Organizations globally are on the path of realigning their processes and operations. At the heart of this transformation are digital technologies like Cloud Computing and Edge Computing that will function as the key enablers for this change.
When we say businesses need to become more digitally agile, its only possible with the use of appropriate technologies. There are two sides to this coin. On one hand are Cloud Service Providers (CSP) like dinCloud that will provide the right solutions.
On the other hand are the millions of enterprises that intend to leverage Cloud and Edge Computing to make themselves more agile, responsive and competitive. This in turn will enhance their ability to outreach customers with innovative and efficient solutions.
Bracing for a Paradigm Shift
When we entered the Covid-19 pandemic, most thought that it’s a temporary phase and stop gap arrangements will see most enterprises off through this crisis. However, as this health crisis intensified and prolonged, there was a paradigm shift in thinking.
Now, digital initiatives are not being planned and executed as temporary arrangements. Take the example of remote work that was initially planned for a few weeks or months at the most. Now, this has become a permanent feature of thousands of workers globally.
Contactless – The New Normal
In the present environment, contactless product and service delivery models are going to attain mainstream status. So, in order to remain competitive, businesses will have to leverage the Cloud to deliver contactless solutions to customers globally.
Stats and Forecasts of IDC Survey
Over the past few months, International Data Corporation or IDC has been regularly conducting surveys on the technology landscape and its future contours. Let’s shed light on some of the key findings of IDC’s latest research.
By the year 2022, it is expected that 65% of the globe’s Gross Domestic Product (GDP) will be digitalized. This translates into spending of a whopping US $6.8 Trillion on IT related products and services.
The manner in which the Cloud has been playing a leading role during Covid-19, it comes as little surprise that 41% of the above global IT spending will be related to Cloud Computing. In other words, the Cloud will be at the helm of digital transformation initiatives.
With the tremendous flexibility and instant scalability of cloud solutions, businesses find them instrumental in their resiliency strategies. As a result, it is expected that overall investment on cloud infrastructures is expected to soar.
According to IDC estimates, the spending on infrastructures that support cloud services is expected to surpass the amount spent on traditional IT deployments. During 2020, the total spending on IT hardware infrastructures is expected at US $135 BN.
Out of this figure, the spending on cloud environments alone is expected to reach nearly US $75 BN. This translates into a 55% share of the total spend. By the year 2024, IDC projects the global IT hardware infrastructure spending to be around US $ 172 BN.
Of this total estimated figure, it is expected that spending on cloud environments alone will make up nearly 64%. This will convert into a total spending of US $ 111 BN on cloud infrastructure alone. This is a very positive reflection on the future of Cloud.
For the year 2020, spending on Infrastructure as a Service or IaaS is expected to be US $66 BN. By the year 2024, IDC expects the total spending on IaaS to reach US $173 BN, registering a nearly three times increase over the same period.
Integrating the Cloud in Business Strategy
Towards the end of its research, IDC stresses that although most organizations view cloud technologies as the best fit for their circumstances, only a few of them can actually integrate the cloud with their long term strategies.
IDC’s research emphasizes that businesses will have to integrate the cloud with strategic goals to reap its true rewards. Cloud technologies will be instrumental in delivering seamless access to data, applications and other productivity tools.
The Future of Edge Computing
Edge Computing is at the verge of takeoff, particularly due to the present circumstances and proliferation of 5G technology. With super fast data transmission a possibility with 5G, edge computing is likely to become a mainstream technology really soon.
The way cloud will fit in the broader picture is by setting up super efficient and highly localized data centers. With the localization of data centers, coupled with blazing fast speeds of 5G, many future workloads will be delegated to Edge Computing.
We are at the doorsteps of a new era of contactless business. Cloud Computing will lead this trend due to the flexibility inherent in such solutions. Cloud Service Providers (CSP) like dinCloud will continue to lead the digital transformation journeys of many businesses.
Please feel free to Contact dinCloud for our robust and secure cloud solutions that can align your business with the latest upcoming trends.