Cloud7 is gathering opinions of the important names in cloud computing, web hosting, cybersecurity, data center, Linux, and other industries for 2022 in the Cloud7 Expert Series. Alongside their evaluations of 2022, they will share their expectations for the next year, 2023.
Jeffrey Gregor is the General Manager of OVHcloud US and President of the Board of Managers of OVHcloud US LLC. Gregor serves on various boards including OpenIO, Inc., ForePaaS, Inc., and BuyDRM following their acquisitions. He previously served as a commissioned officer in the US Navy for 20 years.
2023: The rise of alternative cloud
With the emergence of new applications and an increase in computing on the edge and IoT use cases in 2022, a further explosion of data is upon us that is pushing cloud providers more on the management, organization, and storage sides of that data. On top of this, headlines regarding ransomware and cybersecurity attacks have only increased, bringing the importance of disaster recovery plans to the forefront.
Additionally, in 2022 organizations and end users experienced various levels of ‘cloud chaos,’ as well as discontent with their cloud experience or a hesitancy toward cloud migration in general. Some of the continuous challenges being noted in the space, especially with the larger cloud providers, include:
- Skills Gap: Major cloud providers lock users into proprietary technologies, forcing organizations to hire new staff members with specific expertise. This results in organizations spending more time and money on personnel and change.
- Unpredictable Costs: In addition to managing propriety technologies and using new apps, organizations will need to move around their data. At most cloud providers, this comes at a very steep cost and results in unpredictable monthly bills and sticker shock.
- Data Sovereignty: Issues surrounding data privacy and regulatory compliance have been an ongoing discussion. Data sovereignty and the restrictions or conditions on the free flow of data to protect individuals have been pushed to the forefront. The number of policy measures restricting cross-border data transfers grew from nearly zero in 1960 to around 90 in 2017 and well beyond that as of today. The measures vary based on factors including the type of data in question, the purposes for which the data can be used, and the recipient. Cloud providers are being pushed more and more to address these issues around data sovereignty and data residency.
- Security and Disaster Recovery: The second half of 2022 was ruled by headlines regarding ransomware and cybersecurity attacks on major organizations and systems, releasing personal data and holding data hostage for payout. Many organizations, from SMBs to enterprise-level, are finding they do not have an adequate disaster recovery and continuity plan to ensure their company is ready to minimize the impact on their business and profits.
Moving into 2023, there are a few major trends we are already seeing in light of the challenges above:
- The rise of alternative cloud providers.
- The adoption of a hybrid and/or multi-cloud approach.
- Higher importance on disaster recovery and business continuity plans.
The rise of alternative cloud providers
Most of the challenges seen in 2022 have highlighted the unique value propositions of alternative cloud providers. According to the major IT analyst firm, Enterprise Strategy Group (ESG), alternative cloud spending is expected to grow significantly over the next 24 months, and much of this is due to the unique approach of alternative providers, like OVHcloud:
- Users are not locked into proprietary technologies. As a pioneer of a more open and flexible cloud from its founding and leadership in Europe, OVHcloud US is built on open standards with no cloud vendor lock-in. Your workloads are interoperable by design with the opportunity to move them to any type of cloud deployment.
- Calming the cloud chaos. ESG studies show alternative cloud providers deliver a more turnkey experience with better time to deploy and support – and with better performance than hyperscalers.
- There are no hidden fees, and most importantly, no ingress or egress fees for moving data. Customers can move their data as much as they need at no cost. This allows customers to appropriately plan their budgets without the worry of fluctuating invoices.
- Data sovereignty is of the utmost importance to organizations like OVHcloud, which was founded on an unwavering commitment to customer privacy. At any given moment customers will know down to the exact rack and server where their data is being held.
The importance of multi-cloud and hybrid cloud
Customers are starting to see how they can leverage different cloud providers based on their specific needs – instead of putting all of their eggs in one basket with a major cloud provider. Recent ESG studies show alternative cloud providers are popular for product applications, application development and testing, storage, and disaster recovery. OVHcloud US recognizes that within most organizations, the diversity of applications requires more than a single solution, but rather an IT estate comprised of multi-cloud or hybrid cloud solutions that accommodate the cost, performance, and governance requirements of different workloads. With customers increasingly looking to move their data, we provide various options that include bare-metal cloud, hybrid, and multi-cloud for true flexibility.
For us, flexibility is in our DNA – so we make that as easy as possible. OVHcloud US focuses on providing key applications our customers need and ask for, rather than having hundreds of applications that confuse and overwhelm customers. In addition, the workloads that are on OVHcloud US will support this multi-cloud and or hybrid cloud structure.
Higher importance on disaster recovery and business continuity plans
Headlines in 2022 highlighted the importance of a robust disaster recovery and business continuity plan to the forefront. Whether an SMB or enterprise, bad actors are looking for a payout. Having a DR plan in place with instant scalability during outages, complete and ongoing replication in different locations, and a sensible way to move data without incurring big costs allows companies to protect data and minimize the impact on their business while the threats are being dealt with.
What’s clear for 2023 is that the explosion of data will continue – as will the need for the industry to address very real day-to-day challenges when it comes to data. While the major providers will look to increase the number of services and massive lists of features, alternative cloud providers will be focusing more on the unique and specific challenges faced by CIOs, IT managers, and staff – and how to make their lives easier.