Swedish companies' investments in cloud services have doubled - even greater demand expected

Investments in cloud services have doubled in the past six years. This is according to data from Nordlo produced by the research company Radar.

- ‘The strong growth can be explained by Swedish companies’ need for flexibility and agility,’ says Magnus Blomberg, CTO at Nordlo.

The Swedish research company Radar Group monitors investments in the IT industry. On behalf of Nordlo, Radar has analysed investments in cloud services from 2018 to the present day. In 2018, SEK 12.6 billion was invested in cloud services in Sweden. This year, the forecast is SEK 24.6 billion. In other words, investments in cloud services have doubled in six years.

- ‘We can see that interest in cloud-based services is growing rapidly among our customers. Just a few years ago, we often had to explain what cloud computing was, whereas today customers are asking what cloud computing services are available and suitable for them,’ says Magnus Blomberg.

According to Magnus Blomberg, one of the driving factors is that both suppliers and customers have reached a higher level of digital maturity, where IT companies offer customised services and systems that the market demands.

- ‘It's now easier for companies to get the right tools adapted to their business. Take CRM or ERP systems, for example. In the past, there were few choices, and they were purchased by the IT manager via long-term licences or framework agreements. Today, there are more choices, greater transparency in what is offered and subscription-based agreements. This means that even managers who have no knowledge of IT can make decisions.

- Running business-critical applications via cloud services has become cost-effective for companies, and they get faster access to new functionality,’ says Magnus Blomberg.

Nordlo expects the growth of cloud-based services to continue to increase, as companies seek more flexibility and agility.

- The technology of the future is in public cloud services, and they will eventually replace companies' own application services and database platforms. Perhaps even parts of the business will be placed in the cloud.

- The development of new applications, the advance of AI solutions and new ways of working require a different IT infrastructure than companies have had in the past. And cloud services fit in like a glove. We recognise this, and so do our customers. That's why the market for cloud services will grow significantly in the coming years,’ says Magnus Blomberg, CTO at Nordlo.

How much Swedish companies invest in cloud services (SEK billion)

2018: 12,62
2019: 14,2
2020: 15,52
2021: 17,38
2022: 19,75
2023: 22,1
2024 (forecast): 24.66

If you want further information - please contact:
Magnus Blomberg, CTO Nordlo, +46 736 84 04 54, magnus.blomberg@nordlo.com