The concept of “digital modernization” underscores a pivotal shift in the business landscape. Companies are transitioning from a traditional product-centric model to one that prioritizes digital services. This transformation is underpinned by the critical role of infrastructure, which enables organizations to move away from static resources toward dynamic, digital ecosystems. These ecosystems are scalable and capable of adapting and expanding in response to the evolving needs of business.
In the current global economy, organizations increasingly recognize the importance of leveraging public cloud services as a strategic move to bolster their digital modernization efforts. This shift is evidenced by a significant uptick in cloud spending, which is expected to continue into the foreseeable future. A recent analysis by IDC highlights the rapid growth in the public cloud services sector, projecting a market size of $805 billion USD for this year alone. This figure is anticipated to substantially increase, with IDC predictions suggesting a doubling of the market size by 2028. The United States is on track to emerge as the largest market for cloud computing by 2024, underscoring the country’s leading role in adopting and advancing cloud technologies.
This surge in cloud adoption indicates a broader move towards digital modernization, with organizations seeking to harness cloud flexibility, scalability, and efficiency. By pivoting to cloud-based infrastructures, businesses are better poised to respond to market changes, customer demands, and technological advancements, ensuring they remain competitive in an increasingly digital world.
Increasing cloud investments
IDC also reported that the finance, retail, and IT industries will collectively spend almost $200 billion USD on public cloud services this year. Similarly, healthcare, entertainment, professional and personal services, and capital markets collectively represent 25% of 2024 cloud spending.
The growth of cloud investments showcases the urgency of digital transformation across sectors. Migration to public cloud services is driven by several key services that enhance the efficiency of the modern enterprise.
- Software as a Service (SaaS): This category tops 2024 cloud spending. SaaS tools are economical, flexible, and ideal for remote and distributed workforces.
- Security infrastructure software (SIS): These tools defend data during transit and at rest. They also protect cloud services from malware and ransomware.
- Infrastructure as a Service (IaaS): Gartner predicts this category will achieve the highest end-user spending growth (25.6%) this year. IaaS helps organizations keep costs in check because they no longer have to invest heavily in hardware upgrades. Instead, the IaaS provider provides and maintains the necessary infrastructure.
- Platform as a Service (PaaS): PaaS removes the friction points from the application development process by hosting the necessary tools in a public cloud environment.
Also read: The state of cloud network security, SASE, and SD-WAN today
AI in the public cloud setting
IDC and Gartner agree that artificial intelligence (AI) and machine learning (ML) also drive businesses to adopt the Cloud. AI developments make the public cloud an increasingly viable option. Gartner forecast a 20.4% rise ($561 billion to $675 billion) in cloud spending this year, citing generative AI applications and application modernization efforts as the core drivers of this growth.
Gen AI requires vast amounts of data to generate content, while other types of AI analyze large data sets to mine for insights. Both types of AI perform well in the public cloud because they have access to enormous caches of data. The public cloud is ideal for businesses seeking to speed up AI adoption without relying on in-house AI teams.
Also read: The logic driving IT modernization with multi-cloud architecture
Key advantages of public cloud environments
Public cloud computing delivers:
- A streamlined environment that reduces the client’s data center footprint by 50% or more, cutting the expenses associated with IT management for internal times.
- Cost-efficiency gained from cutting redundant infrastructure and optimizing licensing costs.
- Enhanced security posture stems from a Well-Architected Framework that leverages cutting-edge threat detection, data loss prevention (DLP) tools, and automatic patch updates, keeping the environment secure from the latest threats.
- Flexibility to pursue key business goals without making massive capital expenditures.
Begin your cloud journey with OnX
Cloud migration, at its core, might appear straightforward, essentially involving the transition of business operations such as storage, networking, application hosting, infrastructure services, software development, and security protocols into the Cloud. This shift aims to leverage the scalable, flexible, and cost-efficient nature of cloud computing. Yet, the genuine complexity and challenge lie in architecting an ecosystem that integrates the myriad services offered by public cloud platforms and harnesses the power of automation through AI and ML to enhance efficiency and innovation.
The importance of partnering with a seasoned cloud partner cannot be overstated when navigating this intricate process. An experienced partner is essential in realizing a cloud environment that is not just a fit but tailor-made for an organization’s unique demands and aspirations. A cloud partner provides thorough planning, strategic implementation, and access to cutting-edge technology, offering an unparalleled opportunity to embrace the benefits of public cloud environments.
As a cloud partner, OnX offers profound insights and practical expertise in aligning the most suitable technology solutions with your specific needs, simplifying complex scenarios, and delivering reliable, impactful, and measurable outcomes. Our approach ensures that your transition to the cloud is smooth, your operations are optimized, and your business is positioned to thrive in the digital age.
Reach out today to explore how we can help you harness the full potential of cloud computing and beyond.
