Cloud computing is rapidly becoming an essential part of transformation. Organizations that don’t embrace this shift risk falling behind.
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Cloud Computing Is a Key Driver of Tech Innovation
Cloud computing is a must for capitalizing on emerging technologies and trends
Cloud is the go-to platform for IT leaders driving digital transformation. It supports emerging technologies like generative AI (GenAI) and composable applications, while reducing carbon footprints. Download this research to discover:
- Our top 6 cloud computing predictions through 2027
- Future advancements that will leverage the cloud's value
- Reasons I&O leaders should harness the cloud for their GenAI projects
Navigate cloud computing challenges and opportunities
All paths to digital transformation lead to cloud computing. Here’s where to focus:
Cloud Computing Momentum
Cloud Benefits and Obstacles
Cloud Operating Model
Follow cloud computing’s upward trajectory.
In response to the inevitable mass shift to the cloud, the fastest-growing IT market has become anything related to cloud computing. Organizations use cloud computing to support mainstream operations, digital foundations, IT modernization and business outcomes driven by digital transformation. Many modernized businesses adopt cloud operating principles as their preferred style of operations.
To tap the full value of the cloud, organizations are investing in cloud-native applications, operating models and architectures and using cloud-native thinking to inform cloud decisions and application modernization initiatives. The cloud’s influence on IT operating models includes IT operations management, security and networking, as well as business functions like procurement, where cloud marketplaces are becoming common in technology purchasing.
Business requirements are prompting organizations to look into cloud-based innovations like AI, the Internet of Things (IoT), telco clouds driven by 5G and edge computing. Providers are working on innovations such as quantum computing as a service via the cloud to further support business growth initiatives.
Despite its maturity, cloud computing remains in the spotlight because it has thoroughly proven itself as a reliable vehicle for delivering IT capabilities. It is also an innovation foundation for the capabilities that all businesses need.
In a few years, any business that expects to compete will require cloud computing. Business outcomes will hinge on an organization’s ability to execute its cloud computing strategy.
Find out what’s coming and navigate the challenges.
The cloud has become central to driving technology, and with GenAI on the scene, infrastructure and operations (I&O) leaders are ready to take full advantage of what the cloud offers. However, where there are benefits, there are also obstacles.
GenAI. Cloud (specifically public cloud providers) is best positioned to drive the GenAI narrative because of its scale and shared services model. It’s invaluable for building GenAI-powered applications at scale and general-purpose foundation models. But nontechnical issues must be addressed.
- Foundation models (FMs) and large language models (LLMs) are at the core of GenAI, and they are propelling the swift evolution of capabilities and use cases. However, there’s a regulatory cost to managing the data used in LLMs and applications that use FMs and LLMs.
- Data experts are key to meeting data residency requirements and protection needs in regions with sovereignty requirements. Use ransomware threat detection, vulnerability management and data security guidelines to this end.
SaaS and composability. AI models and tools will establish a direct connection between business expression and digital experience, matching the agility of business thinking to the composable modularity of application software and the cloud’s scale and flexibility.
- Once AI-generated software as a service (SaaS) applications emerge, they’ll likely be composed of pregenerated components vs. monoliths of generated code.
- Major platform technology vendors are already generating code with GenAI and offering this capability to enterprise developers.
GreenOps and sustainability. Pressure from investors, customers, regulators and governments are driving organizations to optimize IT carbon emissions to reach environmental sustainability goals.
- Sustainability and digital sovereignty will join the list of criteria enterprises demand from public cloud GenAI services.
- Processes, capabilities and tools will manage energy consumption and carbon emissions for cloud workloads.
Digital sovereignty. Controlling where data is stored and operations are executed will require specialty cloud providers that can fulfill the requirements of sovereign operations. This will be crucial for organizations extending cloud operations to diverse locations and use cases.
- Specialty cloud services may focus on regional or edge cloud environments, be developer-oriented, offer support for non-x86 systems, or offer functionality for specific use cases like AI and machine learning.
- Specialty cloud adoption will be driven by factors like data residency, security and privacy requirements, and regulatory requirements governing data location and data center operations.
Cloud costs. The cost of doing business in the public cloud, which is already a large chunk of the IT budget, will come under increasing scrutiny.
- Matching cloud costs to business value will be key to reaping the innovation rewards of hyperscale public cloud providers.
- Traditional capacity-based IT financial management won’t work in the context of a consumption-based public cloud. Enterprises that fail to transition to more appropriate methods will severely limit the business value of cloud adoption.
Implement a cloud operating model to match your needs.
Most organizations adopt cloud computing in a haphazard way ─ a few SaaS applications, a few workloads in infrastructure as a service (IaaS) or platform as a service. This is manageable on a small scale, but unchecked ad hoc adoption comes with drawbacks. Aside from being unscalable, it is ungovernable and expensive.
Organizations that have not yet begun their cloud journey can avoid this tangle of issues by implementing a cloud operating model ─ a set of organizational structures, processes, capabilities and relationships that support cloud computing. Note that no one model is right for all organizations, and the model you start with will morph over time to match your needs.
Here are the steps for setting up a cloud operating model:
Set up advisory bodies. A cloud center of excellence (CCOC) guides and oversees the entire process. Large enterprises may also opt to create a cloud executive council.
Align priorities. If you haven’t already established a formal cloud strategy, work with the CCOC to hammer out some basic cloud adoption principles. If you already have a strategy, make sure it aligns well with priorities.
Establish the core of the model. This includes envisioning your present-day and long-term model, as well as a path from one to the other. The cloud enablement function (the CCOE or cloud enterprise architecture function) will serve as the core of the cloud operating model.
Form cloud delivery functions. Select a cloud operations approach and begin applying it. Incorporate security capabilities. These decisions must strike the right balance between autonomy and risk management for your business.
Integrate other functions. Link IT cloud teams to supporting functions like sourcing, procurement, and vendor management and finance. Also link cloud-related personnel in these functions to promote collaboration. A cloud community of practice can also facilitate collaboration.
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Frequently asked questions on cloud computing
What is cloud computing?
Cloud computing is a style of computing in which scalable and elastic IT-enabled capabilities are delivered as a service using internet technologies.
What are the business benefits of cloud?
At a technical level, cloud integrates applications, deployments and networks to produce more seamless business solutions. At a strategic level, cloud creates opportunities for organizations to create new digital services for customers and employees, make workloads more cost-effective and efficient — and generally enable the enterprise to respond at speed to changing needs during periods of disruption.
What are the key types of cloud computing and cloud services?
Cloud implementation can leverage a range of cloud types, cloud management platforms and cloud services.
Cloud types:
Private cloud
Public cloud
Hybrid cloud
Multicloud
Distributed cloud
Industry cloud
Sovereign cloud
Cloud services:
Infrastructure as a service (IaaS)
Platform as a service (PaaS)
Software as a service (SaaS)
Drive stronger performance on your mission-critical priorities.