Cloud Computing in 2026: What’s Happening?

Although the cloud computing concept emerged in the 1960s, it launched fully in 2006. Fast forward twenty years … how has cloud computing evolved?

It began as an efficient, secure way to store files. Now, it’s the backbone of most businesses, supporting business operations, cybersecurity and, increasingly, artificial intelligence. Around 96% of enterprises now use some form of cloud computing. (DTP Group)

The question for businesses used to be “Shall we move to the cloud?” Now, business owners and managers should be asking, “Are we managing our cloud environment properly?”

Four key aspects of cloud computing in 2026 are governance, benefits, responsibility and environmental impact.

1. The need for good governance

It’s common to start using one application, add another, introduce a second cloud provider and then discover employees are using AI tools and SaaS platforms without your IT team’s knowledge. This complexity creates uncontrolled cloud growth – known as cloud sprawl – creating a greater cyber attack surface and higher risk of data breaches leading to GDPR incidents.

You need to know what cloud services your business uses, where data is held, who can access it, which suppliers are responsible and what happens if a service fails. This forms the foundation of good cloud governance. The greatest risk comes from shadow platforms and endpoint devices being used without your knowledge or sanction.

With 21% of UK businesses adopting AI tools, good AI governance is now an important part of your cloud governance.

‘Cloud governance is where businesses should be proactive,’ advises Eric Highes, founder of EMH Technology in Hitchin. ‘This includes assessing your applications to identify potential risks, enabling an informed decision about whether to deploy the platforms within your organisation. For example, we offer a management framework which evaluates applications using around 65 questions. It’s very thorough. Clients then know the potential risks involved when deciding whether to use each application.’

2. Assessing cloud computing benefits

When Amazon Web Services launched in 2006, the key benefits of cloud computing were flexible costs and scalability. Today, organisations value more complex features. Research shows the key benefits valued by participating businesses are:

• Cost efficiency/savings – 81%
• Volume of work migrated – 74%
• Speed of new product delivery – 73%
• Customer adoption of cloud-based offerings – 69%
• Decreased data centre footprint – 66%
• Value delivered to business units – 64%

Note: Scalability, initially a key benefit, was not mentioned by the organisations surveyed.

(Source: State of the Cloud Report, Flexera 2026)

3. Shared responsibility

Increasingly, organisations are considering hybrid solutions that combine cloud services with on-premises infrastructure. Multi-cloud options are also popular, involving services from more than one provider. Both approaches can provide flexibility and resilience, as well as a more complicated IT environment to manage.

Cloud providers invest heavily in security, but moving to the cloud doesn’t mean handing over all responsibility for protecting your data. The National Cyber Security Centre (NCSC) describes this as a shared responsibility model. The provider secures the underlying service. The customer remains responsible for understanding their security requirements, configuring their cloud services securely and deciding what data they store.

This shared responsibility model matters because 43% of UK businesses report experiencing a cyber breach or attack. (Cyber Security Breaches Survey, 2026) Strong identity controls, multi-factor authentication, encryption, monitoring, backups and sensible permissions have become fundamental parts of a secure cloud strategy.

4. Environmental impact

Despite what the name suggests. Every cloud service involves physical servers, networks and data centres consuming energy.

Data centres accounted for 4.5 TWh – around 2% of Great Britain’s grid electricity consumption – in 2024, with consumption increasing by 41% between 2020 and 2024. (UK Government: special article 2026. This analysis is to be updated in 2027.)

Globally, data-centre electricity consumption is expected to roughly double to around 945[JH5] [DW6]  TWh by 2030, with AI a major driver. (International Energy Agency)

These worrying statistics make efficiency increasingly important. Organisations should choose appropriate workloads, avoid unnecessary storage and consider the environmental credentials of cloud providers. However, environmental impact was not a benefit assessed by organisations in the Flexera survey (above).

Cloud strategy in 2026

‘The best cloud strategy gives your business the right balance of security, flexibility, resilience, cost, governance and sustainability,’ says Eric. ‘It’s also important to facilitate AI usage and keep an eye on future developments.’

Does cloud computing work efficiently for your business?

Do you have a cloud governance policy in place?

Arrange an initial discussion without obligation. The IT experts at EMH Technology can review your use of cloud computing and how it supports your organisation. Let’s unlock its potential.