Cloud computing is becoming increasingly popular due to the quick rate of technological innovation and the growing desire for digital transformation. The cloud has rapidly emerged as an integral component of many companies’ ongoing digital transformation efforts, and this trend is anticipated only to accelerate.
In this article, we will investigate the future trends in cloud adoption and digital transformation, as well as the influence that these trends will have on your business.
Cloud Adoption Trends
The number of firms conducting their activities in the cloud have been continuously growing over the past several years, and these businesses come from various industries. According to research published by Gartner, the global market for public cloud services is expected to reach a total value of $332.3 billion in 2021. This represents a growth rate of 23.1% from 2018.
The following is a list of some of the most important trends in cloud adoption that we anticipate seeing:
As organizations become more reliant on cloud technology, they also realize that it is important to diversify their cloud services. A multi-cloud approach, in which an organization utilizes many cloud providers for various functions, is becoming increasingly popular among businesses.
A multi-cloud approach offers advantages, including more flexibility, enhanced security, and decreased dependence on a single cloud provider. Instead of being restricted to a single provider, firms that choose a multi-cloud approach can select the most suitable cloud service provider for each individual application or task.
Edge computing is a concept of distributed computing that moves processing and data storage closer to the site where it is needed. As a result, edge computing improves latency while simultaneously lowering bandwidth consumption. The proliferation of Internet of Things (IoT) devices, which produce enormous volumes of data that must be analyzed in real-time, is one of the driving forces behind the growing interest in edge computing.
Cloud service providers are beginning to recognize the significance of computing at the network’s edge and are broadening the scope of their product offerings to include edge computing capabilities. Research projects that by 2028, the edge computing industry will be worth an estimated $132.11 million, growing at a CAGR (compound annual growth rate) of 21.6% from its current value in 2022.
Serverless computing is a paradigm of cloud computing in which the cloud provider manages the necessary infrastructure for executing the code. It frees developers from the burden of managing servers, therefore lowering operational costs and enhancing scalability. This allows developers to concentrate on creating new code.
It is anticipated that serverless computing will increase in popularity in the future. Gartner predicts that by 2025, half of all businesses worldwide will have used serverless computing technology.
Trends in Digital Technology Transformation
The term “digital transformation” refers to leveraging technology to bring about fundamental changes in how organizations are run to make them more effective, innovative, and customer-focused. Because of the COVID-19 epidemic, companies have been forced to adapt to digital engagement and remote labor to survive. This has expedited the demand for digital transformation.
The following is a list of some of the most important themes that we anticipate seeing in the digital transformation:
Artificial Intelligence (AI) and Machine Learning (ML)
The growing use of artificial intelligence (AI) and machine learning (ML) technologies is another significant development contributing to the rise of cloud usage and digital transformation. The term “artificial intelligence” (AI) refers to the process of developing computer systems capable of carrying out activities that would normally need the intellect of a human being. These tasks include visual perception, speech recognition, decision-making, and language translation.
On the other hand, machine learning (ML) is a subset of artificial intelligence that focuses on creating algorithms and models that make it possible for computers to learn from data and improve their performance over time.
The application of machine learning and artificial intelligence technology is expanding at a breakneck pace across various business sectors, including healthcare, finance, retail, manufacturing, and others. ResearchAndMarkets projects that the size of the global market for AI will reach $309.6 billion by 2026, representing a compound annual growth rate (CAGR) of 39.7% between the years 2021 and 2026.
Cloud service providers invest significantly in artificial intelligence (AI) and machine learning (ML) capabilities. They provide businesses with various tools and services to help them create and deploy AI-powered apps and services. These include pre-built models for common use cases, such as image and speech recognition, and tools for building and training custom models. Other examples of common use cases include text classification and handwriting recognition.
The blockchain is a distributed ledger technology that enables transactions to occur safely, transparently, and tamper-proof without the need for middlemen such as banks or governments. A blockchain is a decentralized database that keeps a continuously expanding list of records called blocks. These blocks are linked to one another via cryptography, ensuring their security.
The application of blockchain technology has spread to various sectors, including the healthcare industry, supply chain management, and the financial sector. It can improve security, transparency, and efficiency, revolutionizing how businesses and organizations manage data and transactions.
The application of blockchain technology will expand even faster in the years to come, particularly as the technology becomes more scalable and user-friendly. The total value of the worldwide blockchain market is projected to increase from $3 billion in 2020 to $39.7 billion in 2025, representing a compound yearly growth rate (CAGR) of 67.3%, as stated in research published by MarketsandMarkets.
Improved Agility and Scalability
The adoption of cloud computing and digital transformation makes it possible for businesses to improve their agility and scalability by giving them the ability to rapidly adjust to shifting market conditions and the requirements of their customers.
Businesses can minimize the time it takes to bring new products to market by utilizing cloud technology, which enables them to swiftly deploy new apps and services, scale their resource use as needed, and do so automatically. Because of this flexibility, firms can adapt to new opportunities and difficulties more quickly than their rivals.
For instance, a business can rapidly set up new servers to support introducing a new product, or it can scale down its resources during times of low demand. This capability to swiftly and effectively alter resources can contribute to cost savings and an increase in income.
Improved Safety and Compliance with Regulations
Cloud service providers invest significantly in compliance and security to give their clients various cutting-edge security features and certifications demonstrating compliance with relevant regulations. Businesses can strengthen their security measures and maintain compliance with industry-specific requirements if they utilize cloud computing technologies.
Cloud service providers make a comprehensive suite of security capabilities available, including network protection, encryption, identity, access management, threat monitoring, and mitigation. In addition, cloud service providers provide a variety of compliance certifications, including PCI DSS, HIPAA, and SOC 2, which can assist organizations in meeting the criteria imposed on them by various regulatory bodies.
Increased Innovation and Efficiency
Automating procedures, gleaning insights from data, and developing new business models are all made possible for companies through digital transformation. Businesses have the potential to boost their productivity, cut their expenses, and accelerate innovation if they make use of technology such as artificial intelligence (AI), machine learning (ML), and digital twins.
For instance, businesses can use AI and ML to automate mundane jobs such as customer support and sales, freeing up staff to focus on higher-value tasks such as developing new products or improving existing ones. It is possible to employ digital twins, which are virtual clones of real assets, to increase the effectiveness of asset maintenance, as well as to maximize asset performance and decrease downtime.
Utilizing these technologies, businesses can improve their operational efficiencies, lower their costs, and develop new sources of revenue.
Enhanced Experiences for the Customers
Businesses can now provide customers with experiences that are individualized, frictionless, and engaging, thanks to digital transformation. Businesses can gather insights into consumer preferences and behaviors, provide tailored suggestions and offers, and boost customer loyalty by utilizing technologies such as artificial intelligence (AI), machine learning (ML), and blockchain.
For instance, organizations can utilize AI and ML to analyze customer data to get insights into the preferences and behaviors of those customers. This information can be used to provide individualized suggestions and deals to customers, enhancing their entire customer experience. Additionally, blockchain technology can be applied to the creation of customer loyalty programs that are both transparent and secure, thereby improving customer loyalty and retention rates.
Taikun on the Adoption of Cloud Computing and Digital Transformation
The use of cloud computing and digital transformation makes it possible for organizations to improve their scalability and agility, as well as their security and compliance, their creativity and efficiency, and their capacity to provide more satisfying experiences for their customers.
Taikun is the industry’s preeminent provider of cloud and digital transformation services, assisting companies of varying sizes in successfully adopting new technologies to maintain a competitive advantage!
The cloud and digital transformation services offered by Taikun include cloud migration, DevOps, data analytics, artificial intelligence and machine learning, and more!
In this era of digitization, Taikun places a strong emphasis on the achievement of success for its customers. To that end, the company collaborates closely with its clients to gain an understanding of the business requirements they have. Then it creates individualized solutions that are tailored to their particular specifications. (Learn about New Taikun Features)
Businesses that work with Taikun can benefit from their knowledge and experience to meet their digital transformation goals as cloud adoption and digital transformation continue to expand. Try it now!