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Understanding the Importance of Cloud Computing in 2021

By the year 2021, cloud computing will be more accessible, agile, and competitive in the fast-paced customer landscape. The forthcoming years will set more practical applications for Blockchain, IoT, Artificial Intelligence, and so on. Currently, cloud computing is the reigning champion when it comes to transforming businesses and implementing the right model of choice to digitalize IT infrastructure.

The investments in this technology have taken a huge leap over the past years. As per Forrester Research, the global public cloud infrastructure market will grow 35 percent to $120 billion in 2021 to take the center stage in the recovery from the pandemic. The previous forecast from Forrester mounted it to be $113 billion next year. Furthermore, according to Gartner, the percentage of worldwide IT spend on the Cloud will speed up in 2021.

As such, being one of the ever-growing platforms, cloud computing will dominate the market for different emerging technologies.

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Edge Computing

Calling Edge as the new cloud, Forrester has predicted that 2021 will see new business models emerge that facilitate the deployment of edge, efforts by cloud platforms to compete, and AI and 5G facilitating the expansion of edge use cases. Gartner has also predicted that by 2025, 75% of data will be processed at the edge, outside of traditional, centralized data centers and the cloud, up from less than 10% today. These statistics illustrate that edge computing will play a huge role in improving the industries including manufacturing, security, healthcare, and retail.

Hybrid Clouds

The forthcoming years will also witness the continuation of multi-cloud culture. Businesses will continue to deploy such a model to gain more flexibility. This strategy reduces their dependency on a single vendor or cloud solution provider. According to CloudTech, public cloud spending is expected to grow from $229 billion in 2019 to $500 billion by 2023, with an expected compound annual growth rate (CAGR) of 22.3 percent.

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AI to Revolutionize IT Infrastructure

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. Hence, AI in data centers will see a sharp rise. AI will automate most of the tasks and support data centers to learn from past data and distribute workloads across the organization more efficiently via the cloud.

Serverless Computing

As per Gartner, 20% of the world’s organizations will have gone serverless by 2020.

With the introduction of the Cloud, businesses moved to web-based server infrastructure, and now the migration to serverless architecture has begun. Serverless computing has made the computing landscape more dynamic and robust. However, with the technology still in its nascent stage, the next few years are expected to bring-in several transformations in serverless computing.

Data Privacy

As per IDG Cloud Computing Survey 2020, nearly 42% of large-scale enterprises believe the lack of data privacy and security is their greatest challenge in a public multi-cloud strategy. The bigger the enterprise, the more challenging the compliance become across public multi-cloud based infrastructure. In comparison to small enterprises at 23 percent, large enterprises struggle with this challenge at 39 percent. Going forward, data privacy and security challenges will be the greatest obstacle enterprises will face to take full advantage of public cloud resources.

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