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Forrester sees AWS under pressure in 2023 cloud computing predictions

Posted on October 28, 2022 by

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Major IT company processes all around the world have continued to change due to cloud computing. Many firms will be anticipating more estimates that will direct their next cloud engagements in light of Gartner’s prediction that global end-user public cloud spending would soar to $600 billion in 2023. Forrester has released its forecasts for the state of cloud computing in 2023 in order to achieve this.

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The research organisation predicts that in 2023, the cloud environment will change due to the economy, cloud-native technologies, and demands for data sovereignty. Enterprises looking to reduce their cloud expenditure will resort to third-party providers for vendor-neutral cloud services, “national” clouds will gain traction with the large German banks embracing such solutions, and a major public cloud player will acquire a software-as-a-service provider.

Developing the report

Due to the epidemic that decimated the world economy in 2020, it has not fully recovered, leaving many firms toiling in economic uncertainty. As the prediction for global inflation in 2022 shows no signs of slowing, more companies are searching for reliable ways to reduce operating costs while preserving their ability to develop and innovate in response to market needs.

According to Forrester, firms must reduce their investment in legacy systems or develop strategies to eliminate them if they want to accomplish both feats concurrently and increase efficiency using cloud-native technologies like Kubernetes.

The paper makes the point that because of inflation, businesses will pay more attention to cloud expenditure. Third-party cloud cost management and optimization service providers would gain from this action since it would give a shrewd, vendor-neutral strategy. Although the large players or hyperscalers in the cloud industry would be alarmed by this trend, they would react by wooing consumers with services that are more effective, simpler to use, and provide sovereign powers along with higher security.

The forecasts and how they will affect cloud computing in the future
Forrester’s Infrastructure Cloud Survey, 2022 reports that containerized apps have been deployed by cloud decision-makers in their enterprises, accounting for 50% of all applications, which has increased their capacity to scale. As a result, more businesses are likely to choose Kubernetes as their primary computing infrastructure.

The IDC Worldwide Cloud 2022 Predictions report, which asserts that by 2024, the majority of older applications would undergo some kind of modernisation to increase efficiency, is supported by this Forrester prediction. As a result, there will be a significant decrease in the use of virtual machines to speed up computing in the upcoming year.

According to Forrester, Amazon Web Services will under pressure to match the security features of its two main cloud rivals, Google and Microsoft, by 2023. This is supported by the recent expansion of Google’s security portfolio through the acquisition of Mandiant and the development of Microsoft’s defender solutions, which include a managed detection and response service.

By purchasing an MDR provider, AWS may supplement its silicon-focused security strategy, but any attempt to do so would be discovered. Forrester predicts that Microsoft will acquire additional security firms in order to stop competitors from doing the same in order to stay up with the trends in cloud security.

According to Forrester, Google may need to buy one or two significant SaaS companies in order to compete well with AWS and Azure. According to Forrester, acquiring a sizable SaaS provider would increase Google’s prospects of expanding its business market share and close the gap between these major cloud companies.

Forrester predicts that more firms would rely on third-party CCMO products to monitor cloud spending, reduce uncontrolled expenditures, and maintain company operations despite the devastating consequences of inflation.

While many cloud users continue to utilise cloud-native tooling due to its cost-free access and mild optimization capabilities, the survey noted that a majority of cloud customers prefer third-party CCMO solutions due to their usability and comprehensive features. Forrester expects that Apptio’s Cloudability and Flexera One will profit considerably from the increased need for greater multi-cloud visibility and optimization.

According to the research, as CloudHealth’s growth is slowed by Broadcom’s acquisition of VMware, a sizable client migration from CloudHealth to Apptio’s Cloudability and Flexera One may occur. It also claims that leading German financial services firms and other European nations will make a significant shift toward sovereign cloud services. AWS, Microsoft, and Google Cloud have accelerated their efforts to deliver services for the German sovereign cloud. Furthermore, the paper forecasts that other European nations will follow this trend in 2023 as a result of Italy declaring its intention to move toward a sovereign cloud.

This analysis indicates that the cloud sector is probably going to continue to be extremely profitable despite of the economic slump that will affect 2023. Consider the fact that just 25% of workloads are now housed on the public cloud, according to a recent Snowflake analysis. This means that the major providers of cloud infrastructure still have space to expand in the years to come.

Check out these recent TechRepublic articles about cloud computing’s benefits, drawbacks, and the top five occupations to consider to learn more about it.