Cloud computing has revolutionized business by providing enterprises of all sizes with the ability to access world-class technical resources.
According to Flexera’s 2019 State of the Cloud Report, 84 percent of enterprises use a multi-cloud strategy. Public cloud adoption stands at 91 percent and private cloud adoption is 72 percent. Almost half of 2018 IT spending was cloud-related.
Recent opportunities will drive further cloud adoption in 2020 and beyond.
Why Enterprise IT Should Move to the Cloud
A number of computing and business trends indicate now is the time for enterprises to embrace cloud computing. The cloud computing model enables enterprises to control costs, improve security and expand internationally in a scalable way.
Cloud technology appeals to both senior executives and technology leaders. Executives appreciate that the cloud allows organizations to stay focused on strategic strengths while delegating non-core technology concerns to cloud vendors.
Technology leaders, on the other hand, find it easier to set technology policy and strategy using cloud capabilities. They benefit from granular control over each element of the technology stack combined with the ability to seamlessly understand the relationships between services.
Trends Driving Cloud Adoption in 2020 and Beyond
Three key trends point to the growing importance of cloud adoption:
1. Cloud Functionality Now Dominates Enterprise Applications
Cloud computing sparked a shift toward software-as-a-service (SaaS) that transformed the way software is designed and deployed. Mainstay applications of the business world are increasingly found in the cloud. Enterprises that require ready access to productivity software from Microsoft, Adobe and other leading vendors will need to adapt.
The adjustment from conventional software to cloud-based services may be tricky at first. In the long run, however, moving the enterprise software stack to the cloud provides major benefits. SaaS is scalable because it tends to be priced around resource usage rather than total number of seats. It is also more secure. New security patches can be applied instantly as they are completed.
2. Quantum Computing May Be Just Around the Corner
Quantum technology has long been recognized as the key to the next computing revolution. IBM, Google, Intel and Microsoft are all striving to provide the first true quantum computer. Quantum hardware offers superior data encryption, artificial intelligence and data modeling. Although it often requires collaboration with a custom cable manufacturer.
The distributed computing power of the cloud will prove essential to quantum computing’s spread. Cloud provides a bridge that enables enterprises to access quantum services with existing hardware. This is already being seen with Alibaba’s public quantum computing cloud platform.
3. GDPR Demands Greater Focus on Cloud Security
The European Union recently adopted a data privacy regime that affects businesses worldwide. The General Data Protection Regulation (GDPR) impacts all enterprises who do business with EU nationals. Cloud computing makes it easier to comply with GDPR security mandates.
Enterprises will find it easier to protect confidential consumer data as they partner with cloud vendors to pursue security best practices. Instead of relying on a patchwork of internal systems, businesses can select cloud vendors with the expertise to simplify security compliance.
When Will Most Enterprise IT Reach the Cloud?
Following an initial frenzy, enterprise cloud adoption has slowed. However, this is only temporary. The status quo on cloud will be shattered as new capabilities join those already associated with cloud technology.
Some businesses have completed their cloud adoption plan for the time being. Many more will follow them in the coming years by using an Oracle consultant guide or other resource to select cloud experts. We expect near-total adoption of cloud for enterprise IT by 2030.
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