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Digital Transformation | 8 MIN READ

7 Cloud Computing Trends You Need to Watch in 2020

As 2019 comes to an end, it closes the book on a decade that saw a lot of disruption and evolution hit the IT services and cloud computing spaces. The big changes, however, are far from over. 2020 promises to be another eventual chapter in the narrative surrounding cloud software innovation.

Jump to the main takeaways:

 1. Non-Startups Will Continue to Adopt Cloud Infrastructure
 2. Enterprise Cloud Solutions Will Emphasize Hybrids Models
 3. AWS Will Stay Dominant, But Other IaaS Providers Will Gain Ground
 4. Cloud Service and App Security Will Become a Bigger Priority
 5. Edge Computing Will Drive Further Cloud Innovation
 6. Cloud Software Speed Will Matter More Than Ever
 7. IT Governance and Access Policies Will Be Key to Growth

The main reason that cloud computing continues to dominate modern IT strategy is simple: current and future growth. According to a 2019 TechRepublic survey, 64% of organizations “either already use industry cloud services or plan to adopt it in the next 12 months.”  

Neglecting cloud software services is becoming less common as well, with only 18% of respondents having “no plans” to consider or adopt industry cloud services. This means big money for cloud service providers, whose combined global revenue could top $354 billion in 2022, after totaling just $196.7 billion in 2018. 

With so many industry-specific options giving way to tons of potential use cases, it can be hard to know how or where to invest your IT cloud service budget in 2020. However, if done right, cloud software can drastically improve your organization’s operational efficiency and overall productivity in the new year.

In this blog post, I’m going to run through seven cloud computing trends that will have a big impact on your ITSM strategy in 2020. These insights are applicable regardless of whether your IT services are entrenched in one platform, like Jira, or spread across multiple services.

Let’s get started!

 

1. Non-Startups Will Continue to Adopt Cloud Infrastructure

Cloud services used to be investments that only the most technically proficient enterprises took seriously. Now that cloud computing is the mainstream norm, more conservative organizations will be taking a harder look at their cloud options in 2020.

Gartner’s November 2019 numbers reveal that Infrastructure as a Service (IaaS) is set to grow 24% year-over-year, which is the biggest spike across all cloud market segments. The reason? Modern applications and associated workloads demand modern infrastructure that old data center models just can’t keep up with.

As legacy organizations in every industry rush to unlock digital transformation success via cloud computing, it becomes as much about data migration as it is about investing in the right services. To avoid common migration pitfalls, enterprises will need to make the shift before it becomes too complicated (and too expensive) a move.

 

2. Enterprise Cloud Solutions Will Emphasize Hybrids Models

A hybrid cloud computing solution involves allowing data and applications to be shared between public and private cloud instances. These flexible models will take over even more of the enterprise IT space in 2020 as organizations aim to upscale their respective IT infrastructure.

The convenience that hybrid cloud solutions can bring to businesses is unparalleled. As Microsoft Azure’s site out, this setup allows for any “basic and non-sensitive computing tasks” that are part of a processing overflow to make its way to the public cloud, while critical data or already-built functionality can be kept behind a firewall.

Despite an initial reluctance, the world’s biggest IaaS providers–AWS, Google, and Microsoft–now integrate easily with the majority of organizational IT resources and devices. Through partnerships with other major development platforms, it’s possible to bring data from various cloud instances into one centralized data hub. 

Look for the potential of hybrid cloud systems to grow even more in 2020. 

 

3. AWS Will Stay Dominant, But Other IaaS Providers Will Gain Ground

While it’s safe to say that Amazon’s AWS continued to dominate the IaaS landscape in 2019, some chinks in that armor have definitely begun to show.

According to their Q3 earnings report, AWS showed 35% growth, a second consecutive sub-40% fiscal quarter. It’s also the lowest growth rate the cloud provider has shown in more than five years. Meanwhile, Microsoft came in second place with 59% growth, although hard sales figures weren’t disclosed.

What does this mean for enterprises and end users who use these cloud services? In the short-term, Amazon will continue to have a stranglehold on the IaaS market. That said, its biggest competitors, including Google Cloud and Alibaba, will also mature and grow their capabilities, fostering a more competitive marketplace that will benefit buyers.

 

4. Cloud Service and App Security Will Become a Bigger Priority

Let’s stay with AWS for another minute as our lead-in to cloud service and app security, which will become an even bigger priority for organizations in 2020.

I’m referring, of course, to the major Amazon data breach that took place earlier in 2019, where a hacker penetrating AWS’ servers and stole data from over 30 companies, compromising user information belonging to more than 106 million Americans and Canadians. 

The organizations victimized in this attack weren’t small-time either. Rumored to be among them were recognizable names like Capital One, Vodafone, Ford, Michigan State University, and more. With the business world becoming increasingly reliant on cloud software and SaaS options, securing enterprise and user data will need to evolve in a hurry.

For a more exhaustive list of the biggest IT security fails of the decade, check out our blog post!

 

5. Edge Computing Will Drive Further Cloud Innovation

In its simplest form, edge computing brings processing and data storage closer to the device that’s using it, instead of relying on a central location that typically isn’t close. While edge computing grew out of the Internet of Things (IoT) evolution, its continued growth will be a major factor in the next step for cloud software in 2020.

As faster network technology (more on that in the next section) becomes more widely available, the possibilities for edge computing to take cloud to the next level are pretty much endless. From common tasks like analytics and video processing to more advanced forms of AI and robotics, edge represents the cutting edge of what cloud, and IT as a whole, can be.

As per CIO, “edge computing would prove too essential in the near future by helping cloud to evolve and in its adaption in more organizations.” While that scalability will likely happen mostly in tandem, it’s unlikely that you can have a more mature cloud ecosystem with edge computing by its side.

 

6. Cloud Software Speed Will Matter More Than Ever

I teased it in the previous section, so let’s talk speed. With the introduction of WiFi 6 in 2019 and the slow-but-going rollout of 5G wireless networks, enterprises and end users alike will continue to demand that cloud computing performs at continually high speeds, all while becoming more reliable from an infrastructure point of view.

It’s one thing to have faster data processing and connectivity options, but it’s quite another to ensure that cloud software can live up to that minimum standard. Because of this, even the biggest names in tech will need to double down on how quickly tasks can be accomplished and how instantly accessible data can become. If not, they risk getting left behind.

Again, an individual organization’s mileage will vary depending on its current IT infrastructure build, resources, and so on. But, since it’s clear that cloud software is only going to get more ubiquitous in the coming years, speed and performance will matter more than even before.

 

7. IT Governance and Access Policies Will Be Key to Growth

Finally, we come to potentially the most underrated part of cloud computing’s future: IT governance and, more specifically, who has access to what.

As defined by Gartner, IT governance “is [the] processes that ensure the effective and efficient use of IT in enabling an organization to achieve its goals.” If we apply this sentiment to cloud, we’re talking about how to set up an organization’s infrastructure so that anyone can obtain the information they need, wherever and whenever they need it.

Unfortunately, it’s not as simple as it sounds on paper. Processes and policies must be put in place regarding access clearances and what data can be shared where (i.e.–on a public or private cloud instance). Otherwise, your business will risk turning even the barest of cloud solutions into a digital Wild West, where disorganization and lawlessness reign supreme.

For more information on IT governance and which frameworks can be most useful for your organization, check out CIO’s blog on the topic.

 

Recap

The future of cloud computing, both as its own industry and as a reliable bedrock for business innovation, is an exciting one. From the continued digital transformation of legacy companies to the fine-tuning of existing enterprise cloud solutions, these cloud software trends should help businesses deliver excellent customer experiences and thrive for years to come.


In the middle of the cloud revolution is our new Insight for Jira Cloud app. We’re constantly working on improvements to help Atlassian users work more efficiently, reduce costs, and get the most out of all their resources. To discover all our product features and to see the app in action, click below! 

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Originally published Dec 17, 2019 3:00:00 AM