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Euro issues put region two years behind US on cloud adoption

Gartner says a combination of the region's diversity and concerns about its economic situation are delaying cloud adoption

By Steve Evans

Cloud adoption in Europe is lagging two years behind the United States, according to a new report from Gartner.

A host of issues throughout the European region will contribute to the delay in adopting cloud computing, Gartner said. These include European privacy rules, multi-country business processes, a deep euro crisis and a lingering recession.

The last two points contradict previous estimates that the economic crisis in Europe would actually help cloud adoption, as businesses look for ways to reduce costs.

Specifically, said Gartner, concerns over the long-term future of the Euro currency across Europe means some businesses will put major investments on hold. This is slowing down strategic and game-changing decision making, the report said.

David Mitchell Smith, vice president and Gartner Fellow, said the economic situation will slow down cloud adoption, rather than halt it altogether.

"The bottom line is that the interest in cloud is as high in Europe as it is elsewhere in the world," he said. "While these inhibitors will certainly slow down cloud adoption in Europe, they will not stop it — the potential benefits of cloud are too attractive and the interest in its efficiency and agility are too strong to stall it for long."

The other inhibitors identified by Gartner include data regulations in the European region. The rules here about where data can reside is causing a few issues while laws such as the US Patriot Act are a worry for businesses.

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The diverse nature of European countries is also delaying cloud adoption. Regulations and business practices in one European country will be different, even incompatible, in another.

On a similar note, the final inhibitor listed by Gartner is different EU policies across the region. As well as each sovereign power adding their own legislation to whatever policy or regulation EU passes, which can complicate matters, the speed at which these processes move is slowing down adoption, Gartner says.

Paolo Malinverno, vice president at Gartner, echoes the comments from Smith that these delays do not mean there is no appetite for cloud computing in Europe.

"The opportunities for cloud computing value are valid all over the world, and the same is true for some of the risks and costs," he said. "However, some of cloud computing’s potential risks and costs — namely security, transparency and integration — which are generally applicable worldwide, take on a different meaning in Europe."

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