Tuesday 16th May, 2017
According to the findings by research and advisory firm ISG, the annual value of cloud-based services in the EMEA region surpassed €1 billion for the first time, a sign such as-a-service offerings are growing in importance.
The EMEA ISG Index™, which measures commercial and public sector outsourcing contracts with an annual contract value (ACV) of €4 million or more, shows that the combined commercial market reached €3.5 billion in the first quarter of 2017.
The 'as-a-service' market, which uses cloud computing solutions to provide IT services externally, has taken off over the past two years. Traditional sourcing still dwarfs as-a-service in EMEA – a point of difference between this region and the Americas and Asia Pacific regions.
Public sector ACV in EMEA declined sharply in the last 12 months. The €6.3 billion of ACV awarded was down by almost half compared with the previous year, due to a slow-down in contracting brought about by political uncertainty across Europe. Going forward, the public-sector market should return to its usual €8 billion - €10 billion mark.
The UK registered its highest ever ACV in a quarter, with €1.4 billion awarded. This follows three consecutive weak quarters in 2016 as UK businesses slowed their spending due to uncertainty over political and technological change.