The Technology Industry Outlook for 2020

Cloud adoption is expected to keep growing as companies take advantage of the flexible consumption model with multi-cloud and hybrid environments.

Most businesses, such as those involved in a sound survey in London, are taking a hybrid cloud approach see it as an interim step towards a complete digital transformation process. It is a lengthy process. There are a number of reasons including reliance on the legal system as well as the need to comply with a variety of corporate regulations that has led to these organisations making the choice to use public as well as private clouds. It has been predicted by Gartner that by 2002, 90% of all the organisations would have adopted a hybrid infrastructure management.

Multi-Cloud Solutions

In addition to the hybrid cloud, businesses are now moving to multi-cloud solutions in bigger numbers where they use cloud services from multiple providers. As per a Kentik report in 2019, a combination of Amazon Web services, Microsoft Azure and Google Cloud is being used by 58% of organisations. Businesses have taken this multi-cloud approach as it allows them to weigh the weaknesses and strengths of different vendors before they decide to make a long-term commitment.

While the multi-cloud approach has grown a lot, it is also true that many companies still don’t like to use public clouds and this is why the hybrid cloud model has increased in popularity. FileCloud, in a recent report, has stated that almost half the organisations do not plan to use public clouds for their mission-critical workloads. Symantec has also reported that more than half the businesses face challenges when it comes to security on the cloud and there is also the fear of their security maturity not being able to keep up with the cloud adoption.

Cloud Security Challenges

The cloud security challenges have also presented some unique opportunities to providers. In many cases, cloud providers have started offering security capabilities and expertise much greater than their clients could ever hope to achieve in house. This is the reason one of the main drivers of the adoption of hybrid cloud is security. The security solutions for a cloud-based approach have kept increasing and gained traction in various industries, especially in cases of financial services and government as well as other sectors that are heavily regulated.

As we discussed last year, organisations have taken to cloud-based solutions as a way to get AI capabilities. Many companies such as Auricle as well as others now see artificial intelligence as an important driver of growth and innovation. In a survey performed by Deloitte, it was found that early adopters of artificial intelligence view it as critically important to their company’s success. In fact, over the next two years, the number of executives rating artificial intelligence as critically important for their companies is likely to increase.

Benefits of Artificial Intelligence

In our survey, we found that the benefits of artificial intelligence until now have been focused on enhancing the services and products with optimisation of internal business operations. In the next year, AI is likely to be implemented by companies for testing and developing products, managing customer interactions, providing personalised services and products, delivering connected equipment and enabling a more intense involvement of personalised assistants for managing the day-to-day activities of consumers.

The Internet of things universe is expanding and the AI-driven tools and computing power have become more portable. All these things combined now make it a great time for edge computing to explode. It has been reported by Gartner that only 10% of the overall data generated by businesses was outside of the data centres or the cloud in 2019. Over the next 6 years, this figure is likely to reach up to 75%. It has been predicted by IDC that in three years, the data generated by businesses is likely to be stored, processed, analysed either at or close to the network edge. Various IoT applications are likely to drive this across industries such as agriculture, logistics, healthcare, financial services, energy, manufacturing and retail.