Tuesday 31 December 2013

What Trends Will Shape the Cloud Computing Industry in 2014?

Although cloud computing is still a fairly new concept, it has come a long way in a short period of time. When this term first started gaining attention, people were very skeptical of it. From security to accessibility, people had so many concerns that it seemed like there were too many to overcome. However, because cloud computing was much more than just a buzzword, it was able to stand up to all the criticism. And as more people started getting on board with this idea, it was able to spread throughout larger and larger organizations.

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While cloud computing isn't perfect for every single application in existence, it's a great fit for the majority. Because this industry is growing so quickly, there's still a lot of ground to be covered in terms of bringing on users to utilize cloud computing in one way or another. Since there is so much growth within this industry, it's worth looking at which trends are most likely to shape the path that this industry follows:

Businesses Pivoting Into Software Companies

The concept of the cloud has made it possible for just about anyone to connect with almost any type of data. Because that simple but powerful reality provides nearly endless opportunities for unique product offerings, the already increasing number of companies who choose to put software at the core of what they offer will only continue to grow.

Stiff Competition for Talented Developers

Not surprisingly, developers who are very good at what they do are already in high demand. And due to the fact that this industry's growth doesn't show any signs of slowing, that demand isn't going away. On the contrary, many companies are exploring a variety of recruiting and training programs to help secure the talent they need to make their cloud offerings a success.

Pressure on Private Clouds

Plenty of IT departments within companies have acknowledged cloud computing, but made it clear that they still believe this approach has too many security risks. A common solution has been the proposal of private clouds within organizations. While that may sound good in theory, the problem has been actually bringing them to fruition. Because plenty of companies have hit obstacles ranging from internal politics to budgeting, this is likely to be the year when many organizations decide if they instead want to make the transition to an existing cloud solution.

AWS Will Remain a Leader

In order for new technologies to gain real momentum and be taken seriously, it often takes the backing of a well-known company. In the case of cloud computing, that was exactly the role that Amazon played. When they launched Amazon Web Services (AWS) in 2006, many people didn't even understand what this offering was all about. And even for those who did understand, plenty thought that Amazon would shutter this project within a matter of years.

However, not only did Amazon continue moving forward with AWS, but they have been successful at establishing it as a leader within the cloud industry. As of 2012, industry analysts estimate that AWS generates over one and a half billion dollars in annual revenue for Amazon.

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Battles Between Several Big Tech Companies

Since Amazon has shown that there is definitely a demand for this type of cloud service, it shouldn't come as a surprise that other big tech companies are expected to get serious about their cloud efforts. Specifically, most analysts agree that both Google and Microsoft will get aggressive with incorporating cloud technology into both new and existing offerings. Google has already taken steps in this direction with launches like Compute Engine.

Price will pay a major role in this battle as well. Moore's Law means that technology like system on module will continue to get faster and cheaper. Large companies can take advantage of increased performance and reduced costs by offering better cloud technologies to customers at even more attractive prices.
Only time will tell exactly what happens within the cloud computing industry. But, thanks to the rapid expansion and acceptance of this industry, it's safe to say that it's going to be around for a long time. And during that time, it's going to be very interesting to watch the type of innovation and other developments that take place.

Richard Smith is a technology blogger. What he loves most about having the opportunity to write about technology is being able to explain to people how new pieces of technology are going to make their lives even better.

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