As cloud technology continues to rise in popularity, Tata Consultancy Services (TCS) has identified the top five cloud trends that will shape the global enterprise landscape in 2023.
These trends, which include Cloud 2.0, sovereign cloud, 5G and edge computing, the industry cloud, and the emerging cloud talent gap, will be essential for businesses to pay attention to succeed in the cloud in 2023.
Despite inflation and economic uncertainty putting pressure on corporate spending, Gartner predicts that global cloud services will see over 20 per cent growth, reaching $591.8 billion in 2023. Keep reading to learn more about these key trends and how they will impact businesses in the coming year.
According to Tata Consultancy Services (TCS), the following are the top five trends that will shape the global enterprise in 2023:
Where cloud technology will become a core pillar of business strategy
At the start of the Covid pandemic, many early cloud expenditures were made in haste to support remote working or a naive desire for cost savings. Companies are beginning to shift their attention to improving their models for evaluating the value of the cloud and considering how it can support customers or diversify revenue streams as the current state of the world economy forces them to assess the true value of their cloud strategies using metrics.
This new perspective views the cloud as a fundamental building block of modern corporate strategy, which is critical for fostering growth, change, and ongoing innovation.
Where new data privacy regulations will prompt organisations to adopt the sovereign cloud to comply with regulations and protect data from unauthorised foreign access
Any organisation can use the sovereign cloud security posture to protect critical data and systems from unauthorised foreign access at the national or local level. According to reports from the United Nations Conference on Trade and Development, organisations are incorporating sovereign cloud into their multi-, hybrid-, and poly-cloud strategies in order to comply with regulations.
Interoperability, portability, and smart system integration will become more difficult but necessary in 2023 and beyond. Because of recent cyberattacks, which prompted the government to raise the fine for businesses that fail to adequately protect client data, preventing privacy breaches will be a top priority for Australian businesses.
The Australian government announced earlier this week that the Privacy Legislation Amendment (Enforcement and Other Measures) Bill 2022 had been approved by Parliament. The new legislation, dubbed the Privacy Penalty Bill, significantly increases penalties for companies that fail to secure customer data regularly or severely.
5G and edge computing
Which will significantly accelerate business operations by bringing computation and storage closer to data sources
Businesses can improve response times and save bandwidth by bringing computation and storage closer to data sources, and advances in edge clouds are expected to increase the number of applications used by businesses on the front lines, such as sustainability initiatives and in-store and on-site operations. With more businesses planning to use quantum capabilities, quantum computing is getting closer to becoming a reality, despite its infancy.
As a result of dramatic advancements in artificial intelligence, machine learning, virtual reality, and augmented reality for eventual immersion in the metaverse, cloud computing is expected to play a larger role in modern business and daily life.
Where businesses that invest in industry-specific cloud solutions can expect a boost in their key performance indicators
Cloud computing can be specifically designed for a variety of industry verticals in order to generate business value rather than simply more efficient back-end IT operations. Smart organisations that invest in cloud-native industry solutions to address common pain points can expect significant improvements in their KPIs. Fast-changing supply chains and energy-efficient sustainability initiatives are examples of this.
Consumer-facing industries such as retail and hotels will also see an increase in industry cloud activities because they are best positioned to use edge computing right away. Cloud success stories tailored to specific industries could take off this year.
Where the cloud will create new opportunities for companies and employees, but there will be a talent gap as cloud technologies evolve and demand new digital skills.
The cloud is opening up new opportunities for businesses and employees, but training staff to become multi-cloud architects is challenging. To equip employees with the training and tools they need to thrive in the new era of cloud innovation, a global effort across enterprise, government, academia, and industry bodies will be required.
We anticipate a race for top talent, in contrast to the broader pressures on workforces caused by the economic downturn. Businesses must invest more in training, retraining, and retaining employees to turn their cloud-powered business vision into reality as soon as possible.
Australian organisations are making progress with cloud migration, but they lag behind their global counterparts regarding IT budgets and talent shortages.
The rapid pace of change has left many business leaders anxious and confused about their technology investments, but this new era demands better strategic planning and a long-term vision, according to Deepak Gadkar, Head of AWS Business Unit, TCS Australia & New Zealand
“With more than 616,000 employees operating in the cloud, and almost all of our customers utilising TCS’ cloud services, what’s next for cloud is top of mind for TCS,” says Deepak.
“Technological advancements are expanding and converging with each new day, so a clear focus on investing in the right cloud infrastructure is one of the most important decisions any enterprise will make in 2023. Business leaders need to understand that the cloud is now an essential business strategy – not just an IT solution.”
“Cloud spending will continue to face scrutiny given the global economic headwinds. But we believe it will endure and, in fact, increase, especially in the medium- to long-term,” says Deepak.
“New technologies and collaborations are driving innovation and will continue to deliver precisely the types of cloud-powered services becoming vital to global business. Companies that proactively develop ‘cloud-first’ strategies to address and master these new trends will be dramatically better-positioned to realise healthy returns on their investments into 2023.”
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