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Top 5 Cloud Computing Trends In 2023

“Cloud Computing has been one of the most critical technologies of the last decade.”

The ongoing mass adoption of Cloud Computing has been a key driver of many of the most transformative tech trends, including Artificial Intelligence (AI), the Internet of Things (IoT), and remote and hybrid working. Going forward, we can expect to see it becoming an enabler of even more technologies, including Virtual and Augmented Reality (VR/AR), the Metaverse, Cloud Gaming, and even Quantum Computing.

1. AI/ML Adoption Boosts Cloud Growth

Artificial Intelligence (AI) and Machine Learning (ML) are provided as Cloud services because few businesses have the resources to build their own AI infrastructure. Gathering data and training algorithms require huge amounts of computing power and storage space that is generally more cost-efficient to rent as-a-service. Cloud service providers are increasingly relying on AI themselves for a number of tasks.  This includes managing the vast, distributed networks needed to provide storage resources to their customers, regulating the power and cooling systems in data centers, and powering Cybersecurity solutions that keep their data safe.

In 2023, we can expect to see continued innovation in this field as hyper scale Cloud service providers like Amazon, Google, and Microsoft continue to apply their own AI technology to create more efficient and cost-effective Cloud services for their customers.

2. Multi-cloud As  A Popular Strategy

If 2022 was the year of Hybrid Cloud, then 2023 could be the year that businesses come to understand the advantages of diversifying their services across a number of Cloud providers. This is a strategy known as taking a Multi-cloud approach, and it offers a number of advantages, including improved flexibility and security.

It also prevents organizations from becoming too tied in to one particular ecosystem – a situation that can create challenges when Cloud service providers change the applications they support or stop supporting particular applications altogether. And it helps to create redundancy that reduces the chance of system errors or downtime from causing a critical failure of business operations.

Adopting a Multi-cloud infrastructure means moving away from potentially damaging business strategies such as building applications and processes solely around one particular Cloud platform, e.g., AWS, Google Cloud, or Microsoft Azure. The growing popularity of containerized applications means that in the event of changes to service levels, or more cost-efficient solutions becoming available from different providers, applications can be quickly ported across to new platforms. While back in 2020, most companies (70 percent) said they were still tied to one Cloud Service Provider, reports have found that 84% of mid-to-large companies will have adopted a Multi-cloud strategy by 2023, positioning it as one of the year’s defining trends in Cloud Computing.

3. Cloud Gaming Goes Mainstream

The Cloud has brought us streaming services like Netflix and Spotify, which have revolutionized the way we consume movies, TV, and music. Streaming video gaming is taking a little longer to gain a foothold but is clearly on its way, with Microsoft, Sony, Nvidia, and Amazon all offering services in this field. It hasn’t all been plain sailing, however – Google spent millions of dollars developing their Stadia streaming gaming service only to retire it this year due to lack of commercial success. One of the problems is the networks themselves – streaming video games clearly requires higher bandwidth than music or videos, meaning it’s restricted to those of us with good quality high-speed internet access, which is still far from all of us.

However, the ongoing rollout of 5G and other ultra-fast networking technologies should eventually solve this problem, and 2023 could be the year that cloud gaming will make an impact. Google themselves have said that the technology itself that powers Stadia will live on as the backbone of an in-development B2B game streaming service that will allow game developers to provide streaming functionality directly to their customers. If, as many predict, Cloud gaming will become the “killer app” for 5G in the same way that streaming video was for 4G and streaming music was for 3G, then 2023 could be the year when we start to see things fall into place.

4. Increased Investment In Cloud Security

Migrating to the Cloud brings huge opportunities, efficiencies, and convenience but also exposes companies and organizations to a new range of cybersecurity threats. On top of this, the growing pile of legislation around how businesses can store and use personal data means that the risk of fines or (even worse) losing the trust of their customers is a real problem.

As a result, spending on Cybersecurity and building resilience against everything from data loss to the impact of a pandemic on global business will become even more of a priority during the coming year. However, as many companies look to cut costs in the face of a forecasted economic recession, the emphasis is likely to be on the search for innovative and cost-efficient ways of maintaining cyber security in order to get the most “bang for the buck.” This will mean greater use of AI and predictive technology designed to spot threats before they cause problems, as well as an increase in the use of managed “security-as-a-service” providers in 2023.

5. Accelerated Spending On The Public Cloud

Public Cloud is an IT model where cloud computing services and infrastructure are managed by a third-party organization. These services are shared with other organizations via the public Internet (AWS, Microsoft Azure and Google Cloud are some examples of Public Clouds).

As many as 96% of organizations use the Public Cloud (80% use it as part of their Hybrid Cloud infrastructure, 7% only use multiple public clouds, whereas 9% use a single Public Cloud).

While Public Cloud adoption rates are expected to remain approximately the same for the next couple of years, public cloud usage among these companies is growing. And this is leading to increased spending on the public cloud.

According to Gartner, Public Cloud spending was expected to grow 20.4% in 2022, reaching $494.7 billion.A similar growth rate is forecast for 2023 as well. This growth, compared to the 17.5% rate in 2019, illustrates that Public Cloud spending is accelerating.

Final Thoughts

Organizations are past the point of debating the value of moving to the Cloud. Whether it’s to leverage advanced technologies like AI and ML, gain competitive edge, or to simply take advantage of a safe harbor during times of economic turbulence, organizations can’t afford not to move to the cloud.

2023 will certainly bring about great change as Cloud Service Providers evolve their offerings and enterprises make strategic moves to remain competitive, but one thing is clear: once in the cloud, there’s no turning back.

Finally, it will be exciting to see how companies balance the need to increase Cloud usage with the necessity to optimize Cloud spending.

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Interested in Management, Design or Technology Consulting, contact anil.kg.26@gmail.com
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