IDC confirms bright future for Google Cloud partners in EMEA
Customers come first for our team at Google Cloud EMEA, but we couldn’t deliver to our high standard without the help of our partners. They play a key role in the delivery of Google Cloud technologies and solutions to our businesses all over the region. With this in mind, I’m very proud to share the results of a recent study from IDC, which highlights that Google Cloud is prospering, growing and unlocking huge commercial benefits for our EMEA partners.
According to IDC, demand for cloud-based technology and services is growing rapidly in the EMEA market, especially for capabilities such as artificial intelligence (AI), data analytics, IoT, and security. In fact, IDC puts public cloud growth at 22% year-on-year for EMEA. Whereas implementations used to be lift-and-shift scenarios, today digital transformation remains the primary driver for cloud growth in organizations, who are looking to reimagine their business models. What’s more, this need to digitally transform has only been heightened in the face of global COVID-19 pandemic. As businesses seek to be flexible and adapt to current circumstances, they need cloud capabilities for support.
“This is good news for Google Cloud partners, who by their nature are engaged across many of these technologies,” reports the IDC study. The research predicts that partners’ revenues from Google Cloud-linked opportunities will more than triple by 2025. This is an amazing opportunity for all of our partners across the entire EMEA ecosystem, as they develop and build out their Google Cloud practices.
According to the IDC study, the opportunity for Western European partners will increase 3.7 fold by 2025. Moreover, for every $1 of Google Cloud technology sold, Western European partners will generate $5.49 in revenue via their own products, services, and IP (such as new apps and software). The future looks bright too, as IDC predicts this revenue stream will increase to $7.74 for every $1 of Google Cloud technology sold by 2025.
The IDC results prove there is a flourishing ecosystem around Google Cloud. It’s heartening to see how much value our partners can achieve and will continue to do so in future years.
For every $1 of Google Cloud technology sold, partners will generate:
The IDC study also uncovers insights into numerous other benefits that partners are experiencing from collaborating with Google Cloud. For example, IDC identifies 50% of Google Cloud partners as at the “late stage of digital maturity,” with more than a third having “fully integrated digital into their strategies and businesses.” With this level of strong expertise in contemporary cloud technologies and solutions, it’s clear that customers can trust Google Cloud partners to deliver on support and implementation for even the most advanced technologies, such as AI and ML.
At Google Cloud, we concentrate on the delivery of end-to-end, best-in-class solutions. Most of our partners are expanding these offerings. The IDC study shows that these partners who are engaged in developing their own unique IP around Google Cloud are witnessing strong margins linked to these offerings.
Partners are reaping the benefits from our target goal of 100% partner attach on customer sales. Strong margins are being recorded across resale, IaaS, PaaS, and SaaS add-ons, IT services, business services, and support for hardware and networking.
“We started our global partnership with Google Cloud a little over two years ago, and have already gone a long road together delivering greater value to our enterprise customers with our secure hybrid cloud, machine learning and collaboration solutions. Google Cloud has been a partner for growth and innovation, as we jointly help European and global companies through their digital transformation” says Wim Los, senior vice president for Atos Cloud Enterprise Solutions.
“From the collaborative solutions to the Infrastructure and Machine learning ones, Google Cloud has been a key strategic partner for more than 10 years. This partnership brings value to the market not only with the trusted technology but also with the training support and capacities we bring to the market to make sure companies succeed in their digital transformation” says Sébastien Chevrel, COO and managing director) of Devoteam.
“After more than a decade of partnership, we are really amazed about what we have been able to accomplish together, working hand-in-hand and with the entire Google Cloud ecosystem. This is why we wanted this relationship to go even stronger and announced in September 2020 a new, non-binding commitment to deliver $1.5 billion in Google Cloud infrastructure and services over the next five years," says DoiT International’s CEO, Yoav Toussia-Cohen.
“Google Cloud continues to show commitment to its partner ecosystem in EMEA, enabling its partners to capitalize on the growth, but also differentiate. Google Cloud is delivering a partner program that provides access to advanced technology and solutions, while maintaining a focus on strong partner profitability and specialization,” said Stuart Wilson, Research Director, European Partnering Ecosystems at IDC.
Our EMEA partners have a unique opportunity to ride the wave of cloud adoption and capitalise on the opportunities provided by being part of the Google Cloud family. We will continue to work together to support customers spanning multiple industries who want to solve their most important challenges via the cloud.
When I see the work our partners are doing in the region, I feel incredibly proud, and I’m certainly looking forward to seeing what the future brings as the Google Cloud ecosystem continues to evolve.
To read the findings in full, you can download the Partner Opportunity in a Cloud World IDC study, here.