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IaaS and PaaS services are growing by more than twenty percent annually in the Belgian cloud market. Local providers are finding it increasingly difficult to compete with hyperscalers.
IaaS and PaaS services are growing by more than twenty percent annually in the Belgian cloud market. Local providers are finding it increasingly difficult to compete with hyperscalers.
The European cloud market will grow by more than 200 percent to 64 billion euros in 2024. BDO conducted a market study that took a closer look at four countries, including Belgium. The study focuses on the IaaS and PaaS segment and excludes SaaS. The accelerated cloud migration is driven by the adoption of AI, IoT and hybrid working.
The study provides insights into how the Belgian cloud industry works. Despite its relatively small size, the Belgian cloud services market is poised for rapid growth, driven by the increasing adoption of cloud technologies across various sectors. IaaS and PaaS services are expected to grow at a CAGR of more than 20 percent through 2026, making Belgium one of the fastest growing in Europe.
BDO sees one constant in the European market: it is becoming increasingly difficult for local players to compete against the large hyperscalers. The combined market share of all European players is falling to thirteen percent, while the “big three” AWS, Microsoft Azure and Google Cloud are increasing their influence to over seventy percent. The large providers can rely on a consolidated offering and their capital strength.
These include major international players from the USA such as VMware, Salesforce and IBM. Only a handful of European companies such as Orange, SAP and OVHCloud can ignore this. BDO therefore sees increasing consolidation in the market: European companies are looking for ways to exploit economies of scale and strengthen their market position.
The contradiction between small players and hyperscalers is also visible in the Belgian market. Many Belgian cloud providers are private companies that operate internationally, although a significant number focus mainly on the local market. They sometimes do this with limited resources: the smallest cloud providers in the Belgian market are SMEs with fewer than ten employees. Leading Belgian local players include Easi, Cheops, Westpole and Combell.
Regulatory frameworks such as the Data Act and the Digital Markets Act aim to improve competition and cloud sovereignty in the European market, benefiting local providers, BDO notes.
The study considers a move from public cloud to a hybrid and multi-cloud strategy to gain cost benefits and flexibility. Cloud security and resilience is also becoming increasingly important as evolving cyber threats increase demand for encryption, authentication and disaster recovery services. Sustainable cloud computing is also high on the wish list of European companies.
Source: IT Daily
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