Cloud & Security

Key Takeaway:

The growing volume of data and heightened cybersecurity threats have underscored the importance of localized cloud solutions to protect operations and ensure compliance with data residency laws. As a response, in 2024, about 33% of organizations are shifting towards hybrid cloud models, blending on-premises and public cloud solutions. Additionally, investments in edge computing are expected to surge, crucial for processing data close to its source and enhancing operational efficiency and data privacy

Trend Type: Technology

Sub-trends: Cloud Sovereignty, Shift to Cloud, Industry Cloud Platforms, Resilience Key for recovery, Cybersecurity, Cyber resilience, Continuous threat, Cyber chaos drives security consolidation

May, 2024 • Less than 4 min read

While AI adoption globally today is more than double that in 2017, according to McKinsey, the proportion of organizations using AI has leveled off to around 50-60% in recent years.
In recent years, the increasing volume of data, heightened cybersecurity threats, and escalating geopolitical tensions have intensified the need for localized cloud solutions. This demand is propelled by the necessity to protect a company’s reputation, operations, and financial standing. Localized data handling not only enhances a company’s compliance with data residency laws but also mitigates latency and cost issues associated with data transmission over long distances.
This approach to cloud computing is becoming more crucial as organizations aim to maintain flexibility and data privacy by integrating on-premises, edge, and hyperscale data center solutions. A study by the Uptime Institute Global Data Center indicates that approximately 33% of organizations are moving some operations from the cloud back to local data centers, opting instead for a hybrid approach, on-premises and public-cloud options. Meanwhile, investments in edge computing, which allows for data processing close to its creation point, are expected to experience double-digit growth globally until 2028, according to McKinsey, highlighting its increasing importance for faster and more precise business operations.
In tandem with technological advancements, the shift towards cloud-native platforms is reshaping how companies deploy digital workloads. With an estimated 95% of new digital workloads expected to be on these platforms within the next 3-5 years, according to BCG, cloud technologies are critical in reducing technical debt and enhancing business agility. This shift is particularly evident in telecommunications, where companies are forging cloud partnerships to capitalize on the growing demand for enhanced connectivity and digital services.
In addition, the rise of industry-specific cloud platforms (ICPs) further illustrates this trend. By 2027, according to Gartner, over half of enterprises are projected to utilize ICPs to accelerate their business initiatives. These platforms offer tailored solutions that combine software, platform, and infrastructure as a service, providing businesses with the flexibility to adapt to rapid market changes and meet specific industry needs.
Lastly, as digital environments grow increasingly complex, the need for resilient data recovery and cybersecurity becomes crucial. Organizations are enhancing their backup and recovery strategies to comply with stringent service level agreements and reduce risks like data loss and downtime. The evolving cybersecurity landscape now emphasizes broader, enterprise-wide approaches, prompted by regulations like the European Union’s Network and Information Security (NIS) Directive, which mandates robust defenses and could impose fines up to €20 million or 4% of a company’s turnover for non-compliance, according to The Economist.
That is partly why, Gartner predicts that, by 2026, organizations using CTEM (Continuous Threat Exposure Management) programs are expected to see a two-thirds reduction in breaches. Additionally, the cybersecurity sector is moving towards consolidation to better tackle the increasing sophistication of threats, highlighted by a surge in mergers and acquisitions among early-stage cybersecurity firms we have witnessed in 2023. This consolidation reflects a shift towards more integrated security solutions in response to a continuously evolving threat landscape

 

Use Cases

Baxter's bet on edge computing

Baxter, a medical-device manufacturer, has avoided hundreds of hours of unplanned machine downtime by adopting a proac-tive maintenance strategy powered by an AI-based end-to-end solution hosted on edge computing devices.

Chaos Monkey Ensures Resiliency

Cybersecurity: Netflix engineers developed Chaos Monkey, a novel way to ensure resiliency is being addressed. The software randomly terminates servers in production to ensure that en-gineers are architecting code in a way that would survive server failure.

Use Cases

Baxter's bet on edge computing

Baxter, a medical-device manufacturer, has avoided hundreds of hours

Chaos Monkey Ensures Resiliency

Cybersecurity: Netflix engineers developed

Sub-Trend Sources
Cloud Sovereignty: Delloite TMT Predictions, McKinsey Tech Trends Outlook
Shift to Cloud: BCG The Next Wave, Economist Tech Trends
Industry Cloud Platforms: Gartner Strategic Trends
Resilience Key for recovery: BMC Blogs IT Trends
Cybersecurity: BCG The Next Wave, Economist Tech Trends, Kyndryl, Thoughtworks Tech Radar, Future Today Institute
Cyber resilience: BBVA Spark Tech Trends
Continuous threat: Gartner Strategic Trends
Cyber chaos drives security consolidation: CBInsights Emerging Tech Trends

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