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Enterprise cloud computing is on the rise, but what’s causing it?

When it comes to enterprise cloud computing, it seems like the sky’s the limit! Cloud’s ability to provide scalable, on-demand resources has revolutionized operations across many industries. The public cloud market is predicted to keep growing to a value of $1.1 trillion by 2028. This growth reflects the cloud’s popularity in digital transformation initiatives. As well as a deepening reliance on cloud infrastructure for critical business functions.

The rise of enterprise cloud adoption has been driven by multiple factors. These include technological advancements, digital transformation trends, drives to optimize costs, changing work environments and much more.

But recently, there have been shifts and investments making the cloud even more popular with enterprise technology leaders.

The Expereo-commissioned IDC InfoBrief, Enterprise Horizons 2024: Technology Leaders’ Priorities on their Digital Business Journey revealed that35% of technology leaders surveyed are investing and prioritizing cloud and multi-cloud strategies. Coming in just below Artificial Intelligence (AI), Machine Learning (ML) (42%) and cybersecurity (37%) as the most popular transformation initiative.

The IDC Resource Map Document (RMD) for Expereo Doc. #EUR252049924, (April, 2024), also reveals that around 80% of the surveyed technology leaders expect to be mainly cloud-based or operate in hybrid environments in the next 12 months.

It’s not surprising as cloud applications and multi-cloud environments offer flexibility, cost-efficiency, and scalability. All of which are very attractive to enterprise technology leaders. Moreover, the rapid advancement of cloud technologies continues to drive further adoption. Enterprises are enabled to stay competitive and innovative in an ever-evolving market.

Voicing the choices of 650 global technology leaders, the IDC InfoBrief, Enterprise Horizons 2024: Technology Leaders’ Priorities on their Digital Business Journey reveals that there is a new key factor driving current cloud adoption decisions and strategies among enterprise technology leaders.

Firstly, AI applications require vast amounts of data and computational power, which traditional on-premise infrastructure often can’t support efficiently. Cloud platforms offer the scalability and flexibility needed to process and analyze large datasets effectively.

While security, cloud technology, and cloud connectivity continue to be top priorities, all three are essential elements of any organization's AI strategy. Due to a shortage of skills and AI training infrastructure, large-scale AI model training will occur in the cloud, utilizing networks optimized for cloud and multicloud access.

Indeed, cloud providers have integrated AI capabilities into their services. They offer tools and frameworks that simplify the development and deployment of AI applications.

This integration allows businesses to leverage AI for various purposes. The IDC InfoBrief, Enterprise Horizons 2024: Technology Leaders’ Priorities on their Digital Business Journey shows that the top applications of AI are:

Employee and customer service applications in particular can be supported by cloud-based AI support. For example, companies like Amazon, Google, and Microsoft offer cloud-based AI services that facilitate machine learning, natural language processing, and predictive analytics.

The IDC InfoBrief, Enterprise Horizons 2024: Technology Leaders’ Priorities on their Digital Business Journey shows that 27% of respondents AI plans are limited by their networks’ inability to provide adequate connectivity to the cloud or between clouds.

In broader terms, inadequate access to cloud applications due to latency, bandwidth, congestion issues hinders collaboration and slows down digital transformation efforts.

Within the challenges at a network performance level, visibility and observability were also identified by 41% of technology leaders as significant inhibitors of managing cloud and multi-cloud environments (IDC Resource Map Document (RMD) for Expereo Doc. #EUR252049924, (April, 2024)).

The most effective way to resolve enterprise networking issues to support enterprise cloud computing would be to work with a trusted networking partner.

Expereo knows networking and has been a part of the Internet for 20+ years. That means we know how to examine an enterprise's business strategy and suggest a networking strategy to suit. One built on the right mix of connectivity solutions.

To support a cloud-first strategy we would recommend running SD-WAN at the network edge with multiple Internet-based paths connected to it. SD-WAN allows you to prioritize your network traffic so that certain business-critical applications always run on the best available path.

The good thing about SD-WAN from Expereo is that it’s transport agnostic. So if you want to retain an existing MPLS you can. However, while MPLS might have some use cases like on-premise applications, the trend to cloud-based apps requires a flexible network based on an Internet backbone. With Expereo’s SD-WAN we can help you move at your own pace to a more flexible network. Allowing you to fulfil your cloud strategy and see ROI.

We can also support you at Middle Mile, further enhancing your cloud usage and performance. With SD-WAN prioritizing your cloud traffic to the closest PoP, our Enhanced Internet solution can accelerate that traffic via the best-performing route to where the cloud application is hosted. That means lower latency end-to-end, and increased user performance.

Our Enhanced Internet IP nodes are precisely mapped to the Data Center footprint of major cloud providers to maximize coverage and enable us to cater for the use cases and locations that your business needs us to deliver.

Expereo can help you get your network ready for your cloud and AI implementation initiatives. Get in touch today to discuss your enterprise cloud computing strategy and connectivity needs.