The growing number of data centers popping up across Europe, as well as large enterprises discovering the many benefits of the Platform-as-a-Service (PaaS) model, will see the European cloud computing market worth more than $140 billion by 2028.
This is according to a new report from market research and consulting firm Global Market Insights, which claims that key cloud vendors – such as Google, Microsoft, Oracle and IBM – are looking to offer high-performance, low-latency cloud solutions to European businesses and, to that end, are investing heavy sums in setting up data centers across the continent.
Google, for example, recently opened new data centers in the UK, Finland and Germany, and in 2019 pledged $3.3 billion to establish additional data centers across the Europe.
PaaS is expected to cross the revenue threshold of $15 billion by 2028, the report explained. Enterprises are realizing the many benefits this model offers, including being able to develop apps cheaply. Meanwhile, the increasing use of mobile apps by businesses will drive the use of PaaS even further.
Large enterprises take up the majority (65 percent) of European cloud computing market share, the report added, saying this came as the result of an “increasing acceptance” of virtualization technology. Businesses have also started moving away from legacy, on-prem infrastructure, further driving growth.