With some firms migrating back to on-premises due to cloud/security challenges, GenAI + composability may breathe new life into the technology.

Rackspace Technology

As we approach 2024, the evolution of AI in the Cloud market has ushered in a new era of innovation, reshaping infrastructure, services, and market dynamics, fostering sector-specific adaptation and technological synergies. This evolution will continue to influence industry competitiveness and service offerings.

What will cloud computing offerings look like in 2024? Let us look at some of the trends. First, generative AI has become accessible to the masses. Research firms have forecast more than half of digital native businesses in the APJ region will increase their technology spending by up to 20% in the next 12 months, prioritizing the latest technologies to remain competitive, create innovative products, and maintain their financial viability. 

Companies of all sizes will be actively ideating and experimenting with generative AI. The convergence of cloud computing, easily accessible pre-trained models, as well as the open-source nature of advancements will propel its accelerated use, establishing a robust foundation in 2024 and in the coming years. 

Additionally, the adoption of natural language models will expedite AI’s reach, transcending from being solely within the domain of technologists to becoming a widespread application. At the other extreme, the focus on ethical usage, encompassing accountability, reliability, explainability, security, and privacy, will persistently grow, paving the way for policy implementations and solutions in these critical areas.

Sandeep Bhargava, SVP, Global Services and Solutions, Public Cloud Business Unit, Rackspace

Pivotal shifts in the Cloud

 The evolution of cloud platforms marks a pivotal shift. With increasing industry adoption, there will be a notable migration of applications from data centers to cloud, and a surge in software utilization. 

As traditional sectors embrace cloud technology, a new phase emerges: Gartner invented term, “Industry Cloud Platforms” tailored to specific industries in a manner that streamlines the consumption of industry-specific solutions while adhering to unique regulatory and operational constraints. 

This evolution can enable industries to leverage cloud resources more effectively for their distinct needs. Particularly, the rising demand for cloud services in Malaysia has prompted the government to sanction the construction of fresh data centers within the country, aligning with its cloud-focused approach and the Malaysian Digital Economy Blueprint.

 Urgent sustainability challenges

The extensive adoption of technology will contribute to carbon emissions. Nevertheless, the industry has been made cognizant of these implications, fostering organic initiatives spanning various areas to promote sustainability in all facets of technology. This heightened awareness is propelling the industry to innovate digital solutions aimed at facilitating Environmental, Social, and Governance outcomes. 

Cloud technology can drive efficient innovation and sustainability processes within organizations to address environmental challenges. Proper planning and tweaks in technologies in 2024 and beyond will allow organizations to scale IT capacity for present and future competitiveness.

In the next decade, we will see the rise of the intelligent ‘composable cloud’. Customers will be empowered to compose their own cloud infrastructures — not only for IT but also for operational technology (OT), commercial, and consumer cloud capabilities. In turn, cloud providers will adapt by allowing customers to compose services by industry, role, and use case.