Insights for Organisations

5 Cloud Computing Trends to Watch in 2023

John Smith

Digital transformation has forced many organisations to consider cloud technology as the way forward for remote work in a post-pandemic world. Since the switch to remote working models, the need for flexible solutions has soared. Cloud computing is one of the top emerging technologies and provides a host of benefits, from accelerating business agility to streamlining operations. It can help propel your company’s growth by enabling your business to adapt at scale and speed.

Currently, the largest investor into cloud computing is the Banking, Financial Services and Insurance (BFSI) industry. However, it is predicted that manufacturing will become the prime adopter of cloud services in the near future. This is mainly due to the system capabilities for real-time visibility and seamless data management, which are vital in the manufacturing industry. But which trends should industries take note of?

Let’s take a look at the top cloud computing trends for 2023.

What cloud computing trends should you consider in 2023?

  1. Edge computing
  2. Hybrid cloud computing
  3. Cloud security
  4. Virtual cloud desktops
  5. The green cloud

1. Edge computing

According to Statista, the global edge computing market is expected to grow from $3 billion in 2020 to $12 billion by 2028. Edge computing processes data close to its source of origin, providing significantly faster speeds and lower latency. Although it is not a new concept, edge computing is being rapidly adopted by an increasing number of organisations, as it offers a more efficient and secure solution than traditional computing models.

Businesses can expect significant savings by adopting edge computing infrastructures into their model. Moving data around on cloud hosting services requires high bandwidth and can take a long time, running up high business costs. Edge computing circumvents this, by processing data close to its origin and only sharing it with the cloud post-processing, limiting the bandwidth and time constraints.

As Artificial Intelligence (AI) and Machine Learning (ML) continue to evolve, it is worth noting that these tools are far more effective with instant, low-latency data access. Edge computing provides these benefits, ensuring that AI models are able to scan data and identify trends far quicker and easier than if they were working over a traditional cloud model. With edge enabled IoT devices expected to almost  triple between 2020 and 2030, this is an important consideration for companies in 2023.

2. Hybrid cloud computing

Hybrid cloud models are growing in popularity due to higher levels of confidentiality they offer and the ability to scale for periods of high server demand. Combining two or more clouds, hybrid cloud models often consist of a private infrastructure alongside a public cloud service. Business-sensitive data is stored on the private cloud to maintain security and less critical data processing is outsourced to a public cloud server.

By running two or more clouds in tandem, businesses are able to get the best of both worlds. This includes a secure environment for confidential files and ad-hoc scalability that is provided by larger, public-cloud infrastructures. The mitigation of major system outages is another core benefit of hybrid cloud models. Using a mixture of various cloud solutions protects businesses from a system-wide outage, with the remaining cloud servers covering for each other. By taking advantage of public cloud networks, hybrid cloud models provide customers with peace of mind by demonstrating reliability. In a world that expects 24-hour uptimes, failing to meet this will result in business revenue being impacted significantly. Customer service can also be affected, as emails and other direct comms can be impacted by system outages.

Hybrid cloud solutions are also effective for managing costs, enabling businesses to pay for what they use on a month-by-month basis. This prevents companies from investing in the maximum predicted infrastructure or risking significant latency in periods of high demand. So, it’s no wonder that the global hybrid cloud market is expected to grow by over 21% each year until 2027.

3. Cloud security

Data loss is one of the biggest risks faced by businesses migrating to cloud. According to a recent study by IBM, 45% of data breaches occurred in cloud environments with an average cost of over $1 million. As companies look to fortify their cloud security against digital threats, the global cloud security software market is forecast to reach $37 billion by 2026. This is partially due to a rise in government scrutiny, which will likely drive cloud compliance standards in the future. The consequences of data breaches for businesses is severe, especially if the breach involves the loss of customer data. In the UK, failure to comply with the GDPR data protection regulations can result in a maximum fine of £17.5 million or 4% of the businesses global annual turnover – whichever is greater.

Human error is the leading cause of data loss, accounting for 88% of cloud data breaches. Evidence also suggests that remote working has increased cloud computing security risks, with 47% of employees falling subject to phishing scams because they are distracted. There’s no denying that employees are typically more distracted when working from home, so what measures can be taken to avoid data loss?

According to the National Cyber Security Center, businesses should take action and review user permissions. A recent study found that 99% of access management policies are overly permissive, which opens companies to significant risks. Managing user permissions significantly limits the damage that can be caused by leaked user credentials.

At FDM, our Cloud Engineering Consultants are trained in a range of cloud specialisms, including cloud security, to help your business thrive. Our consultants are fully trained in industry best practices to ensure your organisation benefits from the latest cloud technologies.

4. Virtual Cloud Desktops

By 2030, the virtual cloud desktop market is set to grow from $11.9 billion to $57.9 billion, with Europe having the second-largest market share in the virtual desktop infrastructure. Virtual desktop technology enables employees to access apps, files, data and communications through a simulated desktop environment – perfect for remote and hybrid working.

As a result of the global pandemic, many companies have adopted flexible working policies, which requires untying work systems from physical hardware, such as ‘work laptops’. The advancements in virtual desktop technology enables employees to work without the need for a company laptop, giving businesses the option to outsource work anywhere in the world. Not only does this open businesses to a wider pool of skilled candidates, but it also facilitates significant cost savings while providing unlimited scalability.

5. The green cloud

Cloud computing has caused a lot of debate with environmentalists, with research from 2021 showing that data centres typically consume between 10 and 50 times more energy than office buildings per square foot. In 2014, this totalled 1.8% of the entire U.S. energy consumption and it is estimated that this figure has only increased since.

As a result of this, there is significant pressure both within the industry and from outside to reduce energy consumption. External pressures from environmental researchers criticise the industry for a lack of transparency around greenhouse impact. Organisations also face significant internal pressure, as they seek to mitigate the impact of the rise of energy prices over the last 18 months,

Traditionally, cloud computing has run on large data centres, however, with the increasing viability of quantum solutions and renewable energy, the impact that cloud computing is having on the environment is decreasing. Developments in the green cloud are inevitable, with stakeholder, legislative and public opinion all scrutinising the environmental impact of cloud computing.


The growing popularity of cloud computing services is set to continue throughout 2023. For businesses that want to achieve more flexibility, the optimal utilisation of edge computing and hybrid models to boost security, lower latency and save on costs will take precedence. And for companies that put environmentalism at the forefront of their values, the Corporate Social Responsibility (CSR) opportunities within cloud security and the green cloud will take priority.

However, perhaps the most essential consideration for all organisations are the benefits of virtual cloud desktops.  Leveraging this technology effectively removes hiring barriers, while also providing a significant cost-saving for the business. Overall, 2023 is set to be another important year for cloud computing technologies, so it’s vital that businesses adapt with these trends in mind.

Your company will require specialist cloud engineers to help adopt these cloud technologies and ensure business success. For more information, take a look at the FDM technical consultant services or get in touch to find out how we can help you build specialised IT teams.