The demand of Cloud Computing in Europe: drivers, barriers, market estimates

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1 The demand of Cloud Computing in Europe: drivers, barriers, market estimates Gabriella Cattaneo Associate VP IDC European Government Consulting Research In Future Cloud Computing workshop Bruxelles, May Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

2 Agenda A few predictions from IDC Take up of Cloud Computing in Europe Drivers and benefits Barriers to Cloud adoption What should be done to overcome barriers Policy counts Source: Adapted from IDC Predictions 2012 Competing for 2020

3 First, a few predictions from IDC... In >80% of new apps will target the cloud! 85 Bn mobile apps will be shipped! The "digital universe" will grow to 2.7 ZB, up 48% from 2011! By 2020 Source: the ICT industry will reach $5 trillion $1.7 trillion larger than it is today Source: IDC Predictions 2012 Competing for 2020

4 By 2020, the IT industry will be dominated by the new disruptive technologies of today. Cloud computing, Mobile devices and Apps, Social Technologies, Big Data Analytics today represent about 20% of global IT spending According to IDC, they grow 6 times faster than traditional IT and will represent 80% of the market by 2020 They represent a structural change and a new platform for growth Source:/Notes: 4

5 What about Europe? IDC research on Cloud Computing on behalf of DG Information Society Quantitative estimates of the demand for Cloud Computing in Europe and the likely barriers to take-up Surveys on business and consumer users 40 stakeholder interviews Clouds for Science and Public Authorities, in partnership with Trust-IT Cartography on Cloud initiatives by country Case studies Source: Adapted from IDC Predictions 2012 Competing for 2020

6 The EU Public Cloud Market is growing 3 times faster than other IT Bn 10.9 Bn Public Cloud HW Public cloud SW 2,7 CAGR Bn 1,1 8,2 CAGR , Source:/Notes: 6

7 Already a majority of EU businesses use Cloud services Thinking 12% No Usage 11% Full use 32% TOTAL USERS 64% Planning 13% Data Sample n=1056 Limited/trial use 19% Full use / one area 13% 7

But users so far privilege the easy Cloud applications 45% Data 2011 - % of

8 But users so far privilege the easy Cloud applications 45% Data % of respondents 40% 35% 30% 25% 20% 15% 10% 5% Limited use Full use 0% Source:/Notes: 8

9 Micro-SMEs still lag behind in Cloud adoption Data % of respondents - Sample n= % 90% 80% 70% No usage or intention At least one thinking about but no plans Non Users 60% 50% 40% 30% 20% At least one planning Limited/trial users Full use only one areas Users 10% 0% 1-9 employees employees employees250+ employees Full use more than one area 9

10 Cloud promises and delivers benefits positively correlated with use intensity 60% 50% 40% Full>1 Full 1 Limited Data 2011 % of respondents 30% 20% 10% 0% Mobile working Productivity Standard processes New locations New business Capex Business volume 10

11 Almost all users see cost savings with a peak between 10 and 20% 30% Cost Savings 25% 20% 15% 10% 5% 0% 1% to 4% 5% to 9% 10% to 19% 20% to 29% 30% to 49% 50% or more We have seen (or expect to see) a cost increase Too early to tell Don't know Data 2011 % of respondents 11

12 The real barriers: uncertainty, complex regulation and lock-in fears Trust, Security & Data Protection Data location and jurisdiction Interoperability and portability Who is trustworthy? Who protects my customers data? Who guarantees the Integrity of data? Availability? Who deals with security breaches? Who is responsible? Where is our data? Where does legal jurisdiction reside? Are we sure to be compliant? Who owns changes and upgrades? Can we move data from one provider to another? 12

Multiple barriers with a cumulative impact Data 2011 - % of respondents Security& data protection 30% Trustworthiness Data location Local support Change control Ownership of

13 Multiple barriers with a cumulative impact Data % of respondents Security& data protection 30% Trustworthiness Data location Local support Change control Ownership of customisation Evaluation of Usefulness Slow Internet Connection Local language Tax incentives on capital spending 25% 24% 23% 22% 21% 18% 18% 18% 17% 0% 5% 10% 15% 20% 25% 30% 35% 13

14 Depending on maturity, Cloud users have different priority requirements Full Users Data Location Data Portability Improved security and accountability Thinking or Planning Improved Security and Data Protection guarantees Evidence of benefits Limited/trial users Evidence of benefits Peer pressure! Non Users Peer pressure! 14

15 What Actions could increase Cloud adoption? Users opinions Clear rules on service provider accountability Guaranteeing data and application portability between cloud services providers Better and more reliable Internet connectivity EU-wide security certification Clarification and harmonisation of data residency and legal jurisdiction regulation EU-wide certification for government usage Fostering EU-wide standardisation and interoperability of cloud and cloud services 15

16 Consumers would use more cloud services if they had... Increased Security Data and Privacy protection Lower costs!! Apps for my needs The right to be forgotten

17 Policy action counts Scenarios of Cloud Computing Market Growth in the EU27 (DRAFT) Bn 90,0 80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 - No intervention Scenario Policy driven Scenario Source: Source:/Notes: 17

18 Next steps: Workshop on May 10 Removing barriers to Cloud Computing in Europe Open workshop Ave de Beaulieu 25, Brussels Contact Gabriella Cattaneo IDC European Government Consulting

Developing e-leadership

Developing e-leadership Delivering Skills for an Innovative and Competitive Europe IE Business School, 4 June 2014 Gabriella Cattaneo, IDC Prepared for the European Commission DG Enterprise and Industry