Providers from the United States continue to concentrate a majority portion of the cloud business in europe. Only a tiny fraction of spending in the sector, 2%, goes to european firms. Google, Microsoft and Amazon account for three quarters of the market share.
Cloud infrastructure services in europe have seen revenue growth over the past four quarters. For Hosted Private Cloud Services, including PaaS and IaaS, revenues increased by 41% compared to the previous four quarters. This brought revenues to around $27 billion as of September 30, 2022 .
This growth benefits in particular the computer consultant specialized in these technologies. A profession that requires a few steps to be taken. One of the most important steps to remember is to conduct a market study. Another operation to take into account is the development of a business plan. This document will help ensure the viability of the project.
American players dominate the european market
This data was taken from a study just released by Synergy Research Group. This report also reveals that 72% of european companies’ spending on cloud services would come from :
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- Google Cloud ;
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- Microsoft Azure ;
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- Amazon Web Services (AWS).
At the same time, european companies only capture a tiny share of the market on the Old Continent . A fact that has been established many times before. Senior analyst at Synergy Research Group, John Dinsdale, comments:
As U.S. cloud providers continue to invest more than euro4 billion each quarter in european investment programs, this represents an impossible hill to climb for companies serious about challenging their market leadership. […]
As a result, he explains, european societies have focused primarily on approaches that consist of :
[…] Serving local groups of customers with specific local needs, sometimes working as partners with large US Cloud providers.
The expert cites recent initiatives that have been put in place, such as:
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- S3NS, bringing together Thales and Google Cloud ;
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- Involving Capgemini, Orange and Microsoft.
These alliances allow cloud companies in the Old Continent to gain market share, albeit minimal.
Some qualities are missing in european societies
These cooperations also help european firms to cover the needs of certain sectors with high expectations:
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- Information security ;
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- Governance.
These partnerships allow them to present themselves as a trusted Cloud for defense, finance…
The market for Cloud activities in europe produced euro10.4 billion in revenue in April-June 2022. A sum that reflects a five-fold improvement since 2017 . Notwithstanding this growth, the european operators in the sector only receive a tiny portion of this revenue.
The German Deutsche Telekom and its French competitor SAP each have only 2% of the european market . Orange, Telecom Italia, OVHcloud and a host of regional and national providers are behind these players.
In the face of this yawning gap between european and American operators, John Dinsdale spoke of the shortcomings of the former. He said that the cloud market represents a game of scale in which tomorrow’s leaders must :
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- Keeping a focused determination to strive for success ;
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- Continuously striving for operational excellence;
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- Take a long-term view of profitability and investment ;
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- Making huge financial bets.
According to him, all european companies are far from these criteria.