Why Is Europe Not Storming The Cloud?

Why Is Europe Not Storming The Cloud?

It is expected that Europe will be behind the US by a minimum of two years when it comes to cloud computing adoption, due to four major issues: the current euro crisis, advanced privacy rules, the changing political decision-making, and local business needs. These are the primary reasons why Europe is taking a much slower pace in adopting cloud computing as compared to the USA. Analyst group Gartner believe that although there is high interest in cloud computing in Europe, there are so many local complications that it could result in delaying adoption there by at least two years.

Due to the present economic crisis in Europe, most huge investments have been put on standby. Also, strategic decision-making has slowed down and only a few organizations are expressing willingness to invest in major technologies. Many businesses would like to have a better understanding of the implications of the financial crisis prior to investing their money in technology.

Privacy legislation is also a major problem for European organizations who want to shift to the cloud. According to Gartner, these organizations see the US Patriot Act as a stumbling block because they fear that it is illegal or undesirable to tap cloud computing service providers in the US. The US Patriot Act is a law which permits US authorities to access data in specific circumstances. Because of this Act, European companies are taking a slower pace in adopting cloud computing because major cloud computing service providers are incorporated or located in the United States of America. According to Gartner, these European companies are getting inaccurate information and they should seek ways of tapping the cloud safely.

Another factor contributing to the slower pace of European adoption of cloud computing is the policy details in the European Union. Policy making takes a long time. The EU usually sets regulations and policies which are incorporated in each member state’s legislation. However, every member state has the right to append local legislation to such policies and regulations. Because of this, resolution of issues regarding cloud computing regulations takes a long time. Lastly, each country in Europe has its own business practices and regulations. Enterprise software developers and providers have made huge profits by providing country-specific versions of their accounting software. Because of these country-specific regulations and business practices, the local business needs may not fit with the cloud computing one-size-fits-all business model.

Gartner vice-president David Mitchell Smith believes that although these inhibitors will slow down European adoption of cloud computing, it will not prevent adoption, because cloud computing offers attractive benefits and, in the interest of agility and efficiency, these inhibitors will not be able to delay adoption any further.

Alcatel-Lucent, another research company, believe that availability, response time, and stability are really the major inhibitors of European adoption of cloud computing services. In the company’s survey of technical decision makers in Hong Kong, Taiwan, South Korea, India, France, the UK, and the US, Alcatel-Lucent found that as much as 66 percent name service outages as the primary reason why they are not yet moving to the cloud. Forty percent of these decision makers said that long or frequent service outages have been experienced and that 50 percent complained that service-level agreements have not been complied with by the cloud computing service providers. According to the same report, sectors such as the government, healthcare, insurance and finance are very reluctant to adopt  cloud computing technology.

By Florence de Borja

5 Responses to Why Is Europe Not Storming The Cloud?

  1. @cloudtweaks Inspirational Quote: You can have everything you want in life, if you just help enough people get what they want in life

  2. @cloudtweaks Europe IS storming the #cloud,only not the way US players’d like it to do.EU way may prove more sust #da12cloud

  3. Hi Florence,
    I fully agree on the nature of data privacy and data residency issues that European enterprises are contending with as they evaluate public cloud applications.  (I actually blogged on the same topic based on an IDC report that had similar findings – see http://www.perspecsys.com/removing-cloud-barriers-in-europe/).
    There are options for European organizations that find themselves unable to adopt cloud applications due to regulation and underwhelmed by the business proposition of on-premise alternatives.  Cloud data protection solutions offer enterprises the ability to safeguard their sensitive data and meet residency and compliance requirements when using SaaS without sacrificing application functionality that end users require.  PerspecSysoffers such a solution and offers a wealth of related content on its website for those seeking additional information on this approach.  
     – David

  4. @dstott
    The solution pointed out by you is certainly workable but EU must come up with other plans to adapt the cloud with confidence. Though their are no major investments in cloud, EU being a allegiance of may countries with close ties with each other can build joint cloud infrastructure and solutions. For example, their are many countries/locations in EU that are ecologically colder throughout the year. Installing computing infrastructure their can reduce the massive power/electricity costs to keep such facilities under moderate temperature.   Besides, I’m not sure about Russia being a member of EU, but one of their company are among the top provider of Information Security solutions (Kaspersky). So if they jointly work to foster cloud growth all of these countries and their companies can gain substantially from cloud , even with the above mentioned barriers pointed out by Florence. 

  5. @corrsd definitely not the trend we are seeing in the UK – adoption rapidly increasing…

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