The pandemic and stay-at-home mandates accelerated businesses’ shift to cloud-based applications to enable remote work and to keep serving customers.
In 2023, it is expected that businesses will continue to leverage cloud computing. In fact, worldwide public cloud spending is projected to increase from $490.3 billion in 2022 to $591.8 billion in 2023. This time around, businesses will use cloud computing to improve their internal processes and capitalize on the latest technologies.
Here are six cloud trends that will dominate 2023.
1. Increased investments in cloud security
There will be a heavy focus on cloud cybersecurity in 2023.
With new privacy and security laws and regulations emerging daily, cybersecurity risks are no longer just threats to a company’s data but also to its bottom line. Organizations that fail to put in place the necessary security controls can incur hefty fines or other penalties.
Knowing this, businesses will invest in different cloud security solutions, such as those that leverage AI predictive analytics to quickly detect threats before these can cause havoc. Some companies will also partner with managed security services providers to bolster their cyber defenses and ensure compliance with government and industry standards.
2. Demand for industry and sovereign clouds
Organizations will start turning to industry- and sovereign-specific clouds in 2023.
An industry cloud is a cloud computing service that caters to the needs of specific verticals. It’s designed for organizations sharing similar regulatory requirements and processes, allowing them to build custom applications with greater speed and agility.
On the other hand, a sovereign cloud is a cloud computing service hosted within the borders of a country. It enables organizations to store and process data according to local privacy rules and regulations. Sovereign clouds aren’t new, but they’re gaining more traction given the changing geopolitical environment.
3. Growth of Desktop-as-a-Service (DaaS)
Remote and hybrid work arrangements are here to stay. As such, companies are moving from traditional personal computers to DaaS. Global spending on DaaS will rapidly grow to $3.1 billion in 2023 from $2.53 billion in 2022.
DaaS is a subscription-based, cloud-hosted virtual desktop service that makes it easier for employees to access their desktops from any device from anywhere. In essence, DaaS enables businesses to offer cloud-based workstations to their employees while eliminating purchase and maintenance costs related to physical PCs.
4. Increasing use of no- and low-code cloud services
More and more companies will empower their employees (who are nonprofessional developers) to create digital tools using no- and low-code cloud services.
These cloud services include tools and platforms that enable anyone to build websites, web applications, and other digital solutions without writing complicated computer code. Examples of no- and low-code cloud services include Microsoft Power Apps, Airtable, and Zoho Creator.
| Related reading: Why cloud computing is the hidden backbone of everyday life |
5. Integration of artificial intelligence (AI) and machine learning (ML) in cloud computing
Many experts consider AI and ML as vital technologies for the future of business. Unfortunately, only a few companies can afford to build their own AI infrastructure since managing massive volumes of data and training algorithms requires huge amounts of computing power and storage space.
The good news is that the integration of AI and ML in cloud computing will rise in 2023, which will allow businesses to cost-efficiently rent the necessary IT resources for AI and ML. They can then use AI and ML to increase automation and self-learning capabilities, improve data security and privacy, and offer more personalized customer experiences.
6. Rise of edge computing
With the ongoing proliferation of Internet of Things (IoT) devices, edge computing is expected to grow in popularity in 2023.
Edge computing is a decentralized cloud computing model that stores, processes, and analyzes data closer to the source. It reduces latency by sending data off site for processing instead of relying on remote clouds. Its quick data gathering and processing make edge computing ideal for IoT and real-time analytics.
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