30.09.2024

Study: “Between the Cloud and the Edge – Making Cloud Native Secure and Sustainable”

  • Cloud computing remains an investment focus: 47% of companies expect it to have the greatest impact on their IT spending in 2025/2026. 40% prefer hybrid cloud models.
  • Cloud and AI are closely connected: 56% of companies see AI as a top trend, with many AI solutions being developed and operated cloud natively; the cloud remains central to AI development.
  • Skill gap slows down cloud native: 24% of business managers and 15% of IT managers see a lack of know-how as a problem. A third of companies plan to pursue external assistance and increase employee training.

Felix Höger, Board Member at EuroCloud:

“Many companies still struggle with the long-term implementation of cloud natives, but the growing number of planned projects shows that new attempts will follow soon.”

Agility, flexibility, scalability: the advantages of dynamic cloud-native applications are clear. However, to fully exploit the potential of the technology, companies need to close the internal skills gap. This is the conclusion of the “EuroCloud Pulse Check 2024”, which was conducted by the Kassel-based analyst firm techconsult on behalf of EuroCloud Deutschland_eco e. V. and the EuroCloud Native (ECN) initiative. On 26 September, the study was presented to the public at the EuroCloud Summit 2024.

Companies in Germany now appreciate the advantages of the cloud and continue to invest consistently in the model. According to the study, 47% of respondents expect cloud computing to have the greatest impact on their IT spending in 2025 and 2026. When it comes to deployment models, the public cloud is clearly favoured by users over the private cloud. While 36% of companies rely solely on the public cloud, only 22% use exclusively private environments. Of the companies that use the public cloud, 14% even operate workloads at several providers (multi-cloud). German companies are increasingly planning to rely on the public cloud in the future as well. However, the majority of respondents (40%) currently still prefer a hybrid model.

Cloud as the key to AI

“The cloud is increasingly emerging as a core building block of any future-oriented IT infrastructure,” summarises Pascal Brunnert, Analyst and Project Manager at techconsult. “Our study from this year, which is right at the cutting edge, once again provides a comprehensive overview of all relevant aspects of cloud computing, from cloud native to cybersecurity, data protection and digital sovereignty, right up to sustainability efforts and edge computing.”

However, compared to last year’s Pulse Check, the cloud has slightly lost its priority, as 53% of companies said it would have the greatest impact on their future IT spending. In the current survey, “artificial intelligence” is the topic most frequently mentioned by respondents, rating 56% (2023: 45%). “Automation” ranks third with 32%, as in the previous year, when this trend reached 43%. However, this does not indicate a decline in the importance of cloud computing, but rather a shift in perspective. This is because AI solutions are often developed as cloud-native applications and run in cloud environments.

Cloud native remains in demand

In fact, cloud native is still very popular in software development. Overall, 35% of companies use cloud-native approaches and agile processes to create scalable applications and operate them in dynamic environments. Leading the way are banks and insurance companies with 55%, and service providers with 48%.

The trend towards cloud-native adoption will continue to grow in the future: 32% of respondents plan to implement it within a year, while a further 16% plan to implement it at a later date. However, a comparison with the 2023 Pulse Check shows that last year, almost half of the companies (45%) were already using cloud-native concepts, and only 26% were planning to implement them within a year.

“Many users seem to struggle with permanently implementing cloud native on a permanent basis, which is why they have fallen back into old patterns,” interprets Felix Höger, Board Member of the EuroCloud, regarding this result. “However, the increase in the number of companies planning to implement cloud native in the next twelve months indicates that we will see many new launches in the near future.”

Knowledge gaps: Bridge the gap

The study reveals why companies have faltered on cloud-native projects over the past twelve months. The main reasons are the high level of effort required for orchestration and management, as well as a lack of employee expertise. Interestingly, 24% of business managers see the skills gap as a problem, but only 15% of IT managers do. “Apparently, management from business departments attributes less competence to their IT colleagues in cloud-native matters than the IT teams attribute to themselves,” concludes analyst Brunnert from the data. In addition, 21% of IT managers report that resistance from management is preventing them from delving deeper into cloud-native technologies and agile methods.

In view of the knowledge gaps and integration problems, 43% of companies consider external support to be necessary for cloud-native projects, with 50% of business managers and 39% of IT decision-makers seeing this need. This discrepancy points to a lack of communication between IT and specialist departments. Nearly a third of respondents (32%) plan to collaborate more closely with external service providers in the coming months – not only for technical integration, but also to build up internal expertise. Additionally, 35% of companies aim to provide further training for their employees, while 31% want to hire additional staff with the appropriate skills.

For the “EuroCloud Pulse Check 2024: Between the Cloud and the Edge – Making Cloud Native Secure and Sustainable”, techconsult surveyed around 250 companies from relevant sectors such as banking and insurance, services, retail and industry. The study is supported by the sponsors adesso as a service, tech.STARS, gridscale, STACKIT and QAware.

The complete German-language study can be found here.

 

About techconsult GmbH
As a research and analyst company, techconsult has been the partner for providers and consumers of digital technologies and services for 30 years. techconsult GmbH is led by Managing Partner and Founder Peter Burghardt at the Kassel location with a branch office in Munich.

About EuroCloud Native (ECN)
EuroCloud Native (ECN) is an initiative in EuroCloud Deutschland, the association of the cloud computing industry in Germany. Since 2020, the ECN has specifically targeted providers of public cloud-based solutions and services, which are mostly young companies or startups. Founded by experts, the ECN is not only a specialist forum for cloud-native topics, but also a point of contact for questions from the media. Dr Nils Kaufmann heads the ECN. Thomas Noglik and Felix Höger, both Board Members at EuroCloud, support the work and ensure the connection to the association.

Study: “Between the Cloud and the Edge – Making Cloud Native Secure and Sustainable” 3