Infrastructure-as-a-Service gets a boost from enterprise cloud migration

Person travelling upwards to the cloud
(Image credit: Shutterstock)

The European IaaS market will grow at a double-digit rate for the next few years but service providers will need to make their portfolio of offerings more relevant to customers if they are to retain a competitive edge, according to new research from analyst firm Frost and Sullivan.

The analysts say that as organisations migrate from on-premise infrastructure to hosted alternatives, this in turn is driving growth in the European IaaS market.

This meant that cloud providers are pursuing regional strategies such as setting up of local data centres to fast-track uptake among European customers, according to research.

According to the firm’s new report, Analysis of the European Infrastructure-as-a-Service Market, the market has earned revenues of $1.95 bn in 2014 and estimates this to reach $10.11 bn in 2019.

“The on-demand, pay-as-you-go model of cloud services is garnering intense interest in Europe as it allows enterprises to effectively deal with volatility and seasonality in IT demand,” says Frost & Sullivan Information & Communication Technologies senior research analyst Shuba Ramkumar. “Infrastructure requirements can be easily altered using a web portal, in contrast to the traditionally cumbersome job involving physical servers or networks.”

In addition, enterprises find IaaS to be a suitable method to effectively manage IT spending in the face of challenging economic conditions in Europe, according to the research outfit. The deployment of IaaS decreases enterprise capital investment in internal data centres, hardware and human resources, which can instead be directed to core business functions, it adds.

To address concerns around security, cloud providers are developing hosted private cloud services compliant with specific standards, it says. “Enterprises, particularly in highly regulated industries such as healthcare and financial services, have reason to be concerned about security risks such as data loss, unauthorised access to apps and leakage of data,” the firm said in a statement.

“Offering hybrid cloud services that combine IaaS with managed hosting or on-premise cloud along with managed cloud services will help build a secure and unified infrastructure,” says Ramkumar. “With the rise in different hosting environments requiring enterprises to operate in multi-vendor ecosystems, service providers must also harness an environment of coopetition, where partnerships can be leveraged to ensure easy migration of applications and stronger adoption of IaaS in Europe.’

ITPro

ITPro is a global business technology website providing the latest news, analysis, and business insight for IT decision-makers. Whether it's cyber security, cloud computing, IT infrastructure, or business strategy, we aim to equip leaders with the data they need to make informed IT investments.

For regular updates delivered to your inbox and social feeds, be sure to sign up to our daily newsletter and follow on us LinkedIn and Twitter.

Latest in Cloud
AI chatbot text dialogue boxes in difference colours above a digital circuit board with lines of light emanating from it
Enterprise AI is surging, but is security keeping up?
Oracle logo pictured in red lettering against a black background at the company's stall at Mobile World Congress (MWC) 2025 in Barcelona, Spain.
Say goodbye to walled gardens, Oracle is doubling down on multi-cloud
A glowing blue CGI representation of a network solution provided via the IT channel.
Why understanding the customer’s network unlocks its value and your success
Cloud storage concept image showing digitized cloud symbol with data flows.
AI is putting your cloud workloads at risk
A CGI visualization of cloud computing, with an isometric view of a purple and blue cloud linked to seven glowing cube nodes, to represent devirtualization and revirtualization.
Navigating devirtualization as businesses move away from the cloud
Logo of Google Cloud, which recently announced the Wiz acquisition, pictured at Mobile World Congress 2025 in Barcelona, Spain.
The Wiz acquisition stakes Google's claim as the go-to hyperscaler for cloud security – now it’s up to AWS and industry vendors to react
Latest in News
Ransomware concept image showing a warning symbol in red with binary code in background.
Healthcare systems are rife with exploits — and ransomware gangs have noticed
Application security concept image showing a digitized padlock placed upon a digital platform.
ESET looks to ‘empower’ partners with cybersecurity portfolio updates
Databricks logo and branding pictured on a MacBook Pro screen.
Databricks and Anthropic are teaming up on agentic AI development – here’s what it means for customers
Dell Technologies logo and branding pictured at the company's stall at Mobile World Congress (MWC) in Barcelona, Spain.
Scale of Dell job cuts laid bare as firm sheds 10% of staff in a year
Male employee sitting at a desk working on a laptop with earphones in and books scattered on desk.
Employees want purpose, and they’re willing to quit to find it – upskilling, career growth, and work-life balance have shifted priorities for workers
NHS logo displayed on a smartphone screen in white lettering on a blue background.
NHS supplier hit with £3m fine for security failings that led to attack