Respondents optimistic on high growth in demand for cloud services across Europe
In working with a broad cross-section of hosting providers and talking to them about their experiences and business plans, we've learned a lot about what drives success in the market, how European service providers compete, and the nature of their differentiators. As cloud computing has taken off, we've worked closely with them to understand the implications.
In a recent survey of over 400 service providers in 17 European countries and the US, we sought to examine the current state of play in the European cloud market and how service providers are addressing the growing demand for cloud.
The survey shows that a majority of European service providers expect the cloud wave to hit within the next 3 years, with 56% of respondents expecting that 40-100% of their revenue will come from cloud services by 2015.
Service providers are overwhelmingly optimistic about the growth of the cloud market, with 73% of respondents expecting a positive impact on revenue.
Interestingly, European service providers do not consider international providers as their main competitors. This may be because they are clearly distinguishing themselves by targeting customers that prefer to host their data within their own country and who want support delivered in their own language.
In order to maintain, and gain, market share throughout this period of high growth the majority of service providers have employed a combination of emergent strategies.
The top 3 strategies we found most popular were:
- Offering of cloud infrastructure (65%)
- A focus on service excellence (61%)
- Internationalisation (at 52%)
They're also strengthening their market position through a sharp focus on customer service, and ensuring they understand their customers' IT and economic lifecycle.
To learn more about the European cloud market, download our whitepaper ‘The Evolution of the European Cloud Market’.
About the author:
Jelle Frank manages the pan-European marketing and product development programme for our sizeable and fast-growing cloud community.
He has over 12 years of experience working in ICT product and business development.