According to a new survey from analyst firm Frost & Sullivan, cloud providers are also pursuing regional strategies such as setting up of local data centres to fast-track uptake among European customers.
The analyst firm says that the European Infrastructure-as-a-Service Market earned revenues of US$1.95 billion in 2014 and estimates they will reach US$10.11 billion in 2019.
“The on-demand, pay-as-you-go model of cloud services is garnering intense interest in Europe as it allows enterprises to effectively deal with volatility and seasonality in IT demand,” said Frost & Sullivan Information & Communication Technologies Senior Research Analyst Shuba Ramkumar.
Ramkumar says that, in addition, enterprises find IaaS to be a suitable method to effectively manage IT spending in the face of challenging economic conditions in Europe, with the deployment of IaaS decreasing enterprise capital investment in internal data centres, hardware and human resources, “which can instead be directed to core business functions.”
To address concerns around security, Frost & Sullivan’s survey found that cloud providers are developing hosted private cloud services compliant with specific standards.
“Enterprises, particularly in highly regulated industries such as healthcare and financial services, have reason to be concerned about security risks such as data loss, unauthorised access to apps and leakage of data,” Ramkumar cautions.
“Offering hybrid cloud services that combine IaaS with managed hosting or on-premise cloud along with managed cloud services will help build a secure and unified infrastructure.
“With the rise in different hosting environments requiring enterprises to operate in multi-vendor ecosystems, service providers must also harness an environment of cooperation, where partnerships can be leveraged to ensure easy migration of applications and stronger adoption of IaaS in Europe.”