In the cloud, Amazon, Microsoft and Google now hold 71% of the market share in France, according to a study by Markess by Exaegis. “The digital market has rarely been so focused”Note the authors.
The gap continues to widen in France between American cloud giants and European specialists in the sector. This is what emerged from the latest study by Markess by Exaegis. In fact, American giants Amazon, Microsoft and Google managed to achieve 80% of the growth in spending in the French market in 2021, which is a nice cake of about 400 million euros to be shared between three. With the growth of the infrastructure cloud in France estimated at 37% annually, the volume of activity should reach 27 billion euros in 2025 in the French market.
After leaving only crumbs to the competition in terms of new contracts to build infrastructure and develop applications in the cloud, the three transatlantic giants now have a market share of 71% in this key technology sector, which has been boosted during the Covid-19 pandemic with the sudden rise of remote work. In fact, to accelerate digital transformation, many French companies have resorted to cloud solutions to ensure the sustainability of their activities. A trend observed all over the world.
Amazon first place, Microsoft’s strongest growth
But this increase in cloud spending has mainly benefited American groups, at the expense of European players in the sector, who have consistently denounced the market in which dice are loaded due to the uncompetitive practices of companies from abroad. . “The digital market has rarely been so focused”, note the study authors. And that focus is above all Amazon Web Services (AWS), the cloud branch of the US e-commerce giant, who benefits from it. Today, AWS is by and large the leader in France, with a market share of 46%, far ahead of Microsoft Azure (17%) and Google Cloud (8%).
However, with Amazon holding nearly half of the market, it’s getting tough for the Seattle group to sustain crazy growth. If far from absurd in 2021 (+36%), in terms of average market growth (+35%), it is lower than that of Google Cloud (+48%) and especially Microsoft Azure, which posted the strongest growth In the past year (+53%).
Microsoft calms the game in Brussels, Google opens data centers in France
If Redmond can rely on its Office 365 suite of software to entice businesses and thus encourage them to turn to its cloud platform, it is the subject of a complaint regarding abuse of dominant position by OVHcloud and other covenants with the EU competition authority. In the spotlight: More expensive and restrictive licenses for Office 365 have been granted to hosts that don’t provide Microsoft cloud services.
This complaint could lead to an official investigation by the European Commission, Microsoft decided to respond by announcing concessions to its software and hosting services. The company led by Brad Smith will review its cloud licenses privately so that its customers can use their solutions with the European cloud provider of their choice. The US group also ensures that it will make it easier for European cloud providers to host most Microsoft services on their infrastructure.
While Brad Smith takes a trip to Brussels to try to placate the European Commission by saying his company doesn’t have “Not paying enough attention to the youngest players in the sector”Google Cloud wants to speed up its development in France. In this context, the Mountain View company will be officially established in France in June. This deployment in the French market will trigger three data centers Primarily in Ile-de-France.
European players target niche markets for presence
If Google continues to rise in power in France, other players, especially the Europeans, must fight to control the remaining 29% of the market. Last year, OVHcloud, Scaleway, 3D Outscale and others only registered 23% growth in France. In the face of American solutions aimed at both small and medium-sized companies and small and medium-sized companies as well as large groups in all sectors of activity, they are trying to find a place for themselves In specific sectors: cybersecurity, application platforms, sovereign cloud, hybrid and multicloud managementnotes the study by Marquis Exaegis.
As they struggle to try to exist against the sheer power of the three transatlantic giants, these players also see major corporations choosing American solutions. This is particularly the case with Orange and Capgemini, which created Bleu in 2021 to offer Microsoft’s cloud solutions, or Thales, which teamed up with Google to launch “cloud of trust”. Maybe it’s a display of confidence, but far from sovereign…