The digital shift that has taken place in the economy has affected every facet of business. Technology rules the world from their operations to the products and services they offer.

The field of technology is the sector that will inevitably experience the most significant impact of digitization. Due to the new variants of COVID, social distancing and bringing operations online have become standard practice in most organizations.

Today, we are already witnessing remote work and related restrictions affect industries, not necessarily in a positive way. For example, some believe that Stanford, the premier hub for innovation and networking for tech-minded people around the world, has lost its dominance with the active penetration of online practices.

How companies are responding to these changes, what new implications we are likely to face soon, and how to adapt to such a rapidly changing environment – ​​find answers to each of these in this short read.

Cloud computing as a trend

Since 2010, the cloud industry has grown tremendously, reaching $304.9 billion in valuation for 2021. This marketing growth of more than 380% can be attributed in part to the increase in data and the recent push for remote work.

When put into context, it is clear that the majority of global data was generated between 2011 and 2013. The more data we produce, the more storage capacity we need to protect it. According to recent statistics, the virtual weight of all information has been estimated at approximately one trillion gigabytes.

With the spread of the coronavirus pandemic, keeping business operations in the cloud has become a vital business practice. Cisco claims that cloud computing accommodate up to 95% of the global workforce. And that’s just the tip of the iceberg!

The growing trend of cloud computing has led to the evolution of various technologies and approaches to software development. For example, cloud-based development, which allows applications to be launched with components stored online and with some processes running in the cloud, is one of the main outcomes of this evolving cloud revolution.

The total size of the cloud software as a service (SaaS) market has increased from $5.5 billion to $157 billion in just 12 years. These figures continue to grow as more and more companies opt for cloud solutions in their operations.

Stanford University moves to the cloud

Long the central technology hub in California, Stanford University is known for encouraging and nurturing an entrepreneurial spirit among its students. As a result, its faculty and alumni have founded most of the leading tech giants, including Google, Nike, Hewlett-Packard, Sun Microsystems, Yahoo, and PayPal.

Companies founded by Stanford alumni currently generate $3 billion. If Stanford were a country, its economy would be equivalent to the tenth largest in the world. Forbes magazine has once fairly argued:

“It is almost impossible to find a company or a startup in Silicon Valley that is not related to Stanford University.”

Given Stanford’s focus on leadership and its unique culture that has given rise to renowned politicians and public figures, it is clear that this place has remained one of the main technological and social centers in the entire world.

The top two reasons Stanford will survive in the cloud

When Stanford was about to move online, many knew they would miss the atmosphere and networking opportunities the institution provides. This change was inevitable due to the rise of cloud computing and remote work. The coronavirus and related restrictions only hastened this shift, leading to global shifts in the fields of business relations, investment, and startup culture.

But this is not something we should fear. Rather, communication becomes far more important than the Stanford atmosphere itself for the following two reasons:

  • The geographic proximity to Stanford creates more illusions than opportunities. It could be compared to being around your star idols at the Oscars. You can see them, follow the same path and breathe the same air, which is undeniably inspiring.
  • In the case of Hollywood, you realize that this does not create exceptional opportunities for you, except unique experiences. In the case of Silicon Valley, this deception can throw you off-center and lead you to make the wrong decisions.
  • The startup expense cannot be compared to that of the tech giants. A startup has to spend the same amount of money to compete with Facebook and other tech corporations, which is nearly impossible in the modern business environment.

Demonstrate high-quality services

In such circumstances, a startup is forced to demonstrate the highest quality of services or products at the lowest cost. And this is where outsourcing comes in. The only way to do this is to find a trusted outsourcing partner that is located far from Stanford.

In fact, we are now witnessing that communication in the Bay Area has been limited to Zoom and other cloud solutions. Before the pandemic, most entrepreneurs willing to save time and resources opted for online and cloud-based tools over face-to-face meetings. Social distancing and related restrictions have only speeded up this process.

New business environment

And in such a new business environment, communication is king. Communications are not limited to video and audio effects. It is more than that. It’s about the right balance of soft and hard skills; it is about psychological, political and geographical factors that combine to create an appropriate communication framework for all parties involved.

Humanity is about to develop such a framework as we are now only at the beginning of this change. And whoever invents in this field will become a market leader, bringing relevant transformations to the industry.

The new rules of the labor market

In the world where companies have moved to the cloud, recruiting and hiring processes are no longer restricted to a defined geographic area. Companies, especially startups, consider that intercultural teams are beneficial for their environment. Therefore, hiring people from different parts of the world has become common and widespread among emerging and well-developed companies alike.

Under such conditions, the introduction of cloud-based tools in the organization becomes a vital practice to ensure that all stakeholders have access to corporate data and can cooperate freely every day, regardless of their location.

Increase investment in times of pandemic

Previously, pitch day was the main event for all startup founders. They practiced presenting to investors, making their pitches more engaging and promising. However, it was essential to bring more facts and arguments to the table in order to raise more funds and quickly bring their product to market.

When everything has moved to the cloud, launch is no longer the central factor influencing investor decisions.

Face meetings

Previously, without a face-to-face meeting with your potential investor, you could hardly count on any deal; today, you have an excellent opportunity to close a deal via Zoom. Currently, it is a widespread practice.

The very doctrine of presentation will also change. Instead of focusing on promotion, startups will soon pay more attention to the product itself and its value to the end user. The more value you contribute, the more investment you get. For example, the following trends are currently on the rise among investors:

  • ML and AI products. with the launch of GitHub Co-Pilot ― an artificial intelligence tool that provides code suggestions right in the editor – interest in AI and ML software solutions has been on the rise. Experts predict that it could become a real game changer that would affect the world of software development, bringing numerous opportunities to the industry.

Therefore, AI and ML startups are anticipated to attract more attention from investors and the public in the coming years.

  • AR&VR solutions. AR and VR can provide users with personalized and well-designed experiences. With the outbreak of the pandemic, it has become vital for businesses and the public to stay in touch with the “real world”.

And this is where these technologies can come in handy to build stunning realistic worlds full of brilliant experiences.

  • Metaverse. Metaverse refers to the range of 3D virtual environments where users can freely interact with each other just like in the real world. This technology is expected to grow in the next decade due to its potential to bring people from different parts of the world together and encourage collaboration in diverse teams.

Last words

In general, moving to the cloud should be seen as a best-case scenario for technology companies. This is because it strengthens trust and allows the monitoring of all online operations, as well as the launch of applications that do not consume many resources.

In such an environment, communication becomes the core component of successful teamwork. Also, when the team is distributed around the world, having a practical and easy-to-follow framework is essential to ensure high performance and decent quality products and services.

Apart from that, new technologies and solutions, such as OpenAI, virtual environments and virtual reality worlds, will emerge to support global teams.

We are just at the beginning of this cloud revolution, and adapting to a new format of work will require more patience, effort and perseverance.

Image credit: ThisIsEngineering; pexels; Thanks!

Anton Trubnikov

Anton Trubnikov

Anton Trubnikov is the President of LITSLINK and an experienced startup creator with a passion for technology and all things AI. With a strong background in technology, he provides practical advice on applying artificial intelligence to help small and medium-sized businesses scale their operations, improve performance, and increase profits.

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