The marketplace for cloud communications has been growing rapidly not just over the last year, but for quite some time now. The Cavell Group, one of the leading analyst groups in the industry, has recently conducted a new piece of research into the cloud space, particularly in the European landscape. They believe that the cloud is ready to move at a faster pace than ever before, with new opportunities for businesses of all sizes.
To learn more about the changing nature of the European cloud, I caught up with Dominic Black, the Head of Research at the Cavell Group. He shared his thoughts on the findings from the recent study, as well as offering a few useful comments on the state of the marketplace overall.
What Did You Find in Your Recent Study?
Dominic told me that the latest report took place in the second quarter of 2019, covering the first half of the year and the trends to come. So far, the European market has seen stronger growth in some countries, while others have struggled to reach their full potential. Germany hasn't had new entrants lately, which is quite surprising considering the size and potential of the market.
"It's strange that no-one has been able to crack Germany yet. Some companies are setting up in different spaces around the world, but few have achieved any real hypergrowth outside of their own countries"
Notably, Dominic said that If you consider the top ten cloud brands in every country across Europe, the UK is the only one that offers non-home-grown providers in that top 10. "I think that the growth in acquisitions in the cloud space is starting to tackle that problem to some degree."
Do You Anticipate more Acquisitions?
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Dominic Black[/caption]
Currently, Dominic believes that acquisitions are going to be very important in the industry. This is particularly true for businesses that are moving into new countries. "While entering new countries dynamically is great, hiring a local team that knows the market isn't always easy. Acquisition makes things a little easier and helps companies to develop more rapidly. However, brands will need to ensure that they do have the right cultural fit."
According to Dominic, there needs to be a lot more consolidation in the EU market going forward. Companies need to decide whether they want to maintain their own platform, or whether it's important to start focusing on sales and marketing instead.
"Customers are very interested in getting involved with things like Microsoft, Google, and Zoom with its new phone system. For very core telephony products, companies are going to go with hyperscale providers, which means that smaller businesses need to choose their niche and start differentiating themselves fast."