Europe’s digital and regulatory environment is reshaping how cloud services are consumed and governed. With growing geopolitical tensions, increasing data protection mandates, and rising concerns around foreign surveillance laws, the sovereign cloud has become central to enterprise and public sector digital strategies. This report examines the sovereign cloud market in Europe through strategic, regulatory, and operational lenses. It outlines the drivers pushing sovereignty from compliance to a digital architecture priority, including the importance of AI and data security, jurisdictional clarity, and operational autonomy. The report introduces a detailed sovereignty framework across data, operational, and technical dimensions and evaluates three dominant delivery models: hyperscaler-led, datacenter-led, and national sovereign platforms. It highlights enterprise experience gaps, outlines enterprise-grade sovereignty, and shares implications for enterprises, service providers, and technology providers shaping Europe’s digital sovereignty future.

The public cloud market is significantly growing due to enterprises’ pursuit of digital transformation, innovation, and operational resilience. Microsoft Azure has effectively addressed this demand through strategic investments in generative AI (in collaboration with OpenAI), industry-tailored cloud offerings, Microsoft Fabric for data, and robust security capabilities. As Azure’s portfolio expands, enterprises are turning to specialized Azure service providers to lead cloud migration efforts and drive ongoing optimization. These partners bring key expertise in cost efficiency, resource management, and cloud-native development, enabling organizations to maximize their Azure investments’ value. In response to evolving enterprise needs, Azure service providers are enhancing their go-to-market approaches, earning certifications and specializations, and building proprietary Azure-aligned IP. Their close collaboration with Microsoft allows them to deliver industry-specific, high-impact solutions that strengthen operations and unlock new growth opportunities. In this report, we assess 29 cloud service providers featured in the Microsoft Azure Services PEAK Matrix® Assessment 2024 and categorize them as Leaders, Major Contenders, and Aspirants based on their capabilities and offerings. Each profile offers a comprehensive picture of the provider’s operational overview, delivery presence, solutions on offer, investments, and market success.

In May 2025, Google Cloud expanded its sovereign cloud offerings to address increasing demands for data sovereignty and operational autonomy. It launched Google Cloud Air-Gapped, a fully isolated environment designed for sectors with stringent data security requirements, such as defense and intelligence. This solution operates without external network connectivity and is authorized to handle US government Top Secret data. Google Cloud Dedicated, developed in partnership with Thales, a French leader in cybersecurity, offers region-specific services operated by local partners to meet national compliance standards, such as France’s SecNumCloud. The Google Cloud Data Boundary service expansion now offers customers granular control over data residency and access, complemented by the User Data Shield, which incorporates Mandiant’s security assessments to validate application security postures. While these initiatives demonstrate Google Cloud’s commitment to offering flexible, secure, and compliant cloud solutions, challenges remain. These challenges include the limited geographic availability of certain services and complexities in integrating sovereign solutions with existing multi-cloud architectures. Enterprises must carefully assess these factors when considering Google Cloud’s offerings for their sovereignty objectives.

In April 2025, IBM unveiled the latest evolution of its mainframe portfolio with the introduction of IBM Z17, advancing its long-standing leadership in mainframes. IBM has long been a cornerstone in the evolution of enterprise computing, with its mainframe systems being vital in supporting mission-critical operations across industries. Known for their reliability, security, and performance, IBM has consistently adapted its mainframes to meet changing business needs. IBM Z17 focuses on delivering alignment with enterprise hybrid cloud and sustainability goals. It stands out with features such as quantum-safe encryption through Crypto Express 8S, Watsonx Assistant for Z, Operations Unite, and AI-enabled processing at the core. It introduces enhanced security features and hybrid cloud readiness, offering enterprises a flexible, future-ready solution to modernize while empowering mission-critical workloads in a rapidly transforming digital landscape. This evolution in the Z series reinforces IBM’s commitment to autonomous IT, streamlining operations, enhancing user experiences, while addressing long-standing challenges such as talent shortages and legacy system constraints.

As AI models become more complex and resource-intensive, enterprises must modernize their infrastructure to support high-performance, scalable, cost-effective workloads. Core challenges in modernization include integrating multimodal data, enabling autonomous agents, and optimizing the AI stack across diverse environments. Enterprises also aim to deploy AI in hybrid and edge settings, requiring flexibility, low latency, and data sovereignty. At Google Cloud Next 2025, Google announced AI infrastructure upgrades, including Ironwood TPUs for inference at scale, AI Hypercomputer improvements, expanded VM families, and re-architected networking with multi-shard architecture. Google also emphasized hybrid and distributed AI deployment with support for air-gapped environments and on-premises inference using NVIDIA Blackwell systems. These updates show Google’s intent to deliver an integrated AI stack, combining custom hardware, orchestration tools, and productivity platforms. However, these offerings also raise questions around interoperability with third-party tools, operational complexity, and cost transparency. In this report, we analyze Google’s AI infrastructure announcements at Google Cloud Next 2025, assessing their alignment with enterprise needs across performance, scalability, and deployment. The report covers key enterprise priorities, Google’s positioning, detailed product reviews, and Everest Group’s perspective on strengths and gaps of announced AI infrastructure-related products, offering a clear view of Google’s AI infrastructure maturity. Scope All industries and geographies Contents In this report, we examine: Key AI infrastructure-related products launched at Google Cloud Next 2025 Google’s current positioning and alignment in the AI infrastructure market AI infrastructure-related products’ specifications, benefits, and challenges

AI’s rapid evolution demands purpose-built computing infrastructure that balances cost-efficiency, scalability, and high performance. Training deep learning models requires massive computational power, pushing traditional hardware’s limits. Cloud providers and enterprises are seeking cost-effective yet robust solutions to train increasingly complex models while optimizing energy consumption and reducing latency. As enterprises increasingly adopt AI-driven solutions, cloud providers are taking the lead in innovation to meet these growing demands. Cloud providers such as AWS have been at the forefront of this transformation, investing heavily in custom AI chips to enhance deep learning training and inference capabilities. AWS’ Trainium and Inferentia stand out as powerful, cost-effective alternatives to conventional hardware. These chips enable organizations to scale AI applications seamlessly, reduce dependency on expensive third-party hardware, and enhance performance across cloud-based machine learning workflows. In this report, we explore the potential of Trainium2, an AWS chip launched at re:Invent 2024, examining its key features, including cost efficiency, ease of integration into different environments, and security and privacy concerns. We also provide insights into its market positioning, key benefits, and broader implications for enterprises. Scope All industries and geographies Contents In this report, we: Provide an overview of the Trainium2 chip that AWS launched at their re:Invent 2024 event Examine its current positioning and alignment in the AI infrastructure market Explore its specifications, benefits, and challenges

Europe has established itself as a stable and resilient market for cloud services with robust growth. This growth is due to strong demand from public services, energy and utilities, and manufacturing sectors, alongside sustained contributions from BFSI and technology-related industries. The demand outlook remains positive despite macroeconomic pressures and geopolitical tensions affecting large contracts due to enterprise needs for complex workload migration, cloud-native development, and automation. European enterprises are increasingly adopting hybrid and multi-cloud strategies to address stringent regulatory requirements in BFSI, healthcare, and logistics while balancing performance and scalability. Moreover, with a growing focus on sustainability, businesses emphasize energy-efficient infrastructure and tools to meet EU climate objectives. Security and compliance demand is rising, with GDPR and the Digital Operational Resilience Act (DORA) regulations shaping cloud adoption. Enterprises also seek strategic partnerships with providers offering robust cost management, innovation, and compliance solutions to maximize value from cloud engagements and gain a competitive edge. Europe is also witnessing accelerated generative AI adoption amid fragmentation and governance challenges. In the future, Europe’s cloud landscape will prioritize sustainable, secure, and sovereign solutions tailored to its unique regulatory and operational requirements. In this report, we offer an overview of the European cloud services market, including trends, demand drivers, and key enterprise concerns. The report also outlines cloud services engagement characteristics in Europe and examines the market outlook for 2025. Scope All industries Geography: Europe This analysis is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading cloud service providers, client reference checks, enterprise interactions, and an ongoing analysis of the cloud services market in Europe Contents In this report, we examine: Trends, demand drivers, and key enterprise concerns in the Europe cloud services market Enterprises’ top demands on cloud services and enterprise strategies to maximize their Google Cloud adoption value realization The future outlook for 2025 Membership(s) Cloud and Infrastructure Services Sourcing and Vendor Management

Cloud solutions are propelling businesses to expand, boost adaptability, and accelerate innovation through readily available resources and infrastructure, eliminating substantial initial investments. North America leads globally in cloud services with a market driven by rapid technology advances and broad industry adoption in sectors such as healthcare, manufacturing, and finance. The increasing demand for edge computing and AI-enhanced services is opening fresh avenues in cloud technology. Companies are seeking tailored customer experiences, compliance-focused infrastructure, increased agility, and services catering to local needs. The surge in demand for these technologies reflects a broader shift toward more dynamic, responsive business operations. To adapt, industries are increasingly leveraging cloud services to meet complex challenges in real time, using cloud-based analytics and machine learning capabilities. This trend underscores the necessity for robust, secure, and compliant cloud solutions in today's digital landscape. In this report, we provide an overview of the North American cloud services market, including trends, demand drivers, and key enterprise concerns. The report also outlines the characteristics of cloud services engagement in North America and delves into the market outlook for 2025. Scope All industries Geography: North America The analysis is based on Everest Group’s annual RFI process, interactions with leading cloud service providers, client reference checks, enterprise interactions, and an ongoing analysis of the cloud services market in North America Contents In this report, we examine: The trends, demand drivers, and key enterprise concerns in the North American cloud services market Enterprises’ top cloud services barriers and demand trends The future outlook for 2025 Membership(s) Cloud and Infrastructure Services Sourcing and Vendor Management

As AWS evolves, there is a growing demand for AWS providers that can ensure smooth cloud migrations. These providers are essential to transform and manage AWS environments, focusing on managing costs, providing skilled resources, and leveraging cutting-edge technologies to create business value. Their strong partnerships with AWS also allow for customized solutions that cater to specific industry requirements, improve operational efficiency, and foster innovation. AWS providers are intensifying their joint go-to-market strategies, enhancing their accreditations and competencies, and developing proprietary AWS-focused innovations and solutions. This strategic advance continues to solidify their strong position in the market. In this report, we assess 31 AWS providers featured in the AWS Services PEAK Matrix® Assessment 2024 and categorize them as Leaders, Major Contenders, and Aspirants based on their capabilities and offerings. Scope All industries and geographies The assessment is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading AWS providers, client reference checks, and ongoing analysis of the cloud services market Contents In this report, we examine: The market impact and vision and capabilities of 31 providers with AWS expertise Providers’ key strengths and limitations Enterprise sourcing considerations Membership(s) Cloud and Infrastructure Services Sourcing and Vendor Management

The public cloud market is growing substantially, fueled by enterprises' increasing demands for digital transformation, innovation, and operational resilience. Microsoft Azure has leveraged this trend, boosting its uptake through investments in advanced technologies such as generative AI in collaboration with OpenAI, tailored industry cloud solutions, data management (including Microsoft Fabric), and enhanced security measures. Enterprises are turning to Azure service providers to assist with smooth cloud migrations and enhance their cloud setups. These providers deliver essential services in managing costs, optimizing resources, and fostering cloud-native development, enabling businesses to fully utilize Azure's capabilities to spur growth and innovation. To adapt to these growing demands, Azure service providers are intensifying their market approach, broadening their certifications and specializations, and crafting Azure-centered IP. Their close partnerships with Microsoft allow them to offer customized, sector-specific solutions that boost operational efficiency and open new paths to create business value. In this report, we assess 29 Microsoft Azure service providers featured in the Microsoft Azure Services PEAK Matrix® Assessment 2024 and categorize them as Leaders, Major Contenders, and Aspirants based on their capabilities and offerings. Scope All industries and geographies The assessment is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading Microsoft Azure service providers, client reference checks, and ongoing analysis of the cloud services market Contents In this report, we examine: The market impact and vision and capabilities of 29 providers with expertise in Microsoft Azure services Providers’ key strengths and limitations Enterprise sourcing considerations Membership(s) Cloud and Infrastructure Services Sourcing and Vendor Management