Data trends to watch for in 2021

In the wake of a pandemic that has caused severe economic impact and social devastation with countless lives being lost, we are now seeing an unprecedented acceleration of moves towards digitalisation. Along with concepts like work from home, virtual conferencing, and online retailing, a significant initiative we're seeing from enterprises is the adoption of cloud services.

With the rapid worldwide adoption of cloud services in 2020, according to Gartner, end-user spending on public cloud services is forecast to grow by 18.4 percent in 2021 to a total of $304.9 billion, up from $257.5 billion in 2020. 70 percent of organisations using cloud services today plan to increase their cloud spending in the wake of the disruption caused by COVID-19. In India, according to IDC, as a result of the spread of COVID-19, 64 percent of organisations were expected to increase demand for cloud computing, while 56 percent anticipated a need for cloud software to support the new normal.

This year, the Data Cloud has emerged as the backbone of the data-driven, app-based tech ecosystem that has been vital in helping manage this change. Throughout 2021, we can expect to see the rate of this change accelerate as more businesses get to grips with adopting cloud models. Here are some of the trends which will play key roles over the course of 2021:

1. Rise of the Data Cloud: Organisations are increasingly utilising data analytics through the use of the Data Cloud, delivering benefits in the areas of strategy and business efficiency. Rather than relying on outdated on-premisetechnology, businesses are using integrated cloud platforms that support many different workloads to improve business agility and shorten response times. In 2021, the Data Cloud will be used to meet growing business demand for richer insights into customer behaviour. Businesses will take advantage of these additional data sets and combine them with their existing data. The platform also offers both elasticity to manage changing customer demands and enhanced data governance, so that a business has a clear sight of where its data assets reside.
2. Data Governance: As the amount of customer data being collected and used increases in 2021, businesses need to ensure privacy and governance requirements are being adhered to. Customers will want to know what details about them are being collected and where they are being stored. It is vital to have a well-structured data policy in place to ensure the right employees are getting access to what they require. Customers will quickly lose faith in a business if they know their personal details are readily accessible by anyone who cares to look.
3. Collaboration Goes Mainstream: This new working environment will also fuel a growing demand for data external to an organisation, through a wider connected network of data-sharing technology. Having an acute awareness of data from the entire business ecosystem including partners, customers, third-parties, and the wider industry will be key.
4. Every Application becomes a Data Application: Most applications today process large volumes of data to deliver value and the greatest share of engineering time, energy, and dollars goes into handling undifferentiated operations. Customers will look for a platform to simplify developing data-intensive applications, scale cost-effectiveness, and deliver real-time analytics.
5. Data Security: COVID-19 has completely shifted the notion of location, and with it, how security will be viewed in the year ahead. No longer is the corporate network the main point of security, but now with a large number of users telecommuting from home, identity will become the primary layer for improved security. Identity will truly become the new perimeter, enabling organisations to make deeper decisions about who a user is and what they should have access to; they are no longer bound by location. To support this, multi-factor authentication will become more advanced to better understand someone’s identity, including what systems a user should have access to.

2021 Will Be the Year of Recovery and Growth

It’s clear that 2021 will be a mix of recovery and growth for Indian businesses as some companies have come late to the adoption of technology or migrating to the cloud. Those who have made the timely migration will reap the benefit of the Data Cloud and data analytics during 2021. According to NASSCOM, India’s public cloud market stands at rs 170 billion in FY2020 and is forecast to grow at ~30 percent CAGR, to reach Rs 630 billion by FY2025.

By making better use of customer data, and harnessing the power of the Data Cloud, businesses will be able to ensure their offerings closely match market requirements. It’s going to be an interesting year ahead.

By Vimal Venkatram, Country Manager, India, Snowflake