Telecom & Technology Consulting
Technology constantly evolves, so it’s not surprising that we’ve seen alternative cloud solutions entering the marketplace. Major players like AWS, Google Cloud, and Microsoft Azure now offer “neoclouds, which are AI-native computing, sovereign, and edge deployment cloud services. Those companies claim that these new services will reduce costs while maintaining high performance.
But tech leaders are taking a cautious approach. Rather than immediately jumping on the trend – as they often do with many emerging technologies – they’re first assessing the maturity of the neocloud and its viability for their organizations. They fear going all-in and being locked into a solution that could have long-term negative ramifications.
While the skepticism is surely justified, alternative clouds do – in theory – bring some advantages. The benefits include lower-cost storage at scale, enhanced edge performance, and much quicker access to dedicated GPUs for AI workloads. As such, CTOs are weighing the pros and cons of alternative cloud solutions. Along with considering maturity and costs, they’re examining if the neocloud is worth sacrificing the continuity they already have in place with their existing cloud strategy.
Many are taking small steps, incrementally expanding their use of alternative clouds but within a narrow, clearly defined area of the overall technology ecosystem. Yet in order to truly evaluate alternative cloud models, leaders should assess them with exactly the same discipline they do with other potential technology acquisitions.
That means the chosen neocloud solution must align with workload performance, security, and sovereignty requirements. In addition, they’ll also need a considerable amount of proof related to regulatory impact, auditability, resilience, and total cost planning in order to convince other C-level colleagues to switch from the current, proven cloud infrastructure.
Compliance and transparency are two others key issues to explore when considering the alternative cloud. This is especially important for enterprises that run AI using customer data, as that requires strict compliance and sovereignty frameworks. There must be a firm boundary where regulated workloads remain with certified providers.
And when it comes to transparency, you must ask if the alternative cloud provides end-to-end observability, with the ability to trace what happened to customer data from input to output. In addition, explore how AI is applied to data and what, if any, controls exist. This has to be an ironclad answer: If the neocloud can’t provide control, you not only increase customer risk, you may permanently erode trust in the brand, which is difficult to win back.
Your assessment of the neocloud also involves a conceptual shift. The alternative cloud isn’t necessarily a type of cloud, but rather how this technology is designed. Specifically, perceive it as an element of your infrastructure that focuses on a specific workload or control requirement.
To that end, tech leaders must decide which model – traditional cloud or neocloud – is right for their particular workload needs. First, clarify the specific workload requirements the alternative cloud may enhance. Then ask if the platform can be operated with existing clouds, as well as provide a clear view into the economics. Overall, you want to improve flexibility without creating yet another operational silo.
Part of making prudent technology decisions involves looking into the future. Experts predict that by 2027, massive AI workload demands will compel 80% of enterprises to switch from legacy cloud environments to those designed for that workload. And if you look at the writing on the wall, you might have to shift your thinking about the neocloud from a curiosity to a serious consideration: A recent survey from HostingAdvice showed that nearly 75% of tech leaders use two or more alternative cloud providers.
To be sure, the neocloud has the advantage of providing direct access to leading-edge hardware, which is essential for AI-focused workloads. Alternative clouds also foster a distributed multi-cloud strategy. All of this is solid evidence for tech leaders to make the switch. Because while it’s valuable to have healthy technological skepticism, sometimes you can’t ignore the obvious benefits.
