Public Cloud - Finland

Finland

Revenue in the Public Cloud market is projected to reach US$4,593.00m in 2024.
Software as a Service dominates the market with a projected market volume of US$2,044.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.35%, resulting in a market volume of US$10,220.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$1,593.00 in 2024.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

Key regions: United States, Germany, China, Japan, United Kingdom

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Market

Region

Region comparison

Currency

Analyst Opinion

The Public Cloud market in Finland is experiencing significant growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Finland are increasingly adopting Public Cloud services due to several reasons. Firstly, the flexibility and scalability offered by Public Cloud solutions allow businesses to easily adjust their IT infrastructure according to their needs, without the need for significant upfront investments. This is particularly beneficial for small and medium-sized enterprises (SMEs) in Finland, as they can access advanced IT resources and technologies without the financial burden of building and maintaining their own data centers. Secondly, the increasing focus on digital transformation and innovation is driving the demand for Public Cloud services. Finnish businesses are realizing the importance of leveraging cloud technologies to enhance their agility, improve operational efficiency, and accelerate time-to-market for new products and services. Public Cloud providers offer a wide range of services, such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), enabling businesses to choose the most suitable solutions for their specific needs.

Trends in the market: One of the key trends in the Public Cloud market in Finland is the growing adoption of hybrid cloud solutions. Many businesses are opting for a hybrid cloud approach, which combines the benefits of both Public Cloud and private infrastructure. This allows them to leverage the scalability and cost-effectiveness of Public Cloud services while maintaining control over sensitive data and critical applications on their private infrastructure. Hybrid cloud solutions also provide flexibility in workload placement, enabling businesses to optimize their IT resources and achieve better performance. Another trend in the market is the increasing demand for industry-specific cloud solutions. Different industries in Finland have unique requirements and regulations, and Public Cloud providers are developing specialized solutions to cater to these needs. For example, cloud solutions tailored for healthcare, finance, and manufacturing sectors offer industry-specific features, compliance certifications, and data protection measures. This trend is driven by the need for industry-specific expertise and compliance with local regulations.

Local special circumstances: Finland has a highly advanced digital infrastructure and a tech-savvy population, which creates a favorable environment for the growth of the Public Cloud market. The country has a high internet penetration rate and a strong focus on digitalization across various sectors. Finnish businesses and individuals are accustomed to using digital services and are open to adopting cloud technologies to drive innovation and improve efficiency. Furthermore, Finland has a strong ecosystem of technology startups and innovative enterprises. These companies often have limited resources and prefer to leverage Public Cloud services to access advanced IT capabilities without significant upfront investments. The presence of a vibrant startup ecosystem and a culture of innovation contribute to the growth of the Public Cloud market in Finland.

Underlying macroeconomic factors: The overall economic stability and favorable business environment in Finland play a crucial role in the development of the Public Cloud market. The country has a well-functioning legal system, strong protection of intellectual property rights, and a high level of transparency. These factors attract foreign investments and encourage the establishment of data centers and cloud infrastructure in Finland. Additionally, the Finnish government has been supportive of digitalization initiatives and has implemented policies to promote the adoption of cloud technologies. For example, the government has launched programs to provide funding and support for SMEs to adopt digital solutions, including Public Cloud services. This support from the government further fuels the growth of the Public Cloud market in Finland. In conclusion, the Public Cloud market in Finland is experiencing significant growth and development due to customer preferences for flexibility and digital transformation, market trends such as hybrid cloud adoption and industry-specific solutions, local special circumstances including a strong digital infrastructure and a culture of innovation, and underlying macroeconomic factors including a favorable business environment and government support for digitalization.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.