December 9, 2023

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By Andy Nalappan, Chief Technology Officer and Head of Software Business Operations, Broadcom

This is a continuation of Broadcom’s blog series: 2023 Tech Trends That Will Transform IT. Stay tuned for future blogs that dive into the technology behind these trends from Broadcom’s industry-leading experts.

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Multi-cloud is the future of enterprise IT. The evidence is overwhelming.

A recent report shows that more than 80% of enterprises surveyed have a multi-cloud strategy in place and nearly that number (78%) already have workloads deployed in more than three public clouds. Enterprises are increasingly realizing the need to customize their cloud infrastructure to better fit their business needs. The continued acceleration of that adaptation in the coming year is why multi-cloud is one of the top technology trends transforming technology in 2023.

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The reasons are not difficult to understand. As organizations continue to transition their networking and IT infrastructure to the cloud, the opportunities and benefits of multi-cloud environments are becoming harder to ignore. A multi-cloud approach allows the flexibility to manage and protect data in different environments – private, public and sovereign – as needed. Maintaining this freedom, choice, control and agility is critical to future growth and maintaining compliance with regulatory and statutory requirements for globally operating enterprises.

Another factor contributing to multi-cloud deployment is evolving regulatory compliance, which is driving the sovereign cloud – a cloud environment located within a jurisdiction. Europe has stricter regulations that you’ve probably heard about, such as EBAG, DORA, IDT, and now the recently introduced: ECR, the European Cyber ​​Resilience Act. Multi-cloud deployment allows complete flexibility to accommodate changes in regulatory changes.

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And a final factor contributing to multi-cloud deployments is a business-driven initiative to accelerate reducing the number of data centers a business is running. By consolidating and reducing the number of data centers, businesses set themselves up to rapidly meet customer and market demands through technology, especially technology supported by artificial intelligence. Businesses want to move to the cloud quickly and effectively without refactoring their entire workloads—especially back-end platforms and solutions that have worked well for decades—while managing costs and risks.

One size does not fit all

There are many reasons why the multi-cloud trend will accelerate in 2023. The reality is that being locked into one cloud vendor, or one type of cloud infrastructure, doesn’t offer the flexibility needed to control costs, maintain control over information, or access providers in an already growing world. The agility required to operate successfully—and the types of clouds—evolved.

A multi-cloud environment avoids these pitfalls while increasing capabilities by moving across public clouds, data centers, and edge infrastructure. Multi-cloud is also cost effective. It provides enterprises with the freedom to choose the best products and services for their business needs. In short, multi-cloud will become inevitable, as well as become the ideal cloud networking environment for managing and supporting the decentralized and distributed resources, assets, services and workforce that constitute the real-world reality of our post-pandemic digital age. Is.

a moving conversation

Another key driver of this trend in 2023 will be the transformation of talking about the cloud from a technology discussion, to a conversation of business outcomes. Instead of reinventing the wheel every time enterprises build their own cloud, there is growing awareness that time value can be greatly accelerated by sharing key components of a multi-cloud infrastructure. Key to this business-driven discussion is the acceptance and development of the idea that some call industry cloud platforms or vertical industry clouds. These are multi-cloud infrastructures with built-in, modular functionality tailored to a specific industry vertical.

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Vertical industries like banking, healthcare, telco and manufacturing will lead this movement. This will allow them to share an agile platform already supported by a portfolio of baked-in, industry-specific, pre-packaged business capabilities directly relevant to their individual industries. These modular components can then be easily adapted or swapped in or out to meet different organization’s business operations or needs. It is this understanding that will shift the cloud conversation away from a technology-first discussion to a discussion of business outcomes as a platform with clear potential value and a driver of new business innovation.

Think of these multi-clouds as providing prefabricated industry-specific Lego pieces that contain key functions that can be assembled or customized the way the customer wants or needs. Another way is to think of them as providing a cloud platform that has the kinds of built-in, but customizable capabilities a top CRM provider or HR software provider offers its customers. But at a much larger scale that goes far beyond any single vertical software-as-a-service (SaaS) solution.

Only multi-cloud infrastructures provide such industry-specific or vertical cloud platform adaptability. Multi-cloud allows enterprises to make the leap from cloud services we are familiar with to more easily build new cloud platforms with the agility to adapt to new business opportunities, changing business conditions or technology innovations.

Business or industry adoption of multi-cloud models will also accelerate the transition to the cloud for many organizations. This will allow those organizations to take advantage of the plug-and-play aspects of multi-cloud’s prepackaged, modular components.

The future in multi-cloud

The industry-model multi-cloud infrastructure will provide many enterprises with the best solution for decentralized networking environments. Benefits of these industry-specific clouds include:

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More adaptability More business functionality More innovation

Multi-cloud is the future of enterprise IT. And when integrated with the sovereign cloud, multi-cloud will allow organizations to deliver disparate services at scale while remaining secure and in compliance with regulatory frameworks around the world. Enterprises believe that because of this, multi-cloud will help deliver stronger business value to their organizations. This is why enterprises are accelerating their transition to multi-cloud infrastructure this year and why it is a top trend transforming IT in 2023.

Visit Broadcom’s blog to learn more about the technology trends that will change IT in 2023.

About Andy Nallappan:


Andy is the Chief Technology Officer and Head of Software Business Operations for Broadcom. He oversees DevOps, SaaS Platform & Operations and Marketing for the Software Business divisions within Broadcom.

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