IDC: Public Cloud Contributed Almost $500B to European GDP in 2020

The European public cloud market continues to expand in double digits, with European enterprises investing in public cloud solutions to support their innovation initiatives and digital business objectives, according to a recent analysis from International Data Corporation (IDC). The public cloud supply chain contributed almost $500 billion to European GDP, representing 2.7% of total European GDP.

The public cloud market has transformed the IT sector and developed like no other section of the European IT market in the last five years, according to Filippo Vanara, research analyst at IDC for European cloud and multicloud management. He claims that the COVID-19 epidemic has pushed the use of cloud services in Europe, citing cloud computing as a critical facilitator of business resilience, agility, innovation, and efficiency.

However, the cloud us benefiting more than just users and cloud service providers (CSPs), according to IDC. There is a whole ecosystem that would benefit from the rise of the cloud services sector around cloud users and cloud suppliers. To measure the influence of public cloud solutions on a country’s or region’s economy from a macroeconomic viewpoint, the broader ecosystem must be examined, largely beyond the firms utilizing the service.

Significant Number of Employees

Photo Carla La Croce, senior research analyst, European Customer Insights and Analysis, IDC Europe
“Understanding the impact of the cloud services market on value creation and employment in the European economy is important for cloud providers and policy makers,” said Carla La Croce, senior research analyst, European Customer Insights and Analysis, IDC Europe.

Providing public cloud services necessitates a large workforce throughout the whole supply chain. According to IDC, this chain employs around 1.3 million people in Europe, or 0.9 percent of the entire workforce. This becomes even more intriguing when contrasted to the proportion of total GDP created throughout the supply chain, which provides an approximate approximation of the cloud sector’s high productivity.

“Understanding the impact of the cloud services market on value creation and employment in the European economy is important for cloud providers and policy makers alike as they formulate their strategies for the European cloud market,” said Carla La Croce, senior research analyst, European Customer Insights and Analysis, IDC Europe.

“We expect public cloud providers to start considering new evaluation frameworks, identifying new metrics to increase clients’ awareness of the role of new solutions adopted, which goes beyond the mere improvement of business processes,” said Luca Butiniello, research analyst, European Customer Insights and Analysis, IDC Europe.

The IDC paper is titled ‘Public Cloud’s Contribution to the European Economy: A Macroeconomic Approach,’ giving an overview of the public cloud services market’s influence on the European economy in terms of GDP and employment contribution.

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