Companies are starting to raise their IT and cloud innovation spending as the pandemic comes to an end. Global spending is predicted to increase 20.7% in 2023, reaching $591.8 billion, according to Gartner.
Nevertheless, the rise in cloud adoption occurs during a period of heightened economic ambiguity. To continue to expand and compete on a global scale, firms will be forced to adopt innovative, flexible, and agile solutions.
In light of this, here are 5 trends to look out for in 2023 and take advantage of.
1. Machine learning and artificial intelligence are brought to life in the cloud
Artificial Intelligence (AI) and Machine Learning (ML) cloud services are getting more alluring as cloud use increases and costs decrease. This is also because businesses have realized they can use the vast AI infrastructure of hyper-scale cloud providers without having to invest in developing their own. Because of this, expect to see a significant increase in the number of AI services offered by Microsoft and other CSPs.
Adaptive AI is one thing to watch out for. Adaptive AI systems can learn in development and runtime contexts, and they can swiftly retrain themselves in response to fresh information and shifting conditions. This enables AI applications to continuously adapt quickly, regardless of how they were initially programmed. They are useful in situations when there are a lot of unknown factors or when change happens quickly in general.
2. The need for cybersecurity is greater than ever.
A cloud move has benefits, but it also introduces several new cybersecurity risks. Businesses are giving cybersecurity and associated advances top priority as cloud use and the rules surrounding it continue to rise.
Here, inventiveness is crucial. Organizations will be seeking cost-effective cyber security solutions as the economy continues to seem unsteady; consider AI, predictive technologies, and automation, as well as an increase in the usage of security-as-a-service.
Yet, AI carries a unique set of dangers. Many businesses have not improved their security posture to keep up with their AI solutions due to the rapid usage of AI. A recent Gartner poll revealed that 41% of firms had had a security or privacy incident related to AI, which is a problem.
Organizations considering the use of AI need to be aware of TRiSM, or trust, risk, and security management systems and protocols, as defined by Gartner. To adopt new corporate-wide security measures, a seasoned solution provider will need to guide several business units.
3. The use of industry cloud platforms will grow.
Specific sector solutions are becoming more prevalent as cloud technology permeates every business. By 2027, 50% of enterprises will be utilizing industry cloud platforms.
A combination of SaaS, PaaS, and IaaS that offers modular capabilities to meet particular business use cases is what is meant by an industry cloud platform.
Industry cloud platforms offer creativity, agility, and a shorter time to market. They can also serve as a launchpad for original business ventures. Its value comes from combining cloud services—which are often purchased separately—into a scalable, integrated package.
For the following industries, Microsoft Azure provides Industrial Clouds:
Automotive \Banking
financial markets
commercial products
intelligence and defense
Education \Energy
monetary services
Government \Healthcare \Insurance
Manufacturing
entertainment and the media
Nonprofit
Justice and public safety
Retail \Sustainability
Telecommunications
4. Executives will increasingly prioritize sustainability.
Sustainability and social impact are investors’ third-highest priorities, behind revenue and profit. As a result, leadership must invest in addressing ESG demand and achieving sustainability targets, and they require technology’s assistance to do so.
Expect to see more businesses implement sustainable technology frameworks that enhance renewable energy and traceability, improve the energy efficiency of their IT services, and provide their clients with more options for achieving sustainability objectives.
Environmentally responsible sustainable technology should also generate new commercial value. Operational efficiency will develop through data-driven insights, better integration, and visibility into supply chains, which will save costs and open up new options.
Customers of Microsoft Azure can use Microsoft Cloud for Sustainability, which offers the following advantages:
Consolidated data intelligence for better reporting on sustainability and increased visibility.
Systems for a sustainable IT infrastructure that can be used to find ways to optimize processes, procedures, and tools
tracking operational systems’ environmental footprints will enable you to lessen your overall footprint.
Increased accountability and the ability to source the most environmentally friendly materials can help you create sustainable value chains.
5. Businesses will use automation to boost innovation and cut expenses.
Companies will start to rely more on automation as a result of the centralization of data and the growing capability and accessibility of AI.
This will manifest in various ways. Data-driven decision-making is significant. Companies will be able to delegate particular, strategic choices to AI algorithms by building a data fabric. It is possible to examine and take advantage of previously unknown business opportunities by integrating siloed data using machine learning.
In addition, more businesses are adopting robotic process automation (RPA), with 72% of them planning to do so in the upcoming two years. One IDC survey found that benefits include increased process effectiveness and a 79% drop in mistakes.
