Skip to main content

Business Leaders Drive Shift to Public Cloud in Europe

Cloud computing adoption is a global phenomena. Line of Business (LoB) leaders are at the forefront. Worldwide revenue from public cloud services will reach over $195 billion in 2020, more than doubling the current market size, according to the latest market study by International Data Corporation (IDC).

Western Europe will continue to represent around a fifth of the global market, with revenues growing from a $15 billion in 2015 to $38.6 billion in 2020, at a 20.8 percent five-year compound annual growth rate (CAGR).

Software as a service (SaaS) -- including the service enablement of applications and system infrastructure software -- accounted for 66.9 percent of all public cloud revenue in 2015, and will continue to represent the largest portion in 2020.

Vendor Go-to-Market Approach Evolves

However, according to the IDC assessment, Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) revenues are forecast to grow at a faster rate than SaaS -- expanding their share of the overall market during the forecast period. Cloud vendors are starting to adapt to this shift in demand from buyers.

"The flexibility, low initial cost, and ease of use provided by cloud deployments is reshaping the way companies select and buy new IT solutions. Line of business managers are gaining a central role in selecting IT providers, and the focus across all industries is on how IT can meet specific business objectives," said Serena Da Rold, senior research manager at IDC.

Market segmentation by informed cloud vendors is proven to result in more effective offers. IDC analysts believe that the savvy cloud service providers will stay close to their target industries, strive to understand their business processes and key pain points, in order to offer clients in each segment the solution and features that meet their specific requirements.

Discrete manufacturing, banking, and process manufacturing are the largest spenders, representing nearly 36 percent of cloud revenues in the region. Utilities, insurance, and discrete manufacturing will see the fastest revenue growth in the region over the next five years. However, all 20 industries tracked by IDC will more than double their cloud spending over the forecast period.

Moreover, public cloud services have changed how European organizations evaluate and select software. DevOps related aspects of cloud adoption -- such as very fast deployments, continuous upgrades, and ease of post-implementation reconfiguration -- are now the top criteria for new application purchases.

European Cloud Services Market Outlook

IT buyers in some European countries have started the adoption of public cloud services later than others, due to concerns related to information security, data location, solution availability, and other issues or concerns.

However, IDC foresees that the public cloud movement will sweep across all of Europe and that some markets of cautious adoption will outgrow the others over the next five years.

In Western Europe, IDC predicts that the U.K. will remain the largest market for public cloud services through 2020, generating nearly 30 percent of total revenue in the region. Germany and France follow in terms of size, with the three largest countries representing collectively around 64 percent of total revenue.

Germany will see the strongest growth over the next five years, followed by some of the smaller countries -- such as Ireland, Sweden, and Switzerland -- which will gradually increase their share of the Western European regional market.

Popular posts from this blog

How Edge Computing and AI Applications Drive IoT

The global pandemic has accelerated the adoption of emerging technologies, including edge computing and TinyML. As more CIOs and CTOs seek ways to capture and process data at the edge of their enterprise IT network, the demand has fueled investment for Internet of Things (IoT) applications. According to the latest worldwide market study by ABI Research, the global edge Artificial Intelligence (AI), Software-as-a-Service (SaaS), and turnkey service market will grow at a CAGR of 46 percent between 2020 and 2025 to reach $7.2 billion. This is 25 percent of the global edge AI market, which is estimated to be $28 billion by 2025. The market is comprised of edge AI chipsets, SaaS, and turnkey services, as well as professional services. As the benefits of edge AI becomes more obvious, enterprises are searching for edge AI solutions that offer low latency and are fully secured to assist them with data-based analysis or decision-making. Edge Artificial Intelligence Market Development "The

How the COVID-19 Pandemic Advanced Telehealth Adoption

The global COVID-19 pandemic has accelerated digital transformation across many industries. As an example, consider the healthcare sector. Some routine medical situations can be diagnosed and resolved online. While the trend was already in motion long before the pandemic arrived, the adoption of telehealth increased rapidly in 2020. Around the world, many governments responded to the disruption and inaccessibility of healthcare facilities by loosening previous regulations and restrictions on the practice of telemedicine apps, and teleconsultations. This decision resulted in the mass adoption of these medical services among patients and providers. According to the latest market study by Juniper Research, telemedicine will save the healthcare industry $21 billion in costs by 2025 -- that's rising from an estimated $11 billion in 2021. This increased app usage represents an anticipated growth rate of over 80 percent in the next four years. Telehealth Services Market Development The co

Hyper-automation Propels Superior Business Process Redesign

When the world was disrupted by a global pandemic during 2020, many CEOs and their board of directors were consumed by reacting to immediate problems. Meanwhile, a few forwarding-thinking enterprise leaders also paused to invest in accelerating their prescient digital transformation agenda. What enables executives to envision an opportunity while others see only challenges? Strategic foresight, and a willingness to embrace the apparent changes that are transforming the legacy status quo. During this period of uncertainty, hyper-automation investment has gained new momentum. Hyperautomation is the application of advanced technologies that augment humans by helping to streamline processes in new ways that are significantly more impactful than the legacy approach. Hyperautomation Market Development The global market for technology that enables hyperautomation will reach $596.6 billion in 2022, according to the latest worldwide market study by Gartner. This is up from $481.6 billion in 202