As in 2013, it looks like another booming year for the cloud industry.
After initial hesitation, European companies of all sizes in all industries are starting to embrace cloud infrastructures and are increasingly relying on cloud service providers to host both their data and applications.
Cloud computing is not only changing the way companies behave, it is changing complete industries. The next step that we see is that of traditional software vendors taking their products to the cloud and selling these based on a subscription model. To further stimulate cloud adoption in Europe, fast and secure connectivity will be key in 2014.
Legislation, privacy and security have been the main obstacles for cloud infrastructures on a global scale and to some extent they unfortunately still are.
The NSA issues have intensified the privacy discussion. Although I am confident that cloud infrastructures are as secure in the US as in other regions and privacy and security are well respected by US cloud providers, the discussion offers new opportunities for Europe-based cloud platforms. Companies are seeking experienced European partners to host their data and applications in a safe and efficient manner.
To be able to deliver accessible and high-performance cloud services, low-latency connectivity is essential. We see more and more cloud service providers joining internet exchanges to boost connectivity and make it easier to peer with partners on a European and global scale. Companies like Amazon, Microsoft, SoftLayer and Claranet have joined our exchange to increase end-user speed and performance.
With software companies starting to offer their products as a cloud service, connectivity has become even more important. No connectivity means customers switching to competitors. Companies like Microsoft and Salesforce have started offering cloud-based software solutions, while Adobe has completely shifted to a subscription model for their business software offering. In the coming year, I expect to see multiple examples of software vendors shifting to a cloud-based distribution model.
Software vendors as well as cloud service providers should be aware of what this industry shift means for connectivity and should act on it. This is the year of gaining market share in the cloud industry, and connectivity is the key to doing so.
