The cloud has had a tremendous impact on the way we live and work; in fact, according to a recent Forbes article, 83% of enterprise workloads will be in the cloud by 2020, on a mixture of public, virtual private, and hybrid platforms. For companies large and small, the move to the cloud makes sense—it can save them money, heighten security, and maintain compliance. While it is not without issues, to effectively compete today, CTOs and CIOs need to plan for it, if they haven’t already.
1. Companies to Increase IT Spending
To compete effectively, many organizations will be upping their IT spend in 2019. For many companies, the increase will be used to upgrade outdated IT infrastructure—or at least a portion of it.
Government organizations will be among the biggest spenders because they were slower to migrate to the cloud at the start, and now need a serious upgrade. According to the new State of IT report, 82% of government organizations across North America and Europe report that they will be expanding IT budgets due to outdated IT infrastructure. The White House itself recently revealed its “Cloud Smart” initiative. It’s designed to “offer a path forward for government agencies to migrate to a safe and secure cloud infrastructure… [it will help] agencies achieve additional savings, security, and deliver faster services” (you can read the Federal Register Notice here).
2. Hybrid Rules as a Method of Migration
Although 83% of enterprise workloads will be in the cloud in just a few short years, not all of them will get there the same way; options for migration are a necessity. The way that one department migrates to the cloud may be different than another, depending on its timeline, or compliance requirements. We outlined the most popular migration techniques in a recent series of blogs—lift and shift, replatforming, and re-architecturing—but most IT professionals and publications predict that the hybrid cloud will be the method of choice for many organizations.
With a hybrid cloud, organizations can often get the best of everything; a portion of their data remains in their own servers on-premise, their less sensitive data is lifted and shifted into a compatible public cloud, and their sensitive or mission-critical data is moved to a virtual private cloud (VPC). With millions of users sharing cloud expenses, part of the appeal of the hybrid approach lies in cost savings due to economies of scale. “Cloud bursting” is also a popular feature. This is when an application or resource runs only on-premise or in a VPC until there is a spike in demand (think online Christmas shopping or filing taxes); that’s when the application “bursts” into the public Cloud, utilizing additional resources. Finally, many large organizations already possess several on-premise servers, and don’t want to throw them away to watch their balance sheet take a giant hit all at once.
3. Cyber Threats Will Continue to Grow
Panda Security reports that new malware samples are being developed every day, and this is expected to continue. 70% of organizations believe their security risk has increased significantly, and while hits to tech, government, and corporate giants like Facebook, Delta, USPS, and Marriott continue to steal headlines, nearly 45% of cyberattacks are actually aimed at small businesses.
One threat that’s growing rapidly is cryptojacking. As companies wise up to ransomware (though it still poses a significant threat), hackers are denied ransom. Instead, cryptojacking allows them to gain access through a vulnerability and work behind the scenes, stealing the computers’ processing power (also known as cryptomining). There were over 3 million cryptojacking hits between January and May of 2018, and the number of cryptojacking malware variants grew from 8 in 2017 to 25 in 2018.
4. New Mobile Challenges and Opportunities
With the increasing demand for high performance and simplicity of cloud services from any location, on any device, Dataversity points out the need for cellular carriers to stream even faster. Most people have moved on from 4G networks, but how about 5G? 5G is currently available to Verizon customers in only four cities: Sacramento, Los Angeles, Houston, and Indianapolis. This is the next great thing for cloud technologies in terms of speed and data capacity—two critical issues for businesses—and will need to be addressed going forward. If mobility is the future, businesses and their employees, as well as their clients, will need to stream not only data from the cloud, but the entire suite of applications to manipulate that data. The infrastructure will need to change to accommodate 5G, and this takes time, money, and is impacted by the FCC’s net neutrality policies.
5. GDPR to Make an Impact
The final challenge to cloud computing deals with the impact of governmental regulation, Europe’s GDPR, or Government Data Protection Regulation. The GDPR is a very complex set of rules and regulations that dictates how data is stored, processed, shared, and managed. It also address security of data, and what companies must do in the event of a security breach. Failure to understand and abide by the GDPR can result in hefty fines. By its nature, the cloud makes global computing and transactions worldwide as easy and convenient as doing business with your next-door neighbor. Companies that rush into the cloud, specifically those doing business internationally, could find themselves blindsided if they do not take time to understand the GDPR and make cybersecurity and compliance a number one priority.
The future of cloud computing offers an atmosphere of excitement and growth for businesses that plan and remain open to change. For companies rushing forward without looking ahead, cloud computing and its flaws could cause them trouble. By working with a reputable provider like DSM, Florida’s predictable cloud, organizations gain a partner, not just a vendor, who will be there with them every step of the way. Want to learn more about DSM? Contact the experts today!