How European cloud infrastructure vendors lost market share while doubling revenue – TechCrunch

Synergy Research has released some Seemingly paradoxical numbers From this week’s European cloud market. Fortunately, the company quadrupled its market to 7.3 billion euros (US $ 8.8 billion) between 2017 and the second quarter of this year, doubling the revenues of European cloud vendors. ..

Bad news? These same European-based cloud vendors have actually lost market share. You may be wondering how such a scenario is possible, but most of the revenue goes to three US-based cloud infrastructure vendors, Amazon, Microsoft, and Google. rice field.

What else is new?

It’s not surprising that Synergy sees a similar pattern in Europe, as they are the same three companies that control most of the cloud infrastructure market around the world. But Synergy’s chief analyst, John Dinsdale, nevertheless says EU vendors should be content with the good news rather than suffering from it.

“They missed the higher growth opportunities offered by mainstream public cloud services, but some have pioneered a sustainable position as national champions or strong niche players,” Dinsdale said of the numbers. Said in a statement.

Big Three accounts for almost 70% of Europe’s total revenue over four years. The European cloud leader at the time was Deutsche Telekom, which accounted for only 2% of the pie. Other products with smaller slivers included OVHcloud, SAP, Orange, and countless other products with even smaller bits.

These numbers are clearly small compared to market leaders, but in reality the market is so large and growing so fast that even small amounts can make a lot of money. In the case of Deutsche Telekom, its 2% share is worth € 146 million (US $ 170.7 million). This is not terrible for a side hustle in the broader telecommunications business.

To give some context to these area numbers Global Cloud Infrastructure Revenue Was $ 42 billion in the previous quarter after reaching $ 129 billion in 2020.. It is growing rapidly and Europe is no exception to this trend as cloud adoption grows around the world. In fact, Dinsdale predicts that the market will continue to grow over the next few years.

Big Three certainly recognizes this. These companies continue to invest heavily in building data centers in Europe, with capital investments of € 14 billion (US $ 16.3 billion) in the last four quarters. Nonetheless, European vendors can earn hundreds of millions of euros just by sticking to their strengths.

“It’s important for them to continue to focus on use cases where data sovereignty and privacy requirements are more stringent and customer segments that require a strong local support network,” said Dinsdale.

How European cloud infrastructure vendors lost market share while doubling revenue – TechCrunch Source link How European cloud infrastructure vendors lost market share while doubling revenue – TechCrunch

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