In the video, Royz, a Chief Analyst at Omdia, discusses the top five cloud computing trends to watch for in 2024. He begins by noting that cloud technology is now in the late majority stage of adoption, with roughly 50% of workloads running in the cloud. This figure rose significantly during the COVID-19 pandemic and includes various forms of cloud services like Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and hybrid clouds.

Digital Sovereignty

The second trend highlighted is the rise of digital sovereignty. Here, Royz explains the different levels of sovereignty, from data merely being located in a person’s country to complete jurisdictional control with resiliency included. This trend is expected to capture 10-15% of the cloud market, spurred by increasing data privacy laws worldwide. The concept of digital sovereignty is becoming increasingly important, with major providers like AWS and Oracle expanding their EU Sovereign Cloud offerings. Sovereignty in cloud computing is multifaceted; it ranges from ensuring that data is stored within a country’s borders to more complex requirements such as jurisdictional control, where data is not only stored and processed locally but also managed under local laws by local citizens.

Cloud Cost Optimization

Cost optimization in cloud usage is the third trend. Organizations are now seeking ways to utilize cloud solutions more effectively and efficiently, focusing on cost, risk, or environmental impacts. Originally celebrated for reducing capital expenses, cloud computing is now entering a phase where businesses are seeking ways to optimize their cloud expenditures more effectively. Companies are increasingly evaluating their cloud strategies based on risk, cost, and environmental impact, aiming to leverage cloud resources in the most efficient way possible.

Industry-Specific Clouds

The fourth trend is the emergence of vertical or industry-specific clouds (‘vert clouds’), which allow for more tailored solutions and partnerships within specific industries such as healthcare and telecommunications. These are not standalone cloud environments but rather ecosystems designed to cater to specific industries by providing tailored solutions and fostering a network of partners and clients who adhere to the same standards and regulations. This trend is particularly prevalent in sectors like healthcare and telecommunications, where compliance and specialized needs are paramount.

Edge Computing

Lastly, Royz discusses the ongoing relevance and growth of edge computing, emphasizing the shift from ‘edge to core’ to ‘core to edge’ in cloud strategies, which adapt to include edge applications. With advancements in technology allowing for more sophisticated data processing at the edge, this trend is expected to expand further. The focus is shifting from a mere edge-to-core framework to a more integrated core-to-edge approach, enhancing how data is handled and processed across different nodes of a network.