The demand for cloud services continues to grow at an incredible pace. In 2024, companies are expected to acquire cloud services and infrastructure worth over $1 trillion, a record amount. According to a survey by Deloitte, 90% of companies believe that cloud services are crucial for their growth, digital transformation, and for maintaining a strong position in the market, especially in combination with other technologies such as AI, IoT, and analytics.
Here are 10 game-changing trends for cloud services in 2024 we predict will grow:
1. Cloud and AI, a powerful duo
AI and cloud services are predicted to be one of the most powerful combinations in 2024, expected to dominate. Cloud technology makes AI accessible to companies of all sizes and helps cloud providers improve their services and infrastructure management.
AI as a Service Gathering data and training algorithms require enormous processing power and storage capacity that few companies can afford. Instead of building their own AI infrastructure, organizations can now access AI capabilities through the cloud, with the only requirement being to pay a simple subscription fee to access the services.
AI and the future of cloud services Not only companies but also cloud service providers themselves rely on AI to create more efficient and cost-effective cloud services for their customers and automate their own processes in developing products and more.
2. Pay-as-you-go with serverless computing
Serverless computing, sometimes called "function-as-a-service," has become a popular development in cloud computing. This shows the growing popularity of the XaaS model, where almost any type of IT resource or service can be delivered via the cloud.
Through serverless computing, companies are no longer bound to rent a certain number of servers or pay for fixed amounts of broadband. Instead, cloud providers allocate resources based on demand and companies only pay for the actual storage space or CPU time they use.
Despite the name, servers are still run to provide backend services. However, "serverless" means that companies can deploy applications without having to worry about managing and configuring the underlying infrastructure and scaling it as needed.
3. Emergence of industry-specific cloud services
Cloud services tailored to specific industry needs are becoming increasingly popular, with examples like AWS Healthcare and IBM Cloud for Financial Services. Industry-specific cloud platforms offer a variety of services and tools tailored for strategic uses, from compliance and cloud disaster recovery to integrations with industry-specific applications such as supply chain management for a specific type of product.
4. Multi-cloud becoming an increasingly popular strategy
Companies typically do not rely solely on a specific cloud provider but often choose several different cloud providers, based on several criteria. Becoming too tied to a specific cloud ecosystem can become problematic if the provider chooses to discontinue support for an application or service.
By using a multi-cloud strategy instead, companies can distribute workloads across several cloud providers and take advantage of each provider's strengths.
5. Containerized cloud applications
Multi-cloud infrastructures go hand in hand with the growing popularity of containerized applications. Applications are then encapsulated in so-called containers that can easily be migrated and run between different cloud platforms.
The containers ensure that applications behave consistently regardless of the host and can be easily managed through container management tools.
6. Hybrid and edge computing blurring traditional boundaries
Hybrid and edge computing trends are gradually blurring traditional distinctions between cloud and local installations. The cloud has become a general operating model that combines various environments such as public clouds, private clouds, local data centers, and "edge" locations.
This hybrid strategy allows companies to create versatile setups that enhance their specific needs without having to rely on a single cloud setup. Many organizations choose to use hybrid cloud to reduce costs, minimize risks, and expand their capabilities, making hybrid cloud one of the fastest-growing trends right now.
7. Cloud services drive innovation in blockchain, IoT, and quantum computing
One of the biggest advantages of cloud services is that they make other technologies available on a larger scale, which promotes innovation. Next-generation cloud services will act as a gateway to many other transformative technologies like IoT, blockchain, and quantum computing.
Cloud providers are also entering the quantum world in hopes of breakthroughs in complex problem-solving. Although quantum computing probably won't be so mainstream in the near future, cloud providers are still investing in its research and development, so we can expect to see developments in this direction during 2024.
8. Growing need for real-time cloud computing
The demands placed on next-generation cloud technologies are evolving. Part of the reason for this has to do with the growing need for real-time data and analytics. Companies rely on up-to-date insights not only to make important decisions but also to monitor complex systems such as air traffic.
Currently, we now get a large part of our daily entertainment from streaming services, from movies and music on Netflix and Spotify to new forms like cloud gaming. Cloud gaming allows players to run computer games on remote servers and stream them directly to their devices, instead of installing the games locally.
All these developments require a computing speed that cloud providers struggle to provide through technologies such as 5G networks and future 6G networks. In 2024, the integration of 5G and cloud services will enable faster data transfer, less lag, and improved device connectivity.
9. Integration of FinOps to manage cloud costs and technical debts
The pandemic accelerated investments in the cloud as many companies had to turn to cloud services for the tools, storage spaces, and data access needed to quickly provide theirremote workers with sufficient resources. However, as the crisis subsided, many of these companies had to manage the initial overspending, and as a result, FinOps became a way to manage their cloud costs.
Inspired by the DevOps movement, FinOps combines finance and business operations with management tools to optimize the costs of cloud services. The goal is to maximize value by encouraging engineers, finance, and business teams to collaborate and make better, more data-driven spending decisions.
FinOps allows companies to see how cloud resources are utilized, correct previous mistakes, and manage outstanding technical debt to reduce costs. Now in 2024, it is likely that we will see more cloud providers offering FinOps services, as well as additions to tools for managing cloud costs.
10. Increased competition between key cloud players
As cloud providers approach a certain surplus of what their cloud services offer, they need to find new ways to stand out from the crowd. The battle to improve existing cloud services through AI is a clear example of such. The increasing emergence of generative AI has sparked intense competition among leading cloud providers, such as AWS, Google, and Microsoft, and this fierce competition has forced them to prioritize the needs of their customers even more, and this is something we will see more of in 2024.
These 10 cloud service trends for 2024 show a dynamic development within the IT sector where MSPs need to keep updated and be ready to adapt their offerings to meet both current and future needs of their customers. To remain competitive, it is important that MSPs invest in these technologies and strategies to ensure they stay at the forefront of the rapidly growing digital landscape.
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