• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

How European cloud infrastructure vendors lost market share while doubling revenue

September 22, 2021 by David Barret Leave a Comment

Synergy Research released some seemingly paradoxical numbers from the European cloud market this week. The good news was that the firm found for the period beginning in 2017 through the second quarter of this year, the market grew fourfold, to €7.3 billion ($8.8 billion USD), while European cloud vendor revenue doubled.

The bad news? Those same European-based cloud vendors actually lost ground in market share. You may be wondering how such a scenario is possible, but the vast majority of that revenue went to the Big Three U.S.-based cloud infrastructure vendors: Amazon, Microsoft and Google.

What else is new?

These are the same three firms that control the vast majority of the cloud infrastructure market across the world, so it shouldn’t come as a surprise that Synergy sees a similar pattern in Europe. But Synergy’s principal analyst John Dinsdale says that in spite of that, the EU vendors should be happy about that good news instead of fretting over the bad.

“While they have missed out on the higher-growth opportunities afforded by mainstream public cloud services, some have carved out sustainable positions for themselves as national champions or strong niche players,” Dinsdale said in a statement about the numbers.

EU bodies’ use of US cloud services from AWS, Microsoft being probed by bloc’s privacy chief

The Big Three account for almost 70% of the total revenue in Europe over the four-year time period. The European cloud leader over that time was Deutsche Telekom, with just 2% of the pie. Others with even smaller slivers included OVHcloud, SAP and Orange, with countless others having even smaller bits.

While these numbers are clearly paltry compared to the market leaders, the fact is that the market is so large, and growing so fast, that even a small amount can add up to a good chunk of revenue. In Deutsche Telekom’s case, that 2% share translates into €146 million ($170.7 million USD), which isn’t terrible as a side hustle for its wider telecommunications business.

To give these regional numbers some context, worldwide cloud infrastructure revenue was $42 billion last quarter after reaching $129 billion in 2020. It’s growing at a rapid rate, and as cloud adoption increases across the world, Europe is no exception to this trend. In fact, Dinsdale projects that the market will continue to expand in the coming years.

The Big Three certainly recognize this, as these companies continue to invest heavily into building data centers in Europe, spending ​​€14 billion ($16.3 billion USD) in capex over the last four quarters. In spite of this, the European vendors can still rake in hundreds of millions of euros simply by sticking to their strengths.

“The key for them is to stay focused on use cases that have stricter data sovereignty and privacy requirements and on customer segments that require a strong local support network,” Dinsdale said.

Source Link How European cloud infrastructure vendors lost market share while doubling revenue

David Barret
David Barret

Related posts:

  1. Bitcoin trading subdued after chaotic debut, Coinbase faces lawsuit
  2. Twitter wants you to tweet to interest-based communities, not just followers
  3. Cricket-Pakistan ‘used and binned’ by ‘Western bloc’, says PCB chief Raja
  4. Rippling launches computer inventory management as more workers remain remote

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • “Hymn to Babylon”: Missing Mesopotamian Text Dating Back Nearly 3,000 Years Discovered
  • Multiple New Species Of Cute Spotty And Stripy Geckos Discovered In Remote Cambodia
  • ChatGPT May Be Surprisingly Good At Piloting Spacecraft, Taking 2nd Place In Spaceflight Competition
  • Incredible Supernova Finding Shows That “Double-Detonation Mechanism” Happens In Nature
  • Soda Cans, Asthma Inhalers, And… Water Bottles? All Things That Could Explode In Your Car This Summer
  • Video: Is There An Ideal Sleeping Position?
  • If You Look Up At The Right Time Today, You Will See A Giant “X” On The Moon
  • We May Have Our Third Interstellar Visitor And It’s Nothing Like The Previous Two
  • Orcas Filmed Kissing (With Tongues) In The Wild For The First Time
  • How Easy Is It For A Country To Change Its Time Zone?
  • Earth’s First Commercial Space Station Set To Launch In 2026
  • Black Hole Moon: Rogue Planets With Weird Signatures Could Be A Sign Of Advanced Alien Life
  • World’s Largest Ephemeral Lake Set To Turn Iconic Peachy Pink After Extreme Flooding
  • Stunning New JWST Observations Give Further Evidence That Dark Matter Is A Real Substance
  • How Big Is This Spider? Study Explains Why You Might Overestimate Their Size
  • Orcas Sometimes Give Humans Presents Of Food And We Don’t Know Why
  • New Approach For Interstellar Navigation Was Tested On A Spacecraft 9 Billion Kilometers Away
  • For Only The Second Recorded Time, Two Novae Are Visible With The Naked Eye At Once
  • Long-Lost Ancient Egyptian City Ruled By Cobra Goddess Discovered In Nile Delta
  • Much Maligned Norwegian Lemming Is One Of The Newest Mammal Species On Earth
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version