The Top 10 Infrastructure Trends That Matter In 2023

January 4, 2024 GeneAka Management Comments Off

I am thrilled to share that I recently published a new report, Top 10 Trends In Infrastructure. This is the first of what we are hoping will be a yearly report. I had the opportunity to work with many of my analyst peers to curate this list of today’s top technology infrastructure trends. Infrastructure remains critical for enterprises in every industry and size throughout the world, as it is a key enabler to their business outcomes. This list represents the most pressing and important trends of which today’s technology infrastructure leaders need to be appraised. Almost all our clients today are embarking on generative AI (genAI) initiatives, expanding their cloud exposure, and testing new infrastructure types and subscription models.

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To give you a taste of the full report, here is a preview of four of my favorite trends:

Demand for AI-optimized infrastructure is running into chip shortages. Going into 2024, AI is all the rage, and enterprises are scrambling to procure on-premises and cloud infrastructure to realize their AI ambitions. Much of this development revolves around scarce graphics processing units. AI, and specifically genAI, is driving demand for infrastructure harder than any other technology. Many enterprises will opt for cloud-based services because hyperscalers are usually better equipped to manage the massive capex and environmental requirements and because your data teams are familiar with their platform. We recommend taking a long-term view in deciding on the right platform and hosting option.
Hyperscalers are targeting specialized infrastructure for differentiation. Even prior to the current AI buzz, hyperscalers were developing specialized chip designs and partnering with leading chip manufacturers. Some designed chipsets for tasks such as training and inferencing, while others cater to use cases like video streaming or gaming, giving enterprises infrastructure options once considered inconceivable. In 2023, AI chips have taken the spotlight, leaving companies to determine the best fit for their AI use case and algorithm. We believe that firms face a choice paradox.
Serverless is mainstream — but focus is shifting to the edge and the internet of things. Serverless exemplifies the shift toward app-centric abstractions, enabling developers to build cloud-native apps without wrangling with infrastructure. The next frontier for serverless adoption is at the edge, where it is baked into many edge development platforms. The hyperscalers use micro-virtual machines such as AWS Firecracker to power cloud-native services. Firms are embracing edge technologies, starting with vertical use cases that solve core business challenges in their industry.
Sustainability initiatives push infrastructure demands in new ways. Awareness of and demand for sustainability is increasing worldwide, especially as environmental, social, and governance reporting becomes key to company valuations and eligibility to bid on contracts. Firms increasingly recognize that sustainability programs increase revenue and improve reputation. Technology pros must report on the impact of energy consumption, pollution, climate change, waste, and natural resources from the hardware use in data centers, cloud, and at the edge. We recommend finding the best-fit sustainability management software solution.