European Enterprises Will Spend $8.2 Billion on Cloud Professional Services in 2015
New research from IDC shows that European enterprises are increasing their spending on consulting and migration to cloud very rapidly. IDC estimates that in 2015, $8.2 billion will be spent on cloud professional services, an increase from only $560 million in 2010. The rapid increase is a result of companies starting to migrate existing applications to public or private cloud solutions.
The early adopters typically started using cloud solutions in parallel with their existing IT, but in 2010 more companies started to migrate existing solutions to the cloud and to create roadmap for future migration. Early adopters are likely to move a majority of their IT to cloud within the next five years, and the vast majority will follow suit within a few years. The new IT environments will have elements of traditional IT, private cloud, and public cloud, and management and integration will become a challenge for which European enterprises will typically choose to hire an external service provider, driving further growth in the cloud professional services market.
There is a huge migration and integration task ahead, which is good news for service providers, who can expect their traditional revenue to start falling because cloud services are so standardized. Even consulting and migration are standardized and therefore cheaper than traditional consulting and integration services. This is also very good news for the customers — they will get more value for money.
Another important point is that service providers need to prepare for the rapidly growing request for cloud professional services and have the resources available. Right now, demand is mainly for business cases and roadmaps, requiring both business competence and architectural competence, but on a limited scale. But in a just slightly longer time frame, most if not all consultants need to understand cloud. Vendors have substantial investments ahead of them in creating the necessary capabilities to support this rapidly evolving market.