The Future of Cloud Computing: How Companies Can Exploit New Trends

With the pandemic-induced move toward digitization, cloud computing has become a key focus for many companies. If your business is searching for ways to increase agility, look no further. Cloud technology increases agility and can lead to enhanced data security, reduced operational costs, and improved scalability and operational processes. Let's dig deeper and learn how companies can benefit from adopting cloud computing.
10 min read
15/03/21
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The Future of Cloud Computing: How Companies Can Exploit New Trends

Last year’s pandemic-related challenges highlighted the need for cloud infrastructure implementation. Worldwide lockdowns led to businesses fast-tracking technologies that let them move their operations online and mobilize their workforce remotely.

The global cloud computing domain, which was worth an estimated $194 billion in 2019, is predicted to triple by 2027. Cloud technology is also leveling the playing field across domains and shifting the way that companies are run. Read on to learn how retail, automotive, healthcare, asset management, and banking businesses use the cloud, as well as how your company can use this technology to stand out in the crowd.

Cloud Computing Costs Decrease Due to Public Cloud Infrastructure

Public cloud computing is a shared service administered by an external company online. In 2020, the public cloud service market was anticipated to grow by 6% to hit $258 billion, according to research from Gartner Inc.

How Companies Can Benefit from This Trend

While it may be tempting to apply the cheapest solutions to save costs, your company should prioritize options that provide the most value and support to your business. Here, it is crucial that your business has a clear idea of its objectives and how they can be combined with services offered by your technology providers.

Major benefits

  • The public cloud is an economical service, which offers a pay-as-you-go payment model that lets your company adjust and expand in line with its needs.
  • The public cloud offers a low infrastructure costs for new projects.
  • The public cloud will bring cost savings on operations and physical hardware management. The cloud vendor takes responsibility for all infrastructure maintenance.

Public Cloud Computing in Retail: How Public Cloud Infrastructure Can Reduce Costs

Changing shopping behaviour stimulates retail companies to launch their apps and move their infrastructures into the cloud. For instance, Abercrombie & Fitch reported that the number of visits to its app were up 50% year-over-year. Pets at Home, a U.K.-based pet retail business, used MobileFirst, one of IBM’s cloud services, for its Sales Assist iPad app. The company reduced costs by building and deploying the app on the cloud, which allowed them to quickly and cost-effectively roll out the app to 434 stores.

Improved Efficiency with AI Integration

By 2025, the artificial intelligence (AI) industry is predicted to be worth $126 billion globally. The fast adoption of this technology is led by its ability to influence every part of a business. AI and cloud computing are complimentary: AI is designed to process huge amounts of data, and the cloud excels in storing that data.

Cloud vendors bundle AI tools with cloud computing services to make it easier for businesses to adopt an integrated workflow. This pairing, also called AI as a Service (AIaaS), helps businesses manage data and applications more efficiently and also allows them to refine workflows and streamline cost savings across operations. The global AIaaS market is forecast to grow by  $15 billion between 2020 and 2024 .

How Companies Can Benefit from This Trend

A study by McKinsey estimated that, across 9 company functions in 19 domains, AI has the potential to create value and cost savings of up to $6 trillion per year.

Major benefits

  • AIaaS can analyze huge amounts of data quickly and efficiently, allowing you to identify and extract useful insights.
  • AIaaS is cost-effective to implement because maintenance, management, and other expenses are all covered by the features of the service.

The commercialization of AIaaS allows businesses to benefit from the power of AI without the time and expense of deploying in-house AI systems.

AI in the Automotive Domain: How AI-driven Cloud Services Boost Efficiency

In 2009, Google launched Waymo, a self-driving tech company that uses AI to gather data from a variety of sources. Waymo’s AI efficiently analyzes data from GPSs, cameras and other sources to give the vehicle ‘vision,’ which allows it to drive autonomously. Automated vehicles could change the automotive industry, but at the same time investments are in progress to advance the technology.

Greater Flexibility with a Multi-Cloud Strategy

The bulk of businesses (55%) use a multi-cloud strategy, while 21% of businesses say that they use three or more cloud services in their business. For instance, it may be cheaper to run the app on Azure, the everyday workflow from AWS, and services from Google Cloud. Leveraging several cloud services simultaneously is a multi-cloud model, and its strength comes from its flexibility, customization, increased performance, and elimination of vendor lock-in. When using a multi-cloud strategy, businesses can run their workload on the cloud service that is best suited to their needs at that moment.

Each cloud vendor has different pricing models and distinct strengths and weaknesses. For example, Google Cloud has advanced analytics, while Azure offers a ready-to-use service for enterprise solutions, and AWS is great for SMB enterprises and software creators.

How Companies Can Benefit from This Trend

During the next seven years, the multi-cloud sector is forecasted to demonstrate a five-fold growth from $2 billion in 2020 . The driving forces of the market are the pursuit of business flexibility with cloud providers, cost savings, better flexibility, and the need for governance.

Regardless of your company’s domain, exploring the advantages and disadvantages of each cloud service and mapping out a multi-cloud strategy can help your business’s operational goals with the strengths of your cloud providers.

Major benefits

  • A multi-cloud strategy can offer companies the flexibility to better meet demands by scaling their cloud resources seamlessly.
  • Multi-cloud providers are often complementary, which makes it easier for companies to follow a more cohesive multi-cloud strategy. For example, Google Cloud’s Anthos, which was built to streamline the experience for multi-cloud users, works with big cloud providers like AWS and Azure.

Multi-Cloud Computing in Healthcare: How Cloud Infrastructure Increases Flexibility

The Centers for Medicare and Medicaid Services (CMS) signed a  $241 million deal for a multi-cloud contract with General Dynamics Information Technology (GDIT). CMS will have the flexibility to scale its services on demand, which will make healthcare provisions more effective for millions of Americans.. CMS will use AWS, GovCloud, and Azure to run its websites and apps, as well as manage customer data.

Optimized Processes with Automated Cloud Management

As cloud-based spending has grown, so has the requirement for automated cloud management and organization. These services can support businesses and help them supervise cloud spend, which improves operations and increases performance. This centralized governance works by implementing inspection and auditing policies that automatically trigger an alert if a system process is jeopardized.

Although cloud management can be relatively simple at its most basic form, as services are added on, it becomes increasingly complex. Automated cloud management administers performance, which minimizes costs, augments security and optimizes the entire cloud ecosystem.

How Companies Can Benefit from This Trend

Workload management is just one benefit of cloud automation. It allows a business to scale automatically according to demand and only the services it needs. But while that flexibility is great in principle, it does make it difficult to forecast costs. Around a third of cloud spend is wasted on idle and oversized resources. As a result, many businesses are trying to get a grip on their cloud usage.

Major benefits

  • Leveraging an automated cloud system can help a business save money wasted on inefficient cloud management.
  • 15% of companies that do use cloud automation experience year-on-year revenue growth.

Implementing automation is the foundation of a good cloud strategy.

Automated Cloud Management in eCommerce: How Cloud Infrastructure Helps Optimize Performance

In 2011, Amazon started to use its own cloud service, AWS, to automate its database backups. This gave Amazon the ability to optimize for speed, cost, and performance. When the company retired physical tapes and started using the cloud, the costs of backups dropped dramatically. Recovery and backup times were also reduced by up to 12 times.

Faster Product Roll-Out Thanks to Serverless Architecture

According to Forrester’s 2019 survey, 49% of companies use or plan to use serverless architecture. The serverless landscape administers all backend services for developers who are creating and deploying apps or technology in the cloud. Servers are involved but no longer need to be managed by developers, which makes it easier and faster for programmers to write code, create applications and quickly launch from the cloud.

How Companies Can Benefit from This Trend

In 2020, serverless architecture emerged as one of the fastest-growing cloud services, and it has opened up a new world for DevOp teams looking to launch products quickly.

Major benefits

  • Serverless architecture offers developers the opportunity to focus on creating and developing new products, without the burden of managing a server.
  • Development time and deployment time are drastically reduced in the serverless environment, as servers do not need to be configured.

Serverless Architecture in Asset Management: How Cloud Infrastructure Can Help to Launch Products Faster

DataArt partnered with a trust services provider to build a customer portal. Flexibility was a key demand, so the portal was built using a serverless architecture. The launch helped the company advance retailing very quickly. The portal, which was built with AWS, offers a successful online experience, comprising registration, profile administration, and self-service functions.

Protection from Cyberattacks with Cloud Security

Around half of all businesses aim to use a variety of techniques to improve and increase their cloud security. Secure access service edge (SASE) is a cloud-based framework that bundles security technologies to create a more secure environment. SASE offers businesses a simple, flexible solution to the rising costs of cybercrime and insider threats by streamlining security for users.

With SASE, there is fairly little monitoring maintenance, freeing up IT staff to work on higher-value tasks. Despite the rise of cyberattacks and strict data protection regulations, companies are still slow to implement cloud security. SASE can help avert the impact of cybercrime, which leads to a host of problems, including reputation loss, customer loss and high overall clean-up costs.

How Companies Can Benefit from This Trend

At least 40% of businesses will adopt SASE by 2024, a dramatic rise from the 1% that used SASE in 2018. The pandemic was a key driver in the rise of SASE adoption. As remote work has become the new normal, businesses are rethinking the security needs of their distributed workforce.

Major benefits

  • SASE can increase security by identifying malware and implementing security policies, no matter where users are based.
  • SASE works with zero trust network access (ZTNA) and SD-WAN, which come together to create a protected environment by encrypting public traffic that runs through the public cloud.

Cloud Security in Banking: How to Prevent Cyber Attacks

HSBC bank partnered with AWS to provide cloud services, a move the company says will increase security and reliability. Cloud services are central to HSBC’s approach, and they are actively restructuring and developing their infrastructure in response.

Conclusion

Cloud computing has brought about a host of solutions, including the public cloud, AI in cloud, multi-cloud, cloud automation, and serverless architecture.

In the current climate, many companies are searching for new ways to innovate, reduce costs, increase opportunities, optimize efficiency, and work securely from anywhere. This is where cloud services come in.

If you are looking for cloud services in your domain, turn to DataArt, the partner of AWS, Azure, and Google Cloud. We can help you choose the best-fitting solution for your needs, plan a wise cloud strategy, and tune the processes to take all the advantages of the cloud platform.

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