Local vendors challenge global players in our analysis of Europe's public cloud market

Paul Miller

Europe from space

Public Domain image of Europe, derived from NASA World Wind data, uploaded to Wikimedia Commons.

The hyperscale global clouds seem to crop up pretty much everywhere, these days. But we all know that customer requirements differ, from industry to industry, and from country to country. So... how do they cope, and how do we account for the peculiarities of different markets?

Today, we publish our latest take on the public cloud platforms market in Europe: The Forrester Wave™: Enterprise Public Cloud Platforms In Europe, Q4 2016Read the report itself, or sign up for my 3 November webinar to learn more.

The report (my first Wave, so allow me to feel pleased with myself) is, of course, interesting and useful in and of itself. But what's more interesting, perhaps, is that it's part of a collaboration that allows Forrester to account for those regional quirks.

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US Tech Market Poised For Another Year Of Moderate 4% to 5% Growth If Election Results Don't Interfere

Andrew Bartels

Forrester has just published our fall forecast update for the US tech market ("2017 US Tech Budgets: The Outlook For Tech Spending Overall And By Industry"), and we are now projecting 5.1% growth for business and government spending on tech goods, services, and staff in 2017. That's a modest improvement from the 4.4% growth we are forecasting for 2016.  That 2017 forecast assumes a continuation of the economic policies now in place under the Obama administration and the Republican Congress, and thus a Hilary Clinton election along with Republican control of at least the House of Representatives.  Should Donald Trump win the election or alternatively the Democrats take control of both the House and the Senate, our forecast for the US tech market in 2017 would be quite different.

The three main forces driving this forecast are the moderate pace of real economic growth at around 2%, the strong demand for the Business Technologies (BT) that help firms win, serve, and retain customers, and the transition to cloud.  

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Vertical clouds - less useful than you're meant to believe, but still useful

Paul Miller

How often have you been told you can't use a mainstream public cloud provider? Quite often, probably, especially if you happen to work in a regulated industry like banking or healthcare. And what justifications are you given? The regulator "won't let you," no doubt? That's a good one. And "it's not secure" is often pretty close behind. Either that, or the argument that generic public cloud infrastructure can't possibly meet your very special, very unique, very carefully crafted mix of requirements?

Sadly, despite the frequency with which they're trotted out, these attempts at justification stand a pretty good chance of being either hearsay, or just complete nonsense.

It's easy not to change, and to justify your inertia with reference to the scary, punitive, hopelessly luddite regulator.  It's easy to continue lovingly polishing the hideously complex snowflake your internal computing environment has become. It's far harder to look at the truth behind the hearsay, and to work out when doing something different might — or might not — be the better approach for your business, and its effort to win, serve, and retain customers.

My latest report, Bespoke Vertical Clouds Become Less Important As Public Clouds Do More, takes a look at some of the rationale for using vertical cloud solutions in these situations. Often — but definitely not always — you may discover that a generic public cloud provider will do the job just as well. Or maybe even better.

Valuable services lurk behind confused marketing of 'managed cloud'

Paul Miller

(Confusing messages. Image by Wikimedia Commons user 'Melburnian')

Again and again, we hear examples of companies struggling as they try to realise the benefits of moving to cloud. They know what they want to achieve as a business, they know that cloud can help, but they cannot translate that understanding into the way they specify, procure, and run the technology.

There are plenty of organisations willing to help, offering everything from design and migration services through to management of infrastructure and applications on an ongoing basis. Even in the public cloud world, it's easy to find companies eager to take your money, and then start and stop workloads on your behalf.

But, as the blurb for my latest report states,

"Cloud computing changes the way that applications are designed, built, and run. It is often part of a broader organizational change, as enterprises move to embrace digital opportunities. Providers of managed cloud solutions need to recognize this shift: They must do more than simply run a customer’s computers. But CIOs seeking a trusted partner to assume this broader role find that too many managed cloud offerings fail to rise above basic management of infrastructure."

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Brexit Vote Means Weaker UK And European Tech Market In 2016 And 2017

Andrew Bartels

As soon as the news of the Brexit vote in the UK came out, the Forrester team began revising our UK and European tech market forecast to take into account the economic implications and uncertainties of the voters’decision that the UK should leave the EU. Based on this revised analysis, we predict the UK tech market will grow by just 1% (pounds sterling) in 2016 with zero growth in 2017, compared with our prior forecast of 5% in both years.

Europe as a whole, will post no growth in 2016 (euros), and just 1% growth in 2017  two percentage points slower than our earlier forecast. With the plummeting pound and enervated euro, European tech market measured in US dollars will be similarly weak with 0.2% growth in 2016 and 1.1% in 2017.

The slowing of UK and European tech market growth results from multiple uncertainties created by the Brexit vote coming on top of what was already a weak and shaky European economy. As a result:

  • The UK economy, which had been outperforming most of the Eurozone countries, will take a hit. The Belgian, Dutch, French, German, Italian, and Swiss economies, which are growing by 1-1/2% or less, are vulnerable to declines, with Italy especially exposed due to a looming banking crisis.
  • Greece and Portugal are struggling once again, with threats of renewed recessions leading to declines in tech spending.
  • The only countries with decent economic growth and above average tech market growth are Ireland and Spain in the Eurozone, and Sweden, Poland, and other Central European countries outside it.
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After Brexit, it's business as usual for most of Europe's public cloud workloads

Paul Miller

The flags of the European Union and the United Kingdom

(source: Wikimedia Commons)

Two weeks on, the result of the UK referendum on membership of the European Union (EU) continues to reverberate around the world. Forrester provided advice for clients needing to understand the business implications. Looking at the specific impact on public cloud deployments in Europe introduces a number of additional points. These are best considered in three separate contexts:

  • that of companies wishing to serve customers in the UK
  • that of companies wishing to serve customers in the remaining 27 EU member states (the EU27)
  • that of companies wishing to serve customers in the EU27 from a base in the UK.
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Established Chinese cloud providers hope to succeed in Europe's public cloud market

Paul Miller

When we think about the public cloud, the list of credible providers can sometimes seem rather short.

(The Great Wall of China. Source: Paul Miller)

In North America, Europe, and elsewhere, the same few names tend to dominate. But not in China. There, big local brands continue to command impressive market share. And now they're looking to expand into new territories, including Europe.

Huawei hardware and Huawei's distribution of the OpenStack open source cloud platform power T-Systems' Open Telekom Cloud. This was launched, with some fanfare, at CeBIT in Hannover. 

Alibaba Cloud, which leads the Chinese public cloud market, is also coming to Europe this year.

In my latest report, I take a look at what both Alibaba and Huawei bring to Europe's public cloud market, and ask whether they can repeat their domestic success in this market.

TL;DR - it would be unwise to discount either of them.

Velocity Mandates DevOps And Continuous Deployment

Robert Stroud

Today’s customers, products, business operations, and competitors are fundamentally digital. Succeeding in this new era mandates everyone constantly reinvent their businesses as fundamentally digital. You have two choices,

·      become a digital predator; or

·      become digital prey.

To compete in this new digital market norm, software applications and products must contain new sources of customer value while at the same time adopting new operational agility. I&O pros need to change from the previous methods of releasing large software products and services at sporadic intervals to continuous deployment. All must adopt key automation technologies to make continuous deployment a reality.

At Forrester, my colleagues and I (including the great Amy DeMartine) developed our recent TechRadar™: Continuous Deployment, Q2 2016 which look at the the top use cases, business value, and outlook of the 12 top technologies engaged in in continuous deployment.

Our key findings include:

Continuous deployment is critical to unlock velocity

In this new era of digital business, I&O pros must automate across the entire software delivery life cycle, creating the ability to continuously deploy while assuring service quality.

No Silver Bullet

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Don't Wait; Rethink Your ITIL Journey Now!

Robert Stroud

Over the past 25 years, many organizations have modelled their support – and in some cases their delivery organization – after the ITIL frameworks and processes. For many, ITIL has been helpful in establishing the rigor and governance that they needed to bring their infrastructure under control in an era where quality and consistency of service was critical and technology was sometimes fragile.

Today, we are 5 years into “The age of the customer” – an era where customer obsession is driving technology and which demands a culture of speed and collaboration to differentiate and deliver extraordinary customer experience to drive business growth. In this era, the rise of mobility and the race to deliver differentiated business processes is critical to success. Your development teams are driving velocity and elasticity with increased quality and availability, leveraging DevOps practices and often driving change directly to production.

This transition has led some organizations to experience friction between the competing priorities, velocity and control, especially for those who continue to execute on the traditional model of ITIL.

ITIL is starting to show signs of age. That does not mean it is on the verge of demise. ITIL must adapt. To understand the relevance of ITIL and IT Service Management practices in this era of Modern Service Delivery, Eveline Oehrlich and Elinor Klavens and I have embarked on a review of ITIL and the use of IT Service Management practices supporting todays BT agenda.

Our key findings include:

ITIL must pivot to support digital transformation

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Software-Defined Data Center, coming ready or not!

Robert Stroud

As we embark in the era of “cloud first” being business as usual for operations, one of the acronyms flying aground the industry is SDDC or the Software Defined Data Center.  The term, very familiar to me since starting with Forrester less than six months ago, has become an increasing topic of conversation with Forrester clients and vendors alike. It is germane to my first Forrester report “Infrastructure as Code, The Missing Element In The I&O Agenda”, where I discuss the changing role of I&O pros from building and managing physical hardware to abstracting configurations as code. The natural extension of this is the SDDC.


We believe that the SDDC is an evolving architectural and operational philosophy rather that simply a product that you purchase. It is rooted in a series of fundamental architectural constructs built on modular standards-based infrastructure, virtualization of and at all layers, with complete orchestration and automation.


The Forrester definition of the SDDC is:


A SDDC is an integrated abstraction model that defines a complete data center by means of a layer of software that presents the resources of the data center as pools of virtual and physical resources, and allows them to be composed into arbitrary user-defined services.


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