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Cloud providers grow, but lose market share

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Since 2017, European service providers have grown their cloud revenues by 167%, but their market share has declined from 27% to 13% according to research from Synergy Research Group.

This comes as it was revealed that the European cloud market is over five times as big as it was in early 2017, reaching €10.4 billion in the second quarter of 2022.

The main beneficiaries of the market growth have been Amazon, Microsoft and Google. These three global cloud providers now account for 72% of the regional market and their share continues to steadily rise.

Among European cloud providers, SAP and Deutsche Telekom are the leaders, accounting for 2% of the European market.

They are followed by OVHcloud, Telecom Italia, Orange and a long list of national and regional players.

“The cloud market is a game of scale where aspiring leaders have to place huge financial bets, must have a long-term view of investments and profitability, must maintain a focused determination to succeed, and must consistently achieve operational excellence,” said John Dinsdale, a chief analyst at Synergy Research Group.

“No European companies have come close to that set of criteria and the result is a market where the six leaders are all US companies.”

Over the last four quarters, European cloud infrastructure service revenues totalled over €27 billion, up 41% from the preceding four quarters.

IaaS and PaaS services account for over 80% of the market and they are growing more rapidly, the research added.