Industry executives and experts share their predictions for 2024. Read them in this 16th annual VMblog.com series exclusive.
Embracing Cloud Evolution: Anticipated Trends Reshaping 2024
By Jake Madders, co-founder and director of Hyve Managed Hosting
The widespread adoption of cloud technology was one of the biggest tech trends in 2023, and it has become the primary approach for businesses and entrepreneurs aiming to maintain a competitive edge. Cloud has reshaped fundamental aspects of business operations, customer interactions, and the exploration of new avenues for expansion. This continued cloud migration offers multiple advantages, such as leveraging data-driven insights, achieving cost efficiencies, and optimizing operational processes. Organizations across various industries are actively implementing cloud computing to drive growth strategies and unleash unparalleled levels of innovation and efficiency. So, what’s next?
As we step into 2024, these are the top anticipated trends we expect to shape the cloud landscape over the coming year.
Trend #1: Cloud Cost Optimization
The steady rise of cloud adoption has been accompanied by an upward trajectory in the costs associated with cloud services. While the global cloud market has gone up, soaring from $229 billion in 2019 to nearly $500 billion in 2023, the escalating expenses of cloud storage and services have become an area of concern for organizations. A staggering 94% of IT leaders have reported a surge in their cloud storage costs due to energy demand, increasing wages and emerging tech, highlighting a pressing need for cost containment strategies in the year ahead.
In response to this challenge, there will be a concerted effort in 2024 toward cost reduction within the cloud sphere. The industry players are expected to explore innovative approaches to lower pricing structures, addressing the escalating demands for cost-efficiency from businesses reliant on cloud services. The concept of adopting a private cloud, offering tailored environments exclusively dedicated to a single organization, emerges as a potential solution. While private clouds require more financial investment for smaller-scale projects, they provide companies with greater control over their data and applications, resulting in improved performance and security. There is, however, a tipping point whereby the larger scale infrastructure becomes more cost-effective on private cloud dedicated hardware. This is crucial for larger platforms that can become notoriously expensive when hosted on public cloud environments.
Trend #2: Diversification in Cloud Providers
Relying solely on a single cloud provider will no longer be the default choice for companies venturing into cloud technology in 2024; in fact, 98% of enterprises using the public cloud have adopted a multi-cloud infrastructure provider strategy. The risks associated with cloud concentration, such as increased risk of outages, insecure APIs, limited visibility, etc. and the challenges linked to cloud portability are set to become more pronounced, compelling organizations to reconsider their reliance on a singular cloud provider. To mitigate these risks, a growing number of enterprises are contemplating the adoption of hybrid cloud and multi-cloud strategies.
Hybrid cloud solutions, which integrate private and public cloud resources, offer a balance between data security and the flexibility of public cloud services, catering to companies with diverse data storage requirements and legacy systems.
Trend #3: Persisting Cloud Skills Gap
Another enduring challenge in 2024 is the scarcity of skilled IT professionals, particularly those knowledgeable in cloud technologies. Despite the exponential growth in job postings for cloud-related roles, a staggering 80% of organizations lack dedicated cloud teams or specialists.
This skills gap leads to a multitude of challenges, including misconfigurations, security vulnerabilities, operational inefficiencies, and inflated cloud expenses. Compounding this issue is the swift hiring of top cloud talent by hyperscalers, further exacerbating the talent scarcity for companies aiming to build in-house expertise. Consequently, enterprises need to do one of two things in the new year: cultivate these skills internally or seek assistance from managed service providers to bridge the gap.
Trend #4: Emergence of Alternative Cloud Solutions
Amidst common challenges associated with public cloud services, a notable trend gaining traction in 2024 involves the exploration and adoption of alternative cloud providers. Concerns regarding escalating costs, limited support, reduced control, and growing awareness of vendor lock-in practices have spurred the rise of these alternative cloud approaches. Over the past few years, the adoption of such solutions has nearly doubled, with 27% of organizations opting for alternative cloud providers. This trend is expected to gain further momentum, driven by the quest for more flexible, cost-effective, and supportive cloud solutions.
As businesses brace themselves for the transformations of 2024, the evolution of cloud technology continues to unfold, offering both challenges and, more importantly, opportunities. Navigating this dynamic landscape will require a strategic approach, fostering adaptability and innovation to harness the true potential of cloud technology in the years to come.
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