More than half (56 percent) of European service providers expect 40 to 100 percent of their revenue to come from cloud services in 2015, an increase of 93 percent from 2012, according to a survey released Wednesday by Interxion Holding.
Interxion interviewed more than 400 service providers in Europe and the US, and found that European service providers don’t consider large, international players as their main competitors.
More than three quarters of European providers (87 percent) consider local players as their main competitors, with 13 percent viewing US providers as the main competition. Almost half (48 percent) of respondents who believe US providers are their biggest competitors believe Amazon Web Services is the primary competition. The European market is quite different from the US cloud market in that customers prefer to go with someone local to ensure data privacy regulations are met.
Building a cloud infrastructure, increasing focus on service excellence, and expanding into other countries were three of the top used strategies in driving cloud revenue for 61 percent of European respondents.
“Given our 10+ years’ track record housing and working with hosters 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,” 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 services will grow by 114 percent. This presents a significant opportunity for them to leverage their experience in managing infrastructure and local customer approach to grow their business. It’s exciting for us to see this transformation and help service providers continue to differentiate themselves.”
Interxion will release its findings with a corresponding infographic published on its blog each week.
While European cloud providers interviewed by Interxion didn’t explicitly touch on the impact of US government spying, several researchers have said NSA could drive billions away from US providers over the next few years, giving European providers business.