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The public cloud and its supply chain contributed to Europe’s GDP in 2020 with 500 billion

The Europe public cloud market it continues to grow above 10%. On the other hand, according to a report by the consultancy IDC, European organizations invest in public cloud to support their innovation strategies and their digital business objectives. But the cloud doesn’t just benefit its users and service providers. There is a complete ecosystem that revolves around them that also benefits from the growth of the cloud services market.

Therefore, when assessing the effect of public cloud solutions on the economy of a country or region, that broader ecosystem must be considered, which is mainly outside the organizations that implement the solution. All with the aim of assessing the impact it causes from a macroeconomic perspective.

The report provides an insight into the impact of the public cloud services market on the European economy in terms of its contribution to employment and GDP in the region. Regarding the latter, according to IDC estimates, the public cloud supply chain contributed nearly $ 500 billion to European GDP: 2.7% of the total. This figure has risen significantly in the last two years, with a significant rebound in 2020, due to the step to digitization that many companies have had to take during the pandemic.

On the other hand, deploying and offering public cloud services requires that the supply chain has a significant number. According to IDC estimates, some 1.3 million employees work at all levels of the chain, representing 0.9% of the total European workforce.

Carla LaCroce, European Customer Data and Analytics Research Analyst at IDC Europe, points out that «cUnderstanding the impact of cloud services on the creation of value and employment in the European economy is important for cloud providers and policy makers, as they formulate their strategies for the European cloud market«.

According Filippo Vanara, IDC Research Analyst for European Cloud and Multicloud ManagementOver the past five years, the public cloud market has grown like no other industry and has significantly changed the European technology industry. In his view, the pandemic has accelerated the adoption of cloud services in Europe, as cloud computing is seen as a driver of business resilience, as well as agility, innovation and efficiency.

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