Cloud Migration and Modernization: Trends to Keep an Eye on in 2023

In recent years, cloud migration has become increasingly important due to the many benefits it offers, including increased scalability, cost savings, and improved security. Both cloud migration and modernization have become critical components of the digital transformation journey for many organizations as it ensures growth, future-proof the business and reduces cost. With the proliferation of cloud computing technologies, businesses are recognizing the benefits of moving their applications, data, and infrastructure to the cloud. The cloud offers scalability, flexibility, and cost savings, along with the ability to leverage emerging technologies such as AI, IoT, and big data. It is estimated that the global cloud computing market will reach $1,240.9 billion by 2027 with CAGR of 17.9% since 2022.

Modernization of existing applications and infrastructure can also improve performance, streamline workflows, and enhance the user experience. However, cloud migration and modernization require careful planning and execution to ensure success. In this article, we will explore the key trends for cloud migration and modernization in 2023. The shift to cloud-based environments is being driven by the need for greater flexibility and scalability, as well as the desire to reduce costs associated with maintaining physical infrastructure. Here are some key cloud migration trends that further demonstrate why the demand is growing rapidly.

1. Growth of multi-cloud and hybrid cloud solutions: The use of multi-cloud and hybrid cloud solutions is rapidly growing in popularity as businesses seek to take advantage of the benefits offered by each approach. Multi-cloud solutions allow organizations to use multiple cloud providers for different purposes, while hybrid cloud solutions combine both on-premise and cloud-based infrastructure. According to a report by MarketsandMarkets report, the global hybrid cloud market is expected to reach $171.93 billion by 2024, while the multi-cloud management market is projected to grow to $4.4 billion by 2023. As businesses continue to embrace the cloud, multi-cloud and hybrid cloud solutions are likely to become even more common.
2. Demand for downtime-free experiences: Market demand for uninterrupted web experiences has driven companies to migrate their web solutions to the cloud. In today's fast-paced digital environment, any downtime can result in significant losses in revenue and customer trust. Cloud-based solutions offer greater scalability, resilience, and availability, enabling businesses to deliver reliable, high-performance web experiences.
3. Union of on-premises and cloud customer data: The fact that a significant amount of data is already stored in the cloud is driving the demand for cloud migration. As businesses seek to streamline their operations and consolidate their data, migrating to the cloud can provide a centralized, secure, and scalable solution.
4. Non-critical operations in the cloud: Companies are increasingly migrating their non-critical workloads and operations to the cloud as part of their overall cloud strategy. By moving less critical operations to the cloud, businesses can free up resources to focus on core functions while still taking advantage of the benefits of cloud technology. This approach also allows companies to reduce costs associated with maintaining physical infrastructure and take advantage of the scalability and flexibility of cloud-based solutions. As such, the trend of migrating non-critical workloads to the cloud is expected to continue in the coming years.

Cloud migration is becoming increasingly essential for businesses looking to remain competitive in today's digital landscape. The latest trends suggest that companies are adopting multi-cloud and hybrid cloud solutions, migrating non-critical workloads, and seeking uninterrupted web experiences. The 6R migration strategy, which involves rehosting, refactoring, revising, rebuilding, replacing, and retiring applications and data, is a popular approach to cloud migration. As more companies embrace cloud technology, those who fail to do so risk falling behind the curve and losing out on the many benefits that the cloud can offer.