Cloud Trends Accelerating Digital Transformation

The business of global cloud providers has reported another year of excellent results. Bulgaria was no exception to the global trends. Daticum, one of the leading cloud service providers, also reported significant growth for the first half of 2023 and is one of the best performers in the industry. As an established regional leader with a profitable business model and innovative service portfolio, Daticum’s management is optimistic about the industry outlook. Georgi Tsekov, CEO of Daticum, part of Sirma Group Holding JSC, shares his thoughts on the dominant trends and new drivers in the cloud industry.

Amid the boom of technological breakthroughs in artificial intelligence since early 2023, have there been changes in the cloud technology space?

Undeniably, cloud technologies are the driving force of digital transformation. I will name some of the strategic routes for development in this area – the deployment of artificial intelligence (AI) and machine learning (ML), multi-cloud, cloud security, low code/ no-code systems, industrial platforms and everything as a service (XaaS). Many reports and surveys have provided plenty of evidence. This shows that companies are confident in the deployment of cloud technologies. Implementing the best cloud services and other innovative technologies drives efficiencies in their processes and operations. According to Gartner, Inc., global end-user spending on public cloud services is expected to grow 20.7% to $591.8 billion in 2023, up from $490.3 billion in 2022. This exceeds the 18.8% growth forecast for cloud computing in 2022.

How will the use of artificial intelligence and machine learning in the cloud impact businesses and users?

These technologies have become ubiquitous and are now being applied in cloud computing. Businesses often require significant computing power and storage capacity for data processing and Business Intelligence. While some companies have the ability to build their own AI infrastructure, it is typically more cost-effective to use SaaS solutions. As a result, the trend of adding AI features to subscription packages is growing, providing a sustainable option for end-users.

How is the sector changing due to competition and multi-cloud usage?

Gartner predicts that by 2025, over a third of companies utilizing multiple public cloud providers will adopt a single network stack, representing a more than 10-fold increase from 2021. Industry analysts have noted the successful implementation of best-of-breed hybrid cloud solutions in the past year (2022). Adopting a multi-cloud strategy provides flexibility, reduces single-vendor lock-in, and enhances security. It mitigates the risk of cloud providers altering applications or discontinuing support for certain services. Businesses can benefit from increased availability, performance, data security, modular architecture, and unified IT system monitoring. Companies can leverage a multi-cloud infrastructure to develop applications and processes on multiple cloud platforms, lowering the chances of system errors that could disrupt critical business operations.

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Are organizations investing more in cybersecurity and cloud resilience due to the increased cyber threats?

According to Gartner, global cybersecurity and risk management spending is expected to increase by 11.3% this year. While cloud technology offers many benefits and opportunities for businesses to scale, it also presents new cybersecurity threats. For instance, the storage and use of customer data can lead to data loss or theft if security breaches or unethical activities occur. Companies and organizations should invest in cybersecurity services and build resilient infrastructures to prevent such attacks.

Companies can identify potential threats in their cloud environments by implementing the zero trust strategy, vulnerability assessment, and penetration testing. Leading cloud service providers also offer artificial intelligence and predictive technologies to detect threats before they cause any problems, leading to a growth in the use of security as a service.

 

What are your thoughts on using low-code/no-code platforms in the cloud? Do you believe this trend can continue?

According to reputable business media outlets, low-code/no-code platforms have become more sophisticated and are now mature products. These platforms offer specialized tools to model business processes, making it easier for non-technical employees to create their automation processes and software applications. This allows teams to increase organizational capacity without requiring significant coding skills.

For instance, these advanced platforms can assist with building websites, web applications, and various digital solutions that organizations require. The popularity of these cloud services is increasing since they remove the need for lengthy programming codes to launch a digital application. Utilizing low-code/no-code platforms for AI-driven applications can reduce the barriers to entry for organizations using these technologies.

Is it time for businesses to switch to industry-specific cloud platforms?

Analysts predict that by 2027, 50% of enterprises will make the shift. The main aim is accelerating important business initiatives, and adopting industry-specific cloud platforms is a growing trend. These platforms offer value creation for companies seeking relevant industry solutions. Typically, these solutions are based on public cloud services, making it easier to manage data and workloads flexibly while speeding up changes in processes and standards to meet business models, compliance, and other segment needs.

These cloud platforms allow companies to integrate industry-specific methods and utilize common applications quickly. The diversity of industrial cloud ecosystems and the numerous independent software vendors, system integrators, and cloud providers make for a successful model in which industrial cloud platforms bring business value. By combining technical and business innovations, both end-to-end and modular approaches can transfer ideas faster from one industry to another.

Have we reached a point where we offer everything as a service?

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According to IMARC Group, the global Everything-as-a-Service (XaaS) market is projected to reach a total of USD 238.7 billion in 2022, with a further estimated growth of USD 674.5 billion by 2028. This forecasted growth is expected to result from a compound annual growth rate (CAGR) of 18.4% between 2023 and 2028.

In this business model, organizations can access various online services and applications. By utilizing this model, companies can tailor their services to their specific needs while also benefiting from cost-effective management options. For example, utilizing subscription plans for the best cloud services allows companies to shift costs from capital to operational expenditure, thereby improving operational efficiency and customer satisfaction. XaaS is one of the most prominent cloud computing trends for 2023.

Overall, the Daticum team is very positive about the upcoming year’s business results, especially with implementing cloud services and other innovative technologies. Implementing cloud services, among other innovative technologies, leads to increased process efficiency, optimizes business costs, and improves operations, which are all vital strategic priorities for companies.