European organisations grappling with cloud storage bills as fees dominate spending
European organisations are still grappling with hefty storage bills, as half of all cloud storage costs in the EMEA region are attributed to data access and usage fees, rather than actual storage capacity. This revelation comes from the 2024 Global Cloud Storage Index, compiled by Wasabi Technologies.
EMEA’s Outlook on Cloud Storage Spending
Despite the prevailing cost challenges, EMEA companies recognize the value of cloud storage services and intend to ramp up their spending in 2024. Their investment aims to propel IT initiatives such as application and infrastructure migration, along with enhancing business and operational endeavors like digital transformation and modernisation.
Insights from the Wasabi Global Cloud Storage Index
Commissioned and executed by Vanson Bourne, the Wasabi Global Cloud Storage Index delves into evolving attitudes toward public cloud storage adoption, influential factors in storage purchasing decisions, and the market’s top priorities. The survey involved 1,200 global IT decision-makers directly involved in their organisations’ storage strategies.
Andrew Smith, Senior Manager of Strategy and Market Intelligence at Wasabi Technologies, noted, “Organisations worldwide are increasing their use and budgets for public cloud storage solutions, and Europe is no exception.”
EMEA’s Cloud Spending Trends
EMEA businesses allocate a larger portion of their cloud storage budgets to fees compared to their global counterparts. On average, 50% of EMEA’s cloud storage expenditure goes towards fees, overshadowing the global average of 47%. Notably, the UK allocates a slightly lower percentage (48%) to fees compared to Germany’s 51.5%, which marks the highest in the region.
Europe’s Cloud-First Mentality
Europe exhibits a proactive stance towards cloud adoption, with 44% of organisations embracing a “cloud-first” strategy for IT services adoption, surpassing the global average of 42%. This trend is especially prominent in Germany and France.
Priorities in Cloud Storage Provider Selection
When selecting a cloud storage provider, EMEA respondents prioritize integrations with existing third-party applications, security and compliance features, and sustainability initiatives. Additionally, EMEA organisations are keen on exploring multiple cloud storage providers to avoid vendor lock-in.
AI/ML’s Impact on Cloud Storage
The adoption of artificial intelligence and machine learning technologies is on the rise, with 99% of EMEA respondents either having adopted or planning to adopt AI/ML in 2024. However, this trend introduces new challenges for cloud storage, including data location requirements, backup and recovery needs, and storage migration complexities.
Looking Ahead
Jon Howes, Wasabi Technologies VP & GM of EMEA, emphasized the inevitability of off-premises cloud storage solutions in navigating the evolving landscape, especially with the increasing adoption of AI/ML applications. However, concerns about fees and vendor lock-in pose navigational challenges for EMEA’s cloud-first organisations.
Methodology
Wasabi Technologies commissioned Vanson Bourne to conduct the research, surveying 1,200 IT decision-makers involved in public cloud storage purchases. The study took place in November and December 2023, encompassing organisations with over 100 employees across various sectors.
Explore Further
To delve deeper into the 2024 Wasabi Global Cloud Storage Index, visit the official website. Additionally, insights from the APAC region are also available.
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