Skip to main content

Demand for Industry Specific Cloud Computing Services

Across the globe, cloud computing service applications are maturing and evolving as more C-level executives guide enterprise digital transformation strategies with their industry-specific business requirements. Moreover, the expectation is that cloud services will also comply with region-specific regulations.

IT infrastructure spending for public and private cloud computing in Europe, the Middle East, and Africa (EMEA) grew 19.5 percent year-over-year to reach $1.5 billion in revenue in the third quarter of 2016, according to the latest market study by International Data Corporation (IDC).

Cloud Market Development Trends

"IDC expects this market to reach a value of $10.9 billion by 2020, from the five-year forecast, or 35.4 percent of the total market expenditure. Fueled by increasing maturity and adoption rates of many new cloud-dependent technologies such as the Internet of Things (IoT), cloud continues to represent an area of tremendous growth for the European infrastructure sector," said Kamil Gregor, research analyst at IDC.

"In Western Europe, we are beginning to see not only specific solutions based on 3rd Platform and Innovation Accelerator technologies, but increasingly often innovative solutions that combine multiple technologies to harness unique value that none of the technologies could unlock alone," said Gregor.

For example, several emerging industry specific clouds in the region combine data from the IoT edge devices with real-time and Big Data analytics in sub-verticals -- such as advanced building automation, manufacturing asset management, and predictive maintenance.

Regulatory compliance is becoming an increasingly important inhibitor of cloud adoption in the region, mainly due to political volatility in the EU, both in 2016 and potentially continuing throughout 2017 --  partly influenced by issues related to the EU's General Data Protection Regulation.

Meanwhile. enterprises are looking into ways of mitigating these issues -- for example by taking blockchain technology from the world of financial transactions and applying it to automation of policy compliance in complex cloud environments.

Regional Outlook for Cloud Investment

Central and Eastern Europe, the Middle East, and Africa (CEMA) cloud infrastructure revenue grew by 17.8 percent year over year to $214.14 million in 3Q16, driven by investment in networking functionalities as Ethernet switch recorded the fastest growth.

The Middle East and Africa (MEA) region saw the strongest growth in EMEA, with many organizations investing in private cloud to consolidate and optimize their resources as IT budgets come under pressure due to challenging economic conditions in the region.

IDC analysts believe that private cloud deployments have been driving growth in the CEMA region as organizations that are consolidating their IT infrastructure seek greater flexibility, lower capex, and faster implementation over traditional IT infrastructure.

Popular posts from this blog

Digital Transformation Investment at $3.4 Trillion

Business technology leadership matters. Across the globe, more leaders have been pursuing bold Digital Transformation (DX) initiatives with the goal of creating new sources of business value through digital products, services, and experiences. As an additional benefit, the COVID-19 pandemic revealed that digital transformation efforts improve an organization's resilience against global market disruptions. Global DX investment is forecast to reach $3.4 trillion in 2026 with a five-year compound annual growth rate (CAGR) of 16.3 percent, according to the latest worldwide market study by International Data Corporation (IDC). Digital Transformation Market Development "Despite strong headwinds from global supply chain constraints, soaring inflation, political uncertainty, and an impending recession, investment in digital transformation is expected to remain robust," said Craig Simpson, senior research manager at IDC . The benefits of investing in DX technology -- including aut

Artificial Intelligence for National Border Security

National border protection agencies are under pressure to provide the highest level of security in the face of growing threats, such as increasing illegal migration and international terrorism. Now, government agencies are embracing advanced border security technologies to aid in effectively and reliably securing national borders. These solutions look to detect and identify potential threats and prevent them from escalating to a point that may jeopardize security. Security Surveillance Market Development Traditional border security patrols and Closed-circuit Television (CCTV) surveillance systems aren't adequate protection, and agencies must increasingly deploy new solutions to stay ahead of criminals and other potential threats to ensure the safety of a country’s borders. According to the latest market study by Juniper Research, the value of the border security technology market will exceed $70 billion globally in 2027 -- that's rising from $48 billion in 2022. Growing by 47 p

Precision Medicine Spend to Reach $132.3 Billion

Precision Medicine uses molecular info to extract the optimum medical method from diagnostic protocols, by merging the impact of environmental and genetic factors. Data access is essential, with genetic metabolic and clinical data used to build a fuller picture of a patient's biology. Moreover, the primary aim of precision medicine is to design and optimize a pathway for diagnosis, therapeutic intervention, and prognosis, using large biological datasets. Personalized, evidence-based medicine uses stored health data, which includes patient diagnosis, laboratory work, insurance claims, and demographic information. The results enable healthcare providers to predict and prevent some illnesses. Precision Medicine Market Development According to the latest worldwide market study by Juniper Research, the total investment in precision medicine will reach $132.3 billion globally by 2027 -- that's increasing from only $35.7 billion in 2022. The significant market growth of 270 percent is