Decoding Trends in Cloud and Outsourcing

How do you see the cloud market evolving in the short, medium, and long term, considering the diversity of models, private, public, sovereign and services, IaaS, SaaS, PaaS?

“In recent years, the cloud has often been seen as a solution to almost every problem and a means to reduce costs. However, it is important to note that the cloud does not solve everything, and cost reduction is not automatic.

In the short term, we expect increased adoption of cloud services, with particular focus on analyzing the criticality of data and applications to determine whether private, public, or hybrid cloud is most suitable. Establishing a clear ‘landing zone’ for public cloud and applying a FinOps approach for efficient management will be key, requiring close collaboration between technology, finance, and business teams. Client support is becoming increasingly important, with rising demand for cloud adoption advisory services.

In the medium term, we anticipate a larger migration of data and applications to models such as IaaS and PaaS. Companies will begin adopting more sophisticated solutions to address specific data sovereignty requirements, influenced by regulatory and strategic factors. SaaS models continue to present challenges, especially when software is cloud-native without hybrid options. However, some vendors offer clients the choice of hosting; in these cases, it is possible to host the software on a sovereign cloud while still providing it as SaaS.

In the medium and long term, the global geopolitical situation will increasingly influence corporate cloud strategies. We will see the growing importance of sovereign cloud, as companies seek tighter control over data location and access.”

How do you see Luxembourg evolving and asserting itself in the cloud world in general, and sovereign cloud in particular, within the EU, compared to major European nations?

“Luxembourg plays a key role, particularly in sovereign cloud. As a reminder, in 2003, the status of Professional of the Financial Sector (PSF) was extended to companies providing operational services involving access to confidential data. This reduced operational risks and ensured compliance with privacy rules.

These providers must meet strict audit requirements and follow best practices to safeguard client data confidentiality. This unique approach allowed Luxembourg to develop a center of excellence for regulated outsourcing, providing a solid foundation for operating a sovereign cloud.

Clarence, a joint venture between Luxconnect and Proximus Luxembourg, will deliver a sovereign cloud based on innovative Google Cloud technology, fully disconnected from Google, with all operations managed by Clarence. We will be among the first in Europe to launch this solution on the market in Q4 this year.

This new sovereign cloud targets Luxembourg and neighboring countries. We are confident that Luxembourg’s reputation, operational know-how, and culture of confidentiality will attract clients beyond its borders.”

How do you assess Proximus Luxembourg’s strategic position regarding data sovereignty in Europe?

“Data sovereignty can be considered across three dimensions: data, operations, and software. Clarence addresses all three.

However, not all clients require strong sovereignty. For example, a company wishing only to store its data locally can use edge products offered by the three hyperscalers, which may suffice for certain needs. In this case, it is not a fully air-gapped cloud, as operations are still performed by the hyperscalers. Other clients may rely on encrypted data in the cloud, such as with confidential computing. The choice depends on the criticality of data and applications.

Through Clarence, Proximus Luxembourg covers all three levels of sovereignty. For strong sovereignty, Clarence’s value proposition is unique. Moreover, as a leading cloud provider in Luxembourg, Proximus Luxembourg positions itself as a reference player with a comprehensive cloud solutions roadmap and cutting-edge development of sovereign solutions. This innovative approach extends beyond Luxembourg’s borders, reinforcing Proximus Luxembourg as a trusted partner for companies seeking secure and EU-compliant cloud solutions.”

Regarding IT outsourcing, what are the current drivers for companies? Is there a marked trend toward outsourcing? How do you see trends between selective managed services and full IT outsourcing?

“We are seeing growing demand from clients to outsource their basic IT infrastructure—‘commodity IT’—allowing them to focus more on business applications.

Technologies evolve constantly, and it can be challenging for some clients to recruit the experts needed to maintain high availability of their platforms. As a result, both large and small companies turn to Proximus Luxembourg, which benefits from economies of scale in platform operations and has the critical mass of experts for each technology.

In this context, Proximus Luxembourg positions itself as a strategic partner for its clients and their CIOs. We support our clients’ growth by providing solutions tailored to their specific needs. Depending on client maturity and requirements, demand ranges from selective outsourcing to full IT outsourcing. This flexibility allows us to adapt to client evolution and provide personalized support throughout their digital transformation journey.”