Cloud Computing Statistics in 2023

Cloud adoption has had a lasting effect from the shifting socioeconomic climate of the past few years. Since then, cloud computing statistics have shown exponential development. Most (67%) of business resources are hosted in the cloud.

Top 9 forecasts for the cloud in the year 2023

Even with a potential economic downturn, businesses cannot afford to slow down their digital transformation efforts. Using the internet, users can access a pool of servers. Its popularity has increased in recent years, spurred in part by the pandemic and the subsequent changes in the workplace, because it is a more efficient and cost-effective alternative to maintaining the on-site network infrastructure. By 2025, public cloud services will have surpassed traditional IT solutions in terms of expenditure by organizations, according to research from Gartner.

1. The cloud will be crucial to achieving sustainability targets by 2023

In 2023, more businesses will realize the environmental benefits of using cloud computing.

According to research from IDC, an overwhelming majority of IT buyers (83%) think that environmental impact should be taken into account when making purchases. IDC predicts that by 2025, 85% of enterprises will see a 35% gain in sustainable efficiencies due to utilizing software and cloud-based infrastructures.

Cloud service providers (CSPs) can reap the benefits of economies of scale that would otherwise elude smaller businesses because they pool their resources to benefit all their clients.

A cloud data centre uses less energy than its on-premises equivalent, and cloud-based applications and workloads have a lower carbon footprint.

2. Manufacturing ($19.7 billion), banking ($16.7 billion) and professional services ($18.1 billion) are expected to spend the most on cloud computing services in the coming years.

When broken down by sector, the sectors with the most data are invested in cloud computing. Technology advancements in the cloud are very popular in the banking industry. It's ideal for them because they frequently have to retrieve large quantities of sensitive information from several safe locations.

3. Cloud-native approaches are on the rise

40% of businesses in 2023 will adopt a cloud-native-first approach, per Forrester's 2022 Infrastructure Cloud Study, to boost agility and efficiency while cutting costs.

Since containers perform better than conventional virtual machines when utilizing technologies such as artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), and fifth-generation wireless (5G), Forrester anticipates that more businesses will adopt cloud-native strategies. As container usage increases, businesses will be compelled to update their methods for creating applications.

According to Forrester's research, 50% of all apps deployed by organizations today are containerized applications, with Kubernetes serving as their orchestration backbone.

4. Benefiting from cloud computing to fuel hybrid projects

Although many businesses have reopened, few employees have returned. Organizations' remote and hybrid work patterns, which were formed in response to the pandemic, are here to stay, and they are relying on cloud services to facilitate these new ways of working.

Companies will continue to prioritize the use of cloud-based solutions for communication, project management, videoconferencing, file sharing, knowledge management, and more to facilitate employee collaboration and productivity from any location at any time.

5. More than 45 percent of all IT spending in businesses will go towards the public cloud

The cloud computing market is projected to expand at a staggering rate between now and 2022. By 2026, analysts expect that the public cloud will account for roughly half of all IT investments by businesses.

6. A leading trend in cloud computing, financial operations management (FinOps)

Although businesses will allocate more funds to the cloud in 2019, they will be keeping a tight eye on their expenditure in an effort to rein it in, especially in light of the ongoing rise in inflation, which has a direct impact on the cost of running a company.

By 2023, 80% of businesses employing cloud services will be well-established, says IDC.

FinOps is a methodology used by businesses to control the expenses associated with cloud computing. Due to the unpredictable nature of on-demand cloud pricing, this approach provides insight into how the business is using the cloud. If they want a clear picture of their cloud expenditures across their multi-cloud environments, Forrester predicts that businesses will use external cloud cost monitoring and optimization systems.

7. Cloud expenditure is out of control for most businesses

There has been an increase in the use of the cloud by enterprises, but many fear that the rising prices may force them to abandon the model altogether. As a result, it's getting more challenging to make reliable financial projections.

Those who have attempted projections have missed the mark by an average of 24%, according to respondents. Allocating resources effectively requires that businesses optimize their costs.

Even still, seventy percent of cloud users anticipate further budget increases. 8. In 2023, artificial intelligence adoption won't only be a fad in the cloud.

The use of AI in businesses has been on the rise as more and more companies realize its potential to boost productivity and encourage new ideas. And the cloud is assisting them in maximizing their return on AI expenditures.

Sixty-four percent of "high performers," or companies who are benefiting the most financially from AI adoption, use public or hybrid cloud to host their AI workloads, whereas just forty-four percent of companies in the sample do so.

The top performers also take advantage of the public cloud to gain access to advanced AI features like natural language speaking and facial recognition.

9. Corporations adopt government and business cloud solutions

In 2023, the demand for sovereign cloud solutions and industry-specific clouds will be fueled by the need to comply with a growing list of data protection laws.

The idea of a "sovereign cloud" isn't new, but it's gaining traction as the world's political climate shifts. Specifically built for use within a single nation or territory, a "sovereign cloud" is an authoritative cloud that complies with the privacy and security regulations mandated by that area's government. According to a Capgemini survey of business leaders in 10 countries, including the United States, the United Kingdom, and Germany, 71 percent say their companies will seek to use sovereign cloud services to guarantee compliance.

Conclusion

In today's business world, the benefits of cloud computing are no longer up for debate. As more businesses move their data to the cloud, this percentage will likely rise from the 60% that was kept there in 2022. The coming year will undoubtedly bring about considerable change as cloud service providers enhance their capabilities and organizations make smart decisions to remain competitive. The doubling of cloud-based data storage in just seven years is illustrative of the revolutionary effect this technology has had on the commercial world.