The cloud becomes the heart of the digital enterprise

The cloud becomes the heart of the digital enterprise

The ongoing pandemic and a growing demand for IT services are putting cloud computing at the center of digital strategies, predicts Gartner. […]

“There is no business strategy without a cloud strategy,” says Milind Govekar, distinguished vice president at market research and consulting firm Gartner. In particular, the demand for public cloud services is unbroken. Many organizations followed a “cloud-first” approach when introducing new IT workloads.

Cloud computing is already enabling a wealth of new digital experiences, including mobile payment systems provided by startups in which traditional banks have also invested. Energy suppliers used cloud services to redesign the interfaces to their customers; automobile manufacturers increasingly developed personalized services that improve driver safety and infotainment.

The global cloud market will continue to grow strongly in 2022. Gartner expects a sales volume of 474 billion dollars, in 2021 it was about 408 billion. Without cloud-native architectures and technologies, many companies will no longer be able to implement their digitization strategies, the market researchers argue. By 2025, 85 percent of the organization worldwide would follow a “cloud-first” concept.

“Cloud-native means that digital or product teams take full advantage of all the architectural principles and features that a cloud environment brings,” Govekar explains. The implementation of new workloads in a cloud-native environment will be the norm in the future. Everything outside the cloud would soon be considered legacy. In 2021, about 30 percent of all new workloads were commissioned on cloud-native platforms, according to Gartner surveys. By 2025, the share is expected to increase to more than 95 percent.

According to the market researchers, if the IT operating model changes, this will also have far-reaching consequences for the cooperation of business and IT units. More and more companies wanted to move away from the classic organizational setup and instead relied on a product-oriented orientation with completely new roles and responsibilities. This development is also evident in German companies. Cross-functional teams of technical and business experts who work together on products are increasingly replacing the classic IT areas.

Against this background, low-code and no–code technologies are gaining massively in importance, according to another Gartner forecast. “Classic application development will change in the direction of application assembly and integration,” Govekar explains. “The technical and organizational silos in the areas of application development, automation, integration and governance are thus superfluous.“ This is accompanied by a rapidly growing demand for low-code platforms and citizen development concepts.

By 2025, 70 percent of all new applications worldwide will be created using low-code or no–code technologies, the market researchers expect. In 2020, the figure was still below 25 percent. With the triumph of low-code platforms, new roles would also arise, including those of the “business technologist”: in the future, he will independently develop applications, for example for analytics purposes in the departments, and will not report to the IT organization.

*Wolfgang Herrmann is Editorial Manager CIO Magazine at IDG Business Media. Previously, he was Deputy Editorial Director of the IDG publications COMPUTERWOCHE and CIO and editor-in-chief of the sister publication TecChannel.

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