Top Cloud Computing Trends For 2023
Cloud computing is the core pillar driving digital transformation to its core. Companies are moving towards adopting cloud computing technologies to overcome the pitfalls of traditional systems to keep pace with the ever-evolving consumer demands and get a competitive advantage in this digital-first landscape.
Cloud technologies are the epitome of high-end security and support innovation and company growth with their agile, scalable, flexible, secure, and elastic nature. You will be amazed to know about the accelerating investment in cloud technologies. As per Techopedia,
- In 2022, the worldwide market for cloud computing stood at $546.1 billion.
- Forecasts suggest a 21.7% increase in global expenditure on public cloud services in 2023, with a projected value of $597.3 billion.
- By the first quarter of 2023, the leading cloud infrastructure service companies had secured a combined market value of $63 billion.
- During 2022, nearly half (45%) of corporate security infractions occurred within cloud platforms.
Now, we cannot say that the significance of cloud computing is overstated. To be a part of digital transformation, the cloud is considered a strong ally in reshaping how businesses operate.
Several technology trends significantly accelerate the adoption and investing in cloud computing technologies, services, and features. So, let’s look at the trends increasing the pace of cloud computing adoption.
Top Cloud Computing Trends (2023–2028)
Gartner’s recent forecast suggests that global consumer expenditure on public cloud services will rise by 20.7%, hitting $591.8 billion in 2023 from $490.3 billion in 2022. This growth projection surpasses the estimated 18.8% growth for 2022.
Businesses will persistently lean on cloud services in 2023 to leverage the latest technologies, optimize their internal functions, and refine operational workflows. In this post, we delve into anticipated cloud computing trends for 2023.
Swift from Cloud to Edge Computing
Not sure about “Edge Computing”? No worries.
Edge computing refers to processing data closer to the network’s source or “edge” rather than relying solely on centralized cloud-based systems. Doing so offers reduced latency, improved speed, and better bandwidth efficiency. Edge computing shifts computation tasks to local devices, allowing for real-time data processing and faster response times. Going forward, edge computing will be one of the top cloud computing trends you will witness in 2024.
This is the primary reason for the increase in IoT devices. Gartner predicts that organizations adopting edge architecture for network segmentation and isolation will witness a 25% reduction in successful cyber breaches.
Such advantages significantly contribute to the growing embrace of edge computing by enterprises. Total expenditure on edge computing is projected to hit $317 billion by 2026, a significant rise from $208 billion in 2023.
Increased Security Concerns
Around 92 percent of companies have migrated some of their business to the cloud. Well, it is nothing to be amazed at as this number will increase in the future.
But do you know that this migration comes with serious security issues that have impacted businesses and increased the attack surface for businesses?
Today, security is the foremost concern for any business trusting third-party vendors with their data, as it can also compromise their reputation. Almost 98 percent of businesses have experienced at least one cloud data breach in the last 2 years. And 69% of the time, the reason for this outbreak is a data breach or data leak.
This is why, In 2023, there will be a surge in the adoption of managed “security-as-a-service” offerings and AI-driven predictive tools to identify threats before they lead to problems.
Multi And Hybrid Cloud
Multi-cloud and hybrid cloud are infrastructures powered by more than one cloud. So where the difference lies?
Hybrid cloud seamlessly integrates private and public cloud infrastructures, while multi-cloud employs multiple cloud providers without necessarily integrating them.
Around 76 percent of businesses are going for a multi-cloud strategy as it eliminates vendor lock-in situations and allows businesses to migrate seamlessly across vendors efficiently.
Approximately 80% of businesses now adopt a hybrid cloud setup, a rise from 58% in 2019, with 43% utilizing several public and private clouds. Enhanced scalability, greater control, cost savings, augmented agility, and superior remote work support drive businesses toward this model. Since 69% of IT experts view hybrid-cloud systems as the enduring framework for IT infrastructure, its adoption will persistently rise.
Companies now recognize that effective data management requires integrating diverse cloud deployment techniques instead of depending exclusively on a single cloud solution. In 2023, many enterprises will prefer multiple vendors for hybrid or multi-cloud setups to maximize the benefits of each offering. Hybrid cloud configurations, which merge public and private clouds tailored for entities where data is central, like banks or insurance firms, will gain prominence.
As a result, Multi and Hybrid Cloud Deployments are set to be leading cloud computing trajectories in 2023 and beyond.
AI and ML Powered Cloud
AI and ML are transforming every industry, and so is cloud computing. Both technologies can be offered as cloud computing services, as many businesses across the globe have capabilities to build their AI infrastructure.
As we all know, gathering vast amounts of data, analyzing it, and training models and algorithms require ample space and computing power. It becomes a cost-effective solution if provided “as-a-service” to companies working on them.
Cloud service vendors are progressively integrating AI for various functions. These encompass overseeing expansive, distributed networks essential for customer storage solutions, controlling power and cooling mechanisms in data centers, and bolstering cybersecurity defenses. As 2023 unfolds, industry giants such as Amazon, Google, and Microsoft are poised to harness their proprietary AI technologies further, driving advancements and crafting more streamlined, cost-efficient cloud services for users.
Modern tech frontrunners seek cloud frameworks capable of handling AI/ML tasks and often turn to secondary cloud providers to meet these demands. Research by the Enterprise Strategy Group reveals that 39% pinpoint AI/ML as a pivotal reason for engaging with multiple cloud providers beyond their main one. Other leading needs include application development and testing (39%), database clustering (33%), and international service provision (31%).
Low-Code And No-Code Cloud Services
With the introduction of low-code and no-code, developers enjoy developing complex applications without getting dirty by getting into the lines of code, as it can be built with the minimum code possible.
This is why this trend will not fade away soon.
From creating web apps to designing and developing simple to complex websites, developers can also build AI-powered applications like a boss. The time is not far when even startups will develop the most innovative AI apps possible with a low budget.
It has opened gates to more opportunities to drive innovation.
Most of these services are delivered through the cloud, enabling users to utilize them “as-a-service” without possessing the robust computing setup essential for their operation. Platforms like Figma, Airtable, and Zoho empower users to execute functions that once demanded coding skills, including website design, spreadsheet automation, and web app development. Cloud technology will further amplify its role in facilitating such services in 2023 and the subsequent years.
Using low-code and no-code platforms as part of a cloud solution will enable fast application development. So it is the trend that every developer will look forward to.
XaaS (Everything as a Service)
The worldwide “Everything as a Service” (XaaS) market stood at $595.78 billion in 2022 and is projected to skyrocket to $3958.99 billion by 2032, marking a 20.77% CAGR from 2023 to 2032. The research additionally factors in the qualitative and quantitative effects of COVID-19 and the Russia-Ukraine conflict on the global XaaS landscape.
XaaS represents a model where services are provisioned over the internet or networks, with consumers paying subscription fees to access diverse services. This catch-all term covers a range of “as a service” offerings.
This model allows businesses to minimize upfront costs, offering them agility and scalable service options. Rather than pouring capital into hardware, software, or infrastructure, users can instantly access needed services. Providers, in turn, can deliver these services remotely. The shift towards the XaaS paradigm is gaining traction as companies prioritize core competencies and delegate peripheral tasks to expert vendors.
Blockchain Adoption
Blockchain, a revolutionary player in cloud computing, offers an immutable digital ledger, eliminating reliance on a central authority for recording business data. This technology stands as a dominant trend in cloud computing, with its potential poised to be further explored by businesses in 2023.
Sectors from IT to finance, government, and healthcare are swiftly embracing blockchain to harness its immense benefits. By transitioning from age-old paper systems to distributed ledger technology (DLT), organizations can enjoy heightened trust and reinforced security through encryption, transparency, and other distinctive attributes.
Cloud Gaming
The swift expansion of cloud computing, data accumulation, and knowledge dissemination have catalyzed the transition from traditional computation methods. Cloud gaming has emerged as a significant beneficiary within this transformation, propelled by the escalating demand for superior gaming experiences and the booming mobile gaming sector.
The worldwide Cloud Gaming industry will experience significant growth between 2023 and 2030. With its steady progression and strategic moves by leading players, its expansion is anticipated to continue through the forecasted timeline.
In 2021, the Cloud Gaming market was valued at USD 2120.74 million, and it’s poised for a growth rate of 24.18% CAGR, aiming to reach approximately USD 7776.78 million by 2027.
The global momentum in the Cloud Gaming sector is fueled by a burgeoning mobile gaming demographic and progressive strides in digital gaming solutions. Furthermore, the advent of 5G technology, enabling rapid data transfer and the rollout of unlimited data plans, amplifies the market’s potential. Key players capitalizing on these advancements include NVIDIA, AWS, Microsoft, Walmart, and IBM. Many elements, including prevailing trends, industry constraints, and driving forces, shape and shift the cloud gaming landscape.
These trends will accelerate the usage of cloud computing in the coming years, and many more companies will adopt cloud infrastructure to transform their work digitally.
Embrace Cloud Computing Trends with OnGraph
Cloud computing has reshaped the modus operandi of businesses in today’s digital era. Its scalable, adaptable, and economical solutions offer companies the tools to optimize processes, bolster teamwork, and foster creativity.
Given its vast potential, cloud computing is a foundational element in contemporary business approaches, ensuring companies remain ahead of the curve, adjust to market shifts, and discover fresh opportunities digitally. Adopting the cloud is more than just a fleeting trend; it’s imperative for entities aiming for enduring growth and triumph in the ever-evolving 21st-century environment.
With technological advancement, various trends consistently improve the efficiency and operations of cloud computing. If you want to adopt any of these trends to your cloud computing infrastructure, we are here to help you.
Connect with OnGraph for the development and adoption of the latest cloud computing solutions backed by these trends.
