5 Reasons AI Will Accelerate Cloud Network Expansion for Enterprises

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In the rapidly evolving business technology landscape, the increasing embrace of cloud networks has become more prevalent for enterprises worldwide over the past decade.  

There are many factors for this, such as increased scalability and network flexibility, infrastructure cost efficiencies, business continuity concerns, and greater access to advanced technologies such as artificial intelligence (AI), which is now on the front burner of every large enterprise’s stove. (It’s here. It’s not going anywhere. We all must learn how best to make it work for us.) 

On-premises network options are still widely available and in use. And they will have their place in many organizations with unique situations that justify their use. They are still relevant, just out of favor relative to use case considerations for most large enterprises today. 

This article will explore how cloud networks have transitioned from being a preferred innovative option for large enterprises desiring to be nimbler and more flexible to now being more of the “go-to” for most enterprises seeking a competitive edge and operational agility.  

We’ll examine the transformative role of artificial intelligence in cloud networking, illustrating how AI will revolutionize cloud infrastructure in the coming years and act as a further driver in the acceleration of cloud networking. 

Cloud Network & On-Premises Solutions Overview

On-premises solutions utilize software, hardware, and other technology-related infrastructure on the premises of a given organization. This is the traditional approach to building and supporting technology networks before the advent of the internet and the vast proliferation of advanced technologies that have evolved over the past two decades to make cloud networks possible and now highly viable. 

The on-premises solution typically involves direct company ownership of equipment and resources to support their networks. For example, software, hardware, supporting IT resources, data management, and related technology would all be under the primary purview of the enterprise. 

As noted earlier, some companies or governmental organizations may still choose on-premises solutions. This is especially true for organizations with heightened security sensitivity, although this is one of many variables that go into making this decision.  

This option is still attractive for IT control freaks (just kidding, relax) or organizations with the tightest security needs. 

On the other hand, cloud network solutions have become more popular over recent years for many reasons, which we’ll cover in more detail below. The term “cloud network” originated from “cloud computing,” which became popular in the late 1990s.  

In the early 2000s, computing services had evolved to be hosted over the internet and not be as dependent on local servers. The term “cloud networking” quickly arose to describe accessing and managing resources over the internet.  

Over the past two decades, the ability to access and manage data and resources via the Internet has exploded, making cloud networks ubiquitous across the corporate landscape. As technological advances continue to abound, this choice will become more of the default, especially in our new age of artificial intelligence.  

Cloud networks can now support Software as a Service (SaaS) solutions (e.g., MoT at Tellennium). However, to be clear, you can still have a SaaS solution supported on-premises, as many organizations still do.  

The above said, we anticipate more enterprise SaaS solutions to be hosted in cloud networks such as AWS or Azure as we move into the future. 

Let’s review a few key reasons AI will drive cloud expansion for many enterprises over the next two to five years. 

5 Reasons AI Will Accelerate Cloud Network Expansion

1. Cloud network scalability and flexibility are enhanced with artificial intelligence

AI enhances cloud scalability by predicting demand and automatically adjusting resources, ensuring flexibility for fluctuating workloads. 

AI algorithms can analyze usage patterns and predict future demand effortlessly; a human team would take far longer. For example, an AI system can forecast increased website traffic during a promotional event and automatically scale cloud resources to handle the surge, ensuring seamless user experience without manual intervention. 

AI is also capable of dynamically allocating resources based on real-time data. In a cloud-based video streaming service, AI can analyze viewer patterns and flexibly allocate more resources to popular content, optimizing server usage and reducing costs while maintaining high-quality streaming for users. 

Takeaway: Increased AI use will enhance end-user experiences and make management for human personnel easier than in the past. 

2. Cloud network cost efficiency is markedly improved with artificial intelligence

AI optimizes resource utilization, lowering operational costs and reducing the need for expensive hardware investments. 

AI algorithms can analyze cloud usage patterns and quickly adjust resources to match real-time demand, reducing waste. For example, in a cloud-based data analysis service, AI can scale down resources during low-usage periods, cutting down on unnecessary costs. 

AI can predict and preemptively address maintenance issues in cloud infrastructure. In cloud based IoT applications, AI can analyze data from sensors to predict hardware failures, allowing for timely maintenance and avoiding costly downtimes. 

Takeaway: Increased AI use will continue to help drive enterprise network cost efficiencies and proactively maximize the most efficient use of human resources where applicable.

3. Cloud network security features are strengthened with artificial intelligence

AI-driven security in cloud systems can proactively detect and respond to threats, improving overall organizational security measures. 

AI algorithms can monitor network traffic for unusual patterns indicating potential security breaches. For example, in a cloud storage service, AI can detect, and flag unusual login attempts or data access patterns, which might signify a hacking attempt. 

AI can automatically respond to detected threats, reducing response time. In cloud-based email services, for example, AI can identify and quarantine phishing emails or malicious attachments in real-time, significantly reducing the risk of security breaches. 

Takeaway: Security is always a top concern for enterprise management teams, and AI will act as a lightning-speed enforcer to assist management in this critical area. Threat agents will undoubtedly attempt to leverage AI to their benefit, so enterprises will want to counter this threat with an opponent of a similar weight class. 

4. Cloud network access to advanced technologies is accelerated with artificial intelligence

Cloud networks facilitate AI integration, offering access to the latest AI tools and innovations without significant investments in on-site infrastructure. 

AI-driven tools in cloud platforms can process and analyze large datasets quickly, providing powerful insights for businesses on the fly. For instance, AI can analyze consumer behavior in cloud-based marketing platforms to tailor marketing strategies effectively. 

Cloud networks can also offer machine learning capabilities as a service, making advanced AI tools accessible without needing in-house expertise. For example, cloud services can provide image recognition or natural language processing tools useful in various applications, from healthcare diagnostics to customer service chatbots. 

Takeaway: In the world of technology, automation as a virtue is so taken for granted that it’s almost a given, like oxygen. The latest technologies allow automated entrance into a network that permits and wants them.  

This trend will continue to empower most enterprises and organizations seeking to optimize their use of technology in the coming years. We expect this to be especially relevant for many highly competitive industries such as healthcare, which we work extensively with at Tellennium.

5. Cloud network business continuity practices are bolstered with artificial intelligence

AI enhances cloud-based disaster recovery solutions by rapidly analyzing data and predicting potential system failures, enabling faster and more efficient recovery strategies for enterprises experiencing real threats to business operations. 

AI can optimize and automate backup processes. For example, in cloud storage services, AI algorithms can determine the optimal frequency and method for data backups, ensuring efficient and timely recovery in case of data loss. 

AI can also predict potential system failures or disasters by analyzing trends and anomalies. This could mean preemptively redistributing workloads across servers or geographies to avoid potential outages, ensuring continuous service availability in a cloud-based infrastructure. 

Takeaway: Keeping the business up and running should be the top priority for all businesses, especially for modern-day large enterprises or government organizations. Missteps in this regard could be fatal and extremely costly at best, so this is another area of value AI will deliver for organizations keen to optimize networks around AI use. 

Closing Thoughts on AI & Cloud Networks for Enterprises

As noted, artificial intelligence is here to stay, and it’s not going anywhere. It can be a little scary, especially for social commentators or technology pundits drawn to the forbidding allure of a narrative of technology run amok. 

Such concerns should be taken seriously, as many dark scenarios are not without their merits. This said, governments and thoughtful AI leaders worldwide with a comprehensive understanding of this area are addressing the issue, so we have that going for us.  

Sarcasm aside, there will be many criticisms, for sure, but progress doesn’t suffer fools, so here we go. Like it or not, the AI roller coaster has started its descent on the tracks, so we all have little choice but to hang on and enjoy the ride. 

For those of us in the business world, especially the technology sector, the central question is: How do we best use AI technology responsibly, intelligently, and humanely?  

For telecom/technology expense management firms like Tellennium, embracing the benefits of cloud networking and AI technology is natural. Our enterprise customers want the best from their technology partners and have made it clear that innovative technology and artificial intelligence are on the menu if they can help support their business needs effectively and efficiently.  

Artificial intelligence acts as a booster rocket to help markedly accelerate technology virtues so dear to the technology sector, such as (1) Accelerating automation, (2) improving operations and driving cost efficiencies, (3) embracing new technologies, and (4) bolstering business continuity measures and practices. 

Given AI’s newfound prominence and the enterprise corporation’s penchant for network flexibility and agility, we see the trend of moving to cloud networks continuing. 

If you’d like to consider Tellennium in your telecom/technology expense management vendor comparisons, contact us to schedule a brief demo of our solution. 

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