56% of European hosting providers expect 40 to 100 percent of their revenue to come from cloud hosting services in 2015, representing a 93% increase from 2012, according to a recent survey by Interxion (NYSE: INXN). Interestingly, the study also reveals that European hosting providers don’t consider large, international cloud providers as their main competitors.
Instead, 87% of respondents consider local cloud players as the main competition, with only 13% viewing U.S. companies as main competitors. Of those 13%, 48% mention Amazon as the primary U.S. competitor.
Cloud hosting strategies
The survey also uncovered how hosting providers are capitalizing on the cloud opportunity. 61% of European respondents reported driving cloud revenue by adopting three or more strategies, including: building a cloud infrastructure (64%), increasing focus on service excellence (61%) and expanding into other countries (52%).
“Given our 10+ years’ track record housing and working with hosting providers across Europe, we felt Interxion was in a prime position to leverage our neutrality to create independent research about the European hosting market, and the results are compelling,” said Jelle Frank van der Zwet, Segment Marketing Manager, Cloud, at Interxion. “Between now and 2015, the number of hosting providers expecting the majority of their revenue to come from cloud hosting services will grow by 17%. This presents a significant opportunity for them to leverage their experience in managing infrastructure and local customer approach to grow their business. It is exciting for us to see this transformation and help service providers continue to differentiate themselves.”