Cloud computing trends reshape innovation with AI tools

Cloud computing trends are entering a pivotal era as artificial intelligence reshapes how businesses and developers operate. What began as a simple migration of data centers to the cloud has evolved into a dynamic ecosystem of AI-native tools that enhance creativity and efficiency.

Developers now wield advanced coding platforms and large language models, enabling rapid innovation, while enterprises integrate AI-driven workflows to unlock new possibilities and transform competitive strategies. This synergy between cloud computing and AI is setting the stage for a transformative leap in technology, according to Jerry Chen (pictured), general partner at Greylock Partners LLC.

Jerry Chen, general partner at Greylock Partners, talks to theCUBE about cloud computing trends at Cloud AWS reinvent Coverage 2024.

Greylock Partner’s Jerry Chen talks to theCUBE about cloud computing trends.

“The past 12, 13 years you’ve been living this cloud-mobile transition,” he said. “Phase one was just move the stuff you had in your data center to the cloud. Phase two is let’s rewrite things in a cloud-native way. Amazon’s really pioneered what cloud-native means. Now, we’re seeing what AI-native means. I think we’re seeing Amazon try to reinvent themselves to say, ‘We’re the AI-native cloud.’”

Chen spoke with theCUBE Research’s John Furrier for theCUBE’s “Cloud AWS re:Invent Coverage,” during an exclusive broadcast on theCUBE, SiliconANGLE Media’s livestreaming studio. They discussed how cloud computing trends are evolving with the integration of AI-native tools, enabling innovation and reshaping enterprise strategies.

AI-native development reshapes cloud computing trends

Cloud technology has evolved from data center migrations to cloud-native applications. Now, it is entering an AI-native phase powered by tools such as GitHub Copilot and large language models. These advancements enable developers to create smarter, more efficient applications with less effort, according to Chen.

“I think what you’re seeing is two things. One, the tools you have to make yourself a better, fast developer are there,” he said. “Number two … you have this thing called the LLM, the large language models, video models, ephemeral apps. What does AI-native mean for … 25-year-old founders and developers or large enterprises? [It takes] everything you have, but imagine [having] this super powerful AI resource to plug into and that just creates the new creative space.”

Generational dynamics are also playing a role in this transformation. Younger developers, who grew up with Google Docs and cloud services as standard, are now entering the workforce with a different mindset. These developers view the cloud as a given and are instead focused on building solutions that leverage AI and other cutting-edge tools, according to Chen.

“The usability of making enterprise apps because you have these large lives models has changed,” he said. “I can now make all that stuff sexy again because A, design aesthetic, B, mobile and C, can use things like chat or voice to make these things approachable. I can make software human-like with AI.”

The debate around bundling versus unbundling of cloud services is particularly relevant. While companies such as Amazon and Google bundle AI tools into their broader cloud ecosystems, the rise of specialized platforms such as GPU clouds and bespoke AI infrastructure providers signals a potential shift toward unbundling. This trend mirrors the unbundling seen in data services, with companies such as Snowflake and Databricks carving out niches in the market.

“I think you see Amazon, Azure, Google bundling a bunch of services together and they say the AI stuff should be tied to your storage, to your networking,” Chen said. “Then you’re seeing GPU clouds like Crusoe, Lambda … and they work on all the clouds. I think you might see some unbundling services because of AI, because it’s very different than what you had before. These guys don’t go away, but I think there’s a great opportunity to build the next Amazon, maybe outside Amazon, maybe on Amazon.”

Here’s the complete video interview, part of SiliconANGLE’s and theCUBE’s “Cloud AWS re:Invent Coverage”:

Photo: SiliconANGLE

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