The cloud computing market - France (2024)

1.2 A growing global market

In ****, the global cloud computing market was valued at $***.* billion. It is expected to reach $*,***.* billion by ****, with a CAGR of **. *% between **** and ****. [***]

Evolution of the size of the global cloud computing market World, ****-****, in billions of dollars Source: ****

Year in which companies began using the cloud World, ****-****, % of total Source: ****

While the early years saw relatively marginal adoption, with only *% of companies using the cloud for the first time between **** and ****, a significant increase was observed from **** onwards, reaching *%.

This trend accelerated over the following years, with more and more companies adopting the cloud. Between **** and ****, a period in which **% of the first uses of the cloud took place, there was a sharp increase, with adoption ranging from **% to **% each year.

However, from **** onwards, a slight decline is seen through to ****, with just *.*% of companies adopting the cloud for the first time.

This data underlines the fact that the cloud has already been adopted for many years by businesses around the world.

1.3 The European market

In ****, the European cloud computing market is estimated at $** billion. The market is expected to grow at a CAGR of **% between **** and ****. [***]

Evolution of European market size Europe, ****-****, in billions of dollars Source: ****

Top cloud computing user countries Europe, ****, in % of total Source: ****

According to **** data, Finland leads the way among European cloud computing countries, with **.*% of companies using these services.

It is closely followed by Sweden and Denmark, with rates of **.*% and **. *% respectively. These Nordic countries thus show significant adoption of cloud computing technologies, probably fueled by their advanced digital infrastructure and culture of technological innovation.

This chart shows disparities in cloud computing adoption across Europe, influenced by factors such as infrastructure availability, government policies and the digital maturity of businesses. These figures also underline the growing importance of cloud computing in the European business landscape, as companies seek to leverage its benefits in terms of agility, flexibility and operational efficiency.

Companies purchasing cloud computing services by size class France, ****, % of total Source: ****

At European level, large companies have the highest adoption rate, with **. *% of them using cloud computing services, underlining the growing importance of this technology in large-scale organizations.

conversely, small businesses show a lower adoption rate, at ...

1.4 Cloud computing in France

in ****, the French market for Cloud solutions and services amounted to almost ** billion euros, with growth of **.*%.this positive trend is set to continue through to ****, with business forecast to reach ** billion euros (***). This expansion represents an increase of over ** billion euros over a four-year period, taking the sector's market share in digital software and services from **% in **** to over **% in ****.

Cloud market size in France France, **** - ****, in billions of euros Source : Markess Although there is no data on cloud computing market sales in France, it is possible to analyze the evolution of the number of companies using cloud computing in order to study the evolution of the market.

Evolution of companies using cloud computing France, ****-****, % (***) Source: ****

The percentage of companies using cloud computing services has seen remarkable growth over this period, rising from *.*% in **** to a peak of **. *% in ****, before declining to **. *% in **** .

This upward trend underlines the growing adoption of cloud computing by French companies, probably stimulated by the need to modernize IT infrastructures and improve operational flexibility.

However, the slight decline in **** can be attributed to a variety of factors, such as concerns about data security, regulatory compliance issues and rising prices for cloud computing services. ...

2.1 The profile of companies using cloud computing

Main industries purchasing cloud computing services France, ****, %, %, %, %, %, %, %, %, %, %, %, % Source: ****

The Programming, IT consulting sector stands out as the main purchaser of cloud computing services, with an adoption rate of **.*%, closely followed by Information and communication technologies, with **.*% of companies in this sector purchasing cloud computing services.

The Information & Communications, Pharmaceuticals and Publishing, Film & TV Production sectors also show significant adoption rates, demonstrating the growing use of the cloud to meet the specific data processing and collaboration needs of these industries.

Companies purchasing cloud computing services by size class France, ****, % of total Source: ****

Companies with more than *** employees show the highest adoption rate, with **.*% of this type of company purchasing cloud computing services, suggesting strong demand in large organizations.

Medium-sized companies, with ** to *** employees, also show a notable adoption rate of **.*%, indicating a growing trend towards cloud use in this segment.

However, small businesses, with ** to ** employees, show the lowest adoption rate, at **.*%.

These results underlinea potential growth opportunity in the small business segment, as well as the need for cloud service providers to better understand the needs and challenges of small businesses to drive wider cloud adoption in this segment.

2.2 The main uses of cloud computing

The different uses of cloud computing by French companies France, ****, % of total Source: ****

An analysis of the different uses of cloud computing by French companies in **** reveals a diversity of applications for this technology in several functional areas. E-mail emerges as the most widespread use, with adoption by **% of companies, underlining the continuing importance of cloud computing in the management of business communications. File storage follows closely behind, with **.*% adoption.

Level of sophistication of cloud computing services used by French companies France, ****, % of total Source: ****

The chart reveals that **.*% of French companies have adopted sophisticated cloud computing services, suggesting an advanced and diversified use of these technologies to meet complex needs.

In contrast, a much smaller proportion of French companies use intermediate (***) services, indicating a predominance of more advanced solutions in the French business landscape.

Sophisticated cloud services can include solutions such as advanced data analytics, artificial intelligence, machine learning and hybrid cloud services, offering advanced functionality to meet specific business needs. Intermediate services, on the other hand, can include data storage and backup solutions, as well as software development and testing environments. Basic cloud services, meanwhile, can focus on more basic functionalities such as file storage and website hosting.

2.3 Corporate awareness of the ecological impact of IT

Moving to cloud computing not only offers companies cost and time savings, it also helps to reduce energy consumption and improve the sustainability of their IT infrastructure. Indeed, according to a WSP study of Microsoft Cloud, cloud-based business solutions are up to **% more energy efficient than traditional enterprise data centers. What's more, they can reduce carbon emissions by up to **%.

Companies' concerns about the environmental impact of their IT infrastructure France, ****, in Source: ****

According to the Public First study, **% of French companies are concerned about the environmental impact of their internal IT infrastructure. It is estimated that Information and Communication Technologies (***) are responsible for around *.*% of global greenhouse gas emissions.

Compared with on-premises infrastructures, the cloud offers several advantages in terms of energy efficiency: Cloud providers, such as AWS, benefit from greater economies of scale, enabling them to use each server more efficiently compared to on-premises enterprise data centers, whose average utilization rate is around **%.cloud data centers are designed with advanced buildings and cooling systems, giving them far greater energy efficiency than on-premises servers. In fact, around **% of enterprise data centers have an electrical efficiency of less than **%, and cloud data centers make greater use of low-carbon energy sources, resulting ...

3.1 Value chain

Source: ****

Data center operators : These are companies that manage and operate physical data centers. Their role is to provide a secure and reliable environment for hosting cloud service providers' hardware infrastructures, such as servers, storage systems and network equipment.(***)

Infrastructure cloud service providers: These companies provide infrastructure-as-a-service (***)

Integrators : Integrators are companies that specialize in integrating and customizing cloud solutions to meet specific customer needs. They can help companies migrate to the cloud, integrate different cloud platforms and develop customized applications.(***)

software publishers: These companies develop and supply software applications that can be used via the cloud. They often offer SaaS (***)

End customer: These are the end users of cloud computing services. They may be private individuals, but generally they are companies using cloud services to store data, run applications, collaborate online, or for other IT needs.

Thus, data center operators provide the necessary physical infrastructure to cloud service providers, who in turn offer cloud services to end customers. In addition, integrators may also work with end customers to deploy and integrate cloud solutions, using services and applications provided by software vendors.

3.2 A highly concentrated market, led by hyperscalers

The gap between American cloud giants and European cloud specialists continues to widen in France, according to a recent study by Markess by Exaegis. By ****, the three American giants - Amazon, Microsoft and Google, also known as the hyperscalers - will have captured **% of spending growth in the French market, In the field of cloud computing, "hyperscalers" represent a category of companies that provide cloud services on a massive scale, capable of managing huge volumes of data and meeting growing global demand. These players are distinguished by their ability to deploy and operate large-scale IT infrastructures, offering a wide range of cloud services, such as data storage, on-demand computing and artificial intelligence services. Among the most renowned hyperscalers, Amazon Web Services (***) stands out as the market leader.

Cloud computing market share France, ****, in Source: Silicon An analysis of cloud computing market share reveals significant trends in market distribution between the main cloud service providers. Amazon Web Services (***) clearly stands out as the leader, holding a significantly larger market share than its competitors, at **%. Microsoft Azure takes second place with a market share of **%, followed by Google Cloud Platform with *%. Other cloud service providers account for **% of the market. The top three ...

3.3 Cloud sovereignty, a major challenge for the years to come

The rapid evolution of the global digital landscape has placed the issue of data sovereignty at the heart of the concerns of companies and administrations, particularly in France and Europe. In ****, the CNIL's authorization for Microsoft to host French healthcare data, and EDF's decision to opt for AWS for part of its data, highlighted the challenges faced by French players in the field of data sovereignty.the CNIL's authorization for Microsoft to host French healthcare data and EDF's decision to opt for AWS for part of its data have highlighted the data protection challenges facing French cloud players. [***]

As a result, French cloud providers are lagging behind the American giants, and are looking for competitive offerings to close the gap. They are also faced with the challenge of protecting corporate and institutional data from surveillance under US law. Indeed, the use of American cloud storage services exposes companies to two regulatory laws:

The Patriot Act, designed to combat terrorism, grants U.S. intelligence agencies the power to snoop on personal data. The Cloud Act, which authorizes the U.S. government to enter into agreements with other countries to facilitate access to personal data, regardless of location.

As a result, these US ...

4.1 The different types of cloud computing services

In the cloud computing market, three categories of services are distinguished: infrastructure, platform and software. These submarkets are known by the acronyms IaaS, PaaS and SaaS, for"infrastructure, platform and software as a service". iaaS is the standardization of network architecture services, PaaS is the provision of a platform with software resources, and SaaS is a ready-to-use software solution.

Infrastructure as a service (***):

Infrastructure as a service (***), networking and storage services. Iaas provides access to a flexible, state-of-the-art hardware infrastructure, adaptable to companies' processing and storage needs. This infrastructure enables an organization's applications, software and platforms to be deployed without the need for management and maintenance. For example, a typical IaaS configuration might combine virtual machines with storage disks, each adjusted to meet a company's specific needs, whether in terms of server operating system or storage capacity required.

Platform as a service (***):

Platform as a service (***) represents a Cloud service model where it is possible to access a combination of hardware and software tools provided by a service provider. PaaS is mainly used for application development.

With a PaaS provider, access is possible to the entire Cloud infrastructure needed for application development, including databases, middleware, operating systems and servers, without having ...

4.2 Services and products from the market leaders

The main categories of AWS cloud computing services :

Source: ****

Azure's main cloud computing service categories:

Source: ****

4.3 Rising cloud computing prices

In ****, many companies are wondering whether it is more advantageous to store their data in the cloud or on site. This is due to the rising costs associated with cloud computing. Although the Cloud offers ease of access, its rising cost is becoming a major concern.

Rising costs in cloud computing have become a major concern for businesses, directly affecting SaaS application subscriptions. To maintain subscription prices, some SaaS application publishers have had to reduce the number of features available. According to Vertice, a company specializing in cloud and SaaS cost optimization, this strategy has already affected **% of businesses worldwide [***]

This price inflation is also being observed among data center operators and cloud providers. oVH, for example, has announced a **% price increase to offset its rising energy bill, while Microsoft has raised its subscription price by **%. Similarly, Google Cloud Platform has revised its pricing models for certain services, resulting in a **-**% increase in the cost of server installation compared with a few years ago. This trend is confirmed by IBM's announcement of a price increase of almost *% for its IaaS and PaaS offerings from January *, ****, illustrating a general trend of rising costs in the cloud computing sector.

Evolution of monthly ...

5.1 European Commission covers regulation of cloud computing in the EU

The European Commission covers the regulation of cloud computing in the EU. Listed below are the main regulations in this area:

The Regulation on the Free Movement of Non-Personal Data and the General Data Protection Regulation (***), reinforces legal certainty for cloud users, guaranteeing the free movement of all data within the EU. The DSM (***) covers data portability and the free circulation of non-personal data. It has led to the recent development of the WIPO Code of Conduct on Data Portability and the CSPCERT Recommendations for a European Cloud Security Certification Scheme. ENISA has created the European Cybersecurity Certification Scheme for Cloud Services. The scheme will give companies, public administrations and citizens greater assurance that their data is safe, wherever it is stored. There are two codes of conduct relating to data protection. For more information on the handling of personal and non-personal data in the cloud, see the Commission document Guidance on mixed datasets. Standardized service level agreements (***) for the cloud, guaranteeing the quality of cloud services on the European market. Use of the cloud by the financial sector: financial service providers are increasingly using cloud services to stay competitive. The Fintech Action Plan site highlights how the EC is working ...

5.2 Bill to secure and regulate the digital space (SREN law)

The SREN bill aims to strengthen regulation of the digital space and protect Internet users, especially young people, as well as businesses. Among its many measures, particular attention is paid to the cloud sector, with the aim of reducing companies' dependence on American giants such as Amazon, Microsoft and Google.

To this end, the bill provides for a number of measures, such as a framework for data transfer and migration fees, a one-year limit on commercial assets (***), and a requirement for cloud services to be interoperable so that they can communicate with each other.

Arcep (***) will be responsible for regulating these aspects. These measures will apply to both French and foreign cloud service providers, although providers based in other European countries may also be affected after designation by decree.

In addition, new provisions have been introduced for the private cloud storage of strategic and sensitive data held by government agencies and operators, including the Health Data Hub, to address the risks posed by non-European legislation.

What's the current status of the bill?

6.1 Segmentation

*For OVH, sales are those generated in France, as the company is not yet fully internationalized.

• Microsoft
• Google Cloud
• Orange Business Services
• OVH
• Outscale (Dassault System)
• Oracle
• AWS Amazon Web Services
• SalesForce
• Oordrive
• Service Now
• Data4 service
• Oxya
• IBM
• Qarnot Computing
• Shadow
• Interoute (Groupe GTT communications)
• GTT Communication