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Cloud Computing Solutions to Become More Important in 2022 as Businesses Move Away from Traditional Desktop Machines

11 January 2022

While cloud computing remains a popular solution for businesses, there are still many moving parts when it comes to making the switch. This article examines what some industry experts are predicting will happen in the cloud space and how businesses may choose to further move away from on-premise solutions and towards greater cloud adoption.

What is Cloud Computing?

In its simplest form, cloud computing is the delivery of IT services via the internet. This can include applications, software, data storage and even servers and databases. Instead of having physical equipment on-site, businesses rely on online services to gain access to the IT resources they need.

When software or applications are hosted in the cloud, they can be accessed from any location, providing you have an internet connection. This gives businesses increased operational flexibility and enables employees to work from remote locations. With the rise in distributed teams over the past 18 months, it’s easy to see why cloud computing continues to grow in popularity.

However, this isn’t the only benefit associated with cloud computing. Access to scalable online facilities and pay-as-you-go pricing plans makes cloud computing a great potential solution for growing businesses, especially if you want to minimise expenditure while accessing the latest IT resources. Furthermore, by accessing maintenance and support from a third-party, your cloud provider can drastically reduce your IT spend and cut downtime.

With so many advantages associated with cloud computing, industry insiders are predicting a significant shift to the cloud in upcoming years. You might be surprised to learn, though, that a considerable number of businesses are already operating almost entirely from the cloud – and you could be one of them.

Cloud Computing Adoption Statistics

The technical aspects and advantages of the cloud are already well-established, but how many companies are moving to the cloud and is it really a viable option for active businesses?

As we approach the end of Q4, cloud adoption statistics 2021 are still being collated. According to TechJury, however, 61% of businesses migrated their workloads to the cloud in 2020. Additionally, 70% of companies using the cloud reported plans to increase their spend in the future, which indicates that they’re satisfied with the service and resources available.

With such a significant proportion of companies making the transition to the cloud, it’s easy to see where the future lies. While the COVID-19 pandemic and the subsequent rise of remote working may have led some firms to deploy cloud resources quickly, the move towards the cloud began far beyond our recent health crisis.

Cloud Adoption by Industry

Different sectors develop at varying rates, which often means discrepancies when it comes to embracing new technology. Risk-averse sectors may be slower to adopt new solutions than risk-tolerant companies, for example.

However, statistics for cloud adoption by industry 2020 show that the vast majority of sectors are embracing the benefits on offer via cloud computing and even more are incorporating the cloud into their future plans.

A study conducted by The Economist Intelligence Unit reported that 74% of experts believe that cloud computing will be a major factor in the banking sector by the end of 2021, for example. Similarly, the importance of cloud computing in the retail sector is expected to grow five-fold by 2025.

Prior to 2020, the manufacturing industry was already an early adopter of cloud computing solutions. The potential to increase the accuracy of manufacturing processes, enable IoT devices and reduce costs clearly makes the cloud an attractive prospect for manufacturing companies, so we can expect to see increased investment throughout 2021 and 2022.

While the financial services industry has been slower to adjust to the cloud, progress is being made. 60% of businesses identified by InformationAge expect their environment to be multi-cloud in the future, with the increased security of private clouds and the reduced cost of cloud computing to be major factors in their decision-making.

What’s the Future of Cloud Computing?

Cloud computing might not be ‘new’, but it’s certainly becoming ubiquitous. Already widely adopted in the business world, we can expect it to become even more prevalent. When looking to the future of cloud computing 2025, there are particular trends you’ll want to keep an eye on.

Multi-cloud strategies give companies more flexibility and choice when it comes to switching to the cloud and fewer vendor tie-ins will make the transition more attractive to businesses, according to leading analyst firm Gartner. As a result, we can expect adoption rates to increase even further.

Additionally, Gartner reports that an increasing number of micro data centres will be popping up in new locations. By bringing data centres closer to users, cloud providers can offer enhanced services and speeds. The cloud already offers enviable functionality but the launch of more micro data centres, along with the enhanced functionality on offer, will be another reason for companies to make the switch.

By 2024, Gartner predicts that nearly all legacy applications will have migrated to the cloud and be delivered via an ‘infrastructure as a service’ (IaaS) model. Cloud providers are set to enhance their optimisation services to make cloud computing even more cost-effective for users. Cost-cutting is already a major reason why businesses are making the switch and with enhanced services, increased optimisation, and further cost reductions, uptake is set to soar.

Is Cloud Computing Right for Your Business?

As you can see, businesses across virtually all sectors are embracing the cloud in one way or another. Furthermore, companies of all sizes, from SMEs to enterprises, are transitioning away from on-premise solutions towards flexible cloud computing. From private and public clouds to hybrid solutions, there are endless ways to make cloud computing work for you.

As with any type of technology, it’s important to find the right solution for your needs. While cloud computing can offer a variety of business benefits, it will be most beneficial if you take the time to find the most efficient and cost-effective solution for your organisation.

To learn more about making the transition or to discuss the cloud solutions that might best suit your organisation, talk to FGD on +44 (0)330 390 7536 or email us at enquiries@fgd.co.uk.