What to Expect from Enterprise Cloud Computing in 2021 and Beyond?

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Olga Demidenko
Author, Geomotiv
Published: Jul 30, 2021

Enterprise software development in the cloud helps accelerate digital transformation and fully leverage the generated and operated data in complex environments. With cloud infrastructure higher-than-expected usage in 2021, it’s become mainstream to shift as many pieces of software to the cloud as possible. 

But is it automatically the case that you will reap the benefits with large-scale systems handling thousands of concurrent users in a virtual environment? What are the different methods used in Enterprise cloud computing, and what’s so special about it? Let’s find out and start with the basics.

What's an Enterprise Solution in the Cloud?

We’ve already covered the essence of enterprise software solutions in detail in this article. However, in the context of cloud technologies, companies of all types from a wide array of verticals, including those in manufacturing, healthcare, retail, and banking, can benefit from an Enterprise cloud solution.

Unlike on-premise software, cloud-based solutions don’t depend on the local environment, as they reside on the cloud vendor’s server. As a result, you can deploy cloud solutions anytime, anywhere using a reliable online connection. You can also avoid costly maintenance costs and utilize the latest Enterprise cloud solutions without any disruption.

What’s New in Enterprise Cloud Services in 2021?

As workplaces have become increasingly decentralized in the aftermath of the lockdown, Enterprise-level technology needs have grown more complex. In this way, cloud computing enables us to improve operational processes and accelerate delivery amidst enhanced decentralization and independence of the location.

"Without cloud apps, tools, and services, we could not have sent millions of workers home, maintained global supply chains, or shifted entire industry business models in a matter of weeks. The rush to the cloud also exposed stark contrasts between companies that embrace cloud technologies and those that have resisted or underfunded them,"
— predicted Forrester Research in late 2020.

Active migration to the cloud was growing even before the pandemic, but it accelerated sharply in response to coronavirus challenges. The trend continued into 2021 as 29% of enterprises confirmed their cloud usage to become significantly higher than initially projected due to the Covid-19 pandemic.

Change from Projected Cloud Use Cases Among Enterprises
Source: https://www.flexera.com/blog/cloud/cloud-computing-trends-2021-state-of-the-cloud-report/

How Much Do Companies Invest in Enterprise Cloud Services?

More Enterprises embrace cloud technologies for their systems when compared to last year. They report a growing cloud spend as well. The above-mentioned Flexera report indicates that 36% of enterprise respondents spend more than $12M per year on cloud technology. It represents a significant increase from the previous year’s report, where 13% of companies had such a budget. Another 32% disclosed having cloud bills from $2.4M to $12M and more in 2021.

What’s the Enterprise Cloud Adoption Level?

There’s been a surge in cloud adoption in all industries, with 81% of organizations utilizing the technology in 2020, as IDG indicated. If we contrast the data from the previous years, the cloud’s penetration has risen from 73% in 2018. As for the scale of cloud adoption among large Enterprises, there is also a sharp increase from the previous year and an uptake in technology proficiency. 

When asked about the projected cloud adoption rate, only 10% of respondents expected to be all-cloud in the next year. By contrast, 22% of SMBs plan to move the entire IT environment to the cloud. IDG experts explain that the process of moving to the cloud is more labor-intensive for large organizations. 

Do Enterprises Adhere to the Cloud Model?

Large companies are far more likely to shift some of their apps and services out of the cloud than small and medium-sized businesses. However, the above-mentioned IDG research found that 17% of SMBs already have undone their cloud-rush and 18% plan to do that in the next year. Some have unique workplace needs, while others are driven by the need to keep their most sensitive customer information on-premises. 

Whatever the reasons might be, enterprises tend to leverage the benefits of both virtual and on-premises solutions. In this way, their tight collaboration reflects the evolving nature of public cloud computing, which marries existing infrastructure and the cloud. Thus, we can find that a hybrid approach to cloud computing needs the hour in 2021, which we will tackle further in this article.

Why are Enterprises Adopting Cloud Computing?

  • To cut costs. Adopting an Enterprise cloud platform saves organizations from investing in and maintaining a costly on-premises infrastructure.
  • To facilitate a boost in a remote work model in response to Covid-19.
  • To access storage space unavailable in their current warehouse.
  • To add new features and capabilities to their systems. For example, enterprise cloud servers go with pre-built databases and a vast library of applications. This helps to skip the development of separate software components from scratch.
  • To establish scalability. Cloud environments provide the necessary resources to accommodate fluctuating Enterprise needs.
  • To streamline market access. Business applications in the cloud are faster to deploy and adjust without worrying about hardware and software procurement and setup.
  • To drive business innovation. Enterprises turn to cloud storage providers to ride the recent tech advancements. They help leverage increased mobility, Big data and analytics, social networking, and the Internet of Things.

What Top Names Use Enterprise Cloud Computing Solutions?

Well-known Enterprise companies that have explored the power of cloud computing through the years:

CompanyType of a Cloud Solution
PinterestPublic cloud
EvernotePublic cloud
InstagramPrivate cloud
NetflixHybrid cloud
DropboxPrivate cloud
ZyngaPublic cloud
GEHybrid cloud
TargetPrivate cloud
WalmartHybrid, Multi-cloud
AppleHybrid cloud

What is Your Next Enterprise Cloud Strategy in 2021 and Beyond?

Multi-Cloud

The multi-cloud world is upon us, and it has become hard to find large companies with a presence on only one cloud storage. Flexera found that 92% of large Enterprises chose multi-cloud as their go-to strategy in the last year. With more financial opportunities to manage the complexity of multiple cloud providers, Enterprises embrace opportunities awaiting there.

IDG study indicated that one of them is accessing diverse Enterprise cloud hosting options, reducing costs, and eliminating vendor lock-in. Many enterprises also gain from better flexibility offered by multiple cloud environments. In this case, you hand-pick the necessary services to suit your current workflow.

Which platforms are used for Enterprise cloud management? Flexera’s report indicates that AWS tops the list of public cloud providers, and 79% of enterprise respondents are adopting it. Azure follows the leader, powering 76% of enterprise-level apps and systems. Next comes Google Cloud, sharing 49% of the pie. Other players in the public cloud game are IBM, VMware, Oracle Infrastructure Cloud, and Alibaba.

To pick an Enterprise cloud platform that will suit technical and operational needs is necessary to assess the options of each cloud provider. As Azure, AWS, and Google Cloud dominate the public cloud landscape and offer the most comprehensive feature sets, it is best to involve them in a multi-cloud strategy of your Enterprise. 

If we look at the three cloud service providers, we can see that they are unique in their own way. They do offer a plethora of capabilities for Enterprises that we previously discussed in one of our articles. Here’s a quick overview of what distinguishes each cloud service offer:

AWSAzureGoogle Cloud
The largest data centers with a worldwide presence2nd largest service provider approaching AWS’s footprintFlexible compute options
Extensive, mature service offeringsIntegration with Windows-based productsIntuitive interface
Support for EnterprisesRich feature setFlexible commitment options
Smooth and flexible data collection flowSupport for open-source developmentDevOps capabilities
A wider range of servicesDeveloper and beginner-friendlyVast support for containerization
Cost-efficiency

Hybrid Cloud

Enterprises have become less worried about sticking to one cloud service provider in 2021. Another trend is the increasing uptake of the hybrid approach for their endeavors, by bringing public and private cloud environments and on-premise solutions together in one integrated infrastructure. 

What is it, enterprise hybrid cloud adoption statistics highlight? Flexera indicates that 82% of Enterprises have implemented hybrid cloud roadmaps, utilizing 2.6 public and 2.7 private storage providers on average. There are many reasons behind the surging popularity of this strategy. Here’s what drives the growing adoption of hybrid business cloud computing among large companies: 

  1. Enable interoperability between cloud types
  2. Meet scalability requirements
  3. Address stringent security requirements
  4. Take control of the vast amounts of disparate data
  5. Enhance application mobility
  6. Optimize Enterprise cloud spend
  7. Enhance customer experience.

Cloud-Agnostic Strategy

Companies recognize the importance of having a cloud-neutral strategy for their cloud initiatives to keep up with the shift to hybrid and multi-cloud environments. It helps to eliminate blind spots when organizations use different cloud providers instead of just one. Enterprises can enable efficient data migration in a heterogeneous environment with a cloud-agnostic strategy in place and avoid common roadblocks. Other benefits include:

  • Enhanced risk control
  • Maximized security
  • Vast customization options.Lack of visibility into complex cloud computing infrastructure;

Containerization

The interest in container technologies is rising among companies of all sizes. However, the IDG study found that large companies are more likely to be playing around with the technology. Remarkably, 55% of Enterprise respondents cited having experimented or utilized containers, and only 41% of SMB representatives have stated the same.

Part of technology’s popularity among Enterprises is due to their extended outreach to private clouds. Now, anyone running containers on private and public clouds can use Kubernetes for unified orchestration. Moreover, due to its open-source nature, it can be efficiently implemented on-premises as well.

Security Above All

Today, almost 44% of large Enterprises struggle with data privacy and security issues in the cloud, according to IDG. With the scale and sophistication of cybersecurity attacks continuing to rise, security requirements have become critical. Other security risks to consider in 2021 include:

  • Potential legal and financial consequences in case on non-compliance
  • Lack of visibility into complex cloud computing infrastructure
  • Unauthorized access to sensitive data
  • Exposure and manipulation of data
  • Usage of insecure external API.

As more and more companies embrace the power of cloud computing, the need for Enterprise cloud security continues to be urgent. This is a hot topic amidst investors as it has seen big rounds this year so far. Some of the most significant investment rounds in the first half of 2021 included a cloud security company, Lacework, which is currently $1B worth.

We will be glad to help you find a technically and economically viable Enterprise cloud solution!

Ways to Enable Enterprise Migration to the Cloud

Enterprise migration to the cloud requires preparation. This process involves a great deal of analytical work, planning, and specific economic calculations. But after evaluating the readiness of IT systems for moving and creating a detailed roadmap of the changes, you will know exactly what can be transferred to the cloud environment and what can not. 

There are particular steps to follow before the migration process. First, it is necessary to assess the suitability of applications and services for migration:

  • inventory of current services, apps, and other resources.
  • audit of software and its versions
  • check of the current computing power
  • assessment of the load on resources.

The assessment result should be a list of the IT infrastructure components with all interconnections. Upon successful completion, it is necessary to pick the most suitable cloud solution and correlate the necessary background services (databases, file storage, message queues) to those of the chosen cloud service provider. Along with having a good understanding of which components require migration, you also need to calculate costs for moving.

After that, a decision is made about the migration strategy and the structure in the cloud:

  • Full migration. In this case, all IT infrastructure, including data, workloads, applications, settings, and other capabilities, move to a chosen Enterprise cloud server.
  • Partial migration. This type of migration involves the selective relocation of infrastructure. One part of the system is transferred to the clouds, while the other part stays on-premises due to the following reasons:
    - dependence on the hardware
    - core, mission-critical app
    - noncompliance with security terms and conditions.
  • Hybrid migration. It involves the simultaneous modernization of the IT infrastructure and its restructuring, routing, and optimization of security parameters. This type is relevant when a complex system must meet substantial gaps and issues to enable migration to the cloud.

Before moving the entire codebase to production in a virtual environment, developers should adopt and optimize it to deliver the required performance. DevOps specialists, in turn, facilitate the migration process in many ways:

  • automate the repeatable parts and sequences
  • support infrastructure’s lifecycle
  • make changes to the resulting software
  • provide production services
  • create a CI/CD environment.

Enterprise cloud migration can take several months or even years. This is normal for business giants and large media projects with vast amounts of data. Take Etsy, for example. The company moved 5.5 petabytes of data from on-premise servers to Google Cloud. Their migration to cloud solutions began in 2018 and ended in 2020.

How Does Geomotiv Help with Cloud Enterprise Migration?

Geomotiv provides solutions for any use case – public and private cloud, their combination, hybrid cloud, or multi-cloud. If you’re looking to reduce the cost of migration with Enterprise cloud services and deploy faster than competitors, our experienced company is a great choice. Moreover, we know well how to ensure the safety and integrity of sensitive data. Our team can also meet almost any industry-specific compliance needs of your Enterprise. Here’s what our brightest spots of experience look like.

Enterprise Cloud Solutions: Our Success Stories

Deploying Microservices in a Contextual Video Advertising Solution

ABOUT THE CLIENT

The client provides an ML-based video advertising solution for renowned brands and agencies. The company’s advanced optimization and contextual targeting help align the right brand message on Facebook, YouTube, Instagram, TikTok, and CTV. Their platform can analyze millions of videos by aggregating contextual data and optimize campaigns in real-time.

GOAL

The client wanted to add new microservices on AWS to analyze the data more efficiently on YouTube. 

WORK DESCRIPTION

According to the clients’ criteria, the Geomotiv team deploys microservices that utilize machine learning algorithms to analyze text and filter ads. That helps to assess ad efficiency by adjusting ad campaign settings in real-time. Our team deploys microservices on AWS and scales its existing infrastructure according to the client’s requirements. 

RESULTS

The project is ongoing. To cope with the workflow, the client is going to expand the team with new members. Apart from that, the platform has recently got second place in the “Most effective use of Data" category.

Utilizing AWS in Video Ad Network

ABOUT THE CLIENT

HIRO Media is a privately-held company headquartered in Tel-Aviv, with offices in the USA and Europe. Since 2006, HIRO Media has grown to become an industry-leading programmatic video AdTech service provider. Their proprietary technology helps to improve the performance of advertisers, publishers, and content creators. 

GOAL

The task was to prepare the existing solution for the increasing load. It contained a lot of legacy code that had to be optimized for the client’s scalability requirements.

WORK DESCRIPTION

Our team utilized Amazon Kinesis to process raw data, store it on an Amazon S3 file server, and convert aggregated deliverables into a Redshift database for further analysis and visualization. 

RESULTS

Geomotiv enabled a swift migration from a legacy platform to an up-to-date solution using our vast experience with AWS. With our help, the client managed to address urgent market needs in the shortest time frame. 

A perfect programmatic video-distribution platform for content owners that maximized monetization and personalization.

Read now

Summary: Cloud and Enterprise Make a Perfect Blend

Enterprise cloud computing has turned into a thriving market, with numerous industries moving to the cloud in 2021. As the popularity of Enterprise cloud applications continues to surge, the shift from on-premise hardware to a specific cloud model becomes inevitable. 

With a growing list of companies becoming proficient at using cloud technology, we expect Enterprises to explore the umbrella of cloud computing services even further. That is why, in this article, we aimed to investigate the current state of the Enterprise cloud services market and indicated a couple of actionable strategies to use and adopt in 2021. We also mentioned the vital steps to switch from on-premises to a virtual Enterprise cloud server without confusion. 

Whether your organization is novel to cloud technology, or you plan to expand existing Enterprise cloud applications, turn to a trusted and proven provider to navigate possible issues. Reach out to Geomotiv’s team to get one step closer to improving your bottom line with cloud technology.

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