Cloud computing has brought about significant changes to how businesses operate, how entertainment is delivered and how data is communicated. In fact, studies have shown that worldwide, over 90% of businesses use cloud computing in their operations, in one way or another.
But will cloud computing mean that upgrading hardware could be a thing of the past completely?
Looking at certain sectors such as entertainment, software development, and the wider effect on the industry as a whole, is it possible to find clues that could spell the end of hardware upgrades completely?
Cloud Computing in Entertainment
The way entertainment is consumed has shifted dramatically over recent years, in part due to the advent of cloud computing. Most people will not even think of themselves as making use of cloud solutions as they regularly stream films and boxsets on Netflix, Amazon Prime, iPlayer, etc.
But let's focus on one specific cloud-based entertainment service that could have implications for the wider industry.
Microsoft Cloud Gaming
With services such as Microsoft Cloud Gaming, users can stream games directly from the cloud without fully installing them. Some in-game data or temporary files may still be downloaded, but the core game runs remotely.
Furthermore, they do not need to own the current level of console that is required to run the game.
For example, a user with the older model Xbox One can access titles through the cloud that would normally need the specification of the newer Series X console to be able to run it.
Traditionally, a new gaming console would come out, there would be a big rush to get new hardware, purchase games for it and install them on the machine.
Once the user had bought the hardware and software, downloaded the file and run the game, they could only then dive into the entertainment.
However, is this trend set to continue with the next iteration of gaming consoles or has this whole concept been turned on its head?
Current Environment's Effect on Development
With cloud services such as MS Cloud gaming, the concept of upgrading to the latest console may be shifting.
With subscription services, there is now also a far faster route to consumers, with users flicking through gaming experiences as they would through films on Netflix.
As long as they have an internet connection and a compatible device, users can instantly access hundreds of games, even if their hardware wouldn't normally support them.
So, how is it possible that a user on a tired old Xbox One with lower-level graphics and performance can instantly access high-end games built for the new Series X without splashing out on the new console?
Virtual Machines
Through cloud services users can access host machines. This essentially allows users to access powerful remote hardware to run their games, similar to how a high-end console operates in a data centre.
So although the user may have an older but compatible console sitting in front of them, that is merely the input that is sending the signal through the cloud to a high-performance remote system.
Instead of running locally, the game is processed on a virtual console instance, providing an experience nearly identical to playing on a top-tier console at home.
Not only is the data and the software itself accessible through the cloud, but also the computational power needed to run it, offloading intensive processing like physics calculations, AI, and graphics rendering to remote servers.
The cloud console sets up an instance for each user, presenting them with an image that can be controlled in exactly the same way as a game installed on their own hard drive. When the user moves the controller forward, this relays the signal to the cloud console which carries out that input, showing the user the change of scenery as their character moves forward, jumps, fires a weapon, etc.
So in a very real sense, you are remotely playing an Xbox Series X of the highest specification, on a compatible console, without ever needing to own one.
Does it Work in Practice?
The main question with these types of services is whether it will actually work in a practical sense, or would it be too glitchy and cumbersome to even bother with?
In terms of MS Cloud gaming, the service is comparable to physically using a real version of the console.
Through MS Cloud gaming you can access Xbox Series X titles through the Xbox One and other compatible devices, and there is a similar service for PlayStation users.
The only caveat with that would be that you would need a reliable connection to the internet for it to work. However, for online games, this would be a necessity regardless and any drop in the connection to the internet service would result in the experience being halted abruptly.
The Future of Gaming in 2025 and Beyond
What can we expect for the future of console gaming? As cloud services become more widely adopted, the need to physically purchase and own the latest console may become far less relevant.
Instead of upgrading their hardware, players will rely on cloud providers to continually enhance their infrastructure, ensuring access to the latest technology. That said, devices will still need to stay updated to support evolving cloud gaming advancements, but not in the same way we have seen in the past, where you have to regularly buy the latest console.
So how will the development of physical hardware be affected?
With computing power as well as the data being moved to the cloud, the need for high-end local hardware may diminish. While a device will still be required, it won’t necessarily need to be a traditional gaming console, as storage and processing will be handled remotely.
With this in mind, it’s possible that instead of powerful standalone systems and consoles, we may start to see lighter, more streamlined devices designed primarily for connectivity.
With cloud computing, all you need is a compatible device, an input method, a stable internet connection within a supported region, and a Microsoft account; everything else happens in the cloud.
Implications for Wider Industry
Cloud computing will radically alter the way online games are delivered and enjoyed. However, what conclusions can be drawn from this sector that may apply to other business transactions?
In this specific instance, we have shown that the need for local hardware, computational power, data storage, and file downloads has been reduced by the advent of cloud computing.
This in many instances also applies to the world of business, and these changes will start to take effect across all business sectors.
Cloud Computing Effect on Business in the Future
So how will businesses and the way they operate start to change over the next few years? Cloud computing will affect the future of the industry in a number of key ways:
Scalability and Flexibility
Cloud computing enables businesses to scale their resources up or down according to their needs. This flexibility will allow industries to respond more quickly to market demands without the need for massive upfront investments in infrastructure.
Reduced Operational Costs
Instead of investing in expensive hardware, companies can lease computing resources on-demand, paying only for what they use. This reduces the need for large expenditures and has the potential to reduce maintenance costs, which is especially beneficial for small and medium-sized enterprises (SMEs).
Focus on Core Activities
By leveraging cloud computing, there is the scope for businesses to shift some of their IT management to cloud providers, potentially reducing the need for as much in-house infrastructure upkeep. This allows them to focus more on core activities and innovation, leading to better resource allocation and operational efficiency.
Faster Innovation and Product Development
Cloud services provide access to cutting-edge technologies, allowing organisations to experiment with new ideas without the need for significant infrastructure investments. This promotes innovation cycles, enabling quicker go-to-market times for new products and services.
Cloud computing will also be key in enabling industries to adopt and scale artificial intelligence (AI), machine learning (ML), and data analytics.
Improved Collaboration and Remote Work Cloud-based tools and services can facilitate collaboration among teams and stakeholders worldwide. Industries benefit from seamless communication, real-time document sharing, and collaborative software, regardless of geographical location.
With more businesses embracing remote and hybrid work models, the cloud provides a secure and reliable environment for employees to access company resources from anywhere, making it easier for industries to adapt to new work paradigms.
Global Expansion and Market Reach Cloud computing removes geographical barriers, enabling small and large businesses to access new markets and customers worldwide. Organisations can host their services in multiple regions and deliver content to a global audience.
New Business Models and Opportunities
Software as a Service (SaaS) or cloud-based software applications are likely to continue disrupting traditional software licensing models. Subscription-based models will give industries more flexibility and cost control.
Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) will further enable companies to build and deploy applications without worrying about underlying hardware or software infrastructure. This will encourage more startups and smaller businesses to innovate and develop new products at lower costs.
Will Business Hardware Need to be Upgraded in the Future?
With over 90% of businesses worldwide using cloud computing, traditional office hardware is evolving rather than becoming entirely obsolete.
Many standard office devices may no longer require frequent upgrades, as computing power, storage, and networking increasingly shift to cloud-based solutions. However, much like we’ve explored in gaming, physical hardware will likely still exist, just in a more streamlined form, tailored to cloud connectivity rather than standalone processing.
While on-premise servers and large storage drives may potentially become less common as businesses move more resources to the cloud, they will still require endpoint devices such as laptops, or cloud-optimised workstations to access and interact with cloud environments. Networking equipment will also remain paramount for maintaining fast, stable connections.
To this end, there will still be some physical hardware that needs upgrading. Whatever device you use to view the information and input changes will always need to be maintained and updated to the latest version.
It also depends on the specific nature of the business, as not all work is office-based. For example, heavy industry such as manufacturing or construction will still require specialised equipment and various specialist machinery and equipment that couldn’t be replaced by cloud solutions. Similarly in healthcare, many essential tools and medical devices will continue to be needed for patient care, even as cloud technology evolves to support data management and diagnostics.
The cloud service providers themselves will still need to upgrade their equipment and infrastructure as well. They will need to invest in top-end data centres, storage solutions, and methods of delivery, continually updating their capabilities.
So it would not be true to say that cloud computing would render all hardware upgrades obsolete in terms of business use, entertainment, and gaming. There will always be some hardware, displays and tools to be upgraded and replaced.
Get In Touch With Lyon Tech
At Lyon Tech, we provide businesses with the latest cutting-edge technology in cloud solutions.
We have helped clients in a wide range of industries to create fully remote working environments and utilise the benefits of cloud computing.
If you would like to know more about cloud computing and how it could help your business, get in touch with our expert advisors for more information.
