Top Trends in Cloud Computing in 2021

The popularity of cloud computing has transformed how companies do business. This transformation is inevitable. Industries around the world are deploying the latest technological innovations to help their businesses succeed. Since these solutions provide more flexibility and better data management options, companies are now realizing the significance of cloud computing for enterprise software development. According to Cisco, cloud data centers now process almost 94% of all workloads. 

Top tech trends such as AI and IoT will continue to rise, but the most significant prediction will define how businesses overcome challenges in cloud computing. The future of cloud computing seems bright and possible — even industry experts believe that cloud computing is the "next big thing" that is at the forefront of all trending technologies. Total spending on the cloud will increase by 16% CAGR by 2026, which proves that cloud architecture is here to stay and will continue to facilitate businesses in achieving major goals. 

Speaking of which, nowadays it’s almost impossible to find a company that doesn’t utilize (partial) cloud services. From application software development to web servers, the cloud makes everything easily accessible and is an alternative to on-premise deployment. Moreover, cloud services will define how mobile applications are developed and stored without having to install complex infrastructures. Moreover, during the global pandemic cloud computing is in the spotlight for companies looking for increased online data safety, business continuity, and cost efficiency as we move forward in 2021. According to Gartner, Inc. worldwide end-user spending on public cloud services is expected to grow 18.4% in 2021 to total $304.9 billion, up from $257.5 billion in 2020. 

Cloud Trends to Be on the Lookout For

Now let’s have a look at some of the most significant cloud trends in 2021.

Hybrid Cloud

A hybrid cloud is a combination of a private cloud and a public cloud. It allows for data and applications to be shared between them. Hybrid clouds are part of multi-cloud environments where a company uses more than one public cloud along with on-premise deployment. This cloud model offers more flexibility and allows companies to move their core sensitive data to private networks while making less sensitive data available through public clouds. 

More studies tell us that the hybrid cloud market was valued at USD 52.16 billion in 2020 and is expected to reach USD 145 billion by 2026 over the forecast period 2021—2026. Besides, hybrid cloud leads to cost efficiency, security, agility, and scalability. One of the most significant benefits of a hybrid cloud (among other things) is its support to a remote workforce. It provides companies the flexibility to easily manage and accommodate their remote teams with access to decentralized data. 

Therefore this accessible cloud environment is crucial for optimizing efficiency and productivity across the company. Microsoft Azure offers several hybrid cloud products and services that companies can leverage for competitive advantage such as Azure Stack, Azure Defender, Azure Arc, etc. Hybrid cloud is the best option for companies looking for additional security and more control over their data while remaining cost-effective.

Edge Computing

Edge computing is widely popular, yet continues to see considerable growth every year. One of the reasons for its popularity is that it offers a distributed computing model — this means that it stores data and information locally (closer to data sources) as opposed to a centralized server. This proximity to data offers substantial benefits to companies such as maximum operational efficiency, quick insights, improved performance and response time, and better bandwidth availability. 

IoT is often linked to edge computing. In IoT, the data does not need to repeatedly travel back and forth to a centralized server or cloud for processing. In fact, data can be relocated to the "edge". Having said that, edge computing is capable of managing large chunks of data generated from IoT devices. Besides, when combined with 5G, the speed can be improved drastically, which will enhance its ability to accommodate applications in real-time. 

Serverless Architecture

Serverless architecture is associated with cloud computing. It allows companies to develop and run applications without having to manage physical infrastructure, meaning it removes architectural engineering from the process. All the scaling, maintenance, and upgrading are done by cloud service providers in exchange for a reasonable fee. Say, for instance, that Amazon web services offer serverless architecture. Your application still runs on servers, but AWS does all the server management.  You can read more about serverless computing on Amazon Web Services. 

AWS is favored by 77% of IT companies over other serverless technologies. Furthermore, according to an O’Reilly survey, 40% of organizations adopted serverless architecture by 2020 because of reduced costs, scalability, and developer productivity when compared with traditional architecture. 

Developers do not have to worry about infrastructure, instead, they can utilize their time to develop more important app features. There is no doubt that its popularity will continue to grow in the coming years as well.

Integration of AI and ML 

AI is one of the most common cloud computing trends to look forward to in 2021. The IT industry is seamlessly integrating AI to cloud computing to enhance business operations, functioning, and efficiency. It is now enabling companies to easily scale, adapt, effectively manage and automate their processes. Artificial intelligence can add an extra layer of security to the cloud and can be used to identify and eliminate problems before they do any damage. 

Machine learning algorithms can help data centers learn from experience to work more efficiently in the immediate future. This early detection can defend the system against any failure or outside attacks. Worldwide revenue for the AI market is projected to surpass $300 billion by 2024. Moreover, with AI, companies will be able to automate tasks with more efficient handling of heavy workloads. 

Cloud Gaming 

This trend may have been unpopular in previous years, but cloud gaming is anticipated to surpass $1 billion in revenue, according to some sources. 2021 is expected to be huge for cloud gaming thanks to 5G technology offering low latency and high-speed connectivity and the ability to handle the huge data expected from streaming game services. 

In cloud gaming, games are run directly from the server. Gamers do not need consoles because they will be able to stream the game over the internet, just like Netflix. Back in 2019, Google announced Stadia, its first-ever cloud gaming service, and Microsoft announced xCloud in the same year. Additionally, Amazon's Luna is in its early stages, but it's responsive. Cloud gaming allows you to play the games on nearly any device, even ones that are not capable of running that game due to its specs.

Cloud-Based Application Development

This isn’t a relatively newer concept, but we can see cloud-based application development gain momentum in 2021 as well. Application development is better on the cloud since it offers optimal security to data and speed. App developers can deploy and test a cloud-based application much faster than traditional processes. Companies nowadays are seen to be integrating cloud technology for application development into their strategies to stay ahead of the competition. 

Having said that, companies deal with different kinds of data every day, some fall under sensitive data categories and some not so much but every piece of data is valuable, therefore, choosing from deployment options to better automate your data management should be an important part of a company's strategy. In this digital age, which is tightly gripped by frauds and scams, data security has become of utmost importance to global companies. Therefore Cloud computing is a useful approach.