Software Giants Report Huge Growth in Cloud Revenue

The USA might be one of the largest economies in the world, but Europe is proving to be a magnet for US tech giants.

The cloud market in Europe is predicted to grow by 22% a year in the next three years. This is having a major effect on many cloud-based software giants like Amazon and Salesforce, who are reporting phenomenal growth. According to CNBC, Salesforce, one of the world’s leading SaaS providers for businesses, reported a 31% growth in Q4 2018 revenue; it said Europe was the fastest growing sector in its global business.

Increased Worldwide Revenue from Cloud Services

Worldwide revenue from cloud computing is expected to reach $278 billion by 2021, according to research carried out by Gartner. Infrastructure as a Service (IaaS) is one of the fastest-growing areas of cloud services. Integrated IaaS offerings such as G-Cloud are growing in popularity. Organisations are increasingly turning to public cloud services to drive their infrastructure needs. The sector is transforming as needs change, and there are already hybrid-cloud and multi-cloud offerings entering the marketplace.

SaaS Growing in Popularity

Right now, Software as a Service is the largest market sector, with businesses like Amazon, Adobe, and Salesforce offering their software via subscription services. Revenue from this sector alone is expected to reach $85.1 billion by year-end, but revenue from Businesses Process as a Service is not far behind. Gartner predicts this will grow by 7.9% by the end of 2019.

Widespread Adoption of Cloud Services in the UK and Europe

Businesses in the UK and Europe have been quick to adopt cloud services. Modern businesses recognise the value of cloud-based solutions. In the early days, some businesses were reluctant to embrace cloud services because of security fears and a desire to hang on to legacy software. But now that the challenges of moving operations into the cloud have been largely mitigated, many organisations are fully embracing the advantages of using the cloud for their software and infrastructure needs.

US Giants Embrace the European Market

Cloud providers are moving into the European market, eager to snap up new customers. Microsoft is planning to open data centres in Switzerland, Norway, and Germany, and Amazon is opening new data centres in Sweden. Even Chinese behemoth, Alibaba, is increasing its presence in Europe.

G-Cloud in the UK

In the UK, the G-Cloud is an innovative new digital marketplace for public sector organisations using cloud services. Agencies can buy cloud-based services from big software providers, including Microsoft and Amazon, via the G-Cloud. The services on offer include cloud hosting, SaaS, and support products. UK Cloud is a good example of a market-leading business that owns and operates multi-cloud platforms. It helps customers to find the right cloud services – you can find more information on accessing the government's digital marketplace by following this link.

There were fears that Brexit might cause a slowdown in the adoption of tech solutions, but those fears have since proven to be unfounded and there are no signs of an economic slowdown in Europe. Instead, business is booming. Europe may not have its own Silicon Valley just yet, but it is certainly not at a disadvantage. The booming tech sector is one of the big success stories in recent years, which is a breath of fresh air in the midst of ailing heavy industry.

$23 billion has been invested in the European tech sector, including the UK. That represents a five-fold increase in venture capital funding since 2014. Tech firms are finding it easier than ever to attract funding for their ventures, which in turn is encouraging more entrepreneurs to start a tech business in the UK and Europe.

The future is bright for the sector.