This phenomenon is driving the rapid growth of the European Infrastructure-as-a-Service (IaaS) market. Cloud providers are pursuing local strategies, such as establishing local data centers, to rapidly increase IaaS utilization among European customers.

According to the 'Analysis of the European Infrastructure-as-a-Service Market (https://www.frost.com/mab4)' published by Frost & Sullivan Korea, revenue in the market was $1.95 billion in 2014 and is projected to reach $10.11 billion in 2019.

Shuba Ramkumar, Senior Researcher at Frost & Sullivan’s ICT Industry Department, said, “On-demand or ‘pay-as-you-go’ cloud service models are receiving great interest in Europe as they enable companies to effectively manage variability and seasonality in IT demand.” "Unlike the cumbersome tasks of the past involving physical servers or networks, these models allow for easy changes to infrastructure conditions using web portals," he said.

Furthermore, companies recognize that IaaS is an appropriate method for effectively managing IT spending amidst Europe's challenging economic conditions. Implementing IaaS can reduce corporate capital investment related to internal data centers, hardware, and human resources.

Meanwhile, companies in heavily regulated industries such as healthcare and financial services are concerned about security risks, including data loss, unauthorized access to applications, and data leaks. In response, cloud providers are developing standard-compliant hosted private cloud services to alleviate these concerns.

Researcher Ramkumar stated, “Providing hybrid cloud services that combine managed hosting or on-premises cloud with IaaS will help build a secure and integrated infrastructure. As the number of different hosting environments required to operate in a multi-vendor ecosystem increases, service providers must also know how to effectively leverage the environment of collaboration among competitors, which will enable easier application migration in Europe and influence more active IaaS adoption.”