Cloud Computing Trends Businesses Should Watch

Cloud Computing Trends are the new technologies, practices, and business models guiding the use of cloud-based services in computing, storage, software, data, and security applications. Artificial Intelligence in the cloud, Hybrid and Multi-cloud, Edge Computing, Serverless architecture, Cloud security, Cloud-based Industry-specific platforms and Cloud sustainable operations are key trends. These trends are important because they have the potential to impact the cost of doing business, business flexibility, data management, application performance and cyber security. Knowing the direction of cloud computing allows businesses to make informed technology choices and make systems resilient to evolving customer and market demands.

Cloud Computing technologies are no longer a technology decision, but a fundamental part of today’s business solution. Cloud platforms are used to develop new digital services, host applications, store data, run analytics, support remote teams, and more.

However, cloud technology is far from stagnant. The way companies leverage cloud infrastructure and services is transforming with the introduction of new tools and operating models. There are some trends which are being created by artificial intelligence. Other people are more interested in security, cost control, performance or sustainability.

For business leaders, the question isn’t whether to embrace all the new technology. The ability to comprehend which trends can address actual business issues.

These are the biggest cloud computing trends to keep an eye on while formulating technology strategies for businesses. 

AI And Machine Learning Become More Cloud-Centric

AI and machine learning are some of the largest trends shaping cloud computing. Cloud platforms enable companies to leverage computing resources, storage, and specialized tools to develop and maintain AI applications more easily.

Some AI systems were sophisticated and traditionally required expensive hardware and special infrastructure. That barrier has been reduced by cloud services. AI service providers are now making it available to businesses via managed services, application programming interfaces, and application development platforms in the cloud.

There is also a rise in demand for cloud resources with Generative AI. AI tools are being used in many ways in the business world, including customer support, content creation, software development, data analysis, forecasting, and internal knowledge management.

The cloud trend is expected to impact cloud strategies in a couple of ways: 

• Managed AI and machine learning services to be adopted by more businesses.
• AI workloads will be a larger part of cloud spending.
• Data governance will be more robust for companies to use AI.
• The new demands of AI workloads will drive up computing performance and data storage needs.
• Security teams will have to deal with risks associated with AI-generated content and sensitive data. 

In the business world, the question is not just about the adoption of AI. Organizations must grasp the potential areas for measurable value, cost management, privacy concerns, and compliance needs in leveraging AI. 

Hybrid And Multi-Cloud Strategies Will Keep Growing

In the past, many organisations thought of cloud migration as shifting from managing data centres to using a single public cloud. This has not been as feasible for certain businesses today.

In today’s world, businesses can sometimes deploy more than one cloud provider and/or private infrastructure. Depending on the structure of the environments, this can be referred to as a hybrid cloud or multi-cloud approach.

Hybrid cloud is a mixture of cloud and private infrastructure. With a multi-cloud approach, use services from multiple cloud providers.

There are a number of reasons that businesses might opt for these models. Regulatory or operational requirements may necessitate some apps stay in private environments. Other workloads might benefit from scaling in Public Cloud.

The use of multiple providers may also help to minimize reliance on a single provider. However, it can make technology management more complicated.

When deciding to use a hybrid or multi-cloud approach, businesses should look for: 

• Uniform security policies in environments.
• Moving and combining data
• Monitoring and visibility of clouds is important.
• Application portability
• The knowledge and abilities a computer team needs to have.
• Costs of infrastructure and management 

Multi-cloud isn’t an end in and of itself. It is best suited to a situation where there is a clear business or technical need for utilizing more than one environment. 

Cloud Security And Zero Trust Will Become Bigger Priorities

Having a cloud strategy requires security to be an even larger component as more applications and data are migrated to the cloud.

Traditional security architecture based models had the implicit concept that a user and device inside a company network could be trusted. It becomes less relevant in cloud computing. Resources can be accessed from numerous locations by employees, applications, partners or devices.

That’s where zero trust security comes in. The premise behind zero trust is to verify before you trust.

Identity and Access Management, encryption, automated threat detection and security monitoring are also emerging as areas of focus for businesses.

There is a growing need for cloud security strategies to consider: 

• Who is allowed access to sensitive data?Who has access to sensitive data?
• What is the range of communication between the applications?
• Whether users and devices are properly authenticated
• The way in which permissions are reviewed
• The method of detecting security incidents.The way security incidents are being found.
• The location of business data stored and processed. 

While cloud providers are putting a lot of effort into their security products, businesses have their own security obligations as well. Putting an app into the cloud doesn’t instantly make it secure.

Organizations need to know and understand the shared responsibility model, and be clear about which security aspects are provided by the cloud provider and which are provided by the customer.

Edge Computing Will Support Faster Digital Services

Cloud computing doesn’t necessarily require all data to be sent to some remote, centralized data center. In cases where responses must be very quick, it is more practical to process data nearer to where it is generated.

Edge computing is the concept of delivering computing resources closer to the edge of the network.

Edge computing moves the computing and data processing resources nearer to the user, devices, sensors and other data sources. It can decrease latency and restrict data transfer to the center cloud setting.

This can prove valuable in sectors like manufacturing, retail, healthcare, logistics, telecom and connected devices.

A manufacturer could, for instance, use sensors to keep track of equipment. Some processing can be done at the equipment level instead of transmitting all data points to a central cloud platform before acting. The cloud can then perform more comprehensive analysis and store data for longer.

Edge computing and cloud computing can thus not be seen as mutually exclusive solutions. They are capable of collaboration.

Edge infrastructure can deliver workloads with local processing capabilities, and the cloud can offer a centralized management, analytics and scalability. 

Serverless Computing Will Change Application Development

Another cloud trend to watch in 2019 is serverless computing. Even though it is “serverless,” it still requires servers. The difference is that developers don’t need to handle the underlying infrastructure in the same manner as before.

Much of the infrastructure management of the cloud is handled by cloud providers. The developer can concentrate more on the application logic and business functionality.

For workloads that require dynamic resources, a serverless architecture may be helpful. In the case where an application requires computing resources during only a fraction of the time, businesses can save on the cost of having continuous infrastructure.

Typical applications involve: 

• The backend for Web and mobile applications.Web/mobile application backends.
• Automated data processing
• Event-driven applications
• APIs
• Scheduled tasks
• File processing workflows 

But not all applications are fit for serverless. Some of the key elements for businesses to evaluate include performance expectations, vendor reliance, application design, monitoring, and the ongoing expenses.

Broader than serverless is the important trend. Cloud is becoming more of a service as more businesses are buying computing resources without having to manage everything. 

Cloud Cost Management And FinOps Will Take Center Stage

Though adopting the cloud can help save on capital costs, it is not the only way to cut costs.

If resources are not managed properly, a business can easily end up with an excessive amount of cloud spend. All of these factors contribute to higher monthly costs when they’re not used as efficiently.All of these can drive up monthly expenses if not utilized efficiently.

That’s why FinOps, or cloud financial management, is gaining significance.

FinOps is a concept that unites finance, technology, and business teams to comprehend and control cloud spending. Organizations link costs and spending to business value, rather than just a technical problem.

An effective cloud cost management strategy may incorporate the following: 

• Monitoring team, application or project expenses
• Recognising unused or underused resources
• Creating budgets and alerts
• Optimizing computing capacity
• Reviewing storage requirements
• Computing the price of individual workloads
• Tying cloud costs to business results 

It’s particularly significant with the increasing adoption of AI and other resource-heavy technologies in the business sector. Cost visibility is crucial for AI workloads, as they consume considerable computing resources.

The objective is not just to save money. It is to ensure that the organisation’s priorities are met through cloud spending. 

Industry Clouds And Sustainable Cloud Operations Will Expand

Cloud services are getting increasingly niche. In addition to the general purpose infrastructure, businesses can utilize industry specific cloud platforms/services built on specific regulatory, operational and/or business requirements.

The technology needs of financial services companies, healthcare companies, manufacturing companies, government agencies, and retail companies are different. Tools and configurations exist to meet some of these requirements that industry cloud offerings can provide.

It can cut down on the time and work required for businesses to create some of these capacities. But companies must still determine if a dedicated platform meets current systems and compliance requirements.

Meanwhile, sustainability is becoming increasingly prevalent in the cloud strategy.

Cloud data centers require a lot of energy. Therefore, businesses are now looking at the implications of their technology investments on energy consumption and environmental footprint.

Examples of sustainable cloud operations include: 

• Improving application efficiency
• Minimizing unnecessary workload of computing resources.
• Spending resources in a better way
• Choosing providers who have sustainability objectives
• Establish an energy and infrastructure monitoring system.
• Wherever possible, the useful life of digital resources is extended. 

Sustainability should not be just a marketing challenge. Efficient systems can also help minimise waste and in some instances, operating costs. 

Final Thoughts

The impact of cloud computing on businesses will remain in application development, data management, data security and the provision of digital services. But the next adoption of the cloud is not a straightforward migration of more workloads to the cloud.

The emphasis is on better utilization of cloud technology.

There will be greater demands on cloud infrastructure and services as a result of artificial intelligence. Businesses will have greater choice in hybrid and multi-cloud environments, yet will come across challenges in managing them. Applications requiring quick local processing will benefit from edge computing. Serverless technology will make certain aspects of application development easier. As companies are spread across many locations, security and zero trust will continue to be key.

Meanwhile, FinOps will clarify whether the cloud investments are paying for themselves and sustainable solutions and industry-specific clouds will have an impact on infrastructure planning.