Europe’s public cloud market is expected to grow 22 percent annually until 2022, giving a big boost to US giants like Amazon and Salesforce
Revenues in Europe are growing faster than in any other region for some U.S. cloud giants like Salesforce. It would appear that GDPR has become an “accelerator” for cloud adoption in Europe, according to some experts.
Despite the scandals involving Europe’s tech sector over the past year – privacy scandals, stricter regulation and the trade war between the U.S. and China, the cloud computing sector is looking decidedly bright.
According to International Data Corporation (IDC), Europe’s public cloud market is expected to grow at a 22 percent rate for the next three years, and the trend is showing up in earnings reports of U.S. companies from small cloud firms to enterprise software giants. For instance, Salesforce reported 31 percent revenue growth in its European business last quarter.
Reports say that global investment in cloud services has surged in recent years as more companies are adopting online and Research firm Gartner estimates worldwide public cloud revenue will top $278 billion in 2021, up from $145 billion in 2017. But while there is a common conception that European organizations are 18 to 24 months behind the U.S. when it comes to cloud adoption, the reality is a bit different. The difference, according to some experts is that European organisations are not moving fast on cloud adoption – after detailed evaluations of both the benefits and challenges of moving operations off-premises and into the cloud.
Since there is clear lack of cloud provider brands in Europe, US firms are benefiting from cloud adoption in Europe. U.S. cloud players are creating with expansion plans across Europe. In December, Amazon’s AWS opened new data centers in Sweden, and the company says it already serves “tens of thousands” of customers in the Nordics. Microsoft announced plans last year to build data centers in Norway, Germany and Switzerland. Chinese firms are also competing for the European market. Tech titan Alibaba expanded its presence in Europe in October with new data centers in the U.K.