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Almost a Third of Cloud Projects in Germany Are Unsuccessful or Ineffectively Implemented

By Rene Buest | April 23, 2021 | 0 Comments

Tech and Service ProvidersCloud ComputingEmerging Technologies and Trends Impact on Products and Services

Cloud service providers will have new opportunities to grow in 2021. In the 2020 Gartner Cloud End-User Buying Behavior Survey, 62% of German respondents involved in their organizations’ cloud purchasing decisions expect their organization to increase spending on cloud computing in the next 12 months. But the complexity of cloud migration continues to present barriers for buyers to self-manage such projects that are compounded by new challenges from edge computing.

Almost a Third of German Respondents Report Unsuccessful or Ineffectively Implemented Cloud-Based Solutions

German respondents report that migration, interoperability as well as cost, compliance and governance are the most frustrating aspects of current public cloud offerings. This is certainly a reason why a majority (73%) of organizations work with external service providers such as cloud managed service providers (MSPs) or outsourcing providers. A majority of surveyed German end users expect end-to-end solutions and to benefit from the partners’ cloud skills and experience, despite end users actually preferring to own more internal cloud skills within their IT teams.

Another important trend is the growth of cloud computing as an extension of enterprise infrastructure. Cloud infrastructure and platform services have attracted a mix of existing applications (lifted and shifted, lifted and optimized, or refactored) and new applications (full application replacements or newly devised applications). In the 2020 Gartner Cloud End-User Buying Behavior Survey, German respondents were asked, “What is your organization’s plan for public cloud application portfolio distribution today/in the next two years?” The results show a shift in portfolios toward more applications being fully replaced, built anew or bought. While enterprise applications continue to migrate to public cloud, enterprises are becoming more cloud-native with their deployments — and public cloud has become the default for a larger percentage of new workloads.

Edge computing is also an emerging trend in Germany. Twenty-nine percent of German respondents cited edge computing capabilities as an important technical aspect when considering new public cloud purchases. However, given the challenges of managing edge locations, enterprises are highly motivated to use edge-as-a-service solutions when feasible.

Interested to learn more? In our research note “End-User Cloud Buying Behavior: Germany”, we discuss how cloud service providers can build a custom go-to market strategy aimed at German enterprise clients.

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