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Cloud Computing Trends, Challenges & Provider Insights in 2023

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Cloud Computing Trends

Earlier this month, CRN published a story covering Flexera’s 2023 State of the Cloud Report.  Flexera provides software and systems to manage enterprise private and public clouds.  The report on cloud computing trends originates with an annual survey of 750 technology leaders across sectors, geographies, and size of the business.  While the report classifies small and midsize businesses as those with under 1,000 employees, we still find the results interesting and relevant.

As small businesses, our concerns are spending, security, compliance, and managing cloud services. The cloud model hits our income statements and balance sheets differently than historical IT services. The need to protect our businesses, and our customers, has never been greater. And, we find it difficult to understand if we are spending efficiently and effectively.

We take a look at the top 3 cloud challenges, discuss managing clouds, and explore cloud waste.  Understanding these issues, you will better understand how to create better cloud solutions. You will also be better able to set expectations from those providing cloud solutions and related services.

Top 3 Cloud Computing Challenges

For 2023, SMB respondents identify the top three cloud computing challenges as:

  • Managing Cloud Spend (80%),
  • Security (73%), and
  • Compliance (71%).

These concerns make sense. The spending model for managed cloud services, based on subscriptions or usage, is an operating expense.  Most smaller companies are used to making capital expenditures and paying for service contracts and managed services.  Additionally, many of the IT firms working with small businesses will replicate on-premise networks and servers in a public cloud service. They may lack the expertise and tools to actively manage costs.

Concerns about security and compliance reflect the increasing need and demands of protecting sensitive business and personal information.  We face the same increased regulations and expanding industry standards as larger enterprises. But we do not have the in-house resources or the same access to experts. We place our trust on local or regional IT service firms.

Latest Trends and Developments in Cloud Computing

Undefined Cloud Management

Following closely behind the top 3 cloud challenges, governance (67%) and subscription management (61%) indicate that small businesses are not sure how to best manage their cloud services.  As cloud infrastructure matures, the number of options expand.  To make simple decisions, such as whether to subscribe monthly or make an annual commitment at a lower per unit price, we need to understand the operating cost models.  We need standard operating procedures, such as on/off-boarding and access controls, in place.

Cloud is still new. We need our IT service firms and managed service providers to guide, if not lead, our cloud management efforts. Co-management is a viable strategy, provided it includes policies and procedures as well as products and services.

Cloud Waste

On average, the survey results show that businesses spent 18% more than budgeted on public cloud services last year.  The greatest contributor to the overspend appears to be Cloud Waste.

Cloud waste is spending on cloud services that go unutilized or are under-utilized.  Reducing cloud waste can be as simple as

  • Shutting down unused resources after hours
  • Selecting lower cost regions / data centers
  • Periodically right-sizing systems and resources

Policies that scale resources in real-time based on usage will increase efficiency, but require expertise and planning during the solution design process, monitoring, and refinement over time.

How to Pick a Cloud Computing Provider

Traditional managed service providers, or MSPs, are experts in buying, monitoring, and managing things. They focus on network components, servers, systems software, and end user devices.  To get the most value from our cloud services, we need partners that understand service and cost management.

Managed cloud service providers, or MCSPs, understand how the “as-a-Service” model is different. Security, compliance, and cost management only work when they are built into the requirements, design, and management of your cloud services.

Before picking your cloud provider, ask about their management and co-management models. Understand if they actively work to monitor and manage security, compliance, and costs. Ask them to explain how.

Call To Action

Get a copy of our recent eBook, Cloud Strategies for Small and Midsize Businesses. In this eBook, we: set the stage by looking at how small and midsize businesses acquire and use technology and IT services; explore the challenges we face moving into the cloud; and map out four strategies for enhancing your use and expansion of cloud services.

To discuss how your business can better utilize a broader range of cloud services, please contact us or schedule time with one of our Cloud Advisors at your convenience.

About the Author

Allen Falcon is the co-founder and CEO of Cumulus Global.  Allen co-founded Cumulus Global in 2006 to offer small businesses enterprise-grade email security and compliance using emerging cloud solutions. He has led the company’s growth into a managed cloud service provider with over 1,000 customers throughout North America. Starting his first business at age 12, Allen is a serial entrepreneur. He has launched strategic IT consulting, software, and service companies. An advocate for small and midsize businesses, Allen served on the board of the former Smaller Business Association of New England, local economic development committees, and industry advisory boards.

Modern Workplace: Benefits and Challenges

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The modern workplace brings together teams, information, and processes to empower our teams and enable our businesses. Powered by Microsoft, Google Cloud platforms, getting the most out of our systems requires more than simply moving from one system to another. Managing adoption and ensuring users understand how to use tools effectively increases individual and team productivity and efficiency. Below, we look at the most notable modern workplace benefits, as well as three major challenges to overcome.

5 Modern Workplace Benefits

Most of our businesses realize benefits when we create our modern workplace with Microsoft, Google, and other key solutions.

1 Faster and more reliable communication
The modern workplace improves our ability to communicate. Beyond fast Internet connections, the integration of voice, messaging, audio/video conferencing, file sharing, real-time collaboration, and other tools lets us work together and share information in the ways that work best for us. Secure access from virtually anywhere enables us to work where we are most productive.

2 Enhanced efficiency and productivity
The modern workplace ushers in efficiency and productivity in many ways. Automating tasks and workflows, improved access to files and information, and embedded AI help users complete work more effectively.

3 Lower costs; Higher profits
Technology-driven increases in efficiency and productivity decrease operating costs. Reduced travel, faster time to market, quicker customer response times, and faster and more effective decision-making all result from the reliability, mobility, and productivity of a modern workplace.  These benefits save time and money, and drive revenue and profits.

4 Greater transparency and interconnected operations
You can replace complex, bureaucratic processes when you match access to data and information with updated processes that take advantage of integrated, secure applications, tools, and services. Whether simple file sharing or ensuring you have one record of customer information across your systems, the modern workplace helps connect, streamline, and simplify.

5 Improved security
Modern workplaces are more secure. Integrated, layered security is embedded into the architecture of cloud infrastructure services, designed and built to meet your security and data privacy needs. Beyond the traditional focus of protecting physical computers in specific locations, security for the modern workplace protects the systems, networks, applications, data, and processes. You also protect your people with identity and access management that removes the physical boundaries of security.

3 Challenges of the Modern Workplace

Moving to a modern workplace, like any, change comes with challenges.

1 Resistance to Change
Even when they understand the objectives and benefits, some members of your team will hesitate to embrace change. Helping team members understand how the changes will benefit them individually —  how it will enable them succeed — improves buy-in and acceptance. Offering tools to help them learn and apply new features and capabilities supports their personal growth and overall adoption of new apps, tools, and processes.

2 Inadequate Training
Turning on a new app, tool, or process is not enough. “One and Done” sessions are not effective.  To fully benefit from your modern workplace investments, your team needs to understand your apps and tools as they use them. Individuals retain and apply learning best when they have time to use what they have learned. Adoption plans that provide training and support relevant to a person’s role and responsibility in small, manageable doses, over time are most effective.

3 Mismatched Technology
Technology for the sake of technology leads to disaster. Picking the best technology that is not the best fit creates problems. Start your selection process by defining your business goals and objectives. Identify the types of technologies you need and want to support your objectives. Then select the specific technologies that match your prioritized needs and wants.

Contact Us to Learn More About Modern Workplace Tools & Solutions

Email us or complete our contact form to discuss how a modern workplace, including Microsoft, Google, and other key tools, can help your business thrive and grow.

The Business Case for Teamwork Solutions

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CollaborationHow our teams work, and our businesses run, continues to evolve. Teamwork — communication and collaboration — brings people together to share information, work together, and accomplish common goals and objectives. When you have a place to create and make decisions, you empower your team to achieve.

Market Dynamics

Finding secure, easy ways to connect across teams and locations is a high priority if you want to create a competitive advantage in today’s quickly changing business landscape.

83% of knowledge workers depend on technology to work together

72% of workers will work remotely, full or part time

35% of knowledge workers still collaborate on documents using email

 

Cloud Forward teamwork solutions enable you to customize your workspace, keep your team secure, and communicate more effectively.

Challenges You Face

Most businesses see the value of Cloud Forward solutions, but migrating to the cloud does not ensure results. Real value requires changing some of the ways you work, leveraging features, and enhancing individual and team productivity and effectiveness.

Communications: How can you bring teams and resources together?

  • Enable real-time communication
  • Provide secure mobile access
  • Empower teams to work remotely

Mobility: How can you enable employees to work from virtually anywhere, on any device?

  • Enhance mobility within your company
  • Reduce overhead, and save money on office space, as employees work remotely

Secure Sharing: How can you make it easier to connect with customers, co-workers, and others?

  • Secure and preserve company data when sharing information with others
  • Distinguish between the information external users can and cannot access
  • Keep track of who has what information

Solutions that Drive Success

Adopting Microsoft 365 means more than migrating emails and files. Adopting Microsoft 365 involves managing change; educating your team on ways to use the teamwork technology to:

Get more done

Teamwork technology embedded in Microsoft 365 enables productivity solutions that:

  • Streamline teamwork
    Integrate team chats, meetings, and files in one place; increase productivity
  • Enable real-time teamwork
    Make it easy for teams to work together on documents; rapidly advance ideas and innovation
  • Connect applications
    Provide the tools and services customers use every day to collaborate; connect people, information, and ideas

Work better together

Microsoft Teamwork solutions enables collaboration solutions that help you:

  • Improve security
    Strengthen your overall security posture and improve compliance and reduce your use of unsecure apps
  • Work from virtually anywhere
    Use digital tools to empower teamwork across your mobile workforce, no matter where your people work or what devices they use

Build your business

Microsoft 365 makes it easier to set up and manage users, devices, and data within a highly secure, cloud-based productivity platform.

  • Use an integrated solution
    Save time, money, and the headache of managing multiple vendors and technologies for security and team solutions
  • Reduce costs
    Microsoft technology provides a nearly 80% cost savings over similar technologies provided by third-party vendors

Partner for Success

We understand that change is challenging. We also see that the results outweigh the effort when teams embrace and adopt new capabilities and improve how they work.  Empowering your team enables success.  Through our Managed Cloud Services, we co-manage your IT services and provide on-going education and support to help your team adopt and leverage new capabilities.  We help your employees succeed at their jobs; we enable your company to achieve your desired results.

Contact us or email us to learn more. Or, schedule a complimentary Cloud Advisor Session and discuss your goals, challenges, and opportunities.

Tech Leadership: Focus on Business Success

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Cloud StrategyThe tag line of a recent ZDNet article says it all:

Tech leaders have to support how their business generates revenues and profits if they are to be taken seriously.

As reported in the article, KMPG reports that 76% of CEOs want their technology projects to “make” rather than “save” money.  And while this data is from a survey of large and mid-market enterprises, we understand the small and midsize business owners and decisions makers want the same results. Cloud gives you the ability to reduce resources needed to manage and maintain IT infrastructure, which can free up resources for IT solutions closer to the revenue stream.

Your mindset as a business leader should remain on Business Outcomes; your IT service provider should have the same focus.

Whether you are the IT decision maker, you have a CIO or IT Director, or you rely on an IT service provider for strategic guidance and tactical solutions, here are some ways to rethink and redirect your IT direction and value.

  • Identify the biggest challenges in your organization: Start by understanding what your business wants to achieve and the most critical roadblocks. These are most often business, not technology, issues. Technology, however, provides the tools needed to overcome challenges and enable opportunities.  Let desired business results guide your technology strategy and drive specific projects.
  • Focus on how to develop new business models: Think beyond how a new technology can cut costs.  Explore and evaluate how emerging technologies, such as AI and Machine Learning, can enable your business to rethink “how” you work and how you manage revenue streams.
  • Use information to create a more efficiency: Take advantage of new business intelligence tools that empower you to convert your data into useful, actionable information.
  • Remember that “Digital Transformation” is a process, not a solution. Rethinking your business processes to better leverage cloud and new technologies continuous effort. Remember that new apps, tools, and templates need to adapt as you learn more and as your business needs and priorities change.
  • Pick the right partner: We are past the “one and done” era of IT solutions. Your environment needs to evolve with you business, your employees, and your partners.  Pick a partner that can stay with you for the long-haul.

Cumulus Global focuses on “Cloud Forward” IT solutions that support your desired business outcomes.  Contact us for a complimentary Cloud Advisor session to discuss your business goals, challenges, and priorities.