EU Sovereign Cloud Initiative Drives Single-Source Solutions
Information Services Group (ISG) has released its 2024 ISG Provider Lens™ Multi Public Cloud Services report for Europe, highlighting how partnerships between European cloud providers and global hyperscalers are revolutionizing the sovereign cloud landscape. Despite the EU's Gaia-X regulatory framework's original aim to reduce dependence on U.S. hyperscalers, these same companies are now enabling a robust cloud ecosystem through strategic alliances.
Notable partnerships include Google's collaborations with T-Systems, Thales, and Proximus, creating single-source sovereign cloud services that balance EU regulatory compliance with enterprise needs. While the market shows growth potential, enterprises face challenges including compatibility issues, increased operational costs, and flexibility due to localized data requirements.
Information Services Group (ISG) ha pubblicato il suo rapporto 2024 ISG Provider Lens™ sui servizi multi cloud pubblici per l'Europa, evidenziando come le partnership tra i fornitori di cloud europei e i grandi hyperscalers globali stiano rivoluzionando il panorama del cloud sovrano. Nonostante l'obiettivo originale del quadro normativo Gaia-X dell'UE fosse quello di ridurre la dipendenza dagli hyperscalers statunitensi, queste stesse aziende stanno ora abilitando un ecosistema cloud robusto attraverso alleanze strategiche.
Le partnership notevoli includono le collaborazioni di Google con T-Systems, Thales e Proximus, creando servizi cloud sovrani a singola fonte che bilanciano la conformità alle normative dell'UE con le esigenze aziendali. Sebbene il mercato mostri potenziale di crescita, le imprese affrontano sfide come problemi di compatibilità, costi operativi aumentati e flessibilità a causa dei requisiti di dati localizzati.
Information Services Group (ISG) ha publicado su informe 2024 ISG Provider Lens™ sobre Servicios Multi Nube Públicos para Europa, destacando cómo las asociaciones entre los proveedores de nube europeos y los grandes hyperscalers globales están revolucionando el paisaje de la nube soberana. A pesar de que el objetivo original del marco regulatorio Gaia-X de la UE era reducir la dependencia de los hyperscalers estadounidenses, estas mismas empresas ahora están habilitando un sólido ecosistema en la nube a través de alianzas estratégicas.
Las asociaciones notables incluyen las colaboraciones de Google con T-Systems, Thales y Proximus, creando servicios de nube soberana de fuente única que equilibran el cumplimiento regulatorio de la UE con las necesidades empresariales. Aunque el mercado muestra potencial de crecimiento, las empresas enfrentan desafíos como problemas de compatibilidad, costos operativos aumentados y flexibilidad debido a los requisitos de datos localizados.
정보 서비스 그룹 (ISG)는 유럽을 위한 2024 ISG 공급자 렌즈™ 다중 공공 클라우드 서비스 보고서를 발표하며 유럽 클라우드 공급자와 글로벌 하이퍼스케일러 간의 파트너십이 주권 클라우드 환경을 혁신하고 있음을 강조했습니다. EU의 Gaia-X 규제 프레임워크의 원래 목표는 미국 하이퍼스케일러에 대한 의존도를 줄이는 것이었지만, 이러한 회사들이 전략적 제휴를 통해 견고한 클라우드 생태계를 형성하고 있습니다.
주목할 만한 파트너십으로는 Google과 T-Systems, Thales, Proximus 간의 협력이 있으며, 이는 EU 규제 준수와 기업 요구를 조화롭게 하는 단일 소스의 주권 클라우드 서비스를 창출하고 있습니다. 시장은 성장 잠재력을 보여주고 있지만, 기업들은 호환성 문제, 증가한 운영 비용, 그리고 지역화된 데이터 요구로 인한 유연성 문제와 같은 도전에 직면해 있습니다.
Information Services Group (ISG) a publié son rapport 2024 ISG Provider Lens™ sur les services multi-cloud publics pour l'Europe, soulignant comment les partenariats entre les fournisseurs de cloud européens et les hyperscalers mondiaux révolutionnent le paysage du cloud souverain. Bien que l'objectif initial du cadre réglementaire Gaia-X de l'UE soit de réduire la dépendance vis-à-vis des hyperscalers américains, ces mêmes entreprises favorisent désormais un écosystème cloud solide grâce à des alliances stratégiques.
Les partenariats notables incluent les collaborations de Google avec T-Systems, Thales et Proximus, créant des services de cloud souverain à source unique qui équilibrent la conformité aux réglementations de l'UE avec les besoins des entreprises. Bien que le marché montre un potentiel de croissance, les entreprises font face à des défis tels que des problèmes de compatibilité, des coûts opérationnels accrus et une flexibilité limitée en raison des exigences de données localisées.
Information Services Group (ISG) hat seinen 2024 ISG Provider Lens™ Bericht zu Multi-Public-Cloud-Diensten für Europa veröffentlicht und hebt hervor, wie Partnerschaften zwischen europäischen Cloud-Anbietern und globalen Hyperscalern die Landschaft des souveränen Clouds revolutionieren. Obwohl es ursprünglich das Ziel des EU-Gesetzes Gaia-X war, die Abhängigkeit von US-Hyperscalern zu verringern, ermöglichen diese Unternehmen nun ein robustes Cloud-Ökosystem durch strategische Allianzen.
Zu den bemerkenswerten Partnerschaften gehören Googles Zusammenarbeit mit T-Systems, Thales und Proximus, die souveräne Cloud-Dienste aus einer Hand schaffen, die die Einhaltung der EU-Vorschriften mit den Unternehmensbedürfnissen in Einklang bringen. Während der Markt Wachstumspotenzial zeigt, stehen Unternehmen vor Herausforderungen wie Kompatibilitätsproblemen, erhöhten Betriebskosten und Flexibilität aufgrund lokal spezifizierter Datenanforderungen.
- Strategic partnerships between EU providers and global hyperscalers creating efficient single-source solutions
- Growing sovereign cloud market despite regulatory challenges
- Development of compliant solutions meeting both EU regulations and enterprise needs
- Significant investment required for infrastructure integration and testing
- Increased operational costs due to localized data storage requirements
- flexibility in enterprise utilization strategies
- Compatibility issues with existing cloud infrastructure
Insights
The European cloud services landscape is undergoing a significant transformation driven by regulatory requirements and strategic partnerships. The emergence of sovereign cloud solutions through collaborations between EU providers and global hyperscalers like Google, AWS and Microsoft represents a important market development. These partnerships are creating a $174.4M addressable market opportunity for ISG (III), positioning them well as advisors in this evolving ecosystem.
The analysis reveals a complex market dynamic where regulatory compliance meets business efficiency. Despite Gaia-X's initial aim to reduce dependence on U.S. hyperscalers, the market has adapted through innovative partnership models. This trend indicates a pragmatic shift in how European enterprises approach cloud services, balancing sovereignty requirements with operational needs.
The technical architecture emerging from these sovereign cloud partnerships is particularly noteworthy. By leveraging open-source infrastructure technologies, providers are creating hybrid solutions that maintain compliance while delivering the scalability of hyperscale platforms. The partnerships between Google and providers like T-Systems and Thales demonstrate how technical constraints can be overcome through innovative service delivery models.
However, significant technical challenges remain in migration and integration. Enterprises face compatibility issues with existing infrastructure, requiring substantial investments in testing and interoperability solutions. This creates both challenges and opportunities for service providers who can offer migration and integration expertise.
The regulatory framework established by Gaia-X has fundamentally reshaped the European cloud market's legal landscape. The prohibition of sovereign data hosting on public cloud infrastructure has catalyzed new business models and partnership structures. These developments create complex compliance requirements but also establish clear guidelines for future market development.
The emphasis on privacy-by-design and data sovereignty has created a distinct market segment where regulatory compliance becomes a key differentiator. This regulatory environment, while challenging, provides a structured framework for market participants and creates barriers to entry that benefit established providers with demonstrated compliance capabilities.
Europe’s cloud service providers are overcoming market and regulatory hurdles through strategic partnerships with hyperscalers, ISG Provider Lens™ report says
The 2024 ISG Provider Lens™ Multi Public Cloud Services report for
Ironically, that current ecosystem is being made possible by the same
“The idea behind the Gaia-X initiative was to drive European ownership of cloud and data center infrastructure,” said Matthias Paletta, ISG director, technology modernization, in
Despite the legal and operational hurdles caused by the EU’s strict data sovereignty regulations, the region’s nascent sovereign cloud market is poised for growth, the report says. Prioritizing regulatory compliance, Europe’s enterprises continue to seek relationships with Gaia-X Association members, which share a privacy-by-design approach that fosters collaborative trust.
But institutions already accustomed to the agility and scalability offered by Google Cloud, AWS and Microsoft Azure are finding it difficult to discover a Gaia-X alternative that measures up. Google led the way in 2021 by forging separate partnerships with EU-based hyperscale providers T-Systems (a subsidiary of Deutsche Telekom) and
Those partnerships led to competitive, single-source sovereign cloud services that offer the flexibility and adaptability Europe’s enterprises have come to expect, while adhering to EU regulations that now prohibit sovereign data from being hosted on public cloud infrastructure.
Migrating to these new sovereign cloud platforms remains fraught with difficulty for enterprises, says ISG. Compatibility issues with existing cloud and data center infrastructure require significant investments in new resources for integration, testing and interoperability. Additional requirements for localized data storage and processing may increase operational costs, and further limit flexibility for enterprises’ utilization strategies.
“Gaia-X has set new standards for data security and interoperability, thanks to the Association’s many members coming together around open-source technologies,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Sovereign cloud providers will work with big public cloud managed service providers, navigating around Gaia-X to offer services at the level European customers have already come to rely on.”
For more insights into how international partnerships have remade Europe’s cloud services market in the wake of Gaia-X, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ Multi Public Cloud Services report for
In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among multi public cloud service providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
A customized version of the report is available from Amazon Web Services.
The 2024 ISG Provider Lens™ Multi Public Cloud Services report for
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in
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