As the demand for business data increases, cloud providers and their customers are facing challenges related to rising storage costs, security risks, and environmental impact. These issues are particularly significant for U.K. organizations, as the country boasts the largest cloud market in Europe.
TechRepublic recently interviewed U.K. cloud experts to uncover the top five industry trends emerging from the country’s growing reliance on essential IT infrastructure. These cloud trends include:
- Premiumisation of cloud packages
- Movement towards hybrid multicloud models
- Influx of sustainable cloud solutions
- Continuous quest for data sovereignty
- Focus on cloud security
1. Premiumisation of cloud packages
Adrian Bradley, Head of Cloud Transformation at KPMG U.K., highlighted the increasing costs of premium cloud services, leading companies to carefully select their packages. Research indicates that 90% of U.K. businesses have observed a rise in their cloud expenses. The shift away from best-in-class offerings is prompting cloud providers to enhance their ability to switch between public cloud services and diversify their offerings, a concept referred to as premiumisation.
Bradley explained, “Rising public cloud prices are driven by factors like high energy costs, chip shortages, and increased demand due to the use of generative AI. While premium services are expensive, they bring significant value to organizations seeking maximum efficiency. However, for workloads where premium services are not cost-effective, non-public cloud options are becoming more appealing, offering a more economical choice for less critical services.”
2. Movement towards hybrid multicloud models
According to the Enterprise Cloud Index from Nutanix, 46% of U.K. businesses are expected to adopt multiple public clouds in the next one to three years, compared to a global average of 26%. Additionally, 26% of U.K. businesses are projected to embrace hybrid multicloud models, up from 19% currently. Factors driving this shift include performance, cost efficiency, data sovereignty, malware protection, and flexibility.
Jake Madders, Co-Founder of U.K.-based cloud hosting provider Hyve, noted that partnering with different cloud providers can offer cost savings as service prices escalate. Diversifying workloads across multiple providers can mitigate vendor lock-in risks, potential outages, and data breaches, while enhancing resilience and performance.
3. Influx of sustainable cloud solutions
Lars Nyman, Chief Marketing Officer of U.K.-based cloud computing platform CUDO Compute, emphasized the growing demand for sustainable and eco-friendly cloud solutions. While cloud technology may not inherently be environmentally friendly due to data centers’ reliance on fossil fuels and inefficient resource utilization, advancements in cooling systems, energy-efficient processors, and heat reuse technologies are driving sustainability efforts in the cloud industry.
These innovations aim to democratize sustainability, making it accessible to businesses of all sizes and contributing to a greener future while maintaining high-performance computing capabilities.
4. Continuous quest for data sovereignty
Jason Van der Schyff, COO of London-based private cloud provider SoftIron, highlighted the geopolitical turbulence impacting IT landscapes. Governments are increasingly investing in sovereign clouds to enhance resilience and data sovereignty. The U.K. government’s initiatives to bolster data center infrastructure and invest in future tech skills reflect a broader trend towards achieving data sovereignty for regulatory compliance and strategic advantage.
Prakash Pattni, MD of Financial Services Digital Transformation at IBM Cloud, emphasized the importance of data sovereignty for enterprises navigating evolving regulations. With AI driving data proliferation, organizations are leveraging sovereign cloud capabilities to manage regulatory obligations and ensure data privacy.
5. Focus on cloud security
Neil Templeton, SVP of network-as-a-service platform provider Console Connect, underscored the escalating cyber threat landscape, driven in part by AI-powered attacks. Network security and infrastructure are critical priorities, with businesses considering the shift to private network environments to mitigate risks associated with the public internet.
IBM Cloud’s Prakash Pattni highlighted the increasing focus on cybersecurity among U.K. companies, particularly in highly regulated sectors handling sensitive data. Enterprises are adopting risk management solutions to enhance visibility across their IT estates and ensure trusted performance and security for data-intensive workloads.
