2024 vision: Trends shaping the IT landscape
The IT and cloud computing landscape has grown and evolved in 2023, and it’s poised to continue developing in 2024. Companies worldwide are actively adapting to the dynamics of a post-pandemic world. In this pursuit of resilience and innovation, we anticipate the emergence of four key trends that will shape the new year. These trends encompass technological advancements and shifting IT paradigms regarding spending, loyalty and governance.
Here are four trends we will likely see in the new year.
No. 1: Companies Will Embrace Hybrid Cloud Models
Modern digital transformation has positioned cloud adoption as a critical element for businesses looking to stay competitive in today’s market. In fact, research indicates that by 2025, large enterprises aspire to have 60 percent of their environment in the cloud.
Migrating to the cloud is not a one-size-fits-all approach. Instead, there are several ways to approach cloud migration. One popular approach is hybrid cloud deployments. Organizations commonly choose a hybrid cloud strategy because of business (e.g., regulatory) and management requirements.
For example, IT managers must continuously manage on-prem platforms because they often don’t have the same access to robust, immediate support common with cloud-based platforms. This lack of support causes IT managers to rely on third-party support to monitor, update and troubleshoot on-prem systems, which can be costly and time-consuming.
In 2024, hybrid cloud adoption will likely continue because on-prem systems and processes are familiar to users. That said, hybrid scenarios may become more infrequent over time because of a decreased desire to manage information and documents in both cloud and on-prem systems. Some IT managers may even abandon specific applications altogether in favor of a SaaS application due to the ease of management.
No. 2: AI Will Streamline IT and Customer Service Processes
AI has been front and center for business leaders across industries as decision-makers consider potential use cases and impacts. One study indicates that one-third of AI adopters already use AI to automate repetitive, low-level tasks. Another 45 percent say they plan to do so in 2024. Two areas ripe for AI automation in 2024 are IT and customer service.
IT teams shoulder heavy workloads that are reliant on repetitive tasks. AI can alleviate workloads by automating and streamlining routine tasks like data integration. For example, AI can analyze large amounts of structured and unstructured data and create reports that provide key insights and analytics for IT teams.
In customer service, AI can automate processes that reduce costs and add value to the bottom line. For example, if a customer falls behind on a payment, generative AI can pull data from disparate systems and create communication templates to notify customers. By streamlining basic tasks, AI will enable teams to focus on other, more strategic projects and services.
No. 3: The Democratization of the Cloud Will Influence IT Spending and Loyalty
The advent of cloud computing has significantly shifted how companies perceive their loyalty to technology providers. Historically, many businesses have been deeply entrenched in their reliance on these industry giants for various IT solutions. However, the democratization of the cloud has altered the landscape, prompting organizations to reevaluate their allegiance based on costs and IT spending.
In the current era, companies are more willing to pivot and migrate their operations elsewhere if it promises substantial IT cost savings in the long run. For instance, businesses may experience a considerable change in pricing when using Google's cloud services, compelling them to explore alternative solutions like Microsoft to curtail overhead costs and optimize resource allocation.
At the same time, this cost-conscious approach to cloud computing catalyzes a shift in how companies view migration tools. It fosters a culture of innovation in this space as organizations seek more efficient and cost-effective methods to transition their operations. As a result, the demand for migration tools is rising, with more companies relying on these tools to facilitate their move to cost-efficient IT solutions in 2024. This shift not only underscores the growing influence of the cloud but also signifies the evolving priorities of businesses when choosing their IT partners.
No. 4: Multi-cloud Strategies Will Require Attention to Governance
The number of large organizations with a multi-cloud strategy (i.e., buying cloud services from more than one provider) is predicted to rise from 76 percent to 85 percent during 2024. While a multi-cloud strategy offers cost and flexibility advantages, it also adds complexity to data governance and integration with legacy systems.
For reference, IT governance is a formal framework that provides a structure for organizations to ensure that IT investments support business and security objectives. Organizations face complexities such as shadow IT when IT governance and business objectives are imbalanced. Shadow IT is the use of IT-related hardware or software by a department or individual without the knowledge of the organization’s IT or security group. It can cause a security risk because IT teams don’t always know how employees use the system. Shadow IT can also drain budgets. For example, an organization could pay for licenses the IT team doesn’t know about or duplicate applications that different teams and employees already use.
In 2024, organizations must consolidate multi-cloud strategies to ensure proper resource allocation, protect costs and maintain efficient operations. When companies have a balance of security and IT governance, they give employees the freedom to be productive and customize processes to best meet their professional needs.
Embrace Change and Seize Opportunities in 2024
The lessons we've learned in 2023 are clear: IT adaptability and innovation are paramount. Four key trends are shaping up to influence IT decision-makers in their efforts to modernize and evolve in 2024. As we move forward, it’s crucial to tailor cloud strategies to meet specific business and regulatory needs and continue exploring AI’s potential to streamline operations and enhance customer experiences. IT leaders will also do well to continuously reassess their technology partners and migration strategies and pay close attention to IT governance.
The dynamic roadmap of 2024 invites decision-makers to embrace change by seizing the opportunities in the evolving IT and cloud computing landscape.
Frank Suglia is the Vice President of Technical Services at BitTitan, where he works closely with the company’s customers to adopt new solutions and support their use within existing and new revenue-generating scenarios. His areas of expertise include SaaS, customer success, technical sales and support and enterprise solution delivery.