The cloud computing market - Italy (2023)

1.2 The global market

The global cloud computing market size has been estimated at $***.** billion in **** and is expected to grow at a compound annual growth rate(***) of **.**% from **** to ****.

The market is expected to grow due to factors such as the functional capability of cloud computing to improve business performance in large enterprises, hybrid models, Omni-Cloud systems, and pay-as-you-go models.

Global Cloud Computing Market World, ****-****, in billions of dollars grandviewresearch.com

Regional Insights

North America dominated the global market in **** with a share of more than ** percent. U.S. companies are embracing more and more types of technologies, and this area is expected to maintain its position in the market due to the presence of numerous vendors such as Oracle, Microsoft, and Amazon.

Asia-Pacific is expected to experience the fastest growth in the ****-**** period. The rapid rise of India, China and the importance of companies such as Alibaba have accelerated the expansion of the regional market. In addition, Cloud providers such as Amazon, Google LLP and Microsoft are building data centers in regions such as Thailand and Indonesia to meet government demands for data sovereignty.

Service Insights.

The Software as a Service (***) segment accounted for a market share of more than ** percent ...

1.3 The Italian market

In ****, the Italian Cloud market continues to consolidate, with a growth rate of about ** percent and a total value reaching *.** billion euros.

Despite the emergence of new complexities related to the geopolitical situation, the energy crisis and the consequent increase in inflation, domestic companies have continued to positively assess the digitization paths they have faced in recent years, which are now firmly grounded in the "cloud."

Particularly driving the growth are infrastructure services (***), which have historically been more prevalent.

Looking at the graph below we can see a continuous and progressive growth of Cloud Computing in Italy, on the other hand digital transformation increasingly coincides with Cloud transformation because of the wide range of services and solutions offered.

Size of the Cloud Computing Market Italy, ****-****, in billions of euros en-enterprise.it observatories.net

1.4 Main Cloud Service Providers

In ****, the top global providers of Cloud services can be traced to * major players:

With the largest market share (***). It remains the most popular service in ****, however, in the third quarter of **** it experienced the loss of one percentage point, as at the end of **** the market share was **%. Since ****, AWS has grown to offer over *** services in the Cloud, including Machine Learning and AI. Currently, the availability of AWS services covers more than ** areas in ** geographic regions of the world.

Microsoft Azure follows, with a ** percent share in ****, which is unchanged from the end of ****. Azure is experiencing an increase in usage compared to previous years. Microsoft's Cloud platform gained +*% in market share in **** compared to ****. Launched in ****, Azure currently offers more than *** Cloud services, including Machine Learning and AI services. It serves millions of customers worldwide, both businesses and individuals.

In third place is Google Cloud, which started **** with a market share of ** percent, up * percent from ****. However, after the first quarter of **** theshare dropped to **% . Google Cloud incorporates Google Cloud Platform (***). More than *** services are currently available. Google's Cloud almost doubled its market share between **** and ****, from * percent to ** percent.

Market share Cloud services World, ****, % aag-it.com

1.5 Impact of covid-19 and the Russian-Ukrainian conflict

Impact of covid-**

Cloud computing has been one of the fastest growing technologies among developed, developing nations and has seen a major acceleration in ****.

Almost every industry has moved or is planning to move its business to the cloud since the world faced the pandemic-related period. Cloud services have become an essential new catalyst for enterprises seeking digital transformation.

For example, in September ****, Accenture Solutions developed Cloud First with a $* billion investment to accelerate cloud adoption and digital transformation.

In addition, increasing investments by major market players to develop data centers around the world in response to the pandemic are expected to drive the market in the coming years. Two representative examples are given.

In December ****, Google LLC established * cloud regions (***) in the United States, Indonesia, and South Korea. In addition, the company opened new data centers in Italy, Qatar and France. In April ****, Amazon launched a data center in Italy during the pandemic period to provide support for distance learning and working.

(***)

Impact of the Russian-Ukrainian conflict

the conflict between Russia and Ukraine and rising inflation have had several impacts on the cloud computing and IT industry globally.

Increase incyber attacks: During the Russian-Ukrainian conflict, there has been a ...

2.1 Demand in Italy

According to reports from theCloud Transformation Observatory, inflationary trends have not slowed down large enterprises' spending on Cloud. In fact, Observatory Director Alessandro Piva states: "the previous budget allocation of large enterprises on multi-year strategic projects, characterized by locked-in rate contracts, has helped mitigate the effects of rising prices on the current year."

Continuing with previous years, the Cloud spending component to register the most significant growth dynamic is Public Cloud & Hybrid Cloud, with spending of *.*** billion euros in ****, up ** percent from ****.

Among other components of overall spending, Virtual & Hosted Private Cloud, which covers infrastructure services residing with external providers, reaches *.*** billion euros in spending, up * percent from ****.

The third major spending component concerns Data Center Automation, which is the modernization of on-premises infrastructure, grows by +** percent compared to ****, totaling *** million euros.

Cloud spending by component Italy, ****, in billions of euros (***)

Public & Hybrid Cloud

In particular, within the Public & Hybrid Cloud, IaaS registers the main dynamic, reaching the value of *.*** billion euros(***), the share of services is now close to the share represented by historically more popular SaaS services.

It is followed in terms of growth by PaaS, which is up ** percent to €*** million, driven by opportunities related to Artificial Intelligence ...

2.2 Demand drivers

Currently there are several key factors driving the demand for Cloud services, the main ones are listed below.

Support for remote work and collaboration: thetransition to remote work has significantly increased the need for cloud-based tools for communication, project management, and file sharing. This long-term hybrid work model is driving demand for cloud-based productivity and collaboration technologies.

Sustainability goals: more and more companies are leveraging cloud efficiency to meet their sustainability goals. Cloud service providers can achieve economies of scale and offer more efficient operations than on-premises solutions, thus helping to reduce carbon emissions.

Adoption of Artificial Intelligence (***): the integration of AI into business processes is boosting cloud growth. Companies are increasingly using the cloud to access advanced AI capabilities, such as natural language processing and facial recognition. This trend is expected to expand demand for cloud computing, improving data protection, privacy, and offering better personalized cloud interactions.

Rise of Sovereign and Industry-Specific Clouds: The need to comply with data privacy regulations is driving the adoption of sovereign and industry-specific cloud solutions. These solutions are tailored to meet the regulatory and operational requirements of specific industries or regions.

Business Transformation and Growth: Pandemic has accelerated cloud adoption as companies have recognized ...

2.3 The geographical distribution of demand

In order to get an overview of the geographical distribution of demand, reference is made to Google Search Queries with Cloud Computing topic. The results showedhomogeneity in almost all Italian regions. Considering a *-*** scale, most present values between **-**. Two regionsare exceptions, first of all Molise, where the highest number of searches on the topic is found, followed byAbruzzo, with a value of **.

Regarding Molise, interest in Cloud Computing appears to be driven by regional initiatives to modernize and innovate public services. In addition, there are companies such as Power*Cloud in the territory that offer Cloud Computing solutions, supporting various sectors such as education, public administration, industry and others. (***)

With regard toAbruzzo, special interest in this region, too, can be linked to regional and national initiatives promoting this technology. In particular, the Abruzzo Region has joined a plan to enhance cloud computing services, as indicated by DGR Resolution No. ***/****. This plan is part of a broader context of digitization and modernization of public services. In addition, there has been a strong push from the Department for Digital Transformation of the Prime Minister's Office, which has allocated additional funds to support the migration to the cloud of Italian municipalities. This ...

2.4 New trends in demand

FinOps and Cost Management

FinOps is still a new path for most companies and represents an emerging management model. The goal is to strike a proper balance between cost, speed and quality, the so-called "iron triangle," to make the cloud more efficient and continue to invest in innovation. This does not necessarily mean spending less, but making sure that cloud spending is optimized and that the business is aware of the unit costs of the cloud, i.e., how to measure the cloud against business metrics.

Through a combination of procedures, best practices, and cultural attitudes, this model improves an organization's ability to understand costs and make more appropriate and accurate decisions by building a bridge between IT, Finance, and Business teams.

FinOps is based on six core principles founded on an autonomous, cost-conscious cultural approach that takes into account both accountability for spending and business agility, while maintaining cloud speed and innovation benefits.

Collaboration among teams Decisions are driven by the business value of the cloud Everyone takes responsibility for cLOUD usage FinOps reports must be accessible and timely A centralized team manages FinOps Take advantage of the Cloud's variable cost model

(***)

Adoption of the Multi-Cloud

Multi-Cloud is a ...

3.1 The main players

In the Italian context of the Cloud Computing market, the leadership positions are occupied by the big players at the global level: Amazon, Microsoft and Google (***).

In addition to these international players, in Italy there are several companies offering Cloud services, which often collaborate with the big providers to guarantee ii services offered.

The following are the main Italian Cloud providers:

Aruba s.p.a: an Italian company that provides a wide range of services in cloud computing and Internet hosting. Founded in ****, Aruba is one of the largest providers of web hosting, e-mail, PEC (***) and domain registration services in Italy. In addition to hosting and cloud services, the company also offers security solutions, such as SSL certificates and digital signature services. Aruba is known for its data center infrastructure, which includes centers in several locations in Italy and abroad.

Cdlan s.p.a: an Italian company that provides telecommunications services and IT solutions, specializing in hosting, cloud computing and connectivity services. Based in Milan, CDLAN offers a wide range of services including data centers, dedicated and shared hosting, customized cloud solutions, and connectivity services for businesses. The company is known for its reliability and use of cutting-edge technologies, focusing on ...

3.2 The value chain

The value chain in cloud computing describes the different stages and components that contribute to the creation, operation, and deployment of cloud services. This chain consists of several key stages, each of which adds value to the final service offered to users.

4.1 Supply analysis

The following is a general overview of the types of services commonly offered by cloud providers.

Infrastructure as a Service (***): computing resources such as virtual machines, storage, networks, and operating systems are delivered by a provider. Users access them through a Web interface or API and are responsible for installing, configuring and running the software, as well as managing the security and maintenance of the software. It is a good option for companies that require more flexibility in their IT environment because it allows it to be customized to specific needs. However, advanced technical skills are required to configure the infrastructure, as well as to install and manage the software.

Platform as a Service (***): offers preconfigured platforms and cloud environments for developing, deploying and running Web or mobile applications. Users can then take advantage of the predefined tools provided by the provider, which is responsible for managing and maintaining the infrastructure. This model allows users to rapidly develop Web or mobile applications or services. it is therefore an efficient solution that allows companies using it to focus on application development and deployment without having to manage the complexity and technical details of the infrastructure.

Software as a Service (***). The software, in ...

4.2 The prices

Cloud service prices include several options that depend on the provider, the technical specifications of the service, and the type of subscription.

Storage space

The average price: €***-*** per year for * terbies of virtual space.

Iaas services

In general, different providers provide a variety of Iaas services with different purchase options, incentives and benefits. Typically, prices depend on resource consumption, varying based on factors such as storage capacity and data transfer. Another relevant factor by which prices vary is the geographic area in which the service is used.

4.3 New supply trends

Cloud based on Artificial Intelligence (***)

AI and ML are becoming increasingly integrated into cloud services, offering capabilities such as predictive analytics and automation of operations. These technologies are changing the way the cloud is used, enabling organizations to improve efficiency, predict demand, and protect data more effectively.

Predictive analytics is one area where AI and ML are being used to improve cloud performance. By analyzing past data, predictive analytics can identify patterns and trends that can help organizations make better decisions about future resources and capacity requirements. This can help organizations avoid overprovisioning or underutilization of their resources, saving time and money.

Automated operations is another area where AI and ML are providing benefits in the cloud. Automation can help reduce human error and improve efficiency by performing tasks that would otherwise have to be done manually. For example, automated scaling can ensure that an organization's resources always match its current needs, avoiding wasted capacity or unexpected costs.

AI and machine learning are also being used to improve security in the cloud. By constantly monitoring for anomalies, AI-based security systems can detect and respond quickly to potential threats. This helps organizations keep their data safe while minimizing disruptions to business ...

5.1 The legislation

Cloud Strategy Italy

Italian legislation in the area of cloud computing has evolved significantly, particularly with the publication of the"Cloud Italy Strategy" by the National Cybersecurity Agency.

This strategy, published on Jan. *, **** with Director's Decree No. **, is key to the migration of Public Administration data and IT applications to a qualified cloud environment.

The guidelines of this strategy reflect three main challenges: ensuring the country's technological autonomy, controlling data and increasing the resilience of digital services.

Key aspects of the strategy include:

Classification of Data and Services: this process is used to define categories of data based on the potential damage their compromise could cause. Three classes of data are distinguished: stretegic, critical and ordinary. qualification of Cloud Services: the goal is to simplify and regulate the acquisition of cloud services by public administrations, both technically and administratively. As of Jan. **, ****, the qualification of cloud services for public administration is the responsibility of the National Cybersecurity Agency. National Strategic Pole: This element of the strategy aims to equip the Public Administration with cloud technologies and infrastructure that benefit from the highest guarantees of reliability, resilience and independence

(***)

In addition, the Italy Cloud Strategy also responds to the objectives of ...

6.1 Segmentation

• Aruba s.p.a
• Cdlan s.p.a
• Netsons s.r.l
• Genesys Informatica s.r.l
• Coretech s.r.l
• AWS Amazon Web Services
• Microsoft Azure
• Google Cloud