70% of Tech Infrastructure will be Cloud-Based Within Three Years

Mar 24,2023 by Taniya Sarkar
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Cloud computing has been rapidly transforming the IT landscape, enabling businesses to store, manage, and access data and applications over the internet. According to recent research, the adoption of cloud computing is set to continue its upward trajectory, with 70% of tech infrastructure predicted to be cloud-based within the next three years.

This growth is supported by a report, which predicts that worldwide public cloud revenue will grow by 18.4% in 2023, totaling $304.9 billion, up from $257.5 billion in 2024. Furthermore, IDC estimates that by 2023, over half of global GDP will be accounted for by digitally transformed enterprises.

The benefits of cloud computing are numerous, including the ability to reduce IT costs, enhance operational efficiency, and improve agility. Additionally, cloud computing enables businesses to access data from anywhere and collaborate more effectively, with 74% of CFOs reporting that they have increased the use of cloud-based collaboration tools since the COVID-19 pandemic began, according to a survey by Deloitte.

The survey also revealed that 49% of CFOs believe that the increased use of cloud computing has improved their company’s business resilience, while 56% expect that their organization will maintain or increase its investment in cloud-based technologies over the next year.

The growth of cloud computing is set to continue, with businesses of all sizes embracing it as an essential component of their IT strategy. To gain further insights and analysis on this topic, please read our blog.

Current State of Cloud Computing

Cloud computing has become increasingly popular in recent years, with businesses of all sizes adopting cloud-based solutions to enhance their operations. According to a report by Flexera, 93% of organizations now use cloud services in some form, with 55% of their workloads running on public cloud platforms.

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The adoption of cloud computing varies between small and large businesses, with small businesses being more likely to use cloud computing than large enterprises. A survey by SCORE revealed that 94% of small businesses in the US use at least one cloud-based service, compared to 77% of large enterprises. This is because small businesses often have limited IT resources and budgets, making cloud computing an attractive and cost-effective solution for them.

Moreover, cloud adoption is set to continue its growth trajectory. According to a survey by LogicMonitor, 87% of enterprise IT decision-makers believe that by 2025, most businesses will have adopted a cloud-first strategy, meaning that they prioritize cloud-based solutions over on-premises solutions.

Cloud computing has numerous benefits, including cost savings, scalability, and flexibility. Additionally, it enables businesses to access data and applications from anywhere, enhance collaboration, and improve security.

Cloud computing has become an integral part of modern business operations, with a majority of businesses adopting cloud-based solutions. Small businesses, in particular, have embraced cloud computing as a way to enhance their operations and remain competitive. With cloud adoption set to continue its growth trajectory, it is crucial for businesses to stay up to date with the latest cloud-based technologies and solutions.

Reasons for the Shift to Cloud-Based Infrastructure

There are several reasons why businesses are shifting to cloud-based infrastructure. Below is a tabular representation of some of the key drivers:

Reason

Explanation

Statistics

Scalability

Cloud infrastructure enables businesses to easily scale up or down their computing resources to meet changing demands.

68% of businesses report that the ability to scale up or down their cloud resources is a key driver for cloud adoption. (Source: RightScale State of the Cloud Report)

Cost savings

Cloud infrastructure eliminates the need for businesses to invest in expensive hardware and software, reducing IT costs.

74% of businesses report that they have seen a reduction in infrastructure costs since adopting cloud services. (Source: IDG Enterprise Cloud Computing Survey)

Increased flexibility

Cloud infrastructure enables businesses to access data and applications from anywhere, enhancing collaboration and productivity.

75% of businesses report that they have improved their employee productivity since adopting cloud services. (Source: Salesforce)

Security and reliability

Cloud infrastructure provides businesses with enhanced security and reliability compared to traditional IT solutions.

84% of organizations that have adopted cloud services report that they have experienced improvements in security. (Source: State of Cloud Security Report)

Remote work trends

The shift towards remote work has accelerated cloud adoption as businesses seek to enable their employees to work from anywhere.

69% of businesses report that the COVID-19 pandemic has increased their use of cloud services to support remote work. (Source: LogicMonitor)

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Businesses are shifting to cloud-based infrastructure due to its scalability, cost savings, increased flexibility, security and reliability, and the shift towards remote work trends. By embracing cloud-based solutions, businesses can enhance their operations, remain competitive, and adapt to changing market demands.

Implications of the Shift to Cloud-Based Infrastructure

The shift towards cloud-based infrastructure has significant implications for businesses, including changes in job roles and skill requirements, increased demand for cloud-based services, and potential challenges and concerns.

Changes in job roles and skill requirements:

As businesses increasingly adopt cloud-based solutions, job roles and skill requirements are also evolving. Traditional IT roles such as network administrators and hardware engineers are becoming less in demand, while new roles such as cloud architects, cloud engineers, and DevOps engineers are emerging. According to a report by Gartner, by 2025, 80% of enterprises will retire their traditional data center infrastructure in favor of cloud-based solutions, resulting in a significant shift in job roles and skill requirements.

Increased demand for cloud-based services:

The shift towards cloud-based infrastructure is also driving increased demand for cloud-based services. Cloud providers are experiencing significant growth as businesses seek to leverage their services to enhance their operations. Additionally, cloud-based software-as-a-service (SaaS) solutions are also experiencing increased demand.

Potential challenges and concerns:

While the shift towards cloud-based infrastructure offers numerous benefits, there are also potential challenges and concerns that businesses must address. These include data security and privacy concerns, vendor lock-in, and the need for effective cloud governance and management. Additionally, the cost of transitioning to cloud-based infrastructure and ongoing maintenance and management can be significant for businesses, particularly for smaller organizations.

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The shift towards cloud-based infrastructure has significant implications for businesses, including changes in job roles and skill requirements, increased demand for cloud-based services, and potential challenges and concerns. By addressing these implications and leveraging cloud-based solutions effectively, businesses can enhance their operations, improve their agility, and remain competitive in a rapidly evolving digital landscape.

Final Thoughts

the shift towards cloud-based infrastructure is transforming the tech industry and offers numerous benefits for businesses. Key drivers of this shift include scalability, cost savings, increased flexibility, security, and the rise of remote work trends. As businesses increasingly adopt cloud-based solutions, job roles and skill requirements are evolving, and there is increased demand for cloud-based services. However, there are also potential challenges and concerns that businesses must address, including data security and privacy concerns and effective cloud governance and management.

Looking ahead, the future outlook for cloud computing is bright, with continued growth and innovation in cloud-based solutions. According to a report by Gartner, the global public cloud services market is projected to grow to $397.4 billion in 2022, up from $242.7 billion in 2019. Additionally, emerging technologies such as artificial intelligence and the Internet of Things are expected to further drive the adoption of cloud-based solutions. As such, businesses that leverage cloud-based infrastructure effectively will be better positioned to adapt to changing market demands and remain competitive in a rapidly evolving digital landscape.

 

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