European telcos are playing an increasingly important role in Europe’s cloud market

Major hyper scale cloud providers, such as AWS, Google and Microsoft, have had a significant impact on fostering European cloud development. Key requirements which these international cloud players face in Europe relate to data security, localization and regulatory compliance, according to GlobalData, a leading data and analytics company.

As a result, this has opened up opportunities for local and pan-regional telcos to partner with the global hyperscalers and further position themselves as local trusted cloud service providers to European enterprises.

GlobalData’s latest report, ‘Cloud Computing in Europe Telco Cloud Offers, Best Practices and Market Opportunity’, reveals European companies are increasingly demanding hybrid cloud solutions due to the number of benefits it has which include cost, performance, security, compliance, and workload portability.

Within the enterprise segment, telcos are keenly aware of the slowing growth of conventional voice and data services and that they need to diversify their sources of revenue. Many telcos end up zeroing in on data center and cloud services as potential growth areas, increasingly positioning as hybrid multi-cloud service providers.

Joel Cooper, Senior Director at GlobalData, commented: “European telcos will play an important aggregator role, becoming a one-stop-shop for cloud services, leveraging their direct customer relationships and cloud players’ network infrastructure.

“By providing hybrid multi-cloud solutions, European telcos have the potential to help enterprises accelerate their digital transformation while taking the burden of managing multi cloud vendors away and leveraging their proximity and expertise. Telcos are, thus, able to better position in the market vs the pure-cloud players with end-to-end solutions across their full telecom footprint.

“Additionally, we may see an increasing amount of collaboration to improve cloud enablement and services. For instance, in 2018, BT, Vodafone, Orange, and TIM announced their participation in the Blade Runner Catalyst with other telcos and vendors to produce new enterprise cloud services such as multi-access edge computing.”

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