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What emerging cloud computing technologies are set to transform industry standards in the next five years?

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.

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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.

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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.

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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.

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Cloud Case Studies

For a practical understanding of Cloud, take a look at these case studies.

Cloud Integration Framework for Oil & Gas Industry Leader

Scenario: The organization in question operates within the oil & gas sector, which is characterized by its high demand for computational power and data storage capabilities.

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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.

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Cloud Infrastructure Overhaul for Power & Utilities Firm

Scenario: A leading power and utilities firm is grappling with outdated and fragmented cloud infrastructure, which is leading to increased operational costs and decreased system reliability.

Read Full Case Study

Enterprise Cloud Strategy Development for a Global Financial Services Firm

Scenario: The organization, a leading financial services provider with a presence in multiple continents, has been relying heavily on traditional IT infrastructures.

Read Full Case Study

Cloud Integration for Defense Logistics Optimization

Scenario: The organization is a defense contractor specializing in logistics and supply chain management.

Read Full Case Study

Cloud Transformation Initiative for Agritech Firm in Sustainable Farming

Scenario: The company is a leading agritech firm specializing in sustainable farming practices.

Read Full Case Study

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Related Questions

Here are our additional questions you may be interested in.

How can businesses leverage cloud computing for sustainable environmental practices?
Cloud computing enables businesses to enhance environmental sustainability by reducing carbon footprints through efficient energy use, optimizing resource use with analytics and AI, and fostering sustainable Innovation and Collaboration. [Read full explanation]
How does cloud computing influence the speed of innovation within organizations, and what examples illustrate this impact?
Cloud computing accelerates innovation by offering scalable IT infrastructure, enabling faster product development, improved collaboration, and Operational Excellence, illustrated by Airbnb, Spotify, and General Electric. [Read full explanation]
What role does edge computing play in the evolution of cloud strategies, especially for IoT and real-time data processing applications?
Edge computing is crucial for IoT and real-time data processing by reducing latency, optimizing bandwidth, and improving security, necessitating its integration into cloud strategies for operational excellence and innovation. [Read full explanation]
What strategies can companies employ to ensure data privacy and security when adopting cloud technologies?
Organizations can improve Cloud Security by adopting a Cloud Security Framework, ensuring end-to-end Data Encryption, and implementing strong Access Control and Identity Management to protect data and comply with regulations. [Read full explanation]
What is the role of cloud computing in enabling remote work and global collaboration across industries?
Cloud computing is a critical enabler of remote work and global collaboration, providing scalable, flexible solutions that support communication, project management, and Digital Transformation, while ensuring data security and cost-effectiveness. [Read full explanation]
In what ways can cloud computing enhance customer experience and service delivery?
Cloud computing enhances Customer Experience and Service Delivery through Personalization, Scalability, Reliability, and Innovation, enabling organizations to exceed customer expectations efficiently. [Read full explanation]

Source: Executive Q&A: Cloud Questions, Flevy Management Insights, 2024

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