# Embracing Cloud Computing: How and why organisations are set to invest more in cloud computing in 2023
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-09
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Why Cloud Technology is Taking the Business World by Storm
Meta Description: Discover how the cloud is revolutionising business operations in 2023, driving growth despite economic challenges. Ensure your organisation stays agile and
URL: https://financedigest.com/embracing-cloud-computing-how-and-why-organisations-are-set-to-invest-more-in-cloud-computing-in-2023html

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_![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/gordon-davey-1736814604286-compressed.jpg)_

_By **Gordon Davey**, General Manager Azure at SoftwareONE_

[Gartner](https://www.gartner.com/en/newsroom/press-releases/2022-10-31-gartner-forecasts-worldwide-public-cloud-end-user-spending-to-reach-nearly-600-billion-in-2023) has forecast worldwide public cloud spending to reach $600 billion in 2023—but why has cloud taken the business world by storm? By moving servers and applications to the cloud, organisations can enable business transformation, cut back on the cost of running their own centralised computing networks, and improve the time to market.

As 2023 is fast approaching, businesses are laying out their strategies for the next year, especially as we continue through this economic downturn. The [cloud can ensure organisations stay agile and flexible despite any disruptions that may come their way](https://www.financedigest.com/7-ways-cloud-technology-can-transform-business-finances.html "7 ways cloud technology can transform business finances").

**It’s a cloudy future as we know it**

With the [Bank of England](https://www.bbc.co.uk/news/business-63471725) warning the UK may fall into its longest recession, organisations are re-evaluating their spending. Many departments may face [budget cuts](https://www.financedigest.com/icrc-to-cut-some-1500-jobs-as-humanitarian-budgets-seen-sliding.html "ICRC to cut some 1,500 jobs as humanitarian budgets seen sliding") in attempts to combat the economic downturn. However, greater investment in technology, particularly cloud, may be recognised as a [growth enabler despite](https://www.financedigest.com/euro-zone-credit-growth-remains-brisk-despite-gloomy-outlook.html "Euro zone credit growth remains brisk despite gloomy outlook") the looming recession. Studies have shown that organisations and public firms that have adopted cloud technology saw revenue grow from [2.3% to 6.9%.](https://mitsloan.mit.edu/ideas-made-to-matter/cloud-adoption-linked-to-stronger-firm-performance#:~:text=Jin%20found%20that%20revenue%20growth,job%20seeking%20cloud%2Drelated%20skills.) In today’s economic climate where money is tight, organisations cannot pass up on the opportunity to see some revenue growth.

To fully reap all the benefits of the cloud, [companies must have the resources and skills to manage](https://www.financedigest.com/anyone-can-write-assignment-need-people-able-apply-new-skills-workplace-says-top-investment-management-company.html "“Anyone can write an assignment, but we need people to be able to apply their new skills to the workplace,” says top investment management company") workloads and filter data; but the skills shortage has hit organisations hard. UK Government data shows that [37%](https://www.gov.uk/government/publications/cyber-security-skills-in-the-uk-labour-market-2022) of UK businesses reported a lack of incident management skills, up from 27% in 2020. If organisations cannot properly plan and thoroughly assess their cloud use themselves, they should look to a Managed [Service Provider for advice on creating a comprehensive cloud](https://www.financedigest.com/tomorrows-world-how-cloud-computing-will-impact-the-financial-services-sector-in-2016.html "TOMORROW’S WORLD: HOW CLOUD COMPUTING WILL IMPACT THE FINANCIAL SERVICES SECTOR IN 2016") roadmap.

**Flexibility is wanted, so that’s what is needed**

The widespread uptake of remote and [hybrid working provided organisations](https://www.financedigest.com/how-collaboration-technologies-are-helping-organisations-to-embrace-a-hybrid-working-model.html "How collaboration technologies are helping organisations to embrace a hybrid working model") with flexibility and resilience against the pandemic. In 2023, the digital workplace presents a fantastic opportunity for [companies to expand globally](https://www.financedigest.com/incentive-fm-group-wins-contract-with-global-events-company.html "Incentive Fm Group Wins Contract With Global Events Company"). [Cloud can aid organisations](https://www.financedigest.com/cloud-migration-for-financial-services-organisations-whats-the-best-approach.html "Cloud Migration for Financial Services Organisations – What’s the best approach?") in their expansion strategies, providing them with the scalability and agility wherever necessary.

When expanding into unfamiliar territory, [organisations must think about a variety of distinct steps](https://www.financedigest.com/6-steps-to-organising-an-introvert-friendly-networking-event.html "6 Steps to organising an introvert-friendly networking event "), including setting up IT infrastructure. Cloud allows organisations to host their IT [environments wherever their employees or customers](https://www.financedigest.com/retaining-insurance-customers-in-a-post-pandemic-environment.html "Retaining insurance customers in a post-pandemic environment") are located, allowing for rapid geographical expansion in ways that were simply not possible in the past. [Organisations may not be fully aware of market demand patterns in different countries in advance—cloud gives the opportunity to scale up or down very quickly as required](https://www.financedigest.com/lack-of-collaboration-and-skills-shortage-is-limiting-organisations-ability-to-meet-ifrs-9-requirements.html "Lack of collaboration and skills shortage is limiting organisations’ ability to meet IFRS 9 requirements").

**[Securing your digital](https://www.financedigest.com/what-banks-need-to-do-right-now-to-improve-their-digital-services-without-sacrificing-security.html "What Banks Need to Do Right Now to Improve Their Digital Services Without Sacrificing Security ") workplace**

According to an IDG report, 92% of organisations have at least some of their IT environment in the cloud. While the cloud presents businesses with a great deal of opportunities, from a [security perspective it can be a larger and more complex attack](https://www.financedigest.com/2018-it-security-predictions-methods-for-attacks-investment-areas-cybersecurity-strategies.html "2018 IT Security Predictions-Methods For Attacks, Investment Areas & Cybersecurity Strategies") surface compared to on-premises infrastructure. In a cloud environment, the goal is often to have workloads and [applications accessible](https://www.financedigest.com/cardstack-launches-application-to-simplify-access-to-token-generation-events.html "Cardstack Launches Application to Simplify Access to Token Generation Events") to users from anywhere and from any device. With so many potential entry points, an unsecure cloud environment is a goldmine for cyber criminals, therefore a holistic approach to security is critical.

In 2023, organisations are going to have a greater focus on ensuring [security penetrates every fibre of their digital](https://www.financedigest.com/taming-the-new-wild-west-how-biometrics-can-help-the-ecb-deliver-a-secure-digital-euro.html "Taming the ‘new wild west’: how biometrics can help the ECB deliver a secure digital euro") fabric. Cyber criminals are intelligent, tactical and cunning, trying to [keep one step ahead of every organisation](https://www.financedigest.com/auditing-in-cyber-how-organisations-can-keep-track-of-their-data.html "AUDITING IN CYBER: HOW ORGANISATIONS CAN KEEP TRACK OF THEIR DATA"). [Businesses have no choice but to ensure key data is protected](https://www.financedigest.com/finalised-pan-european-data-protection-laws-set-the-new-standard-for-a-privacy-friendly-business-environment.html "Finalised Pan-European data protection laws set the new standard for a ‘privacy-friendly’ business environment") and vulnerabilities are efficiently patched. As the number of remote and hybrid employees increases, and as data needs to be accessed from an increasing number of locations [organisations](https://www.financedigest.com/avoiding-a-big-data-car-crash-how-to-organise-your-data-to-detect-fraudulent-claims.html "Avoiding a big data car crash: How to organise your data to detect fraudulent claims") need to be careful not to leave sensitive data particularly vulnerable.

**New year, new strategy**

Like every new year, 2023 will be full of [opportunity for all businesses](https://www.financedigest.com/the-north-heads-south-to-mipim-en-masse-to-corner-new-real-estate-business-opportunities.html "The North heads South to MIPIM en masse to corner new real estate business opportunities"). However, as the world experiences economic downturn, [investing in cloud computing can help businesses](https://www.financedigest.com/credit-agricole-launches-china-ma-and-investment-banking-business.html "Credit Agricole launches China M&A and investment banking business") ensure they are going beyond just surviving. Cloud has the potential to provide the elasticity and automation needed to improve operations and meet customer demands, all whilst [saving money](https://www.financedigest.com/6-tips-to-save-money-on-your-next-used-car-purchase.html "6 Tips to Save Money on Your Next Used Car Purchase").

But in 2023, organisations [must be mindful of more than just the looming recession](https://www.financedigest.com/ecb-must-be-prudent-with-rates-hikes-as-recession-risk-rises-panetta.html "ECB must be prudent with rates hikes as recession risk rises: Panetta"). With more investment into cloud, comes the [need for tighter security](https://www.financedigest.com/the-financial-services-industry-needs-to-get-serious-about-cyber-security-in-the-covid-19-era.html "The financial services industry needs to get serious about cyber security in the Covid-19 era"). If not configured correctly the [cloud offers](https://www.financedigest.com/how-hybrid-cloud-computing-offers-the-best-of-all-worlds.html "How hybrid cloud computing offers the best of all worlds") cyber criminals an easier way in – forcing businesses to bolster their cyber security strategies. With the right protection, cloud [offers enterprises endless opportunities to grow](https://www.financedigest.com/discount-dining-clubs-tastecard-and-gourmet-society-grow-their-offering-as-chimichanga-and-spaghetti-house-both-sign-up.html "Discount dining clubs tastecard and Gourmet Society grow their offering as Chimichanga and Spaghetti House both sign up") and succeed in the new year.


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