by Frik van der Westhuizen
\Despite an increased awareness by decision-makers of cloud computing, many organisations around the world are yet to fully adopt it. Research shows that 41% of companies in the EU used cloud computing last year, and then it was predominantly for e-mail and storage of files. Meanwhile, in EMEA, revenue from cloud-related services are expected to approach $400 billion by 2025, up from the $330 billion of 2020. With so much potential in the cloud, decision-makers will have no choice but to embrace it.
Improving cost management and making businesses more agile for a digitally driven market have been the most common benefits of going the cloud route for some time. While these are still relevant today, the cloud also provides a platform for the development of advanced technologies that can foster innovation within an organisation. For example, the cloud supports automation that, when combined with no-code applications, make it possible for non-technical people to create a range of digital services that cater for an increasingly sophisticated customer base.
Evolving environment
But while the likes of artificial intelligence (AI) and automation can help businesses across industry sectors drive innovation, it also provides malicious users with the means to perpetrate more sophisticated cyber attacks. This results in the perpetual chicken and egg situation when it comes to organisational defences – a company must use the cloud to defend itself while hackers exploit those same solutions for attack.
By 2025, it is anticipated that 80% of companies globally will be using the cloud. Of those, 84% will leverage a multicloud approach to benefit from specific service provider advantages. As part of this, the cloud provides the means to more easily create tailored solutions that address virtually any business need. This modular approach can be seen in the increasing adoption of Kubernetes and containers to provide more agile and affordable ways for businesses to deliver micro-services.
Data at scale
Linking the cloud, big data and the internet of things (IOT) will provide business and technology leaders with even more opportunities to grow. The increasing number of IOT devices generate more data, which the cloud and edge computing services can analyse at scale. Doing so faster than what was possible before empowers organisations to rapidly adapt to market demands.
The exponential growth of data has resulted in companies struggling to make sense of it. This presents massive untapped potential at a time where even the smallest iterative change can make a significant difference when it comes to competitive advantage. The cloud provides the means to not only store this data, but also analyse it at speed. When combined with AI and automation, decision-makers can access improved insights that can create much-needed differentiation.
Sustainability
One thing which South African companies will look to exploit when it comes to the cloud is its ability to help position sustainable business practices. The uncertainties around the stability of the national electricity grid mean business can turn to the cloud as a safe haven for their mission-critical systems.
There is therefore no need to run powerful (and energy expensive) on-premises servers. Instead, the cloud provides the means to optimise physical technology resources. The cloud does not compromise on flexibility, the ability to scale as needed and the availability of resources on-demand. Companies can remain focused on realising their strategic mandate and worry less about energy efficient on-premises resources.
The cloud is here to stay. But that does not mean it will stagnate. If anything, it will continue to drive innovation and the adopting of more sophisticated solutions to harness new opportunities in a rapidly evolving market.