cloud migration will manifest itself in a boosted investment in cloud security. A variety of advantages are recognized as a result of cloud migration, which is now seen as a crucial component of businesses' digital transformation.
Nonetheless, as companies migrate to the cloud, they must remain aware of the diverse range of cybersecurity threats. The nature of cloud computing exposes businesses to a completely new range of risks, especially in light of the rapid expansion of laws governing the storage and use of personal data. The priority for businesses in 2023 as a result of these developments is to concentrate on cybersecurity and building resilience against new risks.
Spending on cybersecurity is likely to experience a significant increase as a result of the pervasive need to address these challenges; this trend will undoubtedly continue. Companies are anticipated to increase their use of managed security-as-a-service providers to strengthen their security posture and increase their protection against potential cyber adversaries.
Cloud Computing Powered by AI and ML
Artificial intelligence and machine learning will continue to accelerate the popularity and significance of cloud computing. These technologies have become a pillar of cutting-edge cloud computing due to their capacity to automate cloud operations, decrease the need for manual intervention, and improve decision-making skills.
Increased security is one of the most important benefits of cloud computing that is AI and ML powered. These systems' capabilities enable them to identify and prevent security breaches before they occur, serving as a potent defense against the growing threat of cyberattacks.
Cloud computing can also benefit from the efficiency improvements AI and machine learning can bring. Organizations can save valuable time and money by automating repetitive and routine tasks, which can then be applied to higher-level strategic initiatives. Thus, companies can make the most of their cloud infrastructure and ensure that they are using their valuable resources as effectively as possible.
Last but not least, AI and ML are positioned to radically change how businesses make decisions in the cloud computing industry. These innovative systems offer business decision-makers an unmatched level of intelligence and insight by analyzing massive amounts of data and providing insightful information. By encouraging growth and development in previously untapped areas, this can help businesses achieve new levels of success and prosperity.
Low-code and No-code Cloud Services
Low-code and no-code cloud services have gained momentum and are increasingly being embraced for their potential to reduce the complexity of app development, shorten time-to-market, and democratize app development. These services facilitate non-technical professionals in the creation and deployment of applications, requiring only minimal coding knowledge, as they offer intuitive visual interfaces, drag-and-drop tools, and pre-built templates.
In 2023, these services will continue to appeal, as organizations seek to empower their non-technical staff with the capacity to conceive customized solutions and streamline business processes while mitigating the burden on their IT departments.
As the demand for low-code and no-code services continues to soar, they are anticipated to offer a viable solution to the mounting talent deficit in the IT industry. Through these services, organizations can harness the strengths of their employees and advocate citizen development. This enables business units to design and develop their applications to suit their specific needs. However, it is critical to note that low-code and no-code services may not be ideally suited to all applications, and organizations must conscientiously evaluate their capabilities and limitations before making them part of their IT portfolio.
The rise of cloud gaming is a game-changer, offering users the ability to stream their favourite video games on any device through a remote server. This cutting-edge technology eliminates the need for costly hardware and effectively reduces the latency issues that have long plagued gamers. By tapping into cloud gaming's vast potential, the market is primed to undergo substantial expansion in 2023 and beyond, with an increasing demand for high-quality games that can be accessed from anywhere on the globe.
The worldwide cloud gaming industry is expected to reach $20.9 Billion by 2030. This can be attributed to various factors such as the growing availability of high-speed internet, innovative advancements in cloud computing technology, and a surge in the popularity of mobile gaming.
More immersive, interactive games with unmatched user experiences are anticipated from cloud gaming providers. Given that these providers' overarching goal is to increase their reach and customer base, mergers and acquisitions are likely to become more frequent as they solidify their market position.
Given the potent combination of innovation, growth, and momentum, the future of cloud gaming seems to be incredibly bright. Cloud gaming is very likely to quickly become the preferred option for players worldwide, changing the gaming industry for good as technology develops and offers even more immersive gaming experiences.
Edge computing, a computing technology that processes data closer to its origin, has emerged as a crucial trend in computing, expected to experience significant growth in 2023. More precisely the global edge computing market is anticipated to expand from $3.6 billion in 2020 to $15.7 billion by 2025. As companies strive to improve data processing speed, bolster security measures, and reduce costs, edge computing is fast becoming a popular approach to computing.
This technology proves invaluable for applications requiring real-time processing, such as autonomous vehicles and IoT devices, where edge computing can curtail latency and enhance response times, enabling improved reliability and efficiency.
Additionally, edge computing plays an increasingly crucial role in cloud computing. By distributing computing resources across numerous locations, this technology can reduce the load on centralized data centers, thus enhancing efficiency and lowering costs.
Cloud computing is set to experience massive growth in the following years, and the trends mentioned above are expected to shape the industry. Organizations that embrace these trends are likely to enjoy increased efficiency, innovation, and cost savings.
At Solwey, we understand technology and can leverage the most suitable tools to help your business grow. Reach out if you have any questions about cloud computing or technology in general, and find out how Solwey and our custom-tailored software solutions can cover your needs.