The biggest cloud computing trends to look out for this year

We’re often asked by businesses about the latest in cloud computing and how they can jump on these trends to enable even more innovation in their organisation.  

The cloud has become an essential part of running any modern business. It’s seen rapid adoption and market growth over the past couple of years, which is expected to more than double by 2026. Cloud computing provides organisations with the flexibility and scalability they need to meet the demands of an increasingly digital world – a dynamic spurred on by the pandemic and the move to remote working.  

But here’s the catch... 

As with any technology, new and interesting ways to use the cloud are always emerging. So, how can you keep tabs on it all? 

When it comes to contextualising where your cloud capabilities are now (and where they can grow in the future) it helps to know what’s trending for organisations at the cutting edge of the market.  

Understanding the trends driving the future of cloud computing 

In this blog post, we’ll discuss some of the key trends that are shaping the future of cloud computing in 2023 – and the reasons organisations should be taking advantage of them. 

Trend one: Increasing adoption of multi-cloud and hybrid cloud solutions 

One of the most significant trends in cloud computing is the adoption of multi-cloud and hybrid cloud solutions. While many organisations have traditionally relied on a single cloud provider, this can be risky, as it can lead to vendor lock-in and limit your organisation's ability to take advantage of the strengths of multiple cloud providers.  

Multi-cloud and hybrid cloud solutions allow organisations to use multiple cloud providers, giving them greater flexibility and control, and reducing the risk of data loss. 

Who could benefit from adopting a multi-cloud or hybrid cloud strategy? 

The terms "multi-cloud" and "hybrid cloud" involve different types of cloud infrastructure. As such, different organisations can benefit from and access each strategy. Let’s take a closer look... 

Hybrid cloud infrastructure combines two or more different types of clouds – for example public and private. This deployment is relevant for most organisations that require greater flexibility and control over their IT infrastructure, but also want the scalability and cost-effectiveness of public cloud services.  

On the other hand, multi-cloud involves combining multiple instances of the same type of cloud. Small and medium-sized businesses (SMBs) and Mid-Market organisations may face several challenges implementing this strategy. The primary obstacles include the complexity of managing multiple cloud environments, and the need for significant investment in new tools, technologies, and personnel to manage and integrate the different cloud platforms effectively. 

For this reason, at this stage it’s mainly enterprise customers who have the need and budget to adopt multi-cloud. We predict multi-cloud will become more accessible to SMB Mid-Market organisations in years to come, hopefully sooner. 

Trend two: Flatlined budgets in the current economic climate 

Inflation can impact Australian businesses in several ways, such as increased costs of production, higher prices for raw materials and supplies, reduced consumer spending due to rising prices, and changes in interest rates affecting borrowing costs. It can also lead to uncertainty and volatility in the market, which can make it harder for organisations to plan and make IT investment decisions. 

With higher costs impacting IT budgets, customers are looking for ways to optimise their cloud investments and reduce costs, whether it be assessing their current cloud usage and identifying areas where they can cut back or optimising their cloud resources.  

Additionally, flexible pricing models and better rates are looking more attractive, particularly as competition among cloud vendors increases. In the face of economic uncertainty, businesses are moving to make their cloud investments work harder and smarter to minimise costs and maximise returns. 

Trend three: Shortage drives organisations from on-premises to the cloud 

The global chip shortage of semiconductors, which are a key component in the manufacturing of a wide range of electronic devices, including smartphones, computers, and cars, is in full swing. It’s caused by a combination of factors, including disruptions to the supply chain due to the COVID-19 pandemic, increased demand for electronics during the pandemic, and production issues at chip manufacturing plants. 

The shortage affects the supply of data centre hardware, especially servers and networking equipment, to businesses across the board – making it difficult to replace or refresh these devices. As a result, organisations have been moving to the cloud from on-premises to avoid running out of warranty or operating using out-of-date hardware while they wait for new equipment to be delivered. 

It’s predicted that the shortage could continue into 2023 as demand for semiconductors continues to outstrip supply. A number of efforts are underway to increase production, so it’s possible the situation could improve sooner. 

Trend four: Harnessing the power of artificial intelligence and machine learning 

Artificial intelligence (AI) and machine learning (ML) are becoming more integrated into cloud computing services, helping organisations analyse vast amounts of data and automate complex tasks. Cloud providers are investing heavily in AI and ML technologies, and we expect these services will become increasingly sophisticated and accessible in 2023. Check out what they’ve been up to here. 

AI and ML will provide organisations with new opportunities to optimise their operations and increase efficiency – so it’s fair to say you should keep an eye on this trend for opportunities to reduce costs in the future.  

Who could benefit from taking advantage of AI and ML? 

As the launch of ChatGPT opens the minds of Australian businesses to what’s possible with AI, we’re seeing organisations initially adopting AI and ML using services like Microsoft Power Platform. Businesses seeking improved efficiency may look at AI and ML in 2023 to automate repetitive tasks, analyse customer data or implement a chatbot to elevate their customer experience. 

Trend five: Reducing overheads with containerisation 

Containerisation is another important cloud computing trend offering several compelling advantages. Containers package software applications so they can be easily moved from one environment to another. Compared to virtualisation, containers are faster, lightweight, and simpler to manage and automate. This strategy is becoming increasingly important as organisations adopt more agile and flexible cloud computing strategies.  

Using containerisation platforms like Kubernetes (K8s), you can quickly and easily deploy applications in a consistent and repeatable manner, reducing the time and effort required to get new applications up and running.  

As a Containers-as-a-Service (CaaS) provider, we manage all critical tasks, for example monitoring and platform maintenance. You’re only responsible for managing and maintaining the nodes. 

Who could benefit from containerisation? 

Organisations that are developing their own applications will get the most benefits from adopting this trend.  

Trend six: A focus on security and compliance 

Security and compliance are critical considerations for organisations using cloud computing solutions. Organisations need to ensure that their cloud computing solutions are secure and compliant with relevant regulations and standards to protect themselves from the consequences of damaging breaches.  

Cloud providers are investing heavily in security and compliance solutions, but cyber security should be a key consideration for your team, too. Plan to secure, control, and monitor your cloud applications with a cloud security service provider, and protect your uptime with backup and disaster recovery in 2023. 

Need support evolving your cloud computing strategy? Work with an expert. 

Multi-cloud and hybrid cloud solutions, the global economic climate and chip shortage, AI and ML, containerisation, and security and compliance will drive the evolution of cloud computing this year. You can position yourself for success by staying informed and taking advantage of these trends. 

If you're interested in learning more about how these trends can benefit your business, don't hesitate to get in touch with one of our technology consultants for expert advice and guidance. Learn more about SmartCLOUD, our owned and operated private cloud service, today.