ECN Pulse Check 2023: 45 Per Cent of Companies Rely on Cloud Native Strategy

“The strategic orientation of companies towards the cloud remains a key element for digitalisation in Germany as a business hub. This is evident in the newly released third edition of the joint study ECN Pulse Check. Techconsult conducted a survey on behalf of EuroCloud Native (ECN), the cloud-native initiative of EuroCloud Germany, in October 2023, involving 255 IT decision-makers from German companies. According to the survey, 45 per cent of these companies are already pursuing a cloud native strategy, while 44 per cent are planning to adopt one in the future. 

Felix Höger, Board Member of the eco Association of the Internet Industry, emphasised the significance of a cloud native approach, stating, “A cloud native approach serves as both a springboard and a foundation for the latest technological trends.” He further added, “For the past four years, EuroCloud Native has brought together cloud native providers, enabling economic opportunities and business growth for users.” 

Forty-five per cent of companies are already pursuing a cloud-native strategy, while another 44 per cent are planning their future strategies accordingly. This holds true of various technologies, including cloud computing, artificial intelligence, automation or 5G. “Development cycles can be accelerated via cloud-native applications,” says Dirk Martin, Head of Market Research at techconsult: speed that is necessary to react more quickly to market demands and keep pace with the competition. “Nevertheless, there is still considerable potential, as many companies are only in the middle of their digitalisation process,” says Martin. 

Companies strategically plan for cloud native technologies 

In this context, companies focus on optimising their processes (45 per cent), the stability of their systems (35 per cent) and improving IT security (35 per cent). Banks and insurance companies, in particular, are placing a strong focus on increasing their IT security by using cloud native technologies (50 per cent). “Compared to last year, there is currently a significantly higher number of companies that feel well-equipped to implement cloud native technologies,” states Dr. Nils Kaufmann, Head at EuroCloud Native and Board Member of EuroCloud Germany, “Cloud native approaches are becoming more important, which is reflected in the fact that more and more companies are strategically planning for them.” These strategies not only serve to improve security and automation, but are also becoming increasingly relevant in other aspects. Large companies, in particular, have high expectations of such approaches, aiming to significantly reduce the operating costs of their software (90 per cent). At the same time, they additionally place a strong emphasis on faster recovery and accelerated restart processes in the event of failures (92 per cent). 

Lack of know-how slows down migrations 

Despite the general enthusiasm for cloud-native technologies, several challenges hinder the migration of additional workloads. These challenges include integration issues (29 per cent), a lack of specific expertise (23 per cent) and extensive experimentation across different parts of the business. These factors are interrelated and increasing expertise in both existing and future infrastructure, would facilitate a gradual integration process. 

Increased cooperation with cloud-native service providers ensures success 

To meet these key challenges, various measures are already being planned or implemented. The goal is to strengthen the employees’ qualifications and build up internal expertise. To ensure overall success, many companies are bolstering their collaboration with external cloud  native service providers (34 per cent) to provide orientation and to use specific know-how as well as to develop it internally. This initiative is supported by corporate executives and complements extensive internal knowledge development and meticulous planning. 

Both business leaders (32 per cent) and IT experts (35 per cent) recognise the value of external support in optimising the implementation of the cloud-native strategy while also acquiring additional skills. IT professionals prefer to delegate workloads to external parties, while business representatives prefer to enhance their in-house IT teams with additional knowledge. 

The complete German-language study can be downloaded online free of charge 

About the study
The study “Den Kopf in den Wolken – Cloud-Native wandelt die Unternehmenskultur” was designed and conducted by techconsult GmbH on behalf of ECN members adesso as a service, CLOUDETEER, Continum, Deepshore, gridscale, Hewlett Packard Enterprise, plusserver and the Public Cloud Group. A total of 255 IT decision-makers from German companies of all sizes were asked about the current situation of their cloud-native strategy, their future plans in this regard, and challenges. In the design of the study, great importance was attached to not only interviewing individuals in management positions but also employees with a high level of technical knowledge, such as those working in software architecture or app and software development. Business representatives accounted for 38 per cent of the respondents, while IT employees made up well over half (55 per cent) of the respondents. 

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 Germany, 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.