Cloud computing and IT outsourcing: How businesses can benefit from moving infrastructure to the cloud

In the dynamic world of information technology, cloud computing has emerged as a revolutionary force, transforming the way companies manage and process data. According to the 2023 State of the Cloud Report, cloud computing solutions are most commonly used by the technology (32%) and finance (20%) industries. Most respondents work with the cloud in the IT department (44%). This innovative technology offers many benefits and is becoming an essential tool for organisations looking to modernise their infrastructure. In this article, I will take a closer look at cloud computing, exploring its benefits, models and role in IT outsourcing.

How are IT companies using cloud solutions?

IT organisations are increasingly using cloud solutions for different areas of work. This allows for scalability and flexibility in the management of IT resources, which is critical for businesses that need to respond quickly to changing market needs and system workloads. In addition, by using cloud services, organisations can significantly reduce the costs associated with maintaining their IT infrastructure. By using subscription-based models and paying only for the services they use, they can optimise their spend. By analysing the data from the 2023 State of the Cloud Report, some key conclusions can be drawn about the way organisations are using cloud services. Let’s take a closer look. 

Popularity of Data Warehousing and DBaaS

The high percentage of organisations using data warehousing and DBaaS (relational and NoSQL) indicates that data management and analysis are central aspects of cloud usage. Access to efficient, scalable and flexible data storage and processing solutions is a key factor in attracting businesses to the cloud. 

Importance of serverless computing and containers

The significant number of organisations opting for serverless computing and Container-as-a-Service indicates a growing demand for flexibility, scalability and cost efficiency. With containerisation and serverless architectures, organisations can deploy applications faster and manage resources more efficiently. 

Growth of AI and IoT technologies in the cloud

Investments in machine learning, AI and IoT highlight that businesses are increasingly keen to innovate and use the latest technologies to gain competitive advantage. The cloud provides a platform that allows these advanced technologies to be implemented easily and effectively. 

DRaaS as a critical component of business strategy

The significant percentage of organisations using DRaaS (Disaster Recovery as a Service) indicates a growing awareness of the importance of business continuity and risk management. Using the cloud, organisations can implement more resilient and scalable disaster recovery strategies. 

Key challenges of using cloud solutions

The 2023 State of the Cloud Report looking at current trends and challenges for businesses using cloud solutions, reveals several key challenges for the IT industry. 

The top 3 challenges are:

• Managing cloud spend (82%) – this is currently the biggest challenge, indicating the increasing complexity and costs associated with maintaining and scaling cloud infrastructure. Organisations are looking to optimise costs and increase the efficiency of their cloud investments. 
• Security (79%) – although down to second place, it remains a key concern for organisations. According to the latest “2023 ISC2 Cybersecurity Workforce Study”, the global cybersecurity workforce has grown to 5.5 million people, representing an 8.7% increase over 2022. In spite of this, the cybersecurity gap is at an all-time high, with 4 million professionals needed to adequately protect digital assets.
• Lack of resources/expertise (78%) – this issue highlights the difficulty in recruiting and retaining the skilled IT staff required to manage and optimise cloud environments. Organisations are struggling with skills gaps that can impact the efficiency and innovation of their cloud operations. According to the “2023 ISC2 Cybersecurity Workforce Study” report, 75% of cybersecurity professionals find the current threat landscape to be the most challenging in the past five years. Only 52% believe their organisations have the right tools and people in place to respond to cyber attacks.

The growth of cloud computing and IT outsourcing – what are the benefits?

Adoption of cloud technology is on the rise, with 97% of organisations using some form of cloud services and 48% of businesses storing their critical and confidential data in the cloud. Despite existing challenges, further expansion of cloud technology is almost certain – according to a report by Gartner, spending on public cloud services will exceed USD 480 billion this year and USD 1 trillion by 2027.

Such forecasts are not surprising as the cloud has grown in importance over the past two decades due to its scalability, speed of operation and flexibility. What are the benefits of using cloud computing in the IT industry, particularly in the context of outsourcing IT professionals?

Effective remote work

Cloud environments facilitate collaboration by allowing remote teams to access, edit and share documents at any time and from any location. This promotes better teamwork and seamless completion of individual tasks. 

Automatic updates and security

Cloud service providers typically handle system updates and server maintenance, freeing in-house IT teams to focus on more strategic tasks. Cloud services also facilitate disaster recovery. With data backed up, it is easier to manage information and maintain task continuity in the event of a cyber attack.

High accessibility

Cloud computing allows employees to access company data from smartphones and other devices. This is a great way to ensure that no one is outside the information loop, especially if the company outsources IT engineers. 

Cost effectiveness

Cloud computing reduces the need for significant capital investment in hardware and infrastructure. It promotes a more predictable budget model based on operational expenditure, where what you use is what you pay for. This means organisations can save the cost of maintaining their own IT infrastructure. 

What is the future of cloud computing?

As organisations continue to modernise systems, adapt to hybrid working models and respond to new challenges, cloud technologies are becoming increasingly important. The Gartner report highlights four key trends that are currently shaping the evolution of the public cloud: 

• Omnipresence of the cloud; 
• Regional cloud ecosystems; 
• Sustainability and carbon awareness; 
• Automatically programmable infrastructure from infrastructure service providers and cloud platforms. 

Advances in wireless communications, particularly in the area of 5G technology, are further reinforcing the popularity of cloud-based solutions. At the same time, the outsourcing of IT engineers is becoming more popular and expertly managed than ever before, opening up new opportunities for businesses to effectively manage their technology resources. In today’s dynamic environment, it is vital for IT professionals to understand these trends and leverage them to optimise and innovate within their organisations.

Bibliography:

https://www.isc2.org/Insights/2023/10/ISC2-Reveals-Workforce-Growth-But-Record-Breaking-Gap-4-Million-Cybersecurity-Professionals
https://info.flexera.com/CM-REPORT-State-of-the-Cloud-2023-Thanks
https://www.money.pl/gospodarka/chmura-a-bezpieczenstwo-it-6945292788267840a.html
https://www.gartner.com/en/doc/768816-the-future-of-cloud-computing-in-2027-from-technology-to-business-innovation