Analysis of the European Infrastructure-as-a-Service Market

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Cost-effective and Flexible IT Model Results in Increased Adoption

The Infrastructure-as-a-Service market in Europe is at an early growth stage and is, therefore, expected to have high growth rates during the next few years. The cost effectiveness, simplicity, and innovation offered by the model are the main factors contributing to the acceleration in its growth. This research assesses drivers and restraints in this market and makes estimates of the total market revenue for Infrastructure-as-a-Service in Europe, as well as growth forecasts for the future. It also estimates the market growth for the main segments – Compute-as-a-Service and Storage-as-a-Service – and analyses the competitive environment in this market.

Executive Summary

•The benefits of cost, flexibility, scalability, and innovation offered by adoption of the Infrastructure-as-a-Service (IaaS) are expected to cause the European IaaS market to multiply by about Xtimes from 2012 to 2018. Frost & Sullivan anticipates that this growth of the European IaaS market will be accompanied by high levels of growth of more than X% in the 7-year forecast period (2012 to 2018).
•This expansion in the European IaaS market will be characterised by a higher proportion of revenues from the Compute-as-a-Service (Compute) segment. The Storage-as-a-Service (Storage) segment is also expected to catch up with the growth of big data and the increased need for primary and secondary data back-up.
•Regional growth in Europe is expected to be higher in Western Europe compared to Southern Europe. Acceleration in growth rates is also expected in Central and Eastern Europe (CEE).
•Competitive IaaS solutions include the following features: flexibility, scalability, security, local presence of data centres, and compatibility with legacy systems. While pricing of the solution is also an important factor, it is found that customers are more likely to focus on the afore-mentioned features of a service when choosing a solution.
•In this study, Frost & Sullivan estimated the market size and growth trends for the total on-demand pay per use European IaaS market.
•The study will also analyse regional IaaS markets, particularly the United Kingdom (UK), Germany, France, Italy, and Spain. It will discuss the competitive positioning of key participants in the industry and forecast growth for the Xmajor segments: Compute and Storage.

CEO’s Perspective

1. Western Europe and CEE region IaaS markets are growing faster than the Southern Europe IaaS market.
2. The compute market is larger, but growing slower than the storage market.
3. Apart from market leaders, Amazon Web Services, the European IaaS market is fragmented.
4. Buying decisions are governed based on flexibility, scalability, and security of the IaaS solution, rather than price.
5. Developers, irrespective of their vertical, are the biggest segment of end users for the IaaS market.


In the cloud computing market, there is no standard definition for cloud services among service providers. This variation and ambiguity extends to the understanding of what constitutes IaaS, Platform-as-a-Service (PaaS), and Software-as-a-Service.
The IaaS market is one of the major components of the cloud computing market, with service providers including various services within their cloud infrastructure offering. This may include pure public IaaS services, dedicated hosting, managed hosting services, and hybrid services.
The varied understanding of IaaS in the market necessitates the definition of IaaS for the purpose of this research.
The following definitions provide the scope for this research on the IaaS market in Europe.

Infrastructure-as-a-Service (IaaS)
This refers to the provision of raw infrastructure or hosted data centre resources on an on-demand or pay-per-use basis to users for supporting enterprise information telecommunications (IT) operations such as building or uploading applications or workloads.
This includes public, private, and hybrid offerings that provide infrastructure on an on-demand basis.

Public IaaS
This refers to the process of renting infrastructure hosted by a service provider that is offered on a shared platform used by many enterprises. This is a multi-tenant platform that can be accessed using the public Internet or virtual private networks.

Private IaaS
This refers to renting infrastructure hosted by a service provider that is offered on a platform dedicated to the enterprise. This is a single-tenant platform that can be accessed using a private network.

Hybrid IaaS
This refers to an environment combining hosted or on-premise public and private cloud. This research will include only the hosted portion of hybrid clouds.

IaaS offerings that include setting up infrastructure on the premises of an enterprise are excluded from the scope of this research. Additionally, it excludes hosting services that are not available on-demand such as managed hosting or co-location services. It also excludes offerings that provide compute and storage resources as part of a different service such as Software-as-a-Service and PaaS.

This research will also examine the market of the 2 main segments of the IaaS market – Compute and Storage.

Compute-as-a-Service (Compute)
This refers to a service where enterprises pay for using computing resources such as central processing unit (CPU) cycles and memory. This also generally includes payment for incoming and outgoing of data.

Storage-as-a-Service (Storage)
This refers to a service where enterprises pay for storing data in a data centre and movement of stored data.

Revenue Definition
The market sizing of the IaaS market in Europe refers to the estimation of total revenue earned in USD ($) from the use of IaaS services by customers in Europe.

Key Questions This Study Will Answer

•What is the total European market for IaaS and how is it expected to grow between 2013 and 2018?
•Which companies are the major market participants in the IaaS market in Europe? What are their main offerings in this market?
•What are the main features of the utility based business model of an IaaS solution? What are the common pricing trends observed in the market?
•What is the level of adoption of IaaS in different European countries? What are the growth prospects for these countries?
•Which participants are the biggest end-user groups for the IaaS? What are the obstacles to adoption of IaaS?
•What is the expected growth trend for the 2 major types of IaaS segments: compute and storage?

Table of Contents

1. Executive Summary
2. Market Overview
3. Total Infrastructure-as-a-Service Market
•External Challenges: Drivers and Restraints
•Forecast and Trends
•Market Share and Competitive Analysis
4. Europe Breakdown
5. Profiles of European Infrastructure-as-a-Service Providers
6. Mega Trends and Industry Convergence Implications
7. The Last Word
8. Appendix

List of Exhibits

•Total Infrastructure-as-a-Service Market: Market Engineering Measurements, Europe, 2012
•Total Infrastructure-as-a-Service Market: Key Market Drivers and Restraints, Europe,
•Total Infrastructure-as-a-Service Market: Revenue Forecast, Europe, 2011–2018
•Total Infrastructure-as-a-Service Market: Per cent Revenue Forecast By Segment, Europe, 2011–2018
•Total Infrastructure-as-a-Service Market: Compute-as-a-Service Revenue Forecast, Europe, 2011–2018
•Total Infrastructure-as-a-Service Market: Storage-as-a-Service Revenue Forecast, Europe, 2011–2018
•Total Infrastructure-as-a-Service Market: Utility Based Business Model, Europe, 2012
•Total Infrastructure-as-a-Service Market: Competitive Analysis, Europe, 2012
•Total Infrastructure-as-a-Service Market: Competitive Structure, Europe, 2012
•Infrastructure-as-a-Service Market: Revenue Forecast, United Kingdom, 2011–2018
•Infrastructure-as-a-Service Market: Revenue Forecast, Germany, 2011–2018
•Infrastructure-as-a-Service Market: Revenue Forecast, France, 2011–2018
•Infrastructure-as-a-Service Market: Revenue Forecast, Italy, 2011–2018
•Infrastructure-as-a-Service Market: Revenue Forecast, Spain, 2011–2018
•Infrastructure-as-a-Service Market: Revenue Forecast, Rest of Europe, 2011–2018
•Mega Trend Impact on Infrastructure-as-a-Service Market, Europe, 2013–2018

Read the full report:

Analysis of the European Infrastructure-as-a-Service Market

For more information:
Sarah Smith
Research Advisor at
Email: [email protected]
Tel: +44 208 816 85 48

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