The defender’s mindset manifests itself in product strategy. Cloud service providers are fine-tuning existing services rather than introducing innovative new services. Geographic expansion is also underway, with 30 new regions scheduled to be added in 2025. However, this expansion is driven by demands for data sovereignty rather than innovative new features.
This slowdown in innovation also has serious implications for companies. Many companies are betting their fortunes for digital transformation on cloud-native architecture through continuous innovation. The slower innovation occurs, the lower the cost-to-value ratio of cloud services. Everyone has access to the same commoditized services, making it more difficult to gain a competitive advantage.
Ten years ago, many companies cited innovation as a reason for switching to the cloud. Later, serverless technology, a game-changing innovation, also emerged. However, cases of such technology being developed in recent years are rare.
Setting a new career path
Instead of waiting for cloud service providers to solve their problems, innovative companies are proactively adjusting their strategies and building internal innovation. They are embracing multicloud with the belief that multiple service providers will innovate in various areas. Most importantly, it’s smart – it’s focused on business outcomes rather than chasing the latest features.
Pressure must be applied from both directions. Enterprise customers must demand more from their cloud service providers and make innovation a key factor in their vendor selection and renewal decisions. Meanwhile, cloud service providers must go beyond incremental improvements and rediscover the spirit of innovation to find the next breakthrough.
If cloud service providers wait for innovations such as generative AI from other vendors, they will continue to fall behind. Companies must value every technology for the innovative differentiators it can offer.
Source: www.itworld.co.kr
