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European telcos are becoming one-stop-shops for cloud services

Many European players have expanded their cloud portfolio offerings to cater for large enterprises and SMEs. Cloud operators in Europe have been able to enjoy economies of scale and ensure competitive pricing. Key pinch points which international cloud players face in Europe relate to data security, localisation and regulatory compliance. As a result, demand for cloud services has shifted towards local or European-based players, particularly for data centre related services.

European telcos

Within the enterprise segment, telcos are keenly aware of the slowing growth of conventional voice and data services and that they need to diversify their sources of revenue. Many telcos end up zeroing in on data centre and cloud services as potential growth areas, chief among them the IaaS market.

European telcos will play an important aggregator role, becoming a one-stop-shop for cloud services, leveraging their direct customer relationships and cloud players’ network infrastructure. By providing a multitude of cloud solutions, especially in hybrid cloud services, European telcos can compete with pure-cloud players on a larger scale with end-to-end solutions across their full telecom footprint. Additionally, we may see an increasing amount of collaboration to improve cloud enablement and services.

For instance, in 2018, BT, Vodafone, Orange and TIM announced their participation in the Blade Runner Catalyst with other telcos and vendors to produce new enterprise cloud services such as multi-access edge computing.

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