Navigating the cloud: trends, challenges and the skill shortage 

The rapid development of cloud computing has transformed the IT landscape, offering unprecedented opportunities for innovation, scalability and efficiency. However, this transformation is not without its challenges.  

As organisations strive to harness the full potential of cloud technologies, they face significant hurdles – including security concerns, complexity in management and a pronounced skill shortage.  

Here are the latest trends in cloud computing, the associated challenges and the critical issue of skill shortages (supported by data from leading industry sources). 

Latest trends: optimisation and refactoring, multicloud and sustainability  

One of the most prominent trends in cloud computing is the shift towards optimisation and refactoring. Gartner highlights that many cloud deployments are ad-hoc and poorly implemented, leading to inefficiencies and increased costs.  

This places a significant focus on optimising and refactoring cloud infrastructure to enhance efficiency, resilience and cost-effectiveness. This trend is driven by the need to maximise the return on cloud investments and ensure that cloud environments are robust and scalable. 

Another key trend is the adoption of hybrid and multicloud environments. Accenture notes that the majority of cloud users now operate in hybrid cloud environments (combining public and private clouds) and use multiple public cloud providers. This approach offers greater flexibility and resilience, allowing organisations to leverage the strengths of different cloud platforms and avoid vendor lock-in. But managing these complex environments presents its own set of challenges, particularly in terms of integration and interoperability. 

Sustainability is also becoming a critical consideration in cloud computing. Gartner points out the growing importance of carbon-intelligent cloud solutions as organisations seek to reduce their environmental impact.  

Cloud providers are increasingly focusing on sustainability initiatives, such as optimising data centre energy usage and investing in renewable energy sources. This trend aligns with broader corporate sustainability goals and reflects the increasing pressure on businesses to operate in an environmentally responsible manner. 

The rise of generative AI is another significant development impacting cloud computing. BCG reports that the demand for AI training workloads is driving up cloud prices and services. These workloads require sophisticated specifications, leading to increased costs and complexity. As organisations invest in AI capabilities, they must also consider the implications for their cloud infrastructure and budget. 

Challenges: security, complexity, regulatory concerns and costs

Despite these exciting trends, organisations face several challenges in their cloud journeys. Security remains a top concern with PwC identifying it as a significant barrier to cloud adoption. While public cloud service providers invest heavily in security (often more than individual companies can) the complexity of securing cloud environments continues to pose challenges. Data breaches, compliance issues and the need for robust security protocols are ongoing concerns for IT professionals. 

Managing the complexity of multicloud environments is another major challenge. Deloitte discusses the difficulties organisations face in taming cloud chaos, which includes better managing cloud operations and leveraging observability. The need for effective cloud management tools and strategies is critical to ensure that cloud environments are efficient, secure and aligned with business objectives. 

Data sovereignty regulations also present a significant barrier to cloud adoption. PwC highlights the challenges organisations face in navigating these regulations, particularly in regions with strict data laws. Ensuring compliance while leveraging the benefits of cloud computing requires careful planning and a deep understanding of local regulations. 

Realising the full value of cloud investments is another challenge many organisations face. Accenture emphasises that while cloud migrations have surged, many organisations struggle to capture the full value of their cloud investments. This requires a continuous journey and a mindset shift towards cloud optimisation, focusing on long-term benefits rather than short-term gains. 

Cost management is a critical issue in cloud computing. BCG introduces the Nimbus Pricing Index (NPI) to help companies understand and manage cloud costs better. This index provides insights into cost variations across regions and helps organisations make informed decisions about their cloud investments. Effective cost management strategies are essential to ensure that cloud spending aligns with business goals and delivers value. 

The skill shortage

Amid these challenges, the skill shortage in cloud computing is a pressing issue. Gartner’s survey reveals that 64% of IT executives see the talent shortage as the most significant barrier to adopting emerging technologies, including cloud computing. The ongoing push towards remote work and accelerated hiring plans have exacerbated IT talent scarcity, especially for skills enabling cloud and edge computing. 

BCG highlights that 50% of the global workforce needs to upskill or reskill to stay competitive, with a significant focus on digital and cloud skills. The average half-life of skills is now less than five years, necessitating continuous learning and adaptation. 

McKinsey’s survey indicates that 95% of respondents cite a lack of cloud talent and capabilities as one of the biggest roadblocks they face. Companies with high cloud aspirations often struggle due to a lack of experienced cloud professionals and leaders. 

Deloitte’s research highlights acute shortages in cloud roles, including developers, engineers, architects and strategists. More than 90% of IT leaders plan to expand their modern software engineering and cloud environments, yet 80% say inadequate employee skills are holding them back. This data underscores the critical need for continuous upskilling and reskilling to address the growing demand for cloud-related skills. 

Attrition rates further complicate the skill shortage. The attrition for IT professionals with cloud skills is 16% globally and 18% across the DACH region. Some of the fastest-growing skills among these professionals include data engineering and architecture, AI and pattern recognition.  

Unsurprisingly, the attrition rate for professionals with these skills is 21% across the DACH region. This high attrition rate exacerbates the skill shortage, making it even harder for organisations to retain top talent and maintain a competitive edge. 

At Keller West, our consultants specialise deeply in IT recruitment with consultants who focus especially on cloud. Our significant expertise, excellent networks and deep market understanding can support your cloud-related hiring needs for permanent roles and for highly skilled interim management experts.  

Our recruitment philosophy is deeply rooted in a skills-first approach, significantly enlarging the potential pool of talent. 

Get in touch today to discuss your career or hiring needs.