The goal of the Cloud in Germany Survey 2024 was once again to provide an up-to-date status and forecast for the future development of the German market for cloud computing solutions from providers‘ perspective. The focus topic for 2024 was „Artificial Intelligence and Cloud Computing“. The survey results, which included responses from over 200 professionals and executives from Germany-based cloud service providers and companies offering cloud computing consulting services in Germany, are now available and can be purchased from the GBC IT MARKET RESEARCH website .

„For the seventh year in a row now, we surveyed Germany-based providers of cloud computing solutions as well as companies offering cloud computing consulting services in Germany to understand their current assessment of the status of the German cloud computing market. We also wanted to know their views on the future development of the German cloud computing market and their own cloud computing business,“ explained Werner Grohmann, publisher of the Cloud Computing Market Barometer Germany 2024, during the presentation of the results. „I would like to take this opportunity to sincerely thank all participants for their support.“

Cloud Computing in Germany: Current Status

Examining the results regarding the current status of the German cloud computing market, it is evident that in 2024, the reservations of decision-makers in German user companies regarding the use of cloud services continue to decrease. While this figure was over 60 percent in 2021, it has now dropped to just over 40 percent.

2024: Costs Shift from Pro-Cloud to Contra-Cloud Argument

„I don“t buy a cow if I just want to drink a glass of milk.“ This analogy has long been used by cloud proponents to illustrate the cost advantage of using cloud-based solutions. For example, if a software application is needed in-house (a glass of milk), the necessary IT infrastructure must be acquired, operated, and maintained (the cow), just to use the software. Traditionally, cloud computing was considered cheaper than on-premise solutions.

However, costs are increasingly cited as a reason against adopting cloud computing solutions. This argument has risen by 19 percentage points compared to the previous year.

Competitive Pressure and Fear of Cyberattacks as Major Challenges for German Cloud Service Providers

In last year“s survey, IT security was frequently mentioned as a significant argument for the use of cloud computing solutions. An increasing number of user companies seem to fear becoming victims of cyberattacks and expect higher security levels from using cloud services. Conversely, the threat of „cyberattacks on cloud infrastructure“ ranked second among the biggest dangers perceived by cloud computing providers for their business last year.

This year, fear of cyberattacks is „only“ the third biggest challenge for cloud computing businesses. However, the percentage of respondents concerned about this issue increased from 28 percent last year to 47 percent in the current evaluation.

The challenge of „defending against cyberattacks“ is surpassed this year by „competitive pressure,“ which nearly doubled compared to the previous year (2023: 30%, 2024: 56%). Obviously, this increase in competitive pressure must largely be attributed to the growing market dominance of major hyperscalers.

Several participant statements in the Cloud Computing in Germany Survey 2024 highlight this issue. There are mentions of German and European cloud service providers playing only a „minor role“ now. One participant suggested the only options left are „niche markets or collaboration with hyperscalers (as a service provider).“ Another statement indicated frustration and resignation: „Cloud Services Made in Germany are doomed to fail in the long run, as everyone is jumping on MS365, disregarding all legal regulations.“

Focus Topic: Artificial Intelligence and Cloud Computing

Like last year’s focus topic resilience, the focus topic for the Cloud Computing in Germany Survey 2024 was quite clear: With the current hype around ChatGPT & Co., the survey aimed to understand how cloud computing companies are handling this trend, whether they have integrated AI technologies into their cloud services, and their views on the relationship between AI and cloud computing.

Eighty-eight percent of respondents affirmed the necessity of integrating AI technologies into their cloud computing solutions to remain competitive.

However, to date only 42 percent of respondents offer AI technologies in their cloud computing solutions. Regarding their future AI plans, only a quarter of the survey participants indicated they would integrate AI into their cloud services in the short term, while 58 percent are planning a two- to five-year timeline.

„The results on this year“s focus topic, Artificial Intelligence and Cloud Computing, were somewhat sobering for our research team. While the participants overwhelmingly acknowledge the need to integrate AI functions into their cloud services to stay competitive, the majority plan to implement this integration only in the next two to five years. There is a concern that German cloud service providers may fall behind in the international competition in the AI sector,“ summarized Werner Grohmann, the findings of the Cloud Computing in Germany Survey 2024 on the focus topic of Artificial Intelligence and Cloud Computing.

Cloud Computing in Germany Survey 2024: Data and Facts

Representatives of 215 Germany-based cloud service providers as well as German cloud computing consultanciestook part in the Cloud Computing Market Barometer Germany 2024 by completing an online questionnaire. The survey was conducted anonymously in the first quarter of 2024.

The detailed Cloud Computing in Germany 2024 Survey report can be purchased on the GBC IT MARKET RESEARCH website.

GBC IT MARKET RESEARCH is the international business unit of GROHMANN BUSINESS CONSULTING.
GROHMANN BUSINESS CONSULTING has been supporting German and international IT companies in strategic business development for almost twenty years.
The company, based in Freiburg, Germany, focuses on the design, execution and promotion of individual IT trend studies.
With indpendent market and trend surveys, GROHMANN BUSINESS CONSULTING also regularly provides up-to-date data on the adaptation of important IT technology trends in German companies.

Contact
GBC IT MARKET RESEARCH
Werner Grohmann
Basler Strasse 115
79115 Freiburg
Phone: +4976121716068
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Url: https://www.gbcitmr.com

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