This year, demand for IT is expected to be strong as enterprises push forward with digital business initiatives following concern on economic turmoil. Worldwide IT spending is projected to increase by 5.1% to reach US$4.6 billion in 2023, according to forecast by Gartner, Inc. Economic turbulence in recent years has changed the context for technology investments and more enterprises are increasing spending on digital business initiatives, making enterprise spending in IT recession-proof.
Shifting to Cloud Options
According to Gartner research, although there is sufficient spending within data centre markets to maintain existing on-premises data centres, new spending continues to shift to cloud options as evidenced by the 11.3% projected growth for software spending, particularly on cloud applications, in 2023.
Worldwide IT Spending Forecast (Millions of US Dollars)
Source: Gartner (Oct 2022)
This increased spending and investment in IT representing a significant shift in trend, cloud based, especially. C2C Global has surveyed and identified the 5 cloud trends to watch in 2023 as follows:
Cloud Trend: AI and ML Tech Adoption
AI and ML technologies are on the rise. Some wants to use it to enhance analytics and build predictive models while others want to automate repeatable processes. However, most customers are not currently using them as AI and ML models require extensive testing and training before they can be implemented at scale across large organizations hosting petabytes of a data or serving wide customer bases. While not many are adopting AI and ML just yet, they have plans to adopt AI and ML in future when the models are refined and training and testing become more reliable and automatic.
Cloud Trend: Low-code/No-code App Development Platforms
As mentioned, AI and ML technologies still require a lot of maintenance and testing to perform reliably. Due to the rush to adopt AI and ML technologies, the market is likely to see more low-code or no-code app development reaping the benefits of these technologies without burden as they promise lower barrier to entry with significant savings in terms of time and cost.
Cloud Trend: Hosting Resources in Multicloud Environment
Moving forward, as cloud technology grows, companies are likely to adopt and implement new resources from other cloud providers with value added and customisable solutions rather than sticking to a major one-size-fits-all cloud provider.
Cloud Trend: Improvement in Remote Work Tools
Tools developed to accommodate remote working are improving as part of the expanded landscape of hybrid work technology. As AR and VR technology become more viable, companies will continue to adopt and implement these new tools to build a working environment complementing the need for a diverse and changing workforce.
Cloud Trend: Cloud Adoption in Formerly Resistant Sectors
The advantages of cloud adoption have far exceeded the burden of transformation and cost of migrating old system that even resisting sectors and organizations like government agencies and financial services are adapting it gradually. This expansion and adoption by previously less served sectors of the cloud market speak volume for the importance of cloud adoption.
The Takeaway
The advancement of the IT is improving and progressing day by day. Like it or not, IT is here to stay and it will soon be replacing the old ways of doing business across various industries, making the demand for IT more apparent and recession-proof.
It is crucial for companies to plan on how to embrace and make good use of the IT advancement to propel their business to reach further and strategize the cloud system to be more cost efficient to serve the market better. Who knows, you could be one-in-a-billion to tap the blue ocean.