This article provides a detailed response to: What emerging cloud computing technologies are set to transform industry standards in the next five years? For a comprehensive understanding of Cloud, we also include relevant case studies for further reading and links to Cloud best practice resources.
TLDR Emerging cloud computing technologies like Serverless Computing, Edge Computing, and Hybrid/Multi-Cloud Strategies are poised to revolutionize operational efficiency, scalability, and flexibility in various industries within five years.
Cloud computing technologies have been pivotal in driving Digital Transformation across industries. Their evolution continues to offer new opportunities for organizations to innovate, enhance efficiency, and deliver exceptional customer experiences. In the next five years, several emerging cloud computing technologies are set to transform industry standards, reshaping how organizations operate, innovate, and compete.
Serverless Computing
Serverless computing is an emerging cloud computing model that allows organizations to build and run applications and services without managing the underlying infrastructure. This technology is gaining traction for its ability to improve operational efficiency and reduce costs. By abstracting the server layer, organizations can focus on code and application development, leaving the management of servers, storage, and network provisioning to cloud providers. According to Gartner, by 2025, more than half of global enterprises using cloud services will have adopted serverless computing, up from less than 20% in 2020.
Serverless computing supports event-driven architectures, where code execution is triggered by events or requests. This model is particularly beneficial for applications with variable workloads, enabling scalability and flexibility. For instance, a retail organization can leverage serverless computing to automatically adjust its inventory management system's resources in real-time, based on customer demand fluctuations.
Real-world examples include companies like Coca-Cola and Netflix, which have utilized serverless architectures to optimize operations and reduce costs. Coca-Cola has implemented serverless technologies to handle its vending machine service operations efficiently, while Netflix uses serverless computing for its video encoding processes, enhancing scalability and reducing operational overhead.
Explore related management topics: Inventory Management
Edge Computing
Edge computing is set to redefine cloud computing by bringing computation and data storage closer to the location where it is needed, improving response times and saving bandwidth. This technology is crucial for the Internet of Things (IoT), autonomous vehicles, and other real-time applications that require rapid processing. According to a report by Forrester, edge computing will grow significantly, with a prediction that 75% of enterprise-generated data will be processed at the edge by 2025, up from just 10% in 2020.
The adoption of edge computing facilitates real-time data processing without latency, enhancing the performance of applications and services. This is particularly important in industries such as manufacturing, where edge computing can streamline operations through real-time analytics for predictive maintenance, thus minimizing downtime and improving productivity.
Companies like Siemens and GE are leveraging edge computing for industrial IoT applications, enabling real-time monitoring and analytics of machinery on the factory floor. This approach allows for immediate adjustments and predictive maintenance, significantly improving operational efficiency and reducing costs.
Explore related management topics: Internet of Things
Hybrid Cloud and Multi-Cloud Strategies
Hybrid cloud and multi-cloud strategies are becoming increasingly important as organizations seek to optimize their cloud investments while ensuring flexibility, compliance, and risk management. A hybrid cloud combines private and public clouds, allowing data and applications to be shared between them. Multi-cloud strategies involve using services from multiple cloud providers. According to Accenture, 93% of enterprises have a multi-cloud strategy, and 87% have a hybrid cloud strategy as of 2021.
These strategies offer organizations the flexibility to choose the best cloud environment for each application or workload, based on factors such as cost, performance, and regulatory requirements. For example, an organization might use a public cloud for high-volume, less-sensitive operations while relying on a private cloud for sensitive, business-critical applications.
JPMorgan Chase is an example of an organization that has adopted a multi-cloud strategy to enhance its financial services. By leveraging cloud services from multiple providers, JPMorgan Chase can optimize its infrastructure for efficiency and agility, ensuring that it can meet the dynamic needs of its customers while maintaining high levels of security and compliance.
These emerging cloud computing technologies represent just a fraction of the innovations set to transform industry standards in the coming years. Organizations that strategically adopt these technologies will be well-positioned to enhance their operational efficiency, innovate at scale, and maintain competitive advantage in an increasingly digital world.
Explore related management topics: Risk Management Competitive Advantage
Best Practices in Cloud
Here are best practices relevant to Cloud from the Flevy Marketplace. View all our Cloud materials here.
Explore all of our best practices in: Cloud
Cloud Case Studies
For a practical understanding of Cloud, take a look at these case studies.
Cloud Infrastructure Revamp for Aerospace Manufacturer
Scenario: The organization is a leading aerospace parts producer facing inefficiencies and scalability challenges in its current cloud infrastructure.
Cloud Transformation Initiative for Agritech Firm in Sustainable Farming
Scenario: The company is a leading agritech firm specializing in sustainable farming practices.
Cloud Integration for Power & Utility Provider
Scenario: The organization in question operates within the power and utilities industry and has recently embarked on a digital transformation journey.
Cloud Transformation for Specialty Trade Contractor in Competitive Market
Scenario: The organization, a specialty trade contractor, operates in a highly competitive market and has been leveraging cloud technology to manage its operations and client projects.
Cloud Migration Strategy for Midsize Retail Firm in Competitive Landscape
Scenario: A midsize retail firm operating in a highly competitive landscape is facing challenges in scaling its operations effectively due to an outdated and inefficient cloud infrastructure.
Cloud Transformation for Agriculture Firm in Precision Farming
Scenario: The organization specializes in precision agriculture services, leveraging advanced analytics to optimize crop yields.
Explore all Flevy Management Case Studies
Related Questions
Here are our additional questions you may be interested in.
Source: Executive Q&A: Cloud Questions, Flevy Management Insights, 2024
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