82% of Russian companies believe that clouds help accelerate digitalization. In 2022, the Russian cloud services market grew by 41.6%, reaching 86.6 billion rubles. The positive growth dynamics will continue in 2023.
In this article, we look at why companies prefer clouds to corporate IT infrastructure in 2023, the advantages of migration, and what barriers may arise when migrating to the cloud.
Table of Contents
Demand For Cloud Technologies Is Growing
Spending on cloud infrastructure has been increasing globally since 2021. 2023, they are expected to grow by 7.3% to $96 billion. At the same time, companies’ costs for building IT infrastructure not in the cloud will be reduced by 6.3% to $60 billion.
Several external circumstances cause companies to look more actively towards the cloud.
- Since the 2010s, a trend towards digitalization of business has emerged. Companies’ needs for computer technology have increased exponentially, and business revenue has become dependent on implementing advanced solutions. Companies began to choose the cloud because of quick access to power and tools for development and working with data.
- In 2020, the pandemic provoked a multiple increase in demand for cloud technologies. Companies worldwide were forced to quickly rebuild business processes and set up remote access to corporate services. Moreover, the cloud, which many companies did not pay attention to before the pandemic, helped ensure business continuity. For example, Magnit-Apteka launched online trading in just 2.5 months.
- In 2022, demand for clouds continued to grow. Now, clouds are used by companies that previously had no intention of working with them, such as banks and industrial enterprises. There are several reasons: equipment has become more expensive, staff shortages have increased in the market, and working with licensed software has become problematic.
Benefits Of Migrating To A Cloud Platform
Migrating business applications to the cloud provides benefits:
- It is increasing the cost efficiency of IT infrastructure: When moving to the cloud, a company can flexibly scale the computing power depending on the load and pay only for the resources used. This lowers the barrier to entry into using technology, making the cloud accessible even to a startup or company with a small IT budget, and allows for a convenient consumption model for IT infrastructure and services.
- Fast deployment: In the cloud, you can get the necessary tools and power in a few clicks. For example, it may take a data scientist a few minutes to obtain computing resources in the cloud to test a hypothesis, while provisioning resources on a company’s servers may take several hours or days and require the involvement of administrators.
- Savings on hiring and training: Specialists who design and administer IT infrastructure need more supply. The transition to the cloud eliminates the personnel problem: the cloud provider is responsible for the infrastructure and administration of services. The company needs to expand its staff to solve development problems.
- Access to modern technologies: Cloud providers provide a large stack of tools. For example, you can use platform services for machine learning, working with Big Data, speech analysis and synthesis, and image and text recognition.
- Security has been strengthened: The provider protects the infrastructure from external threats, such as hacker attacks. In addition, users can connect additional security tools, implementing multiple protection loops. According to Gartner, the cloud reduces the risk of incidents by 60%.
Cloud Improves Security And Simplifies Regulatory Compliance.
Despite the benefits, some companies must be aware of the cloud.
- 47% of respondents are afraid of data leakage;
- 44% fear that third parties may gain access to data;
- 41% doubt that data remains confidential in the cloud.
Practice shows that fears are unfounded. 94% of companies say that security has increased after migrating to the cloud, and 91% say that it has become easier to comply with regulatory requirements.
What’s The Result?
Businesses benefit from transferring IT infrastructure and processes to the cloud. And Russian companies understand this – this is indicated by long-term trends that continue in 2023. At the same time, if the situation remains unchanged, clouds will become not a new word in implementing IT services but the basis for building corporate digitalization strategies.