Amidst today's digital transformation, cloud computing has quickly become one of the most prominent technologies around the world. Already commonplace in nearly every industry, cloud computing is aiding enterprises in the transition toward technology while also opening up new possibilities with every innovative device and application that hits the open market today.

Though its origins can be traced to the mid-1990s, cloud computing is now experiencing the most meteoric growth of its lifespan. The longevity of the cloud's success, as well as its rapid growth, lies in its extreme flexibility. The technology is not only able to harmonize with other devices and applications, but also offers capabilities that are beneficial regardless of the industry, size, or vertical of a company.

Advantages such as scalability, adjustable costs, accessibility, and reliability have made cloud computing the technology of choice among a variety of enterprises. The global cloud computing market came in at $545.8 billion to close out 2022 and is expected to grow at a CAGR of 17.9 percent, with experts predicting a market value of $1.24 trillion by 2027. Furthermore, Gartner’s latest projections had end-user spending on public cloud services totaling over $480 billion in sales by the end of 2022, a 21.7 percent increase from 2021.

“While the continued growth of the cloud computing market is already expected, there are specific factors in 2023 that will help drive the rapid rise of the application,” said Nick Heddy, Chief Commerce Officer of Pax8, a global and fast-growing B2B cloud marketplace with more than 80 vendors that serves 25,000 MSPs. “For example, as the digital age continues to evolve rapidly, the cloud’s impact becomes larger with each new software and digital innovation. The advancements are giving organizations of all types the ability to better orchestrate to optimize their cloud spend, overall leading to a more sustainable long-term option.”

“Another factor that will continue to impact the adoption of cloud computing and communications in 2023 is the continued use of hybrid/remote work strategies by enterprises,” Heddy said. “While remote work became popular during the height of the COVID-19 pandemic, businesses have seen the improved productivity, efficiency, and overall happiness from employees, making it a business strategy that’s here to stay.”

Cloud computing helps make this shift to remote work easier and improves the productivity of remote employees by allowing them to access centralized tools and applications from any device and any location, Heddy said. “Furthermore, cloud-based collaboration also makes it possible for remote employees to closely collaborate on projects even when they can’t have face-to-face interactions. Enhanced security is also provided by the cloud, which is essential with employees working on what are sometimes unprotected servers with their home equipment.”

Perhaps the most prominent factor driving the growth of cloud computing during 2023 is the rise of the multi-cloud strategy. Multi-cloud refers to a company's use of multiple cloud computing and storage services from different vendors in a single heterogeneous architecture to improve cloud infrastructure capabilities and cost. It refers to the distribution of cloud assets, software, applications, etc., across several cloud-hosting environments.

Known as a multi-cloud approach, this strategy offers a number of advantages, including improved flexibility and security. The technique is being onboarded swiftly by enterprises in various industries as 2023 shapes up to be the year of the multi-cloud.

While as of last year, 92 percent of businesses had a multi-cloud strategy in place or in the works, according to a report published by Flexera, more companies are expected to fully go through with the shift in 2023. The same study found that 84 percent of mid-size  to large companies will have a multi-cloud strategy in 2023, positioning it as one of the year’s defining trends in cloud computing.

“The growth comes as no surprise; for organizations of all sizes and sectors, adopting a multi-cloud infrastructure means moving away from potentially damaging business strategies, such as building applications and processes solely around one particular cloud platform,” Heddy said. “With a multi-cloud approach, organizations can create a high-speed infrastructure that maximizes application performance and reduces the cost of integrating cloud solutions with their existing IT system. By extending networks to multiple cloud providers, organizations can develop connections that improve response time and user experience, but it is important to keep an eye on costs, which can run out of control without the proper cloud expense management software in place.”

Overall, cloud computing has already become one of the most popular pieces of technology available, and that’s not going to change in 2023. As more enterprises take the leap into digital transformation, cloud computing will be among the first technologies adopted and implemented in order to smooth the transition. As for companies already leveraging the cloud, 2023 will offer possibilities to expand and enhance with such strategies as multi-cloud infrastructures. Enterprises that aren’t leveraging the cloud must act fast, lest they be left behind in what is shaping up to be a highly competitive digital era.