Introduction
Cloud computing refers to the delivery of computing services including servers, storage, databases, networking, software, analytics and more over the internet. By leveraging cloud infrastructure and services, organizations can avoid having to build and maintain costly on-premises IT infrastructure and focus more resources on innovation and their core business. Cloud computing has transformed how organizations access computing resources, store data, and deploy applications. Instead of having to invest in on-premises infrastructure, companies can leverage the economies of scale and flexibility offered by cloud service providers. This has fueled tremendous growth in cloud adoption over the past decade. According to Gartner, the worldwide public cloud services market is projected to grow 17% to total $494.7 billion in 2022.
As cloud computing continues its rapid growth, new technologies and deployment models are emerging that have the potential to further evolve how cloud services are consumed and delivered. Staying on top of the latest trends is crucial for companies to fully capitalize on the benefits of cloud and shape their digital transformation strategy.
Some key trends that are expected to drive cloud innovation in 2024 include wider adoption of multi-cloud and hybrid cloud architectures, growth in edge computing for reduced latency, advancements in artificial intelligence and machine learning, a focus on sustainability, and new serverless computing options. As these trends progress, cloud platforms are becoming even more secure, scalable, and cost-efficient.
This document provides an overview of the top cloud computing trends to watch out for in 2024 and how they will impact businesses. It examines both the technological innovations as well as shifting business needs that are collectively driving the next phase of evolution for cloud adoption. For IT leaders and decision makers, understanding these trends is essential to leverage cloud in innovative ways, achieve business goals, and gain a competitive advantage.
Some of the main cloud computing service models include:
- Infrastructure as a Service (IaaS) – Provides basic building blocks for cloud IT like virtual machines, storage, networks without needing to manage the underlying infrastructure.
- Platform as a Service (PaaS) – Provides a managed platform for developers to build, run and manage cloud-based applications without worrying about infrastructure.
- Software as a Service (SaaS) – Delivers software applications over the internet eliminating the need to install and run applications on local devices.
Staying updated on the latest trends in cloud computing is crucial for technology leaders and professionals to fully leverage the potential of cloud. Understanding where cloud platforms are headed allows organizations to make informed decisions on cloud investments and strategy. It empowers them to prepare for changes ahead of time rather than reacting after the fact.
Some of the key reasons learning about new developments in cloud technology is critical include:
- Identify new solutions to business problems as services and technologies evolve
- Make smart investment decisions on cloud projects and infrastructure
- Proactively develop skills and training to take advantage of modern innovations
- Remain competitive by keeping pace with how cloud disruption impacts markets
- Take advantage of increased efficiencies, flexibility and cost savings
This overview covers the most important cloud computing trends that technology leaders should have on their radar for 2024. By getting a head start on these developments today, organizations will be in a strong position to embrace the cloud to power their digital business.
Top Trends for 2024
Cloud computing is entering an exciting new phase of rapid evolution driven by emerging technologies and changing business needs. Key developments on the horizon in 2024 include widespread adoption of multi-cloud architectures, growth of AI and ML cloud services, innovations in sustainable computing infrastructure, a focus on edge computing and 5G for localized processing, and boosting security and compliance capabilities. As these trends reshape the cloud landscape, companies that stay ahead of the curve are poised to benefit greatly. By proactively developing cloud strategies aligned with future innovations, organizations can prepare to leverage cloud platforms for increased efficiency, faster innovation, and delivering exceptional digital experiences.
Serverless Computing
Serverless computing is expected to see significant growth in 2024 as it enables developers to build and run applications without having to manage the underlying infrastructure. Serverless represents a shift from assuming the server is a unit of infrastructure, to only paying for the actual amount of compute resources consumed to execute code.
With a serverless architecture, the cloud provider manages the server infrastructure and allocation of compute resources automatically in response to demand. The developer just needs to deploy their code. This is extremely appealing as it eliminates the overhead of provisioning and maintaining servers.
According to the 2022 State of Serverless Report by A Cloud Guru, 94% of cloud-using organizations now run serverless architectures in production. The global serverless computing market is forecast to grow from $14.93 billion in 2022 to $75.66 billion by 2029 according to Fortune Business Insights.
Key drivers fueling increased serverless adoption in 2024 include:
- Cost Savings: Pay only for compute time used while code executes resulting in lower costs
- Productivity: Developers avoid wasting time on infrastructure and focus on innovating
- Scalability: Serverless scales seamlessly and infinitely to meet demand spikes
- Portability: Code can run across different cloud platforms offering flexibility
As more businesses realize these benefits, serverless usage scenarios will greatly expand beyond web apps to also power IoT, analytics, CRM systems, ecommerce, AI workloads and more. Companies not exploring how serverless can transform architectures risk falling behind the competition.
Edge Computing
Edge computing is poised to see massive growth in 2024 driven by 5G rollout and the exponential growth of Internet of Things (IoT) devices. Edge computing refers to processing data closer to the devices and sensors generating it rather than relying solely on remote cloud data centers. This addresses the latency and bandwidth issues that can arise from shuttling large volumes of IoT data to and from the cloud.
According to IDC, the global edge computing market will reach $250 billion by 2024. With the proliferation of smart devices and real-time application needs, handling processing at the edge is critical. It enables next-generation technologies like smart factories, autonomous vehicles, AR/VR and more by facilitating real-time decisions and actions.
Key aspects accelerating edge computing adoption include:
- 5G Networking Growth: 5G delivers faster speeds and lower latency critical for edge use cases
- Data Gravity: Keeping processing near the data source avoids excessive data movement
- Regulatory Compliance: Data residency and sovereignty laws necessitate localized data handling
- Scaling IoT: Billions of devices generate too much data for cloud alone to handle
To prepare for edge computing growth, organizations need to assess workflow data flows to identify use cases where on-site processing delivers benefits over cloud. They can then work with providers to implement the required edge hardware, connectivity and cloud orchestration to deploy a hybrid edge-cloud architecture that best meets their needs. Companies that embrace edge solutions in 2024 stand to gain a real competitive advantage.
Multi-Cloud and Hybrid Cloud
Using multiple cloud providers for varying workloads and needs – known as multi-cloud – is growing dramatically among enterprises. Gartner predicts that by 2025, over 95% of enterprises will use multi-cloud strategies. Hybrid cloud similarly combines private cloud infrastructure with public cloud services.
These flexible approaches prevent vendor lock-in and enable organizations to optimize cloud spend, resilience, and locate data/apps based on regulatory factors. Multi-cloud and hybrid cloud architecture help companies leverage the strengths of different providers.
For instance, a retail company can maintain core systems like HR, CRM and ERP within a private cloud for security while using a public IaaS cloud for web hosting. Or a hospital can keep patient records in a private HIPAA-compliant cloud while hosting telehealth video services using a public provider.
The multi and hybrid cloud market is projected to grow at a CAGR of 21% from 2022 to 2030, topping $1.6 trillion globally according to Grand View Research. Key drivers behind its expansion include:
- Avoiding vendor lock-in risks from relying on one provider
- Optimizing price, performance and features based on app needs
- Meeting data residency and compliance demands
- Enhancing availability and disaster recovery
The complexity of managing environments across providers is the main challenge. However, maturing cloud service meshes and automation helps address governance, visibility, and operations. Overall, exploiting multiple clouds is the future.
Cloud-Native Security
Protecting data, apps, and infrastructure in the cloud is a top priority as adoption accelerates. Cloud-native security refers to security architectures and controls designed specifically for cloud environments vs. traditional on-prem solutions. In 2024, there will be a strong focus on improving cloud-native security approaches.
The distributed nature of cloud infrastructure introduces new attack surfaces and risks compared to centralized, on-prem data centers. As such, security needs to be tightly integrated at the ground level instead of an afterthought. Engineering secure applications from the start provides better protection as attacks reach new levels of sophistication.
The global cloud security market is predicted to expand at a CAGR of 14% through 2030, highlighting the increased spending by providers and customers. Innovations being adopted include:
Microsegmentation and Zero-Trust: Strictly limit access and trust no entity by default
Cloud-Native Access Control: Align identity, app, and data policies seamlessly
Data-Level Encryption: Encrypt data automatically without apps or users managing keys
Cloud Security Posture Management: Continuously assess risks across cloud usage
Businesses migrating apps to the cloud must invest in cloud-native approaches that provide layered defenses. Combining preventative and detective controls offers comprehensive protection aligned to the future of cloud adoption. Companies that embrace cloud-native security position themselves for sustained growth.
Sustainability
There is growing awareness and concern about the environmental impact of rapid cloud infrastructure expansion required to meet rising business needs. In response, cloud providers are prioritizing sustainability through renewable energy adoption and carbon emission reduction efforts. More organizations now factor sustainability into cloud provider selection.
The largest cloud vendors including AWS, Microsoft Azure, and Google Cloud have all pledged to fully operate carbon-neutral data centers on renewable energy. Most aim to achieve the milestone by 2030 while supporting customers with sustainability-oriented cloud solutions.
Specific green cloud computing initiatives underway involve:
- Transitioning global data center power to renewable sources like wind and solar
- Investing in battery storage to supplement clean energy
- Building intelligent systems to minimize power consumption needs
- Offering tools for customers to estimate, monitor and reduce cloud carbon footprints
- Supporting carbon offset programs to mitigate environment impacts
IDC forecasts cloud Data Center Carbon Footprint spending to deliver a five-year CAGR of 11.3% through 2025, underscoring the significance of this trend. Promising technologies like liquid cooling for servers, hydrogen fuel cells for power redundancy, and hyper-efficient optical data center architectures also support emission reduction goals.
Overall sustainability will be a key pillar of cloud computing advancement through this decade. Businesses increasingly want to exploit cloud benefits while ensuring environmental responsibility.
Artificial Intelligence (AI)
Artificial Intelligence and Machine Learning will be more deeply embedded across cloud platforms in 2024 to deliver smarter, predictive services. Cloud providers are enhancing compute power, expanding data storage, and optimizing infrastructure to support intensive AI workloads.
At the same time, they are releasing advanced AI cloud services so customers can benefit without needing in-house data science expertise. The global AI cloud services market is estimated to grow over 35% annually – highlighting the massive potential.
Key drivers propelling increased AI adoption through cloud technology involve:
- Automating Tasks: AI can handle repetitive jobs saving customers money
- Building Intelligent Apps: Infuse applications with predictive insights via AI cloud services
- Empowering Employees: Provide AI-driven recommendations and training to augment staff
- Optimizing Operations: Continuously tune infrastructure and processes automatically
- Personalizing Customer Experiences: Deliver tailored engagement powered by AI models
Leading-edge companies are already achieving real business gains using AI-based cloud solutions. For instance, AI informs supply chain decisions, predicts equipment failures, powers chatbot customer service, and customizes healthcare treatment plans.
Harnessing the AI trend promises to provide organizations with an enduring competitive advantage. Cloud computing has effectively commoditized access to advanced AI – leveling the playing field for companies regardless of size and resources. Those failing to explore AI risk ceding ground to forward-thinking competitors.
5G and Cloud
The rollout of 5G networks lays the foundation for the next phase of cloud computing innovation. 5G delivers substantially higher speeds (10-100x faster than 4G), ultra-low latency (under 1 millisecond), and the ability to support 1 million devices per square kilometer. This is a gamechanger for interconnected cloud services.
When combined with expansive cloud storage and compute resources, 5G allows for transformative user experiences. Autonomous vehicles, industrial automation, virtual reality, and smart cities are all emerging technologies enabled by 5G and cloud together.
Key drivers of 5G and cloud adoption include:
- Enhanced Connectivity for Remote Workers: Boost productivity with high-performance virtual desktop infrastructure (VDI)
- Internet of Things Scalability: Connect and orchestrate massive numbers of IoT devices
- Real-time Analytics: Execute rapid data-driven decisions based on real-time streams
- Intelligent Video Services: Stream HD footage reliably with sub-second latency
- Smart Mobile Apps: Deliver rich, immersive augmented reality and real-time experiences
The market for 5G enterprise alone is estimated to reach $16.4 billion globally by 2028 expanding at a 46.4% CAGR according to Verified Market Research. Smart factories, remote patient monitoring, self-driving vehicles and other innovations showcase the nearly limitless potential.
Organizations must modernize networks and assess cloud tools to prepare for 5G or risk falling behind. Those that proactively upgrade stand to reap tremendous advantages. With planning, companies can exploit 5G seamlessly alongside cloud to accomplish truly groundbreaking use cases.
Internet of Things (IoT)
The Internet of Things (IoT) refers to the vast number of internet-connected smart devices now used in homes, factories, utilities and cities. By 2025 there will be over 30 billion IoT devices according to Juniper Research. Cloud computing is crucial for handling the massive scale of data these devices generate.
IoT success heavily relies on cloud infrastructure for key capabilities including data processing, analytics, and machine learning. Cloud providers enable building, deploying and managing IoT solutions without needing to provision costly local infrastructure. Cloud’s distributed architecture readily accommodates spike workloads too.
Several aspects make cloud the ideal platform for IoT:
- Scalability – Cloud seamlessly scales to support deployments from thousands to millions of IoT sensors
- Flexibility – Businesses only pay for the storage and compute time required to handle fluctuating data patterns
- Intelligence – Derive real-time insights by applying machine learning to IoT data in the cloud
- Security – Cloud offers robust tools for access management, encryption, and threat detection
The global IoT cloud platform market is predicted by MarketandMarkets to grow from $6.4 billion in 2022 to $22.4 billion by 2027, highlighting soaring demand.
To prepare for explosive expansion, organizations need an IoT cloud strategy spanning connectivity, device management, data flows, analytics, and security. Those embracing IoT’s full potential will gain measurable operational and competitive advantages using cloud.
Low-Code/No-Code Cloud Platforms
Low-code/no-code cloud platforms enable faster application development by minimizing the amount of manual coding required. These tools provide graphical interfaces and pre-built components to build cloud-native apps using model-driven techniques.
According to Gartner, by 2025, 70% of new applications developed by enterprises will use low-code or no-code technologies up from less than 25% in 2020. Empowering non-technical staff to create apps addresses the shortage of professional developers while accelerating digitization.
Key drivers behind the rise of low-code/no-code cloud application platforms:
- Addresses Developer Shortage: Expand app development beyond engineering teams
- Rapid Time-to-Market: Visually build mobile/web apps 5x faster than traditional coding
- Enhanced Change Agility: Iterate on apps rapidly using simple drag-and-drop interfaces
- Consistent Cloud Architecture: Ensure built-in security, scalability and reliability
- Democratization: Enable more stakeholders to directly contribute to digital innovation
Leading providers like Microsoft Power Platform, Salesforce Lightning, and Appian enable building cloud solutions across front and back-office. Integrations with RPA, AI and other automation technologies will further the capabilities.
Businesses embracing low-code/no-code cloud platforms gain competitive advantages from expanding who can create apps. Expect to see more business analysts, LOB managers and power users driving innovation.
Blockchain
Blockchain in the cloud is growing rapidly as organizations explore decentralized ledger technology without needing to invest in on-prem infrastructure. Leading cloud providers including AWS, Microsoft Azure, Google Cloud and IBM Cloud now offer blockchain services.
According to MarketsandMarkets, the blockchain cloud market is estimated to grow from $6.0 billion in 2022 to $22.4 billion by 2030 – highlighting surging interest.
Key aspects driving blockchain adoption on cloud platforms:
- Immutable Audit Trails: Enhance traceability and trust across supply chains
- Smart Contracts Integration: Build and execute decentralized business logic
- Heightened Security: Cryptographic foundations better protect sensitive transactions
- Faster Settlement: Accelerate payments, asset transfers and other processes
- Proof of Concept Agility: Test blockchain solutions without infrastructure costs
Cloud blockchain use cases span financial services, healthcare, retail, government, transportation, energy and other sectors. For instance, cloud blockchain can secure medical records, validate insurance claims, track global shipments or manage digital identities.
While still nascent, blockchain represents an enterprise cloud trend offering truly transformative potential. Organizations exploring blockchain are strongly advised to leverage the convenience and flexibility of cloud services for development vs racks of GPUs. Those dismissing blockchain risk disruption as it progresses across industries.
Quantum Computing
Quantum computing is an emerging technology that harnesses the power of quantum mechanics to provide exponential increases in computation speed and power over classical computers. Major cloud providers like Microsoft, IBM, Amazon and Google have started offering quantum computing services, allowing businesses and developers access to quantum computers over the cloud. This eliminates the need for costly specialized quantum hardware or expertise. By 2024, the integration of quantum computing with cloud platforms is expected to progress significantly. Quantum computing has the potential to transform areas like AI, machine learning, cryptography, financial modeling and materials science. Cloud-based delivery of quantum capabilities will spur innovation of quantum applications across various industries. However, challenges remain around the limited qubit counts of current quantum processors and error rates that have to be overcome before practical applications can proliferate. But access to quantum over the cloud allows businesses to start exploring practical use cases in a scalable fashion.
The key aspects covered are:
- Exponential speed and power compared to classical computers
- Eliminates need for specialized quantum hardware or expertise
- Integration with cloud platforms allowing wide access
- Potential for breakthroughs in AI, ML, cryptography etc.
- Challenges around qubit counts and error rates
- Ability to explore practical quantum use cases via cloud
Microservices and Containers
Microservices architecture and container technology are key emerging trends in cloud-native application development. Microservices break down applications into independently deployable modular services, while containers provide standardized units for software development and deployment. Together, they enable continuous integration and continuous delivery (CI/CD) pipelines, accelerating software delivery cycles. Cloud platforms are optimizing to support these technologies, with managed Kubernetes services simplifying container orchestration, and tools like AWS Fargate eliminating the need to provision containers. By 2024 over 75% of cloud-native apps are expected to be built using microservices and containers. Key drivers are increased developer velocity and productivity, easier maintenance and updates to applications, and improved infrastructure efficiency. As modern cloud-native apps become more complex, leveraging microservices and containers will be essential to realizing the productivity and scalability promises of cloud.
The key points covered:
- Microservices and containers enable faster software delivery
- Cloud platforms optimizing for these technologies
- Over 75% of cloud-native apps to use them by 2024
- Benefits like increased developer productivity and velocity
- Essential for modern complex cloud-native applications
Cloud Security
As cloud adoption accelerates, security remains a top priority for organizations migrating to the cloud. According to the PDF, cloud providers will continue to heavily invest in robust security capabilities including data encryption, access controls, multi-factor authentication, AI-driven threat detection, and disaster recovery solutions. This will enable organizations to defend against increasingly sophisticated cyber attacks targeting cloud environments. Security measures such as cryptography, tokenization, firewalls, and perimeter security will continue to be employed. Trends like zero-trust network access are also gaining traction, where users inside a network perimeter are not automatically trusted. Compliance auditing and security certifications around standards like ISO and PCI will see increased focus as well. The shared responsibility model requires both cloud providers and consumers to play their part in ensuring strong security foundations. As threats become more advanced, maintaining resilience via best practices will demand significant investments from both sides.
The key points highlighted are:
- Security remains top cloud priority due to cyber risks
- Investments in data encryption, access controls, MFA, threat detection etc.
- Zero trust frameworks gaining adoption
- Compliance auditing and certifications gaining importance
- Shared responsibility model between providers and consumers
Challenges Ahead
- Managing Costs: As cloud adoption sees rapid growth, cost optimization becomes critical for organizations to control expenses. Unpredicted costs, unused resources, and lack of visibility into expenditures can quickly lead to overspending. Hence companies need consistent monitoring, governance, workload optimization and rightsizing of cloud usage based on needs. Lacking cost optimization strategies can restrain businesses from realizing the economic benefits of cloud.
- Lack of Cloud Skills: Migration to the cloud presents talent and skills gaps for many organizations. There is a continuously widening gap between demand and supply of cloud computing skills including cloud security, machine learning, data science and cloud architecture roles. Businesses struggle to recruit staff with expertise in utilizing cloud platforms and modern toolchains. Reskilling programs, partnerships with cloud providers and managed services are some options to obtain requisite cloud capabilities.
- Compliance and Regulatory Issues: With data sovereignty laws imposing restrictions around data residency and cross-border data flows, compliance requirements bring additional complexity to cloud adoption. Based on the regulatory needs of their industry and geographic presence, businesses have to navigate data privacy regulations and audit standards around security and compliance. This demands stringent governance processes and vendor risk management to prevent violations through cloud misconfigurations or security gaps.
The key challenges summarized are managing unpredictable cloud spending, talent shortages in new technology areas, and adhering to geographic or industry-specific government regulations.
Getting Ready for the Future
- Assess Current Strategy: Organizations need to critically evaluate their current cloud strategy and architecture to prepare for future needs and emerging trends. This includes analyzing existing workloads, governance models, and technology pains to create a roadmap aligned with business priorities. Companies risk falling behind if their cloud adoption is not keeping pace with innovation.
- Build In-house Skills: With rapid cloud advancements, having skilled talent is imperative to drive success. Businesses should invest in upskilling programs, hire cloud-native roles, and retain technical talent to build capabilities in cloud security, machine learning, data analytics and other critical areas. Developing this expertise internally allows more innovation.
- Leverage Managed Services: Given the challenges in recruiting cloud talent, managed services can effectively supplement in-house skills. Cloud managed service providers can offer technical capabilities around migration, optimization, security and application modernization to accelerate a business’ cloud journey.
- Stay Flexible: In a dynamic cloud landscape, future-proofing cloud architecture using best practices is vital. Companies need to incorporate modularity, automation, and loose coupling into stack designs to respond faster to emerging technologies. Portability across cloud vendors through containers and microservices also promotes business agility.
The key ideas covered are assessing current cloud needs, building internal talent, using managed services, and enabling architectural flexibility to stay ahead in a fast-moving cloud-native world.
Conclusion
Key Takeaways:
The major cloud computing trends that will define 2024 highlight that cloud adoption is poised for massive growth. Serverless, AI/ML and edge computing are driving next-generation architectures while multi-cloud and hybrid cloud provide optimal deployment options. Security and sustainability will see greater emphasis while automation and abstraction will simplify cloud complexities. As cloud-native models transform application design and delivery, key challenges around costs, skills and compliance must be addressed.
Cloud Computing is Here to Stay:
Cloud computing has cemented its dominance by enabling unprecedented levels of agility, scalability and efficiency for modern businesses. The innovation happening in multi-cloud, blockchain, quantum and immersive technologies will further expand its possibilities. Cloud will continue to be the de-facto platform powering everything from mobile apps to emerging technologies.
Forward-thinking Strategy Required:
To fully leverage cloud computing trends and innovations, businesses need to develop technology strategies factoring in future needs and models. This means investing in skills development, optimizing data governance, building future-proof architectures and monitoring the horizon for what’s coming next. Only forward-thinking cloud strategies focused on automation, innovation velocity and technology convergence will confer long-term competitive advantage.
In summary, cloud computing adoption and innovation is accelerating rapidly. Organizations must assess current maturity, address risk areas and realign priorities to capitalize on the future landscape.
