Despite Economic Headwinds, Firms Embrace Cloud and AI
30-Jul-2025
Europe
Customer Research
PFU7-01-00-00-00
IT_2025_33692
European organizations continue to embrace cloud and AI technologies as a way to drive growth and operational efficiencies. Despite sluggish economic growth in the region that is curtailing some spending, organizations are steadily progressing on their digitalization journeys.
In the 13th annual survey of IT decision-makers responsible for cloud implementations, respondents representing a range of industries, company sizes, and regions of the world share their perceptions, plans, and behaviors related to cloud and IT infrastructure, AI, and managed services. Key findings include:
- Use of hybrid cloud is expected to double by 2026. 66% of European firms agree that a hybrid cloud is necessary for a successful business.
- European firms continue to migrate legacy workloads to the cloud, although at a slower pace than their colleagues in other world regions.
- Speed to deploy apps, ease of access for remote workers, and high levels of security top the list of reasons for deploying apps in the public cloud
- European firms are slightly more mature in AI adoption than counterparts in other regions. 32% of European respondents say they have implemented AI across multiple functions (compared with 24% globally).
- Sustainability remains a top priority for European firms, even as interest lags in other parts of the world. Nonetheless, high costs and lack of in-house experience hinder initiatives.
- Perhaps as a response to tighter budgets, European respondents are less likely to engage a third-party managed or professional services firm for assistance with their digital initiatives.
Respondent Profile
Key Findings
Top Business Priorities Include Revenue, Customer Experience
IT Department, C-Suite Executives Drive Digital Transformation
Technology Investments Among European Business Owners
Sustainability Remains a Priority for European Businesses
Low Expertise and High Costs Hinder Sustainability Initiatives
Cloud is a Crucial Step in Digital Transformation
European Businesses Utilize a Range of Infrastructure Options
Speed, Access, and Security are Top Drivers for Public Cloud
Implementation Challenges Include Cost and Security
Top Reasons for Deploying Apps On-Premises
European Firms Continue to Migrate Legacy Apps to Cloud
Multiple Approaches to App Modernization
Third Party Partners Provide Security, Cloud Workload Management
Top Benefits to Using a Third-Party Provider
Artificial Intelligence Adoption Trends
Major Drivers For Artificial Intelligence in Europe
Major Challenges in AI Implementation
Growth Opportunities Fuel the Growth Pipeline Engine™
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
Benefits and Impacts of Growth Opportunities
Next Steps
List of Exhibits
Legal Disclaimer
Speak directly with our analytics experts for tailored recommendations.
Recent related IT Services and Applications research
17 Sep 2026 | Global | Market Research
Growth Opportunities in the Western Europe Consumer eSIM Market, 2026–2029
The consumer eSIM market in Western Europe is growing steadily, supported by the rising availability of eSIM-capable devices, particularly smartphones, and expanding travel-related use cases. However, commercialization has yet to translate into mass adoption. Despite Apple’s global launch of an eSIM...
15 Sep 2026 | Global | Technology Research
Growth Opportunities in Workload Identity and Access Management, Non-Human Identity Security, Threat Exposure Management, and Blockchain Security
This edition of the Cyber Security Technology Opportunity Engine (TOE) showcases emerging cybersecurity innovators advancing AI-powered security, identity and access management, data security, threat exposure management, blockchain security, cyber incident response, network protection, and agentic A...
09 Sep 2026 | Global | Technology Research
Unified Cloud Control: The Emergence of Intelligent Multi-Cloud Management Platforms, 2026-2030
This report emerges as the evolution of an integrated cloud manipulation management system as complementary technology for employer cloud manipulation management systems to enable businesses to manage increasingly distributed workloads in public, private, hybrid, edge, and sovereign clouds in one ma...
03 Sep 2026 | Global | Technology Research
Photonic and Optical Computing Chips for AI and Data Center Acceleration
The study evaluates photonic and optical computing technologies as critical enablers of next-generation AI infrastructure, addressing growing bandwidth, latency, power consumption, and scalability constraints associated with copper-based interconnects. The analysis covers photonic integrated circuit...
25 Aug 2026 | Global | Frost Radar
Frost Radar™: Hybrid Cloud Storage Software Platforms, 2026
The hybrid cloud storage software (HCSS) platforms market is evolving from traditional hybrid storage enablement to intelligent distributed data orchestration for data-intensive enterprise environments. HCSS platforms enable unified access, mobility, protection, and policy-driven orchestration acros...
Purchase includes:
- Report download
- Growth Dialog™ with our experts
Growth Dialog™
A tailored session with you where we identify the:- Strategic Imperatives
- Growth Opportunities
- Best Practices
- Companies to Action
Impacting your company's future growth potential.
In the 13th annual survey of IT decision-makers responsible for cloud implementations, respondents representing a range of industries, company sizes, and regions of the world share their perceptions, plans, and behaviors related to cloud and IT infrastructure, AI, and managed services. Key findings include:
- Use of hybrid cloud is expected to double by 2026. 66% of European firms agree that a hybrid cloud is necessary for a successful business. - European firms continue to migrate legacy workloads to the cloud, although at a slower pace than their colleagues in other world regions. - Speed to deploy apps, ease of access for remote workers, and high levels of security top the list of reasons for deploying apps in the public cloud - European firms are slightly more mature in AI adoption than counterparts in other regions. 32% of European respondents say they have implemented AI across multiple functions (compared with 24% globally). - Sustainability remains a top priority for European firms, even as interest lags in other parts of the world. Nonetheless, high costs and lack of in-house experience hinder initiatives. - Perhaps as a response to tighter budgets, European respondents are less likely to engage a third-party managed or professional services firm for assistance with their digital initiatives.
| Deliverable Type | Customer Research |
|---|---|
| Industries | Information Technology |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | cloud services market Europe |
| Keyword 2 | cloud compliance solutions |
| Keyword 3 | European cloud adoption trends |
| Podcast | No |
| Predecessor | K9DA-01-00-00-00 |
| WIP Number | PFU7-01-00-00-00 |