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Cloud computing trends which will dominate in 2023

Cloud technologies made huge inroads in 2022. For many organisations, it was a year of planning and preparing for the future. 2023 is expected to be the year when many of these plans are rolled out or partly fulfilled. Gartner estimates that in 2023, global IT spending will increase by 5.1 per cent to reach USD 4.6 trillion. Investments in cloud applications would have a major role to play in this growth with investments in the sector expected to reach USD 879.62 billion, a sharp growth of 11.3 per cent.

The adoption of cloud computing has promoted the development of many tech trends such as remote and hybrid work models, artificial intelligence (AI) and internet of things (IoT). Augmented and virtual reality (AR and VR), cloud gaming, the metaverse and quantum computing are all expected to receive a boost because of cloud computing.

Going forward, trends that are expected to dominate the cloud computing sector in 2023 include:

Edge computing:

Expected to be the top cloud computing trend in 2023, edge computing involves the storage and processing of data at the edge of the network, while analysis is carried out at a location geographically close to the data source. It ensures higher speed, better data security and increased efficiency as well as privacy. The growth of 5G is expected to make processing faster and reduce latency.  

The continued growth of AI and ML:

The varied capabilities of artificial intelligence (AI) and machine language (ML) will continue to be refined as more and more organisations adopt these technologies. Under existing conditions, AI and ML models still require a lot of testing before they can be implemented at scale by large organisations. However, with training and testing becoming more powerful, the technologies are expected to become more reliable and widespread.

More low-code and no-code apps:

Organisations that are not tech-focused can still use AI and ML technologies by implementing no-code and low-code apps. Developers can enable organisations to use complex models without having to manage complex code. Such apps are less cost intensive too and that is always a draw. The cloud is a major enabler of such services and 2023 will see an increased focus on such applications.

Higher investment in cloud security and resilience:

Organisations are going to prioritise cybersecurity not only to protect sensitive data, but also to protect themselves against fines and legal issues should a leak occur. Building resilience will be another area of focus as organisations try to avoid the negative impact of pandemics or other unforeseen difficulties. However, given the forecast of an economic recession, organisations would also be keen to find the most cost-effective solutions to maintain security. AI and other predictive technologies that are most likely to spot threats in time will receive a boost. .       

Greater use of multi-cloud environments:

As cloud technology becomes more sophisticated, and cloud providers specialise in different areas, organisations that stayed with one provider until now are likely to diversify to take advantage of all the value-add offered by different providers. Customised solutions will become quite common as organisations keen to transform and scale quickly will readily adopt products from different providers. Adopting multi-cloud environments also prevents organisations from having to face difficulties when cloud providers change applications or stop supporting existing applications. Containerised applications are becoming especially popular as they allow applications to be quickly ported to new platforms if needed.

Continued improvement of remote work tools:

The popularity of hybrid work models has ensured that the tools used to support remote work continue to be developed. With augmented and virtual reality (AR and VR) developing at a fast pace, organisations are ready to adopt any new technology that would support the ‘new’ work models.  

Increased cloud adoption in new sectors:

Migrating to the cloud involves letting go of legacy systems and that has been a large hurdle for many organisations, especially in the government and financial sector because of the risks and the scale of work involved. However, the advantages of cloud technologies can no longer be ignored and even organisations that resisted the change until now are adopting cloud solutions. The trend is expected to continue.

Innovation in cloud gaming services:

Streaming entertainment services is quite common now but streaming video gaming is still not a mainstream service largely because it requires much higher bandwidths than streaming music and videos. The ongoing rollout of ultra-fast networking technologies is expected to boost the service and if all goes well, cloud gaming will probably make an impact in 2023.

As cloud usage increases, organisations are sure to become more agile. A survey by Accenture reports that adopting cloud solutions can help organisations save up to 64 per cent on energy and carbon emission costs. Further, the cloud computing market is expected to exceed USD 1 trillion in another five years. It is indeed the age of the cloud.

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