European Cloud needs to speed up in the race for AI integration. That’s one finding in the latest CloudFest State of the Cloud Report that suggests the gap with the US is widening—fast.
Based on insights from more than 600 Cloud professionals, the report tracks the forces shaping the industry’s next chapter. Once an annual deep-dive, this is now a quarterly pulse-check designed to spot emerging trends, highlight threats, and spark the debate this sector needs.
Below is a snapshot of just some of what the data reveals. For the full story—download the complete report.
The AI Implementation Deficit
Only 45% of European organizations have integrated AI into their business strategy so far. That leaves more than half the market still preparing to move—an execution gap that risks becoming a liability when compared with 77% implementation in the US. The good news? For most of the remaining 55%, AI is the number-one priority for the coming year. Europe knows it needs to catch up. The question is how quickly it can move.
Geopolitics Takes Center Stage
Geopolitical supply-chain disruption is now the top risk for Cloud leaders, cited by 57% of respondents. It’s the highest-ranked concern across all categories, and it speaks to something deeper: growing unease about Europe’s exposure to external shocks. The survey was conducted before the AWS and CloudFlare incidents—the next report will tell us if those outages have changed perceptions.
The Sovereignty Imperative
For 53% of respondents, data sovereignty is no longer a strategic talking point—it’s an operational cost driver. Many organisations report rising expenses as they adapt to sovereignty demands, yet this shift is also fuelling momentum behind European alternatives to U.S. hyperscalers.
Confidence, With a Side of Caution
A striking 71% of respondents are confident in their growth prospects over the next 12 months. But optimism isn’t the whole story. Leaders are also navigating energy constraints (40% cite this as a major risk), skills shortages (35%), and the geopolitical factors already mentioned. Growth is there for the taking—provided these friction points don’t escalate.
“The global cloud industry stands at an inflection point,” said report author Brooke Edge.
“Our survey reveals a sector that is mature, strategic, and deeply anxious about the future, but also energized by opportunity, committed to differentiation, and determined to chart its own course.”
Put your finger on the pulse…download the FREE report.
