Tata Consultancy Services has identified five top cloud trends for 2023.
In order to be successful in the cloud by 2023, businesses will need to pay attention these trends including Cloud 2.0, sovereign clouds, 5G, edge computing, industry clouds, and the emerging talent gap.
Gartner estimates that global cloud services are expected to grow by over 20% in 2023, with a total value of $591.8 Billion. Continue reading to find out more about the key trends that will affect businesses in 2019.
Tata Consultancy Services has identified the following five top trends that will influence global business in 2023.
Cloud technology to become core business strategy
During the Covid pandemic many cloud investments were made hastily to support remote work or an naive desire to save money. As the global economy changes, companies are now focusing on improving their models to evaluate the value of cloud computing and how it can help customers or diversify their revenue streams.
This new perspective sees the cloud as an essential building block for modern corporate strategies, which are critical to fostering growth, innovation, and change.
New data privacy regulations are forcing organisations to adopt sovereign clouds to protect their data and comply with the regulations
The sovereign cloud security posture can be used by any organisation to protect their critical data and systems against unauthorised foreign access on a national or local basis. In accordance with reports by the United Nations Conference on Trade and Development (UNCTAD), organisations are incorporating sovereignty cloud into their hybrid, poly, and multi-cloud strategies to comply to regulations.
In 2023, interoperability, portability and smart system integration are going to be more challenging, but also necessary. Due to recent cyberattacks that prompted the government’s decision to increase the fines for businesses who fail to adequately safeguard client data, protecting privacy will be a priority for Australian business.
The Australian Government announced this week that Parliament had approved the Privacy Legislation (Enforcement and Other Measures Bill 2022. The Privacy Penalty Act, also known as the Privacy Legislation Amendment (Enforcement and Other Measures) Bill 2022, increases penalties significantly for companies who fail to protect customer data.
Edge computing and 5G
This will accelerate business operations significantly by bringing computations and storage close to data sources
Edge clouds will allow businesses to improve response times, save bandwidth, and increase the number and types of applications they use, including sustainability initiatives, in-store operations, and on-site services. Quantum computing, which is still in its infancy, will become a reality as more businesses plan to use it.
Cloud computing will play an increasingly important role in business and everyday life as a result recent advances in artificial intelligence, machine-learning, virtual reality and augmented reality.
Businesses that invest in cloud-based solutions for their industry can expect to see a boost in key performance indicators
Cloud computing can be tailored to a wide range of industries in order for it to provide business value, rather than just more efficient IT operations. Smart organisations who invest in cloud native industry solutions that address common pain points will see significant improvements in KPIs. This is evident in the fast-changing nature of supply chains, and energy-efficient initiatives for sustainability.
Retail and hotel industries, which are geared towards consumers, will also experience an increase in cloud computing activities. This is because these industries can use edge computing immediately. Cloud success stories tailored for specific industries may take off in 2018.
The cloud will provide new opportunities to employees and companies, but it will also create a talent shortage as cloud technologies continue to evolve and require new digital skills.
Cloud computing offers new opportunities to businesses and their employees. However, training staff as multi-cloud architects can be challenging. In order to equip employees with the tools and training they need to succeed in the new cloud-based innovation era, an international effort will be needed across government, industry, and academia.
We expect a competition for the best talent in contrast to broader workforce pressures brought on by the recession. Businesses need to invest in employee training, retraining and retention to make their cloud-powered vision a reality.
Australian organisations are making good progress in cloud migration. However, they still lag behind global counterparts when it comes to IT budgets and the shortage of talent.
Deepak Gadkar is the Head of AWS Business Unit at TCS Australia & New Zealand. He says that this rapid pace of change leaves many business leaders confused and anxious about their technology investments. But, this new era requires better strategic planning and a longer-term vision.
Deepak says, “With over 616,000 TCS employees working in the cloud and nearly all our customers using TCS cloud services, TCS is always thinking about what comes next for cloud.”
Cloud computing is not only an IT solution anymore, but a business strategy.
Cloud spending will continue being scrutinized due to global economic headwinds. We believe that cloud spending will continue to grow, and even increase in the long term, says Deepak.
“New technologies are driving innovation, and collaborations will continue to deliver the exact types of cloud-powered service that is becoming essential to global business.” “Companies that develop a ‘cloud first’ strategy to master and address these new trends are better positioned to achieve healthy returns on investment into 2023.”