Edition Five
Technology Predictions 2024:
Cloud
Navigating Cloud Realities and Emerging Trends: Insights for C-Level IT Decision Makers
While cloud adoption has been a driving force for operational transformation, cost-efficiency, and flexibility for some years, the realities of cloud adoption have sometimes differed from the trend predictions.
Read on to find out key insights on the state of cloud adoption and emerging trends to help inform IT decision making for C-level executives.
Surprises from 2023
While many expected trend predictions for 2023 revolved around cost reduction and increased security in the cloud, we were surprised by two notable observations that had a significant impact:
Legacy Cloud services persist
In 2023, we continued to see "Legacy" cloud services, such as Infrastructure-as-a-Service (IaaS) and initial adoption of public cloud for server-based disaster recovery.
Despite public cloud's mainstream status for over five years, discussions around modernisation and cloud-native services remained relatively scarce. This observation underscores the persistent shortage of public cloud skills and resources in the market.
As a result, organisations adopted a phased approach to cloud adoption, prioritising aspects like cost management, security, tooling, and internal skill development. This trend aligns with Ultima's experience in 2023 where we saw a 165% growth in customer uptake of our Managed Azure Service.
"Blind" use of native cloud services
Adoption of native services within public cloud environments, often had little consideration for third-party solutions.
An illustrative example is the comparison between Commvault Cloud and Azure Backup, where the latter is a SaaS-delivered Commvault solution. While the licensing costs of Commvault Cloud may be higher, the storage efficiencies it provides result in significantly lower backup storage costs.
Additionally, Commvault Cloud offers an air-gapped backup solution that enhances cyber resilience and additional security features at a more cost-effective price point. Several customers have realised substantial cost savings over three years by adopting such approaches. This highlights the value of working with the right cloud partner, who can make product/service recommendations based on an understanding of customers' business requirements, combined with extensive experience, strategic vendor relationships, and market expertise.
Emerging Cloud trends for 2024
→ The growth of FinOps
FinOps, a discipline focused on optimising cloud spending has seen increased adoption in 2023 and is expected to gain even more prominence in 2024, given the current economic climate.
However, it is worth noting that FinOps adoption is still in its early stages for many companies.
Top priorities for the year include:
1. Creating visibility and transparency in cloud costs
2. Integrating cloud cost data into existing reporting mechanisms
3. Providing FinOps training and education internally.
(Source: The State of FinOps; FinOps Foundation)
→ Increasing emphasis on Cloud Security
Cloud security is assuming greater importance due to the evolving threat landscape. Basic security hygiene, such as multifactor authentication and applying zero trust principles, and protecting data, still protect against 99% of attacks.
Therefore, ensuring the implementation of these fundamental security principles should be a top priority before addressing additional security gaps.
Working with a partner such as Ultima in collaboration with our Vendor specialist network, can assist organisations in achieving robust cloud security through a combination of Cloud and Security Health Checks, implementation, and Cloud Managed services.
(Source: Microsoft - Digital Defence Report 2023)
→ The rise of Hybrid and Multi-Cloud
Hybrid and multi-cloud environments are set to gain further prominence in 2024, with Forbes Cloud Trends Report predicting usage growth to 85%.
To effectively manage these environments, a centralised IT operating model must be established, enabling common solutions to work seamlessly across hybrid and multi-cloud environments.
This approach facilitates workload management and provides flexibility, especially for organisations with legacy operating systems seeking to leverage hybrid-cloud solutions like Azure ARC.
Influences for 2024
With the persistence of legacy cloud services, the importance of making informed choices between native and third-party solutions, and the growing significance of FinOps and cloud security will influence strategic decisions in 2024.
