Latest Blog - Cloud
Just like the weather, when it comes to clouds, they keep changing, evolving and forming based on different conditions. Similarly, the business cloud also takes shape according to the changing environment, business requirements, and the technology sector.
What is enabling organizations to reconsider their structure?
The rise of AI, growing concerns around cybersecurity, widespread adoption of software as a service (SaaS), massive data growth, the surge in connected devices, and the normalization of mobile and hybrid work are all reshaping the cloud, prompting industries to restructure their system.
To better understand how the operational landscape impacts the business cloud and to explore how organizations can best leverage it, here are some insights by cloud experts in the industry.
As we approach 2025, the focus of cloud computing is shifting from infrastructure and platform-as-a-service models to a stronger emphasis on software-as-a-service (SaaS). Major players like Salesforce, Microsoft, Adobe, and Atlassian are already leading the market, but new contenders are likely to emerge as the decade progresses.
We all recognize that the cloud varies for each organization, shaped by their specific operations and workloads. It is predicted that more than 750 million cloud-native applications will be developed globally by 2025, as businesses strive to build sustainable digital value engines.
The maturity and user-friendliness of these SaaS solutions mean they can be quickly acquired and configured to run essential business processes within hours, providing the flexibility and agility needed for operational efficiency in the cloud.
Every industry operates under distinct conditions, which are driving the rise of Industry Cloud Platforms (ICPs)—customized cloud solutions tailored to the unique requirements of specific sectors. These platforms transform cloud infrastructure into both a business enabler and an innovation tool.
As discussed earlier, the cloud promotes agility. Integrating industry-specific SaaS with these platforms allows organizations to rapidly adopt cloud solutions that align with their industry’s particular characteristics.
Gartner predicts that by 2027, over 70% of enterprises will be using industry cloud platforms (ICPs) to accelerate their business initiatives, a significant increase from less than 15% in 2023.
The growing adoption of these platforms will largely stem from the shared needs within industry sectors and the cost efficiencies of leveraging established industry-standard solutions.
However, organizations should be cautious: relying too heavily on ICPs could erode their competitive edge. By adopting the same platforms as their competitors, they may trade unique advantages for cost savings and ease of implementation.
We are already experiencing the advantages of cloud computing powered by AI. Instead of merely using the cloud for basic IT functions like data storage or application hosting, businesses are increasingly leveraging cloud services in combination with artificial intelligence to achieve more ambitious goals, such as enhancing customer experiences and developing new products. In this landscape, AI is becoming the driving force behind transformation in SaaS applications and platforms.
To support these innovations, we anticipate a continued mass migration of data to the cloud, enabling organizations to capitalize on innovation, insights, and cost savings.
As a result, more organizations are expected to move certain workloads and applications off public cloud environments and into private clouds.
This way, storing data in the cloud will offer universal access to information from anywhere with an internet connection. It will improve collaboration among employees, partners, and customers, and enable real-time sharing and co-working on documents, regardless of location.
However, with the evolving complexity of workloads and rising cybersecurity threats, organizations are increasingly recognizing that “not everything needs to be hosted in public cloud environments.” There are clear advantages to shifting data and workloads to private, hybrid, or on-premises environments.
Since 2023, more organizations have been moving their data from the cloud back to their own systems, a trend that is expected to continue. This may seem surprising given the global rise in cloud use, but it’s a strategy driven by increasing cloud costs and the need for AI-driven workloads.
Still unsure on how to take maximum use out of the cloud? Contact industry experts at Arpatech and let’s shift your business to the cloud!
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