Market Intelligence
Cloud Computing Austria

Austria Cloud Computing

A survey of 251 Austrian companies, conducted in February 2021 by KPMG in cooperation with Bitkom Research, showed that it is no longer a question of whether cloud computing should be used. The key point in Austria now is how cloud solutions can be integrated into existing IT infrastructure with guaranteed security. Cloud computing increasingly forms the basis of IT networks and enables the digital transformation particularly also in the field of Industry 4.0. While somewhat slow adopters in recent years, Austrian businesses are increasingly converting to cloud solutions to retain their long-term competitiveness.

Survey Highlights

  • 63% of Austrian companies with 20 or more employees work in the cloud. In comparison to Germany (82%), the Austrian market holds great growth potential. Many companies are expected to switch to cloud solutions in the medium-term.
  • One-third uses public cloud computing. The market leaders in public cloud services are by far American companies and mainly dominated by three hyperscalers (AWS, Microsoft and Google).
  • Only 21% of companies with 20 or more employees are using multi-cloud solutions. For companies with 250 or more employees, the figure increases to 51%.
  • 86% view cloud solutions as a large or very large contributor to their company’s digitization strategy. Cloud applications range from internal process management to the development of digital business models including cloud based IoT, AI and voice recognition applications.
  • For over 90% of these companies, conformity with the EU General Data Protection Regulation (GDPR) is the most important criterion in selecting a cloud provider and three out of five indicate that the “Schrems II” ruling by the European Court of Justice regarding the privacy shield agreement will affect their cloud strategy.
  • Two out of three stated that cooperation with Gaia-X is a must-have when choosing a provider
  • 72% have experienced problems with public cloud integration, particularly with implementation of cyber security and compliance requirements and the adaptation of internal IT
  • 69% apply cloud solutions to critical applications and workflows and 43% have already developed contingency plans for nonavailability of cloud service scenarios.
  • On average, 18% of corporate IT budgets were spent on public cloud solutions. The majority of those integrating cloud solutions reduced their overall IT costs.

Additional Key Findings & Best Prospects for U.S. Companies

  • According to Statista Research, the overall Austrian cloud services market grew by 6% in 2020 with similar growth projections through 2022.
  • The current pandemic has accelerated the move to the cloud across a range of industries, including retail and government in order to prepare for future COVID-related shutdowns and secure more overall flexibility.
  • Companies are also adopting cloud solutions to increase productivity, foster collaboration, improve the level of automation and efficiency and develop new digital business models.  
  • Cost pressure to lower IT capital expenditures and overhead, the lack of skilled IT professionals and focus on core company business are further drivers for increased cloud adoption.
  • Infrastructure as a Service (IaaS) combined with regional data centers, a strong security and scalability continues to show particularly strong growth potential.
  • Another growing segment is Software as a Service (SaaS) including ERP, CRM and cloud file sharing solutions. Frictionless integration, user friendliness and strong security/data encryption are essential.

To find out how the U.S. Commercial Service can help you enter the Austrian market, contact jan.bruckner@trade.gov

 

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