The current situation of French cloud computing market

I. Market Size

2012, the French cloud computing market size reached 2.8 billion euros, an increase of 35%. IDC, a market consultancy, estimates that the 2013 cloud computing market will grow by as large as 26%. Cloud computing software has a turnover of 720 million euros, accounting for 7% of the software market and is expected to grow to 16% by 2016.

Ii. Distribution of service patterns

Figure 1 Cloud computing service pattern distribution (%)

SaaS service patterns are most widely used. According to the survey, 65% French enterprises and government agencies have applied the SaaS service model, while the IaaS service model and the PAAs service model are only 28% and 11% respectively. The 67% IaaS service pattern applies to private clouds. Public clouds are less used in infrastructure.

Iii. Main Advantages

Figure 2 Reasons to choose Cloud Computing (%)

For French companies, the first reason to choose cloud Computing is: flexibility (65%) and lower costs (57%). Other reasons include: the need for innovation, the important lever of enterprise transformation. But at the same time, only one-seventh companies have developed cloud computing strategic planning.

Iv. constraints

Figure 3 Cloud computing development constraints (%)

Security is the first factor constraining the development of cloud computing, and there are fewer factors such as cloud computing service providers.

V. IaaS Service Mode application

Figure 4 IaaS Service mode application (%)

The IaaS service model has limited application scope. Only 28% of the companies represented cloud computing infrastructure solutions, and 67% of them were essentially implemented on a private cloud. IaaS Service mode main services include applications (62%) and Web sites (54%).

Vi. Public Cloud Applications

Figure 5 Criteria for selecting a public cloud service provider (%)

Few French companies are using the public cloud, which is the biggest market gap for French cloud-computing service providers, in the context of the cloud computing market being occupied by US industry giants.

Vii. use of cloud computing in small and medium enterprises

In all types of enterprises, the utilization of cloud computing is only 33%. In large enterprises, 53% of enterprises use cloud computing technologies (including SaaS, IaaS, and PAAs service models), compared to 20% per cent of small and medium-sized enterprises with fewer than 200 employees.

Viii. Customer Loyalty Survey

Figure 6 Customer loyalty survey (year)

According to a survey of 135 French cloud computing service providers, the average customer loyalty is only around two years. Customers who use the IaaS service model typically maintain 2-3 years, while customers with PAAs service mode are less than two years (only 1.7 years).