Which industries have embraced the cloud in 2024?

Simon Edward • 3 June 2024

In 2024, the cloud is bigger than ever. Explore three case studies and find out what's next for industries.

In 2024, it would be quicker to say which industries haven't embraced the cloud. It's now so common in the business world that we barely even think of it as the cloud anymore.

No one logging into their Dropbox or Gmail account is thinking "Let's see what the cloud has to offer today". The ability to access services from any location at any time is now as basic as having a Facebook account.

Nevertheless, the cloud is developing in all sorts of exciting ways: from integrating AI solutions to edge computing; from the Internet of Things to low-code and no-code solutions.

But alongside these general trends, the cloud is developing in industry-specific ways. It stands to reason: an automotive firm, let's say, will have different requirements from an eCommerce store.

For a deeper dive into these developments, we've turned to Gartner's research. Gartner is a technological research firm that gathers data about the state of the cloud.

Its general findings are clear: cloud adoption in every industry will continue to grow. But more interestingly, it predicts that the three biggest spenders on public cloud services by 2028 will be banking, software development and telecoms.

The inclusion of banking in this list is notable. Perhaps surprisingly, banking has been among the slowest industries to adopt cloud solutions.

The same goes for cloud gaming – an industry that's experienced plenty of false starts and teething problems. Could 2024 be the year it finally gets over the hump?

In this article, we take a look at cloud adoption in the banking, telecoms and cloud gaming sectors – plus a look at what the future could hold in the form of industry-specific cloud platforms.

Banking

In 2023, only around a quarter of banks were running more than 30% of their workloads in the cloud. In 2024, it looks like that number is going up.

This has the potential to unlock several benefits for the banking sector. First, it will cut infrastructure costs – after all, those legacy systems that many banks still use are far from cheap. Secondly, it will let institutions integrate data silos.

This second benefit could be felt by consumers as well as providers. If banks have greater oversight of their data, they'll be able to target customers with personalised advice and financial product recommendations.

As with all industries that handle sensitive data – the public sector and healthcare being two other prime examples – banks in 2024 will be leveraging hybrid cloud solutions. This lets them secure customer data in the private cloud while harnessing the flexibility of the public cloud to create customer-facing applications.

Telecommunications

Another finding of Gartner's report is that the telecoms industry dominates private cloud use. In fact, it's the only industry where private cloud use dwarfs public.

It stands to reason when you consider the sheer volume of sensitive personal data handled by telecoms firms. Private clouds give companies a level of control over cloud infrastructure that ensures maximum security for their data.

Meanwhile, Juniper Research has published a report revealing that telecom operators are set to invest $26 billion in cloud services in 2024.

Looking beyond 2024, this is set to grow to $65 billion in 2028. The report also predicts that the growth of 5G networks and the arrival of cloud-native 6G will necessitate a 110% increase in cellular data between now and 2028.

Cloud gaming

When it comes to the cloud, the general picture is one of blue skies and sunshine. But cloud gaming is an interesting case study of how the cloud isn't always riding high.

So far, there has been a gap between what cloud gaming can offer and what it actually provides. Manufacturers promise the Netflixification of gaming: games on demand from any device with no loss of quality.

So far, however, gamers have been given a handful of games and a whole lot of latency. It's unlikely that this will change drastically in 2024 – but there is one development that could bring cloud gaming closer to the mainstream.

This is Microsoft Xbox's announcement that gamers will soon be allowed to play their full library of "owned games" – not just titles from the Xbox Game Pass library.

Picture of someone celebrating while holding a game controller.

It's a small move that addresses a fundamental problem. By increasing the number of available games to stream on the cloud, Microsoft is making cloud gaming a more attractive proposition to users.

What are industry cloud platforms?

For all their benefits, most cloud platforms have one drawback. The majority are one-size-fits-all services, catering to any customer looking for a solution. They're not yet geared towards the challenges, requirements and regulatory demands of specific industries.

Industry cloud platforms (ICPs) are an answer to this problem. Also known as "vertical cloud platforms", ICPs are designed to save money and boost operational efficiencies in a more industry-specific way.

ICP is yet to be an acronym on many people's lips. Gartner, however, predicts that adoption will jump from less than 15% in 2023 to more than 70% by 2027.

The research firm also predicts that ICPs will become ecosystem clouds: large-scale cloud solutions that enterprises can use collaboratively for essential tasks such as procurement and payment processing.

In short, the question "Which industries have embraced the cloud?" may soon be an old-fashioned turn of phrase as one-size-fits-all solutions give way to industry-specific offerings.

Conclusion

The cloud is here to stay. But while the general trend has been for steady adoption across all industries, some sectors have travelled a bumpier road.

It seems, however, that 2024 could be the year when banking and gaming make cloud-based strides and telecom companies take investment up a notch.

One thing's for sure: it's too late to stop now…

Are you looking for help with your cloud transition strategy? At Ascend Cloud Solutions, our experts have handled more than 400 migrations across a range of industries. Get in touch for a free, no-obligation consultation.

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