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Jul 29 2014

IDC Predicts EMEA Cloud Market Will Break $4 Billion Mark in 2014

A recent survey from the International Data Corporation (IDC) shows that cloud computing accounts for a growing amount of hardware expenses and massively affects the development of hardware architectures and vendor strategies in the EMEA region.

Based on a trend analysis that covers the past three years, IDC projects that overall investment in cloud hardware will "exceed $4 billion in terms of user value" by the end of the year, indicating a 19% YoY growth. This would mean that companies will spend 15% of their total hardware money for cloud installations, as opposed to only 8% in 2011. Researchers expect this quota will rise to over 22% by 2018.

IDC gives a $3.4 billion estimate for spending on hardware going to cloud environments in EMEA in 2013, meaning a plus of 21% compared to 2012. In other words, cloud investments took a greater share out of the overall infrastructure hardware market, which otherwise remained flat at $26.3 billion. 42% of that spending are said to have gone into public clouds, 38% into on-premises private clouds, and 20% into hosted private clouds. As you would expect, cloud adoption was stronger in Western Europe with its mature IT infrastructures than in emerging EMEA markets. IDC says this trend was particularly visible in Northern Europe (mainly Scandinavia and the UK), where hosted private and public cloud deployments have seen a massive upswing over the past two years due to a rise in business-to-consumer services offered by large multinational providers such as Netflix.

Further according to IDC, the main drivers prompting rapid cloud adoption are still its advantages regarding scalability, agility, regulatory compliance, and TCO; Big Data analysis, while of growing importance, appears to be a less relevant factor. For the near future, IDC predicts that hosted private and public clouds will keep their position as the main growth areas. Continental observers on the other hand will find this last forecast somewhat over-optimistic, as it ignores possible after-effects of the Snowden revelations that have caused a great deal of mistrust in "multinational providers" among consumers and enterprise customers alike.

The entire study is available for download from the IDC website at a price of $4,500.

 
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