Survey: Number of Cloud Native Users in Germany Grows, Despite Economic Headwinds and Skills Shortages
ISG/EuroCloud Native study shows 92 percent of German IT decision-makers are looking to the cloud for cost savings
The survey, conducted in September for EuroCloud Native (ECN), the cloud native initiative of the industry association EuroCloud Deutschland, asked 200 German IT decision-makers about their current and planned use of cloud native technologies. The study found 27 percent of respondents are running applications in the public cloud, up from 22 percent in 2021, and 92 percent of respondents are looking to achieve cost savings. However, economic uncertainty and a shortage of skilled workers are limiting the scope of cloud transformation projects.
"The survey results show a significant increase in the willingness of German enterprises to switch to cloud native applications, especially among companies in the midmarket," said study leader
Enterprises are also looking to cloud native technology to automate capacity allocation and to increase the speed of restoring and restarting cloud native-based solutions, Henkes added. Loosening regulatory concerns for cloud solutions in the German midmarket are also helping to boost adoption rates for cloud native approaches.
Labor shortages and inflation inject caution into enterprise plans
The 2022 survey results suggest economic uncertainty and the tight labor market are delaying a true paradigm shift in cloud native development, deployment and operation and holding enterprises to smaller, near-term projects.
Forty-eight percent of respondents said a lack of skilled personnel is a factor in their strategic cloud investment decisions – an 11-percentage-point rise from 2021, when 37 percent of respondents cited worker shortages as an obstacle to implementing their company roadmap. Similarly, the ongoing need for IT departments to focus on onboarding in the face of staff turnover is limiting teams to smaller, more manageable projects.
"In the current economic environment, even pioneering companies are increasingly taking a cautious approach, focusing cloud native budgets on smaller-scale development projects that pay for themselves in the short term,” said Felix Höger, Board Member at EuroCloud Germany.
Forty-one percent of the survey respondents said their software engineering development projects are focusing primarily on application customizations (refactoring). In contrast, only a quarter of respondents said the development of new solutions (rewriting)—which is even more dependent on highly skilled workers—is on their enterprise cloud roadmap.
Cost reduction presents opportunities for specialized service providers
The enterprise focus on achieving cost reductions is presenting market opportunities for specialized cloud native service providers.
“Enterprises are particularly interested in providers that can deliver expertise, implementation and reduced IT expenses," said Dr.
Note to Editors: ISG and ECN presented the complete findings of the survey during a virtual press briefing today at
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About EuroCloud Native (ECN)
EuroCloud Native (www.eurocloudnative.de) is an initiative within EuroCloud Deutschland_eco e. V. (EuroCloud), the association of the cloud computing industry in
About EuroCloud Germany_eco e. V.
EuroCloud Deutschland (www.eurocloud.de) is the association of the German cloud computing industry and represents it in the pan-European EuroCloud network. EuroCloud Germany is committed to acceptance and demand-oriented provision of cloud services on the German market. In doing so, the association is in constant dialog with the European partners of the EuroCloud network in order to find global solutions and prepare the ground for international business relationships. EuroCloud Germany was founded in
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