Globally, businesses are projected to surpass the $1 trillion mark in spending on cloud computing infrastructure for the first time in 2024. This surge is fueled by various factors, including an increasing demand to embrace new platforms and adopt as-a-service offerings, particularly in the realm of artificial intelligence (AI) services.
In 2024, businesses are extending their focus beyond the cost and time-saving advantages of cloud migration. The rise of diverse applications across various industries emphasizes that it can frequently serve as the cornerstone for fostering innovation, agility, and overall success.
Despite the considerable challenges many businesses may encounter, particularly concerning security and data protection, innovative models such as hybrid cloud and federated cloud systems aim to provide comprehensive solutions, breaking down traditional barriers.
In 2024, the cloud will persist as a vibrant and stimulating catalyst for innovation and opportunities. This is the analysis of the most noteworthy trends that VNG Cloud collected shaping this domain that VNG Cloud has collected.
1. AI-as-a-Service (AIaaS)
Cloud infrastructure plays a crucial role in democratizing access to AI, bringing forth anticipated economic and social benefits. AI models like the large language model (LLM) behind ChatGPT require extensive data and substantial computing power for training. As most businesses lack the resources to undertake this independently, utilizing AI-as-a-service via cloud platforms allows them to harness the potential of this influential and transformative technology.
2. Hybrid and Multi-Cloud
The projected increase in large enterprises adopting a multi-cloud strategy (engaging with multiple cloud service providers) is expected to climb from 76% to 85% in 2024. While providing cost and flexibility benefits, this approach also has challenges in terms of data governance and integration with legacy systems. Multi and hybrid cloud solutions (combining cloud services with on-premises infrastructure) represent sophisticated infrastructure options that will gain further traction. Organizations are increasingly turning to these models to strike a balance between security and flexibility, allowing them to selectively opt for the services that best meet their needs.
3. Real-Time Cloud Infrastructure
In 2024, organizations will increasingly prioritize harnessing real-time data to gain up-to-the-minute insights, moving away from acting on outdated and stagnant information. Simultaneously, a growing portion of consumed data will be in the form of streamed content such as movies and music from platforms like Netflix and Spotify, video data from Zoom or Teams calls, and emerging forms of streamed entertainment like cloud gaming. This shift underscores the rising demand for data storage solutions that emphasize instantaneous access, with technologies like Flash and solid-state storage devices becoming increasingly sought after by cloud users.
4. Cloud-Powered Innovation and Transformation
In addition to AI, as highlighted earlier, the integration of cloud computing technology can serve as a gateway to various other revolutionary technologies, including the Internet of Things (IoT), blockchain, and quantum computing. By negating the necessity for direct investments in architecture and infrastructure, businesses can swiftly initiate quick-win or fail-fast initiatives to assess the advantages of emerging technologies more effortlessly than ever in 2024, all thanks to the capabilities of cloud computing.
5. Cloud Security and Robustness
In response to the changing threat landscape of 2024, encryption, authentication, and disaster recovery are becoming increasingly sought-after functionalities within cloud computing services. The rise in frequency and severity of data thefts and breaches, fueled by the development of new AI-powered attack methods by hackers, underscores the constant vulnerability of systems accessible to humans, susceptible to social engineering attacks. Consequently, both cloud providers and customers are placing a premium on ensuring security and resilience are top priorities.
6. Sustainable Cloud Computing
Major cloud service providers have collectively committed to achieving net-zero emissions, extending beyond their internal operations to assist customers in reducing their carbon footprints. Amazon has set a goal to reach zero emissions by 2040, while Microsoft aims to surpass this target by a decade. Additionally, Google, along with the others, has expressed its intent to derive 100 percent of the energy used in its operations from renewable sources. While the realization of these goals is yet to be seen, the trend towards more eco-friendly and environmentally responsible cloud computing is expected to gain significant momentum in 2024.
7. Simplified Cloud Computing
The advent of low-code/no-code tools is currently enabling individuals without technical backgrounds to develop applications that traditionally demanded expertise from trained software engineers. Concurrently, cloud providers are utilizing drag-and-drop interfaces and natural language tools to eliminate the necessity for advanced technical skills, aiming to "democratize" the deployment and management of cloud services and infrastructure.
8. Privacy In The Cloud
Cloud privacy involves the continuous evolution of technological, regulatory, and legislative solutions aimed at enabling businesses to harness the benefits of cloud computing while guaranteeing their customers that their data is thoroughly safeguarded. Given that the use of cloud services often entails the transmission of data to a third party, typically the cloud service provider, addressing the privacy implications of this process will remain a significant focal point in the realm of cloud computing throughout 2024.
9. Serverless and Pay-As-You-Go Cloud
The serverless model in cloud computing eliminates the requirement for businesses to handle their own servers. Unlike a traditional cloud service that charges based on the number of servers for hosting infrastructure, the serverless model enables businesses to pay solely for the resources they actively utilize. This enhances efficiency by eliminating the cost of servers during periods of inactivity and allows businesses to allocate their time more effectively to focus on their core activities.
10. Edge Computing Everywhere
Edge computing, a paradigm linked to the cloud, involves processing information in close proximity to where it's initially collected. For instance, consider a real-time heart monitor embedded in a wearable device designed to detect arrhythmias. Transmitting all the collected data, which primarily consists of "normal" heart rhythms, to the cloud for analysis and then relaying the results back to the user would be inefficient in terms of bandwidth usage. Analyzing the data directly on the device not only eliminates this unnecessary cost but also enables quicker alerts to the user in the event of detecting anomalous data.
In 2024, the increased availability of smaller, more power-efficient processors, memory-efficient algorithms, and advanced networks like 5G collectively contribute to the growing viability of edge computing for a variety of applications.
Conclusion
The 2024 trends signify the ongoing progression of cloud computing. The potent convergence of AI, hybrid-cloud flexibility, real-time data power, robust security, eco-conscious innovation, streamlined deployment, and meticulous privacy safeguards, all fueled by the rise of edge computing, signifies a seismic shift towards a future brimming with digital agility and seamless interconnection.
VNG Cloud is one of the trustful partners in Cloud Computing Solutions for businesses. With a focus on building and enhancing advanced solutions such as AI-as-a-Service, High Performance GPUs for AI/ML models, we are ready to flexibly meet the demands of complex data volumes. We prioritize safety and optimization according to international standards, making it easy to integrate into the business environments of enterprises. To learn more about Cloud solutions for businesses, please contact us here.