Rapidly rising cloud and software costs weigh on the European economy
July 2, 2026
A new Asterès study, commissioned by Cigref, shows that the prices of cloud and software services in Europe are rising structurally and significantly — well above inflation — with substantial consequences for European organisations and the economy. This provides yet another reason to further strengthen the availability of European alternatives.
A survey of 54 CIOs shows that costs have increased by an average of 8.7% per year over the past three years, with peaks of up to 51% at contract renewal. For the coming five years, an even stronger acceleration is expected, to around 12% per year.
These price increases are far above regular inflation and, according to the study, are mainly driven by a lack of competition, high switching costs, and dependence on a limited number of large (often non-European) suppliers.
The impact is significant. Organisations mainly absorb the rising costs by cutting other expenditures, such as IT services, R&D, hardware, and staffing. At the same time, the promised productivity gains, including those from AI, often remain limited in practice: only 23% of respondents see measurable benefits.
At the macroeconomic level, the consequences are even greater. The study estimates that, by 2030, these price increases will result in:
- €140 billion in additional costs per year,
- a loss of €107 billion in added value,
- and approximately 1.4 million jobs that will not be created.
According to the researchers, this represents a gradual but substantial “transfer of wealth” outside Europe, which is less visible than, for example, an energy crisis, but may have a greater economic impact.
The study also outlines possible ways forward, such as better leveraging AI-driven productivity, increasing competition in the market, and strengthening European providers.
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