As organizations embrace data-driven business models, remote and hybrid work environments andglobal supply chains, cloud computing is more popular than ever. New capabilities anddeployment models continue to emerge, offering businesses of all sizes and across allindustries greater choice in how they consume, use and benefit from their cloud investments.
Companies can take advantage of all of this without the need to purchase and maintain theirown IT infrastructure, helping to conserve their IT budgets. That’s particularlyattractiveto smaller and fast-growing businesses that can now access advanced technology previouslyout of reach.
What Is Cloud Computing?
Simply put, cloud computing allows companies to access computing services via the internetwithout needing to purchase or set up their own infrastructure locally. Common businesscloud services include data storage and analytics, development platforms and businesssoftware, such as human resources (HR) and enterprise resource planning (ERP) systems. Consumer-facingcloud platforms range from media-streaming platforms to videoconferencing software. Thislist is hardly exhaustive, with new cloud services constantly emerging to meet the changingdemands of businesses and employees. For instance, cloud collaboration platforms andvideoconferencing solutions have become increasingly popular among businesses in recentyears as more organizations embrace remote and hybrid working models.
Companies can choose to run their entire IT infrastructure in the cloud or implementcloud-based solutions for specific aspects of their operations. Typically, they pay for theservices they need on a subscription basis, giving them the flexibility to pursue theprecise technology capabilities they require.
What Are the Trends in Cloud Computing?
Cloud computing trends demonstrate how this technology is changing the way businesses operateand how they allocate their IT budgets. Significantly, public cloud users (who sharecomputing resources) no longer have to purchase and maintain hardware and otherinfrastructure or manage IT upgrades and software patches — that responsibility nowfalls ontheir cloud vendors. This leaves businesses and their IT teams able to focus on corebusiness objectives like innovation, new product or service offerings and hiring new talent.It also helps to level the playing field for growing businesses that had been unable toafford the steep price tag of advanced technologies they can now access through asubscription.
Underscoring this shift, Gartner indicates that worldwide spending on public cloud serviceswill total $397.5 billion in 2022, an increase of 47% since 2020, according to research firmGartner. For its part, market intelligence group IDC forecasts total worldwide spending oncloud services will exceed $1 trillion in 2024. Additional trends revolve around new clouddelivery models, technologies, operating models, security and application development.
19 Key Trends in Cloud Computing
Cloud computing is now seen as a linchpin for businesses that want to work smarter, focus onwhat they do best and complete projects faster. From warehouse managers looking to stripcomplexity from their shipping operations to retail bank CIOs spearheading the developmentof new online banking applications, the use cases for cloud computing are virtuallylimitless.
With access to on-demand computing power, highly scalable platforms and a more flexibleapproach to IT spending, the cloud has gone from emerging technology to an indispensable ITresource. Below we outline 19 trends, grouped into five categories, that are shaping thefuture of cloud computing.
Cloud Delivery Models
Cloud services can be delivered in a variety of ways. The delivery model a company chooses touse varies based on its functionality requirements and the maturity of its IT and datagovernance needs. While public software-as-a-service (SaaS)solutions remain the largest market segment, vendors increasingly offer solutionsthat cater to a wide range of customers and requirements.
SaaS: Software-as-a-service (SaaS) applications deliver softwareover the internet that users access via a browser. The vendor manages the hardware,database, security and infrastructure, while users typically have some ability toconfigure the software to their needs. In the business context, these applicationsare often departmental. For example, customer relationship management for sales,service and marketing, HR software for HR.
PaaS: Platform-as-a-service (PaaS) cloud solutions providedevelopers with the software and operating systems they need to build cloud-basedapplications, be it a mobile app for better inventory tracking or a consumer-facingsocial media platform. Companies are also beginning to use PaaS cloud systems fortheir network security, since they can easily be customized to suit specificsecurity requirements. Spending on PaaS cloud services is forecast to reach $71.5million in 2022, up 54% from 2020, according to Gartner.
Multicloud: Certain businesses want to distribute internal computerprocessing and storage requirements across multiple cloud platforms andapplications, often from different vendors, based on their needs. It’s commonforthem to choose different cloud providers for different functions, like ERP, securityand marketing technology, for example. While an all-in-one business managementplatform that supports numerous functions is the best option for many companies,they may still require complementary solutions to help with other areas of thebusiness. Businesses might also spread out their use of public clouds for computeresources to avoid lock in and gain leverage in negotiations. According to a surveyof 750 tech decision-makers from IT consulting firm Flexera, organizations are using2.6 public clouds and 2.7 private clouds, on average, and they’reexperimenting withmore.
See AlsoHow does a cloud-first strategy differ from other approaches to cloud? it enables an organization to - Brainly.inWhy You Need a Cloud-First Strategy How does a Cloud-first strategy help clients? Which are these are the correct answer? A] by putting a - Brainly.inWhat is a Cloud-first strategy? A. a service that enhances and automates a business's customer acquisition - Brainly.inPrivate cloud: A private cloud is a cloud computing model whereservices are provided over private infrastructure for the use of a single business,typically managed by that same business. Businesses choose private clouds to gainthe benefits of cloud services through vendors without incurring the costs ofbuilding out and maintaining the cloud infrastructure themselves.
Hybrid cloud: Many companies opt for a hybrid cloud model thatcombines public cloud services with the deployment of a private cloud, which isdedicated to a single business. This is especially true of organizations thatcollect sensitive data or operate in highly regulated industries like insurance,where data privacy is essential. A hybrid approach is attractive because it offersthe necessary level of control without holding businesses back from innovation andscale as they roll out new services for their customers. The global hybrid cloudmarket is expected to be worth $145 billion in 2026, up more than 180% from $51billion in 2020.
Serverless: Serverless computing is a form of cloud computing thatlets businesses access IT infrastructure on-demand, without the capital investmentand need to manage the infrastructure themselves. The difference between genericcloud computing and serverless is based on how resources are allocated —serverlessis a subset of PaaS used by companies who need a lot of processing power, but onlyin short bursts. Compiling software code is one example. Serverless models aregaining traction among companies big and small that want to build new applicationsquickly but lack the time, resources and/or budget to deal with the infrastructure.This lets growing businesses take advantage of greater computing power at areasonable cost, while large organizations can roll out new digital services withoutadding to the burden of their already-stretched IT teams. Indeed, 25% of developerswill use serverless computing by the end of 2021, global research firm Forresterpredicts.
Category 2: Smarter Working with the Cloud
The cloud has emerged as more than a vehicle for computing power. Cloud storage and platformsalso drive more efficient working practices, time and cost savings and innovation, helpingcompanies modernize the way they work.
Machine learning and artificial intelligence: Cloud-based artificialintelligence (AI) technologies, including machine learning, are helping businessesdraw additional value from the ever-growing volumes of data they collect. Fromlogistics companies analyzing the efficiency of their transportation networks toecommerce brands testing the performance of their websites in real time, AIalgorithms empower businesses to glean new insights from their data and improve theway they work. Companies that don’t have the budget or talent to build AIinfrastructure of their own — and many don’t — can still takeadvantage of it byrunning systems from cloud service providers.
Automation: Automation is a key driver of cloud adoption,particularly when it comes to improving the efficiency of business operations. Withtheir data and systems centralized on the cloud, companies can automate many oftheir internal processes, be it the consolidation of data from different locationsor the creation of business intelligence dashboards. Today, many organizations arelooking to tighten connections between different pieces of software with the aim ofbetter managing their growing cloud footprints and ensuring that solutions fromdifferent vendors work together seamlessly.
Delegation of IT ops: As more vendors launch solutions that can behosted on external servers, some businesses will elect to outsource portions oftheir IT operations to third parties. Rather than hiring dedicated teams to build,manage and maintain their systems, companies can cut their operating costs and focuson the core product or service. That said, they must be mindful of their sensitivedata and technologies when deciding which operations to outsource so as not tocompromise their governance or compliance practices.
Category 3: Compliance and Security Trends
IT security and data compliance are major concerns for businesses and customers alike, andtoday’s cloud solutions have evolved to address these concerns. Vendors have imbuedtheirofferings with leading data controls and defenses that reduce the risk of human error whenmanaging sensitive data.
Complexity of compliance: With companies collecting more data from agrowing number of sources and governments enacting data protection regulations suchas the General Data Protection Regulation (GDPR) and California Consumer Privacy Act(CCPA), compliance has become a priority for companies. Cloud storage andapplications improve access to business data, which gives companies added controlover how the information is managed. Data governance is now a core consideration forall IT investments, particularly when implementing solutions that will handlesensitive financial data or other personal information about customers.
Better cloud security: IT security threats are on the rise. Thenumber of global ransomware attacks, for example, whereby cybercriminals steal acompany’s data and hold it hostage until they are paid a ransom grew by almostfivetimes in 2020. Leading cloud providers back up their solutions with best-in-class ITsecurity practices, mitigating much of the threat.
SASE: With employees accessing more services and data from their owndevices, which sit outside their companies’ IT networks, businesses arerethinkingtheir approach to security and risk management. Secure Access Service Edge (SASE), aterm coined by Gartner, is a cloud-based approach to IT security that caters to thechanging nature of work. Companies with a SASE architecture benefit from networksecurity services such as secure gateways, firewalls, zero-trust network access andmore, all based in the cloud. This is a robust approach to IT security that empowersbusinesses to deliver new cloud services quickly and with peace of mind that theirsystems are well-protected.
Cloud-based disaster recovery: Disaster recovery has been moving tothe cloud, with 20% more companies expected to move on-premises disaster recovery tothe public cloud by the end of 2021, per Forrester. While similar to traditionaldisaster recovery, cloud-based disaster recovery backs up a company’s data onanexternal cloud server and is generally more cost- and time-efficient, with the addedbonus of being managed by an external provider. What’s more, businesses canadd,change and remove data from these external systems as they see fit without having toscale their own IT infrastructure. It’s also common for businesses to rely oncloud-based disaster recovery for critical servers and applications, such as largedatabases or ERP systems.
Category 4: Innovation and Application Development
As companies look to differentiate themselves by quickly launching new products and services,cloud-based platforms are evolving to support their development needs at a record pace. Frompurpose-built coding environments to decentralized data storage, cloud computing has openedthe door to new possibilities in application development.
Containers and Kubernetes: Containers offer businesses a dedicated,cloud-based space where they can build, test and deploy new applications. Thisallows developers to focus on the details of their applications and IT teams tofocus on deploying and managing solutions as they are developed, making the entireprocess quicker and more efficient. Of 1,324 IT professionals surveyed in a 2020Cloud Native Computing Foundation report, 92% said they are running containers intheir production environments.
Kubernetes is an open-source container orchestration solution that simplifies theprocess of deploying and managing applications developed in containers. In additionto automated scaling of applications based on customer demand, the software alsomonitors the performance of new services so businesses can address issuesproactively. The same study found 91% of respondents use Kubernetes, primarily inproduction.
Edge computing: This form of cloud computing brings data processing— collection, storage and analysis — closer to the sources generatingthe data,rather than a centralized cloud. This reduces latency and powers the use of edgedevices. Edge computing is the driving force behind smart devices, such assmartphones, smartwatches and smart cars, and the interconnection of all the datagenerated by these technologies. Gartner predicts 75% of business-generated datawill be created and processed outside of a centralized cloud by 2025.
Cloud native: Cloud-native applications allow businesses to buildand deliver new software to their customers more quickly than traditional monolithiccloud applications, which run on a single hardware or software hub. Instead,cloud-native applications are built as a network of distributed containers andmicroservices. That means multiple teams can work on new features at the same time,accelerating the pace of innovation.
Category 5: Cloud-Based Operating Models
In addition to supporting more efficient technology operations, cloud computing has led toincreased collaboration between employees across teams, departments and geographies.
Collaboration: Remote work is not a new phenomenon, but it hasbecome far more common recently and the rise of cloud collaboration platforms hasmade the approach more viable. Secure networks, conferencing and communicationplatforms have become must-haves for modern organizations. Adroit Market Researchpredicts that the enterprise collaboration market could reach $45 billion by 2025,as more employees opt for real-time communication. Collaboration platforms are alsobecoming more advanced, ranging from spreadsheets that update in real time and othertypes of work management software to advanced data warehouse modeling tools thatkeep teams across geographies up to date.
Virtual cloud desktops: A virtual cloud desktop, also known asdesktop-as-a-service, delivers the entire desktop operating system and softwareapplications as a cloud-based service directly to a laptop, desktop or other device.Companies only pay for the time their staff spend logged in to their devices, andthey don’t have to pay for hardware upgrades. Virtual cloud desktops can alsobescaled instantly, which means companies always have the licenses and devices theyneed to support their growing workforce. The global market for virtual clouddesktops is predicted to reach $10.2 billion by 2023, growing at a compound annualgrowth rate of 16.5% since 2017, according to Allied Market Research.
Cloud costs: The upfront costs of cloud computing are much lowerthan those that come with buying and setting up on-premises IT infrastructure andsystems. The same applies to having to maintain and upgrade hardware and software,along with the cost of staff charged with those duties. However, that’s not toimplymigrating to the cloud is always an inexpensive proposition. If not managedproperly, the variable cost nature of the cloud may potentially exceed budget andincrease total costs over the long run.
NetSuite & Cloud Computing
NetSuite cloud ERP provides a unified suite of business management applications. Withsolutions for accounting and finance, supply chain, CRM, HR, project management, ecommerceand more, NetSuite lets you run your entire business on a single platform. NetSuite offersall solutions through a SaaS model, meaning customers run their applications over theinternet without having to buy, install or manage IT infrastructure. This delivers a numberof major benefits, including lower overhead, higher availability, anytime-anywhere access tocritical applications and the ability to have IT staff work on projects that will help thebusiness grow instead of just system upkeep.
Additionally, NetSuite’s SuiteCloud platform gives users and developers tools tocustomize, extend, test and build applications. SuiteCloud empowers organizations tocapitalize on some of the trends mentioned here as they look for new ways to leverage thecloud to push their business forward.
While some companies continue to operate in a hybrid environment, combining traditional andcloud-based systems, the days of exclusively on-premises systems are beginning to fade.Cloud adoption will continue to accelerate as more businesses embrace the advances incomputing power, scalability and flexibility that cloud-based systems deliver. The path toadoption and timeline to do so will vary from one organization to the next, but one thing iscertain — there is no going back to the old ways.
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Cloud Computing Trends FAQs
Q: What are the trends in cloud computing?
A: The cloud computing market continues to grow at record pace as companies move fromon-premises IT to hybrid and cloud-based systems. Trends range from new deployment models,such as edge and cloud-native applications, to shifts in operating models, to remote andvirtual desktops.
Q: What are the three main key trends in cloudcomputing?
A: The three primary trends in cloud computing are the rise of platform-as-a-service (PaaS),vendors joining forces on multicloud solutions and an increasing focus on data governanceand security.
Q: What is the future for cloud computing?
A: The future of cloud computing is increased adoption and discovering new ways to usesystems and information in the cloud to drive insights and efficiencies. More businesseshave already invested in a hybrid approach that mixes on-premises and cloud-based systems,and the market as a whole is moving toward greater reliance on subscription-based softwareand infrastructure.
Q: What are the 3 types of cloud computing?
A: The three primary forms of cloud computing are infrastructure-as-a-service (IaaS),software-as-a-service (SaaS) and platform-as-a-service (PaaS). With IaaS, businesses rentservers, storage and networking infrastructure in a cloud environment. With SaaS, businessesaccess the applications they need over the internet and pay for required. With PaaS,businesses access a development platform for building or rolling out proprietary softwareand services.
