IT Trends 2023 | 2nd Trend – Expanding Use of Cloud-Based Models

The last few years have shown a continuing expansion in the use of cloud-based applications and application hosting models compared to those in use just a few years ago. In that era, cloud-based models (particularly in the midmarket-sized companies) fell primarily into these four types:

  • Rehost (migrating application workloads to the cloud through a lift and shift process)
  • Replatform (performing relatively minor OS and related tools upgrades to enable migrating workloads to the cloud)
  • SaaS (moving from traditional software licensing and hosting models to cloud-based subscription models)
  • New (developing new cloud-native applications)

Today we are seeing and helping clients expand beyond these four to take broader advantage of cloud-based models. More attractive economics and new/additional features and functionality offered by the cloud providers are fueling this growth.

The leading areas of expanding cloud-based models are predominantly part of the IT operations realm. Three leading cloud-based models have been added to the four and are being increasingly implemented today:

  • Cloud-based Backup and Disaster Recovery is freeing companies from legacy models of tape and secondary media backup, tape rotations, and offsite storage logistics. We have cloud-based alternatives from solution providers such as Veeam, Barracuda, and Carbonite which cost-effectively enable backing up large and diverse volumes of data to the cloud. The cloud hyperscalers, like Azure and AWS, have rolled out not only backup services offerings, but progressive disaster recovery services. Flexible pricing models provide options to fit different customer needs and are providing cost savings well into the double-digit percentages compared to traditional backup and DR approaches.

  • Cloud-based Cybersecurity: Traditional SIEM and SOC solutions have traditionally been rooted in pricey, premise-based platforms, typically necessitating physical site security investment as well. Cloud-based cybersecurity solution providers like Qradar and Arctic Wolf offer the latest generation of solutions, which not only provide like-for-like capabilities to their on-premises predecessors, but also layered services add-on capabilities like MDR and dark web monitoring protection on a subscription basis.

  • Database/Data Sharing: Serverless and shared data cloud enablement are providing cost-effective, secure data access to an increasingly distributed and remote workforce. Sales, product and customer data are among the most attractive areas being transformed.

We expect to see this trend of cloud-based models transforming traditionally premise-based operational domains to continue and gain more traction across large and midsize companies.

Interested in hearing about other examples of transforming to cloud-based models. Let us know.

Rob Kondoff
Senior Director – Technology Operations

This is the third blog of a series on IT Trends 2023. Check back regularly to see additional blogs on this topic:

Blog #1: IT Trends 2023: Mainstream trends you should look for next year
Blog #2: IT Trends 2023: Optimizing IT for Reliability and Resilience

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