Public Cloud Services (PCS) spending in Europe will total $113 billion in 2022 and double to $239 billion by 2026, according to the ‘Worldwide Public Cloud Services Spending Guide’ released by International Data Corporation (IDC), expanding at a 22 percent 5-year CAGR from 2021 to 2026.
The majority of public cloud investments in Europe will still be made in Software-as-a-Service (SaaS) in 2022, but Platform-as-a-Service (PaaS) will increase at the quickest rate since PaaS fosters business agility by enabling organizations to swiftly test and execute their own applications.
Professional services, banking, and discrete manufacturing will be among the industries spending the most on public cloud services in 2022, accounting for about 60 percent of the total.
Cloud Spending – Russia, Ukraine
Human-centered industries are changing their work practices to make remote work more commonplace. This implies that increased focus on information access for remote employees will stimulate investment in cloud solutions.
The adoption of digital-first and cloud-based initiatives will remain a priority, and this year’s projected growth in European PCS spending (excluding Russia) demonstrates that cloud will remain robust despite the crisis between Russia and Ukraine. Similar to this, it is anticipated that Russian investments in cloud solutions would increase (7.7% YoY) in 2022; however, growth will be slower than that of the rest of Europe due to the exodus of numerous businesses.
“European companies want to automate their processes as they are experiencing market challenges including supply chain disruption and skill shortages,” said Andrea Minonne, senior research analyst at IDC UK. “More frequently companies will adopt cloud to create a solid real-time data analysis foundation that support business agility and resilience.”
Expansion of Cloud Services to the Edge
Public cloud has allowed the organization to focus on its core competencies, while delegating the complexities of owning, operating, and maintaining the actual IT infrastructure to public cloud service providers, according to IDC. As a result, there is a surge in innovation that is motivated by the freedom to work on the creation of new products and services without being constrained by an organization’s ability to use them.
Cloud services are being used more frequently by businesses to modernize and scale up their operations, streamlining procedures and enhancing the value they provide to clients. The expansion of cloud services to edge locations by public cloud service providers is encouraging investments in the technology. The situation in Ukraine is one of several factors encouraging government and other sectors to shift to cloud solutions for security reasons, and this is encouraging the next wave of cloud adoption for sectors that haven’t yet embraced the technology, concluded IDC.