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Financial crisis not helping Euro cloud. Photo by Tony Esopi via Wikipedia Commons

Europe lags US in cloud adoption by two years

Posted By TelecomTV One , 31 May 2012 | 0 Comments | (0)
Tags: cloud Research EU usa Europe SMEs business Guy Daniels

New analysis suggests that cloud adoption in Europe will trail the US by at least two years. Guy Daniels reports.

According to analysis from Gartner, ahead of its forthcoming Application Summit in London next month, suggests that European cloud adoption will lag behind the US by at least two years.

This is down to European privacy rules, multi-country business processes, the continuing Euro crisis and ongoing economic recession.


Paolo Malinverno, vice president at Gartner, said that although European interest in cloud is high and European businesses see the same opportunities for cloud – and share some of the risks and costs – as businesses elsewhere in the world, the region’s diversity will result in slow adoption:


“Some of cloud computing’s potential risks and costs – namely security, transparency and integration – which are generally applicable worldwide, take on a different meaning in Europe.”


Gartner has identified what it believes to be the four main inhibitors for cloud in Europe as data privacy regulations, complex B2B integration, EU policies and the Euro crisis.


There are fears over the US Patriot Act, which can allow US law enforcement authorities to view hosted data, and which is proving a major concern for European businesses thinking of using US-based cloud service providers. However, Gartner says these fears are misplaced, as similar arrangements already exist between numerous countries. It’s a fact of life – like it or not – so deal with it. Not terribly comforting though…


Running multi-enterprise B2B processes across different European countries is not conducive to quick cloud deployment. Having to cope with several different sets of national regulations and legislation is a proven problem for large businesses. Gartner says that this diversity makes achieving the required critical mass more difficult and significantly lowers the interest of providers wanting to offer cloud services throughout Europe.


Moving to the political and economic. The process by which the EU sets policies and regulations that are subsequently worked into the legislation of each member state – together with whatever local legislation each state decides to add to the mix – creates lengthy delays before full implementation. Gartner says that, just like the delays surrounding e-invoice legislation, cloud will likely be the next ICT process to be the affected. Add to this the continuing economic crisis and uncertainties surrounding the Euro in certain countries, and you get more delays in critical decision making.


Gartner analysts will build on this discussion at the Application Architecture, Development and Integration Summit, held in London on June 21 and 22. David Mitchell Smith, vice president and Gartner Fellow, concludes that:


“The bottom line is that the interest in cloud is as high in Europe as it is elsewhere in the world. While these inhibitors will certainly slow down cloud adoption in Europe, they will not stop it — the potential benefits of cloud are too attractive and the interest in its efficiency and agility are too strong to stall it for long.”

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