Anticipated Surge in Cloud Investment

The most foreseeable trend in 2024 revolves around the persistent and substantial increase in expenditure on cloud computing infrastructure. This surge will be, in part, fueled by the widespread adoption of generative AI applications such as large language models, for instance, OpenAI’s ChatGPT and Google’s Bard.

Consequently, organizations are expected to witness a parallel rise in spending as they shift their mission-critical applications to the cloud, striving to consolidate most, if not all, of their operations within a multicloud infrastructure. While this migration enhances agility, innovation, and efficiency, the transfer of extensive data to and from cloud environments poses notable challenges in terms of data security, especially over public internet connections, potentially leading to increased demand for private connectivity solutions.

Streamlined Networks

Despite the growing acceptance of hybrid or multicloud strategies, the seamless integration of diverse cloud environments remains a challenge for businesses. This integration not only proves complex and costly but is further complicated by concerns related to data sovereignty and governance.

Hence, major corporations are anticipated to explore methods to simplify their network infrastructure, aiming to eliminate redundant resources while preserving high-speed performance and connectivity. This push toward simplicity is driving the growth of software-defined cloud interconnects (SDCI) and network-as-a-service (NaaS), enabling businesses to manage multicloud services through a unified portal, thus facilitating smoother operations.

Rise of AI-as-a-Service

AI takes center stage in cloud computing discussions, and in 2024, it is poised to transition from a conceptual idea to a tangible reality.

With organizations eager to incorporate AI applications into their operations but facing challenges related to data and computational requirements, there is an expected surge in AI-as-a-Service (AIaaS). This model allows businesses lacking resources or technological expertise to access AI tools through cloud providers. However, the effective utilization of AIaaS still necessitates a high-speed, top-quality network to unlock the full potential of AI, prompting businesses to reconsider their existing network infrastructure.

Stricter AI Regulations In 2024

The global landscape is set to witness the implementation of new and more stringent regulations governing the use of AI. The EU’s AI Act, anticipated to be adopted in the upcoming year, stands out as a significant regulatory development. Designed to address AI governance risks, this act outlines requirements aimed at safeguarding the health, safety, and fundamental rights of EU citizens and beyond, potentially influencing global practices.

Navigating this evolving regulatory environment will pose challenges, with a heightened focus on data localization within jurisdictional boundaries. As data continues to expand exponentially and become more fragmented across various locations, companies will need to secure their networks to prevent vulnerabilities.

Emphasis on Data Security and Privacy Security

Emphasis on Data Security and Privacy Security is expected to be a top priority for organizations in 2024, acknowledging that it is not a matter of if but when a data breach will occur. The rise of cyberattacks, particularly those deploying AI-powered tactics, adds urgency to the need for robust data protection measures.

Ensuring the security and resilience of network infrastructure becomes crucial, prompting businesses to assess the possibility of transitioning to a private network environment for enhanced data protection. The use of public internet connections is recognized as an exposure risk that necessitates careful consideration.

Pay-as-you-go Networking

Cloud costs are projected to remain high in 2024, especially for businesses dealing with substantial data transfers in and out of the cloud, leading to significant egress charges. As concerns about these ‘hidden’ fees grow among customers, cloud providers may need to address this issue.

To mitigate costs, businesses are likely to explore direct connection services and adopt pay-as-you-go models offered by NaaS providers. This approach enables organizations to pay only for the network resources they utilize, adjusting private connections based on workload requirements. This not only reduces capital expenditure but also allows businesses to focus more on their core activities.

Tackling the Skills Shortage Challenge

Despite the rush to implement AI technology in network infrastructure, the journey toward automation in 2024 may face hurdles due to a widening skills shortage. The demand for expertise in data analysis, AI model training, and software development is outpacing the available talent pool, creating a critical shortage.

To address this gap, businesses are expected to turn towards managed services solutions, entrusting the management of their network to external teams of technical experts. This shift alleviates concerns about security, connectivity, and data privacy, providing a plug-and-play solution that appeals to many organizations.