By Vinay Kalyan Parakala, SVP – Global Sales (Cloud Practice), LTI
The cloud computing market has experienced an exponential growth in the recent years and with the outbreak of the Covid-19 pandemic, the cloud sector is witnessing a rapid and sizeable growth, estimating to almost USD 165 billion as against the pre Covid estimate of USD 158 billion for the current financial year.
With a significant hike in the technology spend, the global cloud computing market is expected to witness a compound annual growth rate (CAGR) of 17.5% by 2025.
The onset of Covid-19 has compelled organizations to embrace work from home policies on a large scale increasing the demand for SaaS, IaaS and PaaS based cloud collaborated solutions. A surge in the usage of business communication tools, online streaming platforms and increased registered users on cloud has led to an upward and emerging cloud trend.
Let us look at some of the cloud predictions that have enabled enterprises to provision for their employees and be better equipped in maintaining operational efficiency in the current pandemic situation.
1. Rise in Cloud Telephony
The cloud telephony market is projected to grow by 8.9% in 2020 and 17.8% in 2021. A notable development in the areas of cloud telephony, telecommunication services, network infrastructure, video conferencing and VPN has been observed since the pandemic has set in. Globally, a rise in the number of call centers, fast paced migration of companies to cloud and the benefits of cost efficient cloud services have also increased the demand for cloud telephony services.
Gartner states, “As a result of workers employing remote work practices in response to COVID-19 office closures, there will be some long-term shifts in conferencing solution usage patterns. Policies established to enable remote work and experience gained with conferencing service usage during the outbreak is anticipated to have a lasting impact on collaboration adoption.” If you are looking at remote workforce facilitation, here’s a link to our solutions.
2. Increased adoption of virtual desktops
Forrester predicts the number of remote workers at the end of 2021 will be 3x of the pre-pandemic figures. Due to the increase in the demand for remote working, we expect to see a rise in organizations turning to Desktop-as-a-Service (DaaS) options in 2021 to allow for the secure access of data that is off corporate networks, from any device. DaaS technology will allow organizations to meet the demands of remote work better, by quickly provisioning secure virtual desktops for employees and contractors alike, that can be deleted if compromised.
Research shows that Microsoft is not the only provider looking up to the desktop as a means of connecting to the cloud. By the same token, all of the key cloud vendors are interested in the virtual desktop market. Moreover, with the popular Windows 7 OS reaching the end of life in January 2020, indicates that 2019 will be a year of transition. And the years 2021 and 2022 will bring their own techs. My own question is; are people willing to just jump to Windows 10 and thus cement Microsoft’s hold? Or will they accept things such as AWS WorkSpaces or Google Chromebooks that are fast rising? If you are looking at adopting DaaS, here’s a link to our services.
3. Multi-cloud management
With the uncertainty of the pandemic and the constant pressure on organizations to continually provide business flexibility and acceleration, there is an urgent need to evaluate appropriate cloud set-up for appropriate workloads.
50% of Indian enterprises are expected to operate in a hybrid multi-cloud environment by 2021 and 30% of Indian enterprises will deploy unified VMs, Kubernetes, and multi-cloud management processes and tools to support robust multi-cloud management across on-premises and public clouds.: IDC. Multi-cloud environments help facilitate better data control, data availability, prevent outages, gain agility, security and governance. For more detailed information, do visit our multi-cloud one governance platform.
4. Focus on the “Xops”
By 2021, AI will play an essential role in augmenting DevOps while monitoring and improving conventional IT operations like optimizing test cases, application development, release management, ticket management . The Markets and Markets report on the DevSecOps Global Forecast suggests that the DevSecOps market size is expected to grow to USD 5.9 billion by 2023.
With 65% of organizations expected to adopt DevOps as a mainstream strategy by this year, 2020 is expected to witness developers leaning towards the compliance-as-a-code service with the main objective of DevOps being security. Security measures are introduced early on in the inception phase of the SDLC cycle using the shift-left strategy, which ensure that the threats are identified in the beginning itself, helping in cutting down costs related to security issue fixes. This encourages businesses to instill security as a continuous integration and delivery practice while collaborating with the development, operations and security teams more efficiently. If you wish to explore our DevOps capabilities, here’s a link to our solutions.
5. Pervasiveness of AI
By 2022, 65 percent of CIOs will digitally empower and enable front-line workers with data, AI, and security to extend their productivity, adaptability, and decision-making in the face of rapid change.
By 2023, driven by the goal to embed human-like intelligence into products and services, one-quarter of G2000 companies will acquire at least one AI software start-up to ensure ownership and implementation of differentiated skills and IP. Successful organizations will eventually sell internally developed industry-specific software and data services as a subscription, leveraging deep domain knowledge to open profitable new revenue streams.
AI in data centers
AI in data centers will see a peak in the coming years. The IDC forecasts that by the year 2021, AI spending will grow to US$52.2 billion with a total CAGR increase of 46.2 percent from 2016-2021.
The use of AI in data centers will serve multiple purposes like automating tasks, enhancing security, eliminating skill shortage issues and improving workload distribution. AI resources can also assist enterprises to become more competent using their past data to have productive conclusions. For better understanding of our AI and automation solutions, please visit:
6. Serverless computing
25% of developers will leverage serverless services by 2021. Gartner also stated the rise of serverless computing, marking the increase by approx. 20 percent of global enterprises.
A 2020 DataDog survey indicated that over 50% of AWS users are now using the serverless AWS Lambda Function as a Service (FaaS). Serverless technologies are going mainstream letting organizations experience better scalability, flexibility and improved latency at a reasonable price. For more insight on our serverless computing services, do visit the below link.
7. Focus on the Hybrid cloud
It is believed that adopting multi-cloud solutions especially in the current pandemic situation will help organizations support their customer base, boost recovery management and build precision and flexibility in the new normal. A research depicts that the hybrid cloud market will grow to $97.6 billion by 2023, at a CAGR of 17 percent.
Hybrid cloud solutions support technological advancements to the maximum that eases smooth business operations apart from providing agility, security and efficiency irrespective of the unforeseen circumstances.
Studies show that AWS and Google are committed to increasing their focus on Hybrid cloud solutions where security will remain as the key driver for a hybrid cloud set-up. Hybrid cloud is trusted to be the future of IT in the covid scenario. If you are looking at achieving a candid hybrid environment, here’s a link to our services.
8. Mainstreaming Containers and Kubernetes
Prior to the pandemic, about 20% of developers regularly used container and serverless functions to build new apps and modernize old ones. We predict nearly 30% will use containers regularly by the end of 2021, creating a spike in global demand for both multi-cloud container development platforms and public-cloud container/serverless services.
The IDC predicts that along with Kubernetes, 95 percent more new-micro services will be deployed in the containers by 2021.
Forrester forecasts that lightweight Kubernetes deployments will end up accounting for 20% of edge orchestration in 2021. If you are looking for containerization of workloads, here’s a link to our solutions.
9. Moving DR from on-premise to cloud
COVID-19 has vividly impacted and caught almost every organization off-guard when it comes to securing infrastructure and data or handling storage and recovery from a data center outage, etc. Directing the enterprise IT teams’ focus on shaping a business continuity plan, analyzing business impact, planning and building infrastructure that supports DR to gain resiliency are some important aspects of establishing a robust DR shift from on-premise to cloud.
Before the pandemic, few companies protected data and workloads in the public cloud but by 2021, an additional 20% of enterprises will be shifting their DR operations to the public cloud undoubtedly. If you are looking for backup and DR on cloud, here’s a link to our solutions.
10. Manage technical debt
By 2023, coping with technical debt accumulated during the pandemic will shadow 70% of CIOs, causing financial stress, inertial drag on IT agility, and “forced march” migrations to the cloud.
In the current scenario, with the remote work set-up, the need for consorting with collaborative tools and speedy deliverables is on a rise and the best way to provide value to customers is by provisioning for better requirements and design management practices, upscaling cloud architecture to meet current needs, adopting devops and automation and re-strategizing software development practices.
If technical debts already exist for a particular enterprise, the first step would be to acknowledge and address it while taking lasting measures to remediate the same. Teams can even measure technical debts through metrics in order to arrive at best possible repayment solutions and gradually derive a best practices knowledge base out of it.
Thus, the cloud computing markets, both domestic and global, are combating hard to not just overcome and resolve the challenges arising from the pandemic but are also striving at emerging as clear winners despite the turmoil it has caused. If you are looking for cost-effective technical debts remediation, here’s a link to our solutions.