Cloud computing: new trends in 2021

Dmitri S.
Dmitri S.
September 27, 2021 •5 min read

Cloud computing has grown exponentially in the past decade and is not about to stop. By 2023 the worldwide cloud computing industry is anticipated to have grown to $623.3 billion.he worldwide cloud computing industry is anticipated to have grown to $623.3 billion.

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Daily, many of us utilize cloud services. When we use cloud-hosted apps to update our profile on social media, binge a new subscription series, or check our bank balances, we’re most certainly utilizing cloud-hosted applications having them accessible over the internet.

As for businesses, cloud technology allows organizations to expand and adapt quickly, accelerating innovation, driving business agility, streamlining operations, and lowering costs.

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Cloud is the backbone of the data-driven, app-based tech ecosystem. It is beneficial to individuals as well as corporations. Everything from contact tracing to home delivery services, remote medicine, and working from home has been revolutionized by cloud services.

Here are the most significant trends expected to grow in 2021:

  • Edge is the new cloud

Edge computing is becoming popular with the trend of decentralization. Computing and management are handled locally instead of at the central cloud network. It places data storage and computing closer to where the data is generated and consumed - this process reduces latency, provides faster real-time responsiveness and bandwidth optimization. Many industry experts believe that cloud and edge computing will co-exist to deliver a true real-time experience to the end-users in 2021.

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“In 2021, we will see new business models emerge that facilitate the deployment of edge, efforts by cloud platforms to compete, and AI and 5G facilitating the expansion of edge use cases,” Forrester said.

Vendors including Dell, HPE, IBM, and Intel are doubling down on the edge with cloud-like solutions deployable to anywhere. According to IDC, 40% of enterprises will double their IT spending on Edge locations and nearby colocation facilities by 2022.

  • Artificial Intelligence will play a greater role

AI engineering is bound to reach new heights with the help of the Cloud. “Without AI engineering, most organizations will fail to move AI projects beyond proofs of concept and prototypes to full-scale production,” Gartner said.

AI will become more relevant in the workplace as companies use it to streamline business processes and eliminate manual tasks. Increased use of AI for data analysis will help companies gain better insight into their products and services and streamline workflows with activities such as payroll automation, budget forecasting, and compliance

  • Multi and Hybrid cloud environments will continue to grow

Businesses recognize that cloud data management isn’t about having one specific cloud platform or infrastructure, it is about choosing the solution that is right for the job at hand. In some cases, this isn’t cloud at all, it might be on-premises or even legacy systems.

Enterprise leaders recognize that not all clouds work for all of their needs, and some of their legacy systems and applications work better on their existing on-premises infrastructure. These realizations, and a growing need for both flexibility and reliable security, have ushered in a period of growth for hybrid and multi-cloud setups.

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While most organizations do not make the jump from on-premises to multi-vendor deployments in one go, 93 percent of enterprises have built up to a multi-cloud strategy. As more workloads are migrated to the cloud, the industry is becoming more sensitive to the unique requirements of different processes. More organizations will develop entirely cloud-native applications with little to no architectural dependence on a specific cloud provider.

As more organizations recognize the different strengths of private clouds, public clouds, industry-specific clouds, and legacy on-premises setups, more cloud, and data center vendors are working hard to create hybrid cloud and multi-cloud connections among the disparate systems.

  • Serverless Computing

Serverless computing is another trend that will see large-scale adoption in 2021. 

It allows developers to code freely while all the infrastructure management is done by the cloud provider with a pay-for-value billing model. Serverless computing removes the need for cloud application developers to have extensive expertise in AWS or Google Cloud Platform. Since they only need to interact with the serverless interface, developers can be more productive, focusing on development, UX, and UI instead of IT infrastructure. With the increased adoption of serverless computing expect to see more developer collaboration tools to help front-end teams optimize workflow.

The serverless computing market is expected to grow with a CAGR of over 25% from 2021 to 2026.

The industry already is on this journey with containers and cloud-hosted common applications as they drive the need for applications to be made up of smaller components that can be given different treatments, including running in different locations, according to Swanson.

  • Data Privacy and Governance

With accelerated migration to the cloud for digital transformation projects, data governance and compliance have become critical. As organizations move even more data to the cloud to support the new way of work and life after the pandemic, data security, privacy, and compliance will be top priorities in IT strategies this year. Unfortunately, over 50% of organizations do not have the appropriate security management systems in place for their cloud applications, creating an adverse effect on their overall security infrastructure.

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However, “In 2021, security, privacy, and governance will become programmatically embedded early on in business processes. And every mission-critical business process will have security as a requirement before implementation”, according to Balaji Ganesan, co-founder and CEO of Privacera, a data governance and security solution provider and co-founder of Apache Ranger.

Standalone data security and governance tools finally will become an integral part of mission-critical business processes, according to Ganesan.


Cloud computing empowered businesses of all sizes to stay afloat during the pandemic and will continue to develop and gain in popularity. In the coming years, cloud-based services will be more efficient, accessible, and adaptable. These promising cloud trends will enable organizations to reach the full potential of the cloud and prove essential to growth in the coming years. So leverage these trends to open new doors of possibilities for your organization.