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The French Cloud Computing Market

The Tribune publishes every day extracts from the analyzes broadcast on Xerfi Canal. Today, the French cloud computing market

The success of cloud computing continues unabated, according to Serif’s study of this market. Just two or three figures to measure the rise of “computing in the clouds” in France. With a growth of 20% in 2014, cloud computing has been the most dynamic market in the IT sector. By way of comparison, the spending of companies and administrations in information technology has not exceeded 1% in the last three years. The growth potential of the cloud looks promising. Indeed, only 3 out of 10 French companies would today use a cloud solution. As large corporations have become accustomed to outsourcing much of their IT resources, SMEs will be the new commercial targets for specialists. In addition, connected objects and big data offer new opportunities for cloud specialists. Examples include the provision of predictive maintenance services in the industry or the improvement of business marketing by analyzing data stored in the cloud.

Market dynamics benefit all operators

By that, I mean foreign leaders like Amazon Web Services, Google or Microsoft as well as tricolor actors such as OVH, Cloud is Mine or Outscale. Faced with the gigantic data hosting capabilities of the Anglo-Saxon giants, the French are playing the card of specialization. In short, they are positioning themselves in niche markets. Niches such as cloud solution deployment consulting or integration into regulated sectors such as health or finance. This is a winning strategy as these business models do not require mass effect to achieve business objectives and sufficient profitability.

To make their specificity known to customers, French actors have two means at their disposal. The first is to resort to certification. And the second to set up a true brand strategy.

Cloud computing is a disruptive innovation

With the pooling of IT resources, the volume of activity is reduced for distributors, hirers, and equipment traders. They must adapt and build on their skills to continue to grow. For wholesalers, the threat is twofold. Some cloud solution publishers could indeed turn to direct distribution to customers. In addition, some cloud brokers are already positioning themselves with suppliers to replace wholesalers as distributors. The rise of cloud computing has also profoundly changed the business model of software publishers. With the SaaS model, payment for usage services via a subscription is gradually supplanting the sale of licenses. A transition that is not without risk for publishers. They need to learn cloud skills and invest to ensure 24-hour service continuity.


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