Sales projected to top $10bn as providers set up datacentres across the continent
The European infrastructure-as-a-service (IaaS) sector is forecast to expand more than fivefold in the next four years as uptake of cloud services accelerates.
Frost & Sullivan reports that the market posted sales of $1.95bn in 2014, a figure it projects will rise to a yearly total of $10.1bn (€9.2bn) in 2019. This equates to a five-year compound annual growth rate of 38.8 per cent.
Cloud adoption will reportedly be boosted by a number of providers establishing local datacentre facilities across the continent “to fast-track uptake among European customers”. The mature markets of western Europe will lead the sector’s growth over the next four years, with southern Europe beginning to catch up as and when its macroeconomic conditions improve. Eastern Europe will be characterised by “nascent growth”, Frost and Sullivan states.
Shuba Ramkumar, senior research analyst at the market watcher, said: “The on-demand, pay-as-you-go model of cloud services is garnering intense interest in Europe as it allows enterprises to effectively deal with volatility and seasonality in IT demand. Infrastructure requirements can be easily altered using a web portal, in contrast to the traditionally cumbersome job involving physical servers or networks.”