Research Overview

COVID-19 has wreaked havoc across Europe and worldwide. It has considerably impacted supply chains and commerce patterns, GDP growth rates, travel, employment and technology investments. In 2020, the European Union (27 countries) experienced a GDP decline of 5.9%; the Euro Area (19 countries) GDP declined by 6.3%; Spain and Italy were among those most severely impacted with 10.8% and 8.9% GDP declines, respectively.

Frost & Sullivan data show that for 68% of European businesses, COVID-19 has either accelerated or has had no impact on digital technology investments. However, many businesses are delaying purchase decisions and solution rollouts due to continued economic challenges and the need to rationalize technology strategies in view of drastically changed work styles.

Businesses and individuals limiting travel and shifting to work from home to avoid contagion have been key to growth of certain applications, such as soft clients, video conferencing and team messaging. Cloud calling services has not received the same boost as a temporary solution to ensure teams and workflows remain productive. However, it is likely that greater awareness of the agility and functionality that cloud communications services can deliver bodes well for future growth.