Amazon Web Services, Microsoft and Google are killing off European Cloud provider according to new data from Synergy Research.
The European cloud market tripled since the beginning of 2017, hitting €5.9 billion in Q3 of 2020. But European cloud providers have seen market share decline from 26 percent to 16 percent.
WS, Google and Microsoft now account for two-thirds of the regional market, with the remainder of the market made up of smaller US and Asian providers, who are also losing market share.
Synergy also estimated that the full-year European cloud infrastructure services revenue for 2020 will be over €23 billion, a 31 percent increase on the previous year. IaaS and PaaS services makeup nearly 80 percent of that market and are growing much faster than the smaller hosted or managed private cloud segment, it revealed.
John Dinsdale, a chief analyst at Synergy Research Group said: “European cloud providers are trying to gain more traction in the market by focusing on customer segments and use cases that have stricter data sovereignty and privacy requirements. This has led to the Gaia-X initiative which represents an attempt to reverse the fortunes of the European cloud industry.
“Their efforts are laudable but the trouble is that this is a bit like King Canute attempting to stop an incoming tide. The big three US cloud providers now have 67 hyperscale datacentres in Europe and over 150 additional local points of presence, while the tier two US providers have another 36 major datacentres.
“European firms are facing a huge challenge if they want to break out of their niche-like positions – the revenue growth opportunities are massive but so too is the funding and willpower required to tap into those opportunities.”
