The massive data privacy legislation called the General Data Protection Regulation (GDPR) that went into effect across the EU in May could have been a deterrent to more companies moving data online. The law requires firms to provide customers with data they request and grants consumers the “right to be forgotten,” meaning their data can be erased.
IDC’s Arend said that instead of rejecting internet solutions that put more data online, European firms have turned to the cloud to help comply with the new laws. She said GDPR has gone from being an “obstacle” to an “accelerator” for cloud adoption in Europe.
Still many firms are reluctant to store all of their data with one company. This has benefited big cloud providers, as well as smaller firms.
“Of all the regions in the world, Europe is the one that’s really humming for us,” Brian Halligan, CEO of cloud marketing and sales firm HubSpot, told CNBC at the Slush tech conference in Helsinki in December. HubSpot is a Cambridge, Massachusetts based-firm valued around $5 billion that tailors its software for small and medium-sized businesses.
HubSpot launched in Dublin in 2012 has since established an office in Berlin. Halligan said the company will also open a Paris location in the first quarter of this year.
“People have talked about the European economy slowing down,” Halligan said. “We haven’t seen any sign of that.”