study on the economic detriment to small and medium-sized

[Written by EY] [November ndash 2018]

Justice and

Consumers

Study on the Economic

Detriment to Small and Medium-Sized Enterprises

Arising from Unfair and

Unbalanced Cloud Computing Contracts

Final Report

Study on the economic detriment to small and medium-sized enterprises arising from

unfair and unbalanced cloud computing contracts

EUROPEAN COMMISSION

Directorate-General for Justice and Consumers Directorate A Civil and commercial justice Unit A2 ndash Contract Law Contact Unit A2 E-mail JUST-A2eceuropaeu European Commission B-1049 Brussels

EUROPEAN COMMISSION

Directorate-General for Justice and Consumers Directorate A Civil and commercial justice

Study on the economic detriment to small and

medium-sized enterprises arising from unfair and

unbalanced cloud computing

contracts

Final Report

Study on the economic detriment to small and medium-sized enterprises arising from unfair

and unbalanced cloud computing contracts

This document has been prepared for the European Commission however it reflects the views

only of the authors and the Commission cannot be held responsible for any use which may

be made of the information contained therein

More information on the European Union is available on the Internet (httpeuropaeu)

Print ISBN 978-92-79-45908-5 doi102838397707 DS-AU-15-001-EN-C

PDF ISBN 978-92-79-96750-4 doi 102838962608 DS-03-18-421-EN-N

copy European Union 2019

Printed by Imprimerie Central

The European Commission is not liable for any consequence stemming from the reuse of this publication

Luxembourg Publications Office of the European Union 2019

copy European Union 2019 Reuse is authorised provided the source is acknowledged The reuse policy of European Commission documents is regulated by Decision 2011833EU (OJ L 330 14122011 p 39) For any use or reproduction of photos or other material that is not under the copyright of the European

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1

CONTENTS

List of abbreviations 2

Glossary 4

1 Introduction 7

11 The importance of contract-related problems 7

12 Objectives and scope of the study 10

13 Structure of this report 12

2 Research methodology 14

21 Overview of the approach 14

22 Main limitations encountered 35

3 Usage of cloud computing across EU SMEs the state of play 37

31 Cloud computing usage rate 37

32 Types of cloud computing services contracted 38

33 Types of contracts and relative costs 41

4 Contract-related problems encountered by SMEs 46

41 Types and frequency of encountered problems 46

42 The most serious problems encountered 49

43 Causes of the most serious problems encountered 51

44 Actions taken by SMEs 53

5 Consequences of the encountered problems 57

51 Qualitative assessment 57

52 Quantitative assessment 59

6 Impacts of the economic detriment 72

61 Direct impacts 73

62 Indirect impacts 74

63 Other qualitative impacts of contract-related problems 75

7 Conclusions 77

Annex 1 Methodology for the Survey of SMEs 82

Annex 2 Stakeholders list 84

Annex 3 Bibliography 86

Annex 4 Survey questionnaire 90

Annex 5 SME Survey results 101

Annex 6 Economic detriment ndash further results 114

Annex 7 Impacts on jobs and growth detailed results 136

Annex 8 Case study questionnaires by stakeholder type 146

Annex 9 Case study analysis 154



2

List of abbreviations

Acronym Description

CATI Computer Assisted Telephone Interviews

CTampC Contract terms and conditions

DG JUST Directorate-General Justice and Consumers

EC European Commission

EEN Enterprise Europe Network

EU European Union

EU13 Bulgaria Croatia Cyprus the Czech Republic Estonia Hungary Latvia Lithuania Malta Poland Romania Slovakia and Slovenia

Eurostat Statistical Office of the European Communities

GDP Gross Domestic Product

GDPR General Data Protection Regulation

GE250 Large enterprises of more than 250 employees

GFD Gross Financial Detriment

GVA Gross Value Added

IaaS Infrastructure as a Service

IOS International Organization for Standardization

MS Member State

NFD Net Financial Detriment

PaaS Platform as a Service

PC Personal computer

PPP Purchasing power parity

R Value of any redress

SaaS Software as a Service

SLA Service level agreement

SLALOM Service Level Agreement ‐ Legal and Open Model

SMEs Micro small and medium-sized enterprise



3

EU Member States

AT Austria

BE Belgium

BG Bulgaria

CY Cyprus

CZ The Czech Republic

DE Germany

DK Denmark

EE Estonia

EL Greece

ES Spain

FI Finland

FR France

HR Croatia

HU Hungary

IE Ireland

IT Italy

LV Latvia

LT Lithuania

LU Luxembourg

MT Malta

NL The Netherlands

PL Poland

PT Portugal

RO Romania

SE Sweden

SI Slovenia

SK Slovakia

UK The United Kingdom



4

Glossary

Term Definition Source

Active enterprise

An enterprise that had either turnover or employment at any time during the reference

period

Eurostat

Cloud computing

A model for enabling ubiquitous convenient on-demand network access to a shared pool of configurable computing resources (such as networks servers storage applications and

services) that can be rapidly provisioned and released with minimal management effort and

service provider intervention

National Institute of Standards and Technology The NIST Definition of Cloud Computing 2011

Cloud Service

One or more capabilities offered via cloud computing invoked by using a defined interface

European Commission Cloud service level agreement standardisation guidelines

2014

Cloud service provider

A party which makes cloud services available European Commission Cloud service level agreement standardisation guidelines 2014

Cloud service agreement

The Cloud Service Agreement or CSA is the main document which sets out the terms and conditions of the contractual relationship between

the provider and the user in relation to the provision of cloud services

Slalom Project Model contract for Cloud Computing 2016

Data portability

Ability to easily transfer data from one system to another without being required to re-enter data

It is the ease of moving the data that is the essence here This might be achieved by the source system supplying the data in exactly the format that is accepted by the target system But even if the formats do not match the

transformation between them may be simple and straightforward to achieve with commonly available tools On the other hand a process of printing out the data and rekeying it for the

target system could not be described as lsquoeasyrsquo

International Organisation for Standardization Information technology mdash Cloud computing mdash Overview and vocabulary 2014


Eurostat

EU15 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Luxembourg the Netherlands Portugal Spain Sweden and the

United Kingdom

Eurostat

EU28 Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatia Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands

Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom

Eurostat



5


Frequency

(F)

The frequency shows how often the mentioned problem appeared and it is measured on a scale from 1 to 4 1 meaning lsquorarelyrsquo (at least once in the last 12 months)2 meaning lsquooccasionallyrsquo (at least once every 3 months) 3 meaning lsquofrequentlyrsquo (at least once a month) and 4 meaning lsquovery frequentlyrsquo (at least once a week)

EY Survey of SMEs 2018

Incidence

(I)

Number of SMEs that encountered the problem during 2016-2017Number of SMEs that contracted at least one cloud computing service during 2016-2017


Infrastructure as a Service (IaaS)

The capabilities provided to the cloud-service customer include processing storage networks and other fundamental computing resources where the cloud-service customer is able to deploy and run arbitrary software which may

include operating systems and applications The cloud-service customer does not manage or control the underlying cloud infrastructure but does have control over operating systems storage and deployed applications and possibly limited control of select networking components

(such as host firewalls)

European Commission Cloud service level agreement standardisation guidelines 2014

NACE Statistical Classification of Economic Activities in

the European Community

Eurostat

Purchasing power parity

(PPP)

The rate of currency conversion that equalises the purchasing power of different currencies by

eliminating the differences in price levels between countries In its simplest form PPP shows the ratio of prices in the national currency of the same good or service in different countries

Eurostat

Platform as a

Service (PaaS)

The capability provided to the cloud-service

customer is to deploy onto the cloud infrastructure customer-created or acquired applications created using programming languages libraries services and tools

supported by the cloud-service provider The cloud-service customer does not manage or control the underlying cloud infrastructure

including network servers operating systems or storage but does have control over the deployed applications and possibly configuration settings for the application-hosting environment

European Commission Cloud

service level agreement standardisation guidelines 2014

Service level agreement

A Service Level Agreement (SLA) is the service contract component between a service provider

and customer An SLA provides specific and measurable aspects related to service offerings

European Commission Cloud service level agreement

standardisation guidelines 2014



6


Software as a Service (SaaS)

The capability provided to the cloud-service customer to use the providerrsquos applications running on a cloud infrastructure The applications are accessible from various client devices through either a thin client interface such as a web browser (for example web-based e-mail) or a programme interface The user does

not manage or control the underlying cloud infrastructure including network servers operating systems storage or even individual application capabilities with the possible exception of limited user-specific application

configuration settings


Service availability

The property of being accessible and usable on demand by an authorised entity


2014

Service performance

The problem faced by SMEs characterised by the difficulty in understanding the level of performance or the quality of services that has been promised in the contract


SMEs The category of small and medium-sized enterprises (SMEs) includes enterprises which employ fewer than 250 persons and which have

an annual turnover not exceeding euro50 million andor an annual balance sheet total not exceeding euro43 million

Within the SME category a small enterprise is defined as an enterprise which employs fewer than 50 persons and whose annual turnover andor annual balance sheet total does not exceed euro10 million

Within the SME category a microenterprise is defined as an enterprise which employs fewer

than 10 persons and whose annual turnover andor annual balance sheet total does not exceed euro2 million

Commission Recommendation of 6 May 2003 concerning the definition of micro small and

medium-sized enterprises (notified under document number C(2003) 1422)

Virtual Data Centre

A pool or collection of cloud infrastructure resources specifically designed for enterprise business needs The basic resources are the

processor (CPU) memory (RAM) storage (disk space) and networking (bandwidth) It is a virtual representation of a physical data centre complete with servers storage clusters and many networking components all of which reside in a virtual space being hosted by one or more actual

data centres

Altman amp Alt A Digital Library for the Dissemination and Replication of Quantitative

Social Science Research The Virtual Data Centre 2001



7

1 Introduction

This report represents the final deliverable responding to the request for services

JUST2016RCONFWCIVI0176 (201703) concerning a Study on the economic

detriment to small and medium-sized enterprises arising from unfair and

unbalanced cloud computing contracts The Request for service was issued by the

European Commission Directorate-General Justice and Consumers (DG JUST) Unit A2 -

Contract Law

11 The importance of contract-related problems

Cloud computing has been credited with increasing competitiveness through cost reduction

greater flexibility and optimal resource utilisation1 By using cloud computing services

enterprises are only paying for the amount of storage they are actually consuming and are

not responsible for the daily maintenance of the storage infrastructure

Demonstrable tangible economic benefits have been estimated in 2011 A report published

by the European Commission lsquoQuantitative Estimates of the Demand for Cloud Computing in

Europe and the Likely Barriers to Up-takersquo2 identified as main benefits the lower IT costs

more effective mobile working higher productivity standardisation of processes better ability

to enter new business areas and the ability to open up in new locations

All in all increasing the usage of cloud computing can have a relevant impact in terms of

increasing EU Gross Domestic Product (GDP) by up to euro250 billion and creating 38 million

jobs by 2020 compared to 20123

While the list of the above benefits is not exhaustive it certainly provides a perspective on

the potential economic advantages of the usage of cloud computing compared to more

traditional alternatives such as on-premises information technology infrastructure4

1 Rittinghouse J Ransome J (2009) Cloud Computing Boca Raton CRC Press USA 2 Based on a 2011 survey conducted on 479 enterprises already using cloud computing for their businesses 81 reported lower IT costs with a 10 to 20 reduction being typical but 12 reported

savings of 30 or more Business benefits included more effective mobile working (46) higher

productivity (41) more use of standard processes (35) better ability to enter new business areas (33) and the ability to open up in new locations (32) European Commission (2012) Quantitative Estimates of the Demand for Cloud Computing in Europe and the Likely Barriers to Up-take SMART 20110045 Brussels 3 European Commission (2012) Quantitative Estimates of the Demand for Cloud Computing in Europe

and the Likely Barriers to Up-take SMART 20110045 Brussels 4 Traditional on-premises infrastructures consist of various pieces of hardware such as desktop computers which are connected to a network via a remote server This server is typically installed on the premises of an enterprise and provides all employees using the hardware with access to the companyrsquos stored data and applications Enterprises with this type of information technology model must purchase additional hardware and upgrades in order to scale up their data storage and services to support more users Mandatory software upgrades are also required with traditional information

technology infrastructure to ensure that failsafe systems are in place to in case a hardware failure occurs For many enterprises with information technology data centres an in-house information

technology department is needed to install and maintain the hardware



8

However Eurostat data indicate that in 2016 only 21 of EU small and medium-sized

enterprises (SMEs ie 10 ndash 250 employees) bought cloud computing services used over the

internet5 mostly for hosting their e-mail systems and electronically storing files

If micro enterprises (ie 1 ndash 9 employees) are considered Eurostat data are available only

for few countries (the United Kingdom Slovakia Sweden Portugal and Spain) For these

countries the percentage of micro enterprises that were buying cloud computing services used

over the internet in 2016 was around 11

With regard to the main factors affecting the adoption of cloud computing in most

sectors enterprises reported6 that insufficient knowledge of cloud computing prevented them

from using it (Figure 1) Expertise and sufficient knowledge of contractual and legal aspects

and the details of technical implementation are necessary prerequisites for an enterprise in

deciding to purchase cloud computing services In addition the risk of a security breach was

a key consideration for enterprises the concern over the risk of a security breach scored

highest for both large enterprises and small and medium-sized enterprises (SMEs) (57

and 38 respectively)7

Figure 1 Factors that limit cloud use

Source Eurostat (2016)

Clearly enterprises attach importance to the protection of their information technology

systems but the issue can be seen in the wider context of resilience to possible security

breaches when using the cloud Therefore from the enterprisesrsquo point of view (regardless of

their size) the risk of a security breach may be a matter of service providersrsquo liability and

accountability as well as a technical issue

A study commissioned by the Commission8 looked at the main contractual issues that are

of particular interest in a cloud context description of the service and Service Level

Agreement (SLA) acceptable-use policy data protection and disclosure of personal data

intellectual property and other proprietary rights and duties over content warranties direct

and indirect liability indemnification for third party claims the effect on data preservation of

contract termination modification of the contract terms and conditions (CTampC) and security

protection of data and loss of data

5 Eurostat data consider all enterprises with the exception of those in the financial sector consulted in April 2018 6 Eurostat Cloud computing - statistics on the use by enterprises Brussels 7 Ibidem 8 European Commission (2015) Comparative Study on Cloud Computing Contracts Publications Office

of the European Union Luxembourg



9

The Commission acknowledged the role of cloud contracts notably in relation to data

portability9 as lsquocontracts often exclude or severely limit the contractual liability of the cloud

provider if the data is no longer available or is unusable or they make it difficult to terminate

the contractrsquo10

Contract-related problems have been addressed by the Commission through various

initiatives

Firstly in 2013 the Commission set up an Expert Working Group on Cloud Computing

Contracts11 to work on identifying safe and fair contract terms for cloud computing services

with a view to addressing concerns of consumers and enterprises

Secondly specific actions have been taken forward on business-to-business cloud computing

contracts beyond the legislative field including

the work of the European Cloud Partnership and the ISO (International Organization

for Standardization) towards the standardisation of cloud SLAs

the SLA standardisation guidelines prepared in June 2014 by the Cloud Select Industry

Group on Service Level Agreements Subgroup (C-SIG SLA)12

the lsquoService Level Agreement Legal and Open Modelrsquo (SLALOM) project13 funded under

the Horizon 2020 Framework Programme which delivered a set of common legal

clauses to cover cloud SLAs and contracts and a standard technical SLA specification

Finally in April 2016 the Commission gave a new impetus to its work on cloud computing by

adopting the Communication on the European Cloud Initiative - Building a competitive

data and knowledge economy in Europe14 where further complementary actions under the

Digital Single Market strategy covering cloud contracts for business users and switching of

cloud services providers have been announced

Thus over recent years the Commission has adopted a true European Cloud Computing

Strategy aimed at removing barriers to cloud computing Additionally work is under way

towards a Code of conduct on switching and porting cloud data and services

A further development of this topic is represented by the lsquoProposal for a Regulation of the

European Parliament and of the Council on a framework for the free flow of non-personal data

in the European Unionrsquo launched in 201715

The objective of this proposal is to unlock the potential of the EU data market In order to do

so the proposal aims to address the following issues

9 Please see the Glossary for further information 10 European Commission (2012) Unleashing the Potential of Cloud Computing in Europe COM(2012)529 final Brussels 11 The Group has been set up within the framework of the Commission Communication (2015) lsquoA Digital

Single Market Strategy for Europersquo which aims at enhancing trust in cloud computing services and unlocking its potential for boosting economic productivity in Europe 12 European Commission (2013) Cloud Select Industry Group on Service Level Agreements accessed 01 May 2018 13 The SLALOM project accessed 1 May 2018 14 European Commission (2016) European Cloud Initiative - Building a competitive data and knowledge economy in Europe COM(2016) 178 final Brussels 15 European Commission (2017) Proposal for a Regulation of the European Parliament and of the Council on a framework for the free flow of non-personal data in the European Union COM(2017) 495 final

Brussels



10

improving the mobility of non-personal data across borders in the Single Market

which is limited today in many Member States by localisation restrictions or legal

uncertainty in the market

ensuring that the powers of competent authorities to request and receive access to

data for regulatory control purposes such as for inspection and audit remain

unaffected and

making it easier for professional users of data storage or other processing services to

switch service providers and to port data while not creating an excessive burden on

service providers or distorting the market

The impact assessment study16 that accompanies the legislative proposal addresses barriers

such as the legislative and administrative localisation restrictions data localisation driven by

legal uncertainty and the lack of trust in the market which is considered to inhibit data

mobility The impact assessment identifies as a preferred option a policy that would enhance

legal certainty maintain the current levels of security of data storage and processing and that

would rely on self-regulation by industry through the development of codes of conduct for

facilitating switching between providers and finally that would positive economic effects

resulting in lower compliance costs for cloud service providers The study took into

consideration that actions at the Member State level would not be able to achieve the legal

certainty necessary for conducting this type of business across the EU or to remedy the lack

of trust that is slowing the development of a thriving data storage andor processing sector

It is presumed that an EU intervention would contribute to further development of secure data

storage capacity for the entire EU

12 Objectives and scope of the study

Objectives

The studyrsquos main objective is to deliver the necessary evidence to support the Commission

in its assessment of the need for and extent of any further EU efforts to increase SMEsrsquo trust

in cloud services and allow them to bring in the full potential benefits of these types of

services

The main specific objectives of the study are

to identify the prevalence nature scope and scale of the contract-related problems

that SMEs encounter in relation to cloud computing services

to analyse whether and to what extent enterprises are able to protect themselves

against problems for example by means of enforcement of rules on business-to-

business unfair contract terms (where they exist)

to quantify the financial detriment as well as the detriment arising from time loss and

consequential damages (such as business interruption) suffered by SMEs in relation

to the contract-related problems encountered

to complement the quantitative measurement with a qualitative assessment of the

detriment suffered by SMEs

to model (in quantitative terms) the impact on growth and jobs of the quantified SME

detriment identified and provide a qualitative evaluation of the overall impact of the

problems encountered by SMEs in terms of market functioningfailures and

competitiveness

16 European Parliament (2017) Commission Staff Working Document Impact Assessment

Accompanying the document Proposal for a Regulation of the European Parliament and of the Council on a framework for the free flow of non-personal data in the European Union SWD(2017) 304 final Brussels



11

Scope

Cloud computing services covered

The study covers the cloud computing services most commonly used by SMEs taking into

account i) the general delivery models used by the provider ie Infrastructure as a Service

(IaaS) Platform as a Service (PaaS) and Software as a Service (SaaS)17 ii) the core

categories of cloud services available in the market

The study covers cloud computing services provided both in exchange for money and provided

free of charge (ie not provided in exchange for a monetary counter-performance)

Contract-related problems encountered by SMEs

The study investigates the prevalence nature scope and scale of

problems in relation to the conformity of the service with the contract

problems with unfair CTampC

problems in exercising the users rights to remedies for non-conformity of the

service with the contract

Territorial scope

The study assesses the contract-related problems faced by SMEs in all EU28 Member States

Timeline

The study covers the usage of cloud computing services by EU SMEs over the period 2016 ndash

2017

Stakeholders

The following categories of stakeholders are covered

EU SMEs that contracted cloud computing services over the period 2016 ndash 2017

cloud computing providers

cloud computing brokers

National authorities competent in fields related to cloud computing (such as data

privacy protection personal data processing and data security)

the National SMEs Envoys Network18

Chambers of Commerce

the Enterprise Europe Network (EEN)19

SMEs associations

Please refer to Annex 2 for the full list of stakeholders

For the purpose of this study and in order to make the present report more intelligible

whenever the term SMEs is used in the text it refers to

medium-sized enterprises defined as enterprises which employ fewer than 250

persons (50-249) and whose annual turnover andor annual balance sheet total does

not exceed euro50 million

17 See the Glossary for the definition of these terms 18 The network of national SME Envoys was set up in 2011 as part of the review of the Small Business Act (SEC(2008) 2101) Each EU country has nominated a national SME Envoy to complement the role of the EU national SME Envoy who chairs the network The group of national SME Envoys makes up an SBA advisory group that promotes SME friendly regulation and policy making in all EU countries More

information is available at httpeceuropaeugrowthsmesbusiness-friendly-environmentsmall-

business-actsme-envoys_en 19 The Enterprise Europe Network helps businesses innovate and grow on an international scale It is the worldrsquos largest support network for SMEs with international ambitions



12

small enterprises defined as enterprises which employ fewer than 50 persons (10-

49) and whose annual turnover andor annual balance sheet total does not exceed

euro10 million

micro enterprises defined as enterprises which employ fewer than 10 persons and

whose annual turnover andor annual balance sheet total does not exceed euro2 million

13 Structure of this report

The report is structured as follow

Chapter 1 recaps the objectives and the scope of the study and provides information

about the background of the study that justified the request for service

Chapter 2 presents the methodological framework and the main limitations

encountered Chapter 3 covers the findings related to

- the usage of cloud computing among EU SMEs over the period 2016-2017 and

the reasons for the limitations of the use of cloud computing

- types of cloud computing services that were contracted by SMEs

(complexity of the subscribed cloud computing packages the frequency of the

number of contracted services and the services contracted by SMEs size)

- types of cloud computing contracts and relative costs including the

negotiability of contract terms and conditions (CTampT)

Chapter 4 is dedicated to the analysis of contract-related problems encountered

by SMEs specifically types and frequency of encountered problems and actions taken

by SMEs to address these problems

Chapter 5 presents a qualitative assessment of the consequences faced by SMEs due

to contract-related problems These refer to

- negative effects on the business activity (ie loss of turnover or profit loss of

clients andor reputation damages)

- extra work done with internal or external resources while trying to resolve the

encountered problems

- legal actions taken to exercise the users rights to remedies for non-conformity

of service

Where possible these consequences have been quantified and monetised in order to

assess the economic detriment suffered by SMEs

Chapter 6 is dedicated to the impacts of the economic detriment The analysis

concerns

- direct impacts meaning the Gross Value Added (GVA) and employment

contents of the turnover lost by SMEs that are affected directly by the contract-

related problems

- indirect impacts in the supplier sectors

This chapter also discusses (in qualitative manner) impacts on market functioning and

competitiveness

Chapter 7 presents the conclusions of the overall analysis

Annexes including the following

- methodology for the survey of SMEs

- the list of stakeholders that have been involved in the case studies

- bibliography of consulted and relevant documents

- survey questionnaire used for conducting the survey of SMEs

- results of the survey of SMEs

- further results of the economic analysis



13

- detailed results of the impacts on jobs and growth

- case study questionnaires by stakeholder type

- case study interviews and webinars analysis



14

2 Research methodology

21 Overview of the approach

The study envisaged three main Tasks

Task 0 ndash Preparatory task Defining the methodological framework and the topics

to be investigated during the research as well as defining the standards and tools to

be used

Task 1 - Survey of SMEs Conducting an online survey on a representative sample

of SMEs and start-ups which are using cloud computing for the purposes of

conducting their business

Task 2 - Economic detriment Quantification of the overall economic detriment

sustained by SMEs in relation to the problems identified under Task 1 Based on these

results the impact on growth and jobs and on the economy as a whole has been

measured

Figure 2 provides an overview of the approach followed synthesising the main activities

objectives and methodstools

Figure 2 Overview of the project Tasks



15

Task 0 ndash Preparatory Task

This Task envisaged undertaking desk research that allowed the team to clearly define the

methodological framework of the study in terms of

cloud computing services commonly used by micro small and medium-sized

enterprises

potential contract-related problems that may be encountered while using cloud

computing

problem definition which provides an overview of the main causes and effects of the

identified problems It was used to

- better understand the context in which the problems occurred

- identify the intermediate effects and the main drivers

- structure the data collection tools (ie questionnaires for Computer Assisted

Telephone Interviews [CATI] and the online survey)

selecting a sample of countries and sectors to be analysed in depth in order to achieve

the project objectives The sampling strategy included

- the identification of a sample of Member States (MS) and economic sectors to

be analysed in depth

- the definition of a target for a representative sample of micro small and

medium-sized enterprises to be addressed through the survey under Task 1

- ensuring representativeness of the sample size

Table 1 provides the list of cloud computing services identified under Task 0

Table 1 Cloud computing services commonly used

Cloud computing

model

Cloud computing services

Details

SaaS Business applications

Applications used for accounting invoicing planning payments payroll human resources management

Collaboration and communication services

Video conference system business visualisation technology

instant communications applications e-mail account virtual desktop antivirus for server or PC applications for customer relationship management social media monitoring

Service and support tools

Project and portfolio management solutions services operations management

Big data Business intelligence and data analytics applications

Networking services Creation of an internal private cloud and virtual local networks utilising a pooled server for storing enterprise data and running applications needed each day

Security services Secure content management end point protection malware

protection

PaaS Sales and marketing services

Web configuration forms for marketing and sales purposes

Cloud enablement and information

technology operations

Application integration and monitoring business process management information technology operationrisk

management

Data management Datacontent management



16

Cloud

computing

model


Details

Mobile Usage of managed mobility to serve a multitude of mobile devices anywhere anytime

Platform to create

software applications

Conception and creation of applications through testing and

deployment

Internet of things Asset tracking deployable components intelligent spaces

IaaS Storage and hosting services

Server platform for online storage sharing hosting web-sites files images and similar content

Virtual data centre Usage of a pool of virtualised infrastructure as processor

memory storage space and networking components

High performance computing

Usage of high performance computing clusters workloads and applications

Source EY desk research20

The following potential contract-related problems have been identified

lack of timely updates of the cloud service

forced updates to the service that eliminated or changed a necessary function

unsatisfactory amount of data that could be processed

failure of the cloud provider to identify analyse and correct hazards and to prevent

future re-occurrences (incidence management)

low speed of the service

unsatisfactory availability or discontinuity of the service (due to a crash unannounced

maintenance or other interruptions of service)

unsatisfactory number of users that could access the service

lack of compatibility of the service with user hardware or software

limited data portability

limited data retrievability

extra costs imposed for data portability

data deletion upon contract termination

destruction or loss of data

loss or alteration of data transmitted stored or processed via the cloud service

unauthorised disclosure of or access to data

lack of protection of the data stored in the cloud against theft or viruses

lack of clarity and completeness of the instructions and information regarding access

andor download of the cloud service

unilateral modification of the servicecontract by the cloud provider

limited liability of the cloud provider

termination of the contract and interruption of the service by the service provider with

no or little prior notice to the user

lack of clarity and transparency of CTampC

Based on the results of desk research the team finalised the methodological approach that

included the definition of the problem tree to clearly understand the links between problems

encountered by enterprises and possible consequences the preparation of the data collection

tools including the questionnaires for the survey of SMEs and the case study template

20 The bibliography serving as basis for the desk research can be found in Annex 3



17

Additionally desk research revealed that cloud computing users may encounter the following

problems in exercising their rights to remedy the non-conformity of service with the

contract

absence of a contact point to make a complaint or attempt to resolve issues

length and high cost of the procedure

applicability of foreign jurisdiction

language difficulties

impossibility to enforce the decision after the resolution

The problem definition was structured around the above-mentioned key contract-related

problems and their short- and long-term effects Essentially the problem definition allowed

the team to

identify the main-core problems and the underlying causes

identify who and what is affected and to what extent

foresee the possible evolution of the problems identified

Following the problem definition a problem tree (Box 1) was structured in order to summarise

the identified problems and related causes as well as the links between them

Box 1 Definition of the problem tree

A problem tree or ldquohierarchy of problemsrdquo is useful in providing an overview of the main causes and effects of the identified problems It is used to better understand the context in which the problems occur what the intermediate effects and the main drivers are

The analysis performed during the creation of a problem tree aims at identifying the real bottlenecks

to which stakeholders attach a high priority and which they wish to overcome A clear problem analysis thus provides a sound foundation on which to develop a set of relevant and focused project objectives

A problem tree analysis begins with the establishment of the core problem Using desk research the problem can be formulated in a more specific way Once the core problem has been identified we consider the direct causes and effects of the problem Each cause statement is written in negative terms These items should respect the MECE principle in that they should be Mutually Exclusive and Collectively Exhaustive In many respects the problem analysis is the most critical stage of project

planning as it then guides all subsequent analysis and decision-making on priorities

Once complete the problem tree represents a summary picture of the existing negative situation that can be further used by the decision makers in order to analyse the objectives by reversing the negative statements into possible solutions and then choose the most appropriate solution to be implemented

Source European Commission - Aid Delivery Methods (Vol 1 Project Cycle Management Guideline)

Among the most important sources of information that helped in refining the problem tree

especially with regard to the contract-related problems were21

European Commission (2012) lsquoUnleashing the Potential of Cloud Computing in

Europersquo COM(2012)529 final Brussels

Cloud Computing Experts Groups meetings 2013-2014

Cloud Service Level Agreement Standardisation Guidelines from 24 June 2014

European Commission (2015) lsquoComparative Study on cloud computing contractsrsquo

European Commission (2016) lsquoStudy on measuring the economic impact of cloud

computing in Europersquo

European Commission consultations about Cloud Computing (2016)

IDC (2016) lsquoSwitching of Cloud Services Providersrsquo

Eurostat (2016) lsquoCloud computing - statistics on the use by enterprises and Business

Structure Statisticsrsquo

21 The results of the survey of SMEs as well as the case study results have been used in order to update the problem tree



18

European Commission (2017) lsquoFinal results of the European Market study measuring

the size and trends of the EU data economyrsquo

European Commission (2017) lsquoProposal for a Regulation of the European Parliament

and of the Council on a framework for the free flow of non-personal data in the

European Unionrsquo

European Parliament (2017) Commission Staff Working Document Impact

Assessment Accompanying the document lsquoProposal for a Regulation of the European

Parliament and of the Council on a framework for the free flow of non-personal data

in the European Unionrsquo

Figure 3 illustrates the problem tree that was created based on the studyrsquos desk research

The drivers of cloud computing problems are acknowledged in the different sources of

information consulted such as the Digital Single Market strategy This strategy identifies

concerns related to lsquosecurity compliance with fundamental rights and data

protectionrsquo22 as a result of technical and legislative barriers

Moreover the fragmentation of regulation across the EU could be a factor that limits the

usage of cloud computing due to the need for large providers to adapt their services to each

countryrsquos laws that regulate cloud computing23

A lack of fairness and balance in CTampC is considered a driver as lsquocontracts often exclude

or severely limit the contractual liability of the cloud providerrsquo24 By the same token

the unilateral modifications of the contract and the difficulties in exercising the userrsquos

rights are problems arising from the unfairness of CTampC Moreover when targeting SMEs

lsquothe contract is likely to be a take it or leave it contractrsquo25

The limited technical knowledge among SMEs is also a factor affecting the emergence of

the different problems shown in Figure 3 The limited technical knowledge of the users has

been considered when creating a Cloud Select Industry Group in Service Level Agreements

Subgroup26 This subgroup worked towards the development of standardisation guidelines

between cloud providers and cloud customers and these efforts coincide with complementary

action under the Digital Single Market strategy

The mentioned contract-related problems lead to a loss of business opportunities Within one

of the Expert Group Meetings it was concluded that an uninformed choice of terms and

conditions may lead to damages27 Other experts28 have stated that lsquocertain losses are

potentially huge and cannot be compensatedrsquo29 The present study tested the hypothesis that

contract-related problems may lead to losses of profit turnover clients and reputation

damage for SMEs over the short term Over the long term such problems can have a

negative impact on growth and jobs

Over time the lack of awareness of the benefits of cloud computing limits its usage and can

deter businesses from tapping into the full potential of the cloud Over the long term this

could also have a negative effect on GDP and jobs creation Although this scenario was

22 European Commission (2015) A digital Single Market Strategy for Europe COM(2015) 192 final

Brussels 23 Ibidem 24 Ibidem 25 European Commission (2013) Cloud Select Industry Group on Service Level Agreements accessed 01 May 2017 26 Expert Group Meeting on Cloud Computing Contracts Synthesis of the meeting of 2930 January 2014 27 Ibidem 28 Expert Group Meeting on Cloud Computing Contracts Synthesis of the meeting of 910 April 2014 29 For example due to the unavailability of the service



19

included in the problem tree it is not the purpose of this study to examine these larger

macroeconomic impacts30

The problem tree allowed the team to gain an understanding of the main issues to be

investigated within the study and for which evidence from stakeholders was needed

This understanding was reflected in the data collection tools These included

The Survey questionnaire The structure of the survey questionnaire31 reflected the

different layers of the problem tree It first focused on the usage of cloud computing

and the types of contracts SMEs tend to sign corresponding to the drivers section

Furthermore it addresses the problems that SMEs encounter the actions taken in

order to resolve them and the associated economic detriment32 in order to provide

information for the problems and short-term effects sections of the tree

Interview guidelines for case studies and webinars Findings from the interviews and

the webinars were used to complement the quantitative analysis with detailed

information on the contract-related problems and the costs sustained by SMEs while

trying to resolve the encountered problems

All collected information supported the estimations on the loss of GDP and the loss of jobs at

the EU level

30 The European Commission estimated that cloud computing can increase EU GDP up to euro250 billion and create 38 million jobs More information available in European Commission (2011) Quantitative Estimates of the Demand for Cloud Computing in Europe and the Likely Barriers to Up-Take SMART 20110045 Brussels 31 Annex 4 presents the structure of the CATI and online questionnaire 32 The sections B C D and E cover use of cloud computing problems encountered with cloud computing services actions taken by the enterprise in order to address the most serious problem and the economic detriment related to the most serious problem encountered

Study on the economic detriment to small and medium-sized enterprises arising from unfair and unbalanced cloud computing

contracts

20

Figure 3 Problem tree33


33 LT stands for lsquolong-term effectsrsquo and ST for lsquoshort-term effectsrsquo 34 Annex 3 contains the bibliography serving as basis for the desk research



21

Under Task 0 the team also defined the sampling strategy to select 12 MS five economic

sectors to be investigated in depth as well as the sample size of SMEs to be involved in the

survey

For the selection of the MS three criteria were considered (Table 2) In particular the

percentage of enterprises buying cloud computing services as per 2016 Eurostat

statistics was considered to be the best proxy variable35 available for the usage of cloud

computing and it has been used as one of the criteria for defining the sample of countries to

be analysed in greater depth

Table 2 Criteria used for MS selection

Criteria for MS selection Details (Table 3) Source

Percentage of enterprises

buying cloud computing

services

Number of SMEs that

declared they bought at

least one cloud computing service in 2016 out of the total number of SMEs active in the MS

Data on cloud computing service

usage among SMEs Eurostat 2017

[isoc_cicce_use]

Relevance of the country to the

study objectives

Number of SMEs that

declared they bought at least one cloud computing service in 2016 out of the total number of SMEs active in the EU28


usage among SMEs Eurostat 2017 [isoc_cicce_use]

Structural Business Statistics Eurostat 2017 [sbs_sc_sca_r2]

Geographical balance Balanced number of EU15

and EU13 MS in the sample

NA

Based on the above-mentioned criteria the following 12 MS were selected the Czech

Republic Estonia France Germany Ireland Italy Poland Portugal Romania Sweden

Spain and the Netherlands (Table 3)

A high level of representativeness of the EU is ensured because the selected sample

involves eight MS from the EU15 and four MS from the EU13

refers to countries where more than 70 of the EU SMEs that bought at least one of

the cloud computing services in 2016 (Figure 4) were established

35 A proxy variable is a variable that is used instead of the variable of interest when that variable of interest cannot be measured directly


contracts

22

Table 3 SMEs buying cloud computing services 2016

EU MS

A B C D E=B+D F=E(A+C) ETotal EU28

EU15 EU13

of active enterprises with 10-250 employees

of enterprises (10-250 empl) buying CC services

of enterprises with 1-9 employees

of enter (1-9 empl) buying CC services 36

Total active SMEs

(Country level)

(EU28 level)

AT 40393 646288 280850 31959 38422 1196 137 EU15

BE 31302 8139 569950 64858 72996 1214 261 EU15

BG 26991 1619 298559 33975 35594 1093 127 EU13

CY na na na na na na na EU13

CZ 38203 6877 961287 109390 116267 1163 416 EU13

DE 411527 61729 1985471 225938 287667 1200 1029 EU15

DK 22681 9072 187367 21322 30394 1447 109 EU15

EE 6439 1417 61513 7000 8416 1239 030 EU13

EL 15368 1383 764471 86993 88376 1133 316 EU15

ES 125000 21250 2337621 116881 138131 561 494 EU15

FI 19187 10361 209328 23821 34182 1496 122 EU15

FR 139335 22294 2765282 314677 336970 1160 1205 EU15

HR 12249 2695 134007 15249 17944 1227 064 EU13

HU 30852 3394 504904 57456 60850 1136 218 EU13

IE 5514 1930 224742 25575 27505 1195 098 EU15

IT 182182 38258 3497783 398032 436290 1186 1560 EU15

LT 13604 2177 172527 19633 21809 1172 078 EU13

LU 3939 670 27841 3168 3838 1208 014 EU15

LV 9226 738 100216 11404 12142 1109 043 EU13

MT 1885 509 24123 2745 3254 1251 012 EU13

NL 48115 15397 1042588 118642 134039 1229 479 EU15

PL 69282 4850 1534086 174572 179422 1119 642 EU13

PT 37353 6350 769043 53833 60183 746 215 EU15

RO 50987 3569 405493 46143 49712 1089 178 EU13

SE 36047 16221 649412 155859 172080 2510 615 EU15

SI 6912 1382 127603 14521 15903 1182 057 EU13

SK 14363 2442 414630 33170 35612 830 127 EU13

UK 199528 65844 1734989 312298 378142 1955 1352 EU15

Tot EU28

1598464 317028 21785686 2479112 2796141 12 100

Selected Countries

Source Eurostat (Cloud Computing Service [isoc_cicce_use] Structural Business Statistics [sbs_sc_sca_r2])

36 The percentage of micro enterprises (ie enterprises with fewer than 10 employees) that bought at least one CC service is only available for the United Kingdom Slovakia Sweden Portugal and Spain For the other EU countries the average from those countries (1138) has been used



23

Figure 4 The percentage of enterprises which bought cloud computing services in the

selected EU countries as compared to the total EU28 (2016)

Source Eurostat (Cloud Computing Service [isoc_cicce_use] Structural Business Statistics

[sbs_sc_sca_r2])

For the selection of the economic sectors to be analysed in depth Eurostat statistics on the

percentage of enterprises buying cloud computing services were used in order to

identify those sectors with the highest usage of cloud computing

Eurostat statistics are available only for some sectors (Table 4) and only for the category 10

persons employed or more which also includes enterprises with more than 250 employees (ie

large enterprises GE250)

However Eurostat statistics have been considered to be relevant in selecting the sectors to be

analysed in depth as the number of enterprises with more than 250 employees represents a

negligible percentage of the overall number of active enterprises at the EU28 level (ie around

45000 out of 23 million enterprises corresponding to 02 of the total)

The sampling strategy envisaged the use of the same criteria used for the selection of MS (ie

percentage of enterprises buying cloud computing services relevance of the sector to the

study objectives)

As a result the five sectors selected included (grey rows in Table 4)

manufacturing (NACE37 code C)

wholesale and retail trade repair of motor vehicles and motorcycles (NACE code G)

professional scientific and technical activities (NACE code M69-M74 hereinafter

referred to as M)

administrative and support service activities (NACE code N)

information and communication (NACE code J)

37 Eurostat Nomenclature des Activiteacutes Eacuteconomiques dans la Communauteacute Europeacuteenne Brussels



24

Table 4 Economic sectors and usage of cloud computing services (2016)

NACE Code

Sectors

A B C = B100 x

A CD

of active enter (with

more than 10 empl) at

EU28 level

of enter (with more

than 10 empl)

buying CC services

of enter (with more

than 10 empl)

buying CC services

out of the total

C Manufacturing 364432 17 61953 23

D+E Electricity gas steam air conditioning and water supply

18732 19 3559 1

F Construction 200369 15 30055 11

G Wholesale and retail trade repair of motor vehicles and

motorcycles

351278 18 63230 24

H Transportation and storage 90718 16 14514 5

I55 Accommodation 15969 23 3672 1

J Information and communication

55905 52 29070 11

L Real estate activities 10661 24 2558 1

M Professional scientific and technical activities

97073 34 33004 12

N Administrative and support

service activities 121657 22 26764 10

Total 1326794 21 268384 (D) 100

Selected Sectors

Source Cloud computing services for 2016 (Eurostat [isoc_cicce_use]) Business Structure Statistics for 2015 (Eurostat [sbs_sc_sca_r2])

Although the financial and insurance activities sector (K under its respective NACE code) is

considered as one of the economic sectors with the highest usage of cloud computing38 it has

been excluded because of its limited relative weight at the EU28 level39

With the purpose of achieving statistically significant results a target of 500 SMEs that

use cloud computing has been defined This sample size has been chosen in order to ensure a

95 confidence interval and a maximum margin of error of 5 for all the estimates The

sample target size together with the random selection of the respondents ensure that - with

a probability of 95 - the true values of a phenomenon (eg average incidence of cloud

computing problems) in the entire population (ie all EU SMEs) is equal to the average values

observed in the studied sample plusminus the margin error

The box below presents the methodology behind the definition of the sample size

38 76 based on European Commission (2016) Measuring the economic impact of cloud computing in

Europe 39 Based on the lsquoAnnual detailed enterprise statistics for servicesrsquo [sbs_na_1a_se_r2] it was observed that in 2015 for the respective financial and insurance activities a total of approximately 14000 enterprises were active in the EU28 that is 01 of the total active enterprises



25

Box 2 Definition of the size of the sample

The formula for computing the representative sample size is

Sample size = [z2 p(1-p)e2][1 +( z2 p(1-p)e2N]

Where

N= population size e = margin of error (as a decimal) z = Z-score constant value eg 1645 for a 90 confidence interval 196 for a 95 confidence interval 258 for a 99 confidence interval

and p = average value of a specific indicator as observed in the population (as a decimal)

Our case

From Table 3 we have

N= 2796141 is the estimated number of SMEs that are using CC services

e = 5

Z = 196

P = when this value is not known conventionally is used the value 05

We can conclude that a target of 500 enterprise using CC services is appropriate to ensure a 95 confidence interval with a margin of error of 438 When we put the confidence level and the confidence interval together we can say that we are 95 sure that the true percentage of a phenomenon in the population is between +438 and -438 of the value observed in the studied sample For example if we ask a sample of 500 SMEs using CC if they encountered a certain problem

and 70 say lsquoYesrsquo we can be 95 certain that between 6562 and 7438 of all EU SMEs using CC encountered the same problem

Task 1 ndash Survey of SMEs

Task one was aimed at identifying

the types of cloud services most frequently contracted

the types of CTampC used to regulate the business relationships between users and

providers (for example determining whether enterprises are able to negotiate CTampC

andor to customise them to their needs)

the types the incidence and the frequency of contract-related problems

the types of actions taken by the enterprises in order to resolve the encountered

problems and the results of these actions

The collection of data was based on a questionnaire (see Annex 8) submitted through two

complementary channels

an online questionnaire (online Survey)

CATI

The online questionnaire was translated into the official languages of the MS covered by the

study Likewise the CATI was conducted by native speakers in order to avoid language

barriers

The online survey and the CATI have been developed tested and conducted on a

representative sample of EU SMEs which use the cloud for the purpose of conducting their

business

In order to achieve the above presented target (ie 500 SMEs using CC services)

the contacts of 13000 SMEs were identified during the design of the sampling strategy

3173 SMEs were reached within the 12 MS and the five sectors selected Table 5

presents the distribution of the reached SMEs



26

1009 SMEs were willing to participate in the survey

Table 5 Distribution of SMEs reached per country and sector ( of respondents 3173)

Sector

Country

Admin and support service

activities

Inform and comm

Manufact

Profess scientific

and technical activities

Wholesale

and retail trade

Total

CZ 13 17 62 30 52 174

EE 5 22 8 12 15 62

FR 184 129 262 126 308 1009

DE 99 123 185 226 249 882

IE 4 18 6 6 13 47

IT 8 9 100 7 15 139

NL 36 49

24 37 146

PL 24 69 16 78 92 279

PT 7 2 9 2 24 44

RO 8 20 2 27 15 72

ES 7 11

26 21 65

SE 41 33 59 30 91 254

Total 436 502 709 594 932 3173

Source Survey of SMEs (2018)

Table 6 presents the participation rate per MS of the 1009 SMEs that agreed to provide

information about their use of cloud computing



27

Table 6 Participation rate by MS ( of respondents 3173)

Country

Number of

enterprises that expressed refusal

Number of enterprises

that were willing to participate in the survey

Total Participation

rate ()

A B C = A + B BC

CZ 131 43 174 25

DE 33 158 191 83

EE 715 29 744 4

ES 724 54 778 7

FR 16 294 310 95

IE 24 31 55 56

IT 97 115 212 54

NL 152 49 201 24

PL 11 127 138 92

PT 48 33 81 41

RO 11 24 35 69

SE 202 52 254 20

Total 2164 1009 3173 32


The study targeted all different size categories the largest share of respondent being

represented by medium sized-enterprises (60 Figure 5) Contrary to the SMEs distribution

at the EU level the micro enterprises represented the smallest share of participants in the

survey The smaller the size of the enterprise the lower was its willingness to participate in

the survey

Figure 5 Distribution of participants in the survey by SME size ( of respondents 1009)


The same applies to SME age enterprises active for more than 10 years are better represented

in our sample as compared to younger enterprises (Figure 6) This reflects their willingness to

participate as well as the greater difficulties encountered in reaching younger enterprises



28

Figure 6 Distribution of enterprises involved in the survey of SMEs by age ( of respondents

1009)


Task 2 ndash Economic detriment and impacts on jobs and growth

Consequences of encountered problems at the micro level

The economic detriment was quantified along the lines recommended in the Guidelines on

impact assessment of the Better Regulation toolbox40 based on data collected from Task 1 and

on data from Eurostat Business Structure Statistics

The measurement of economic detriment41 considered a monetary assessment of the effects

of the problems faced by each SME in the survey and includes the following main dimensions

the gross financial detriment (GFD) associated with the problems encountered

the net financial detriment (NFD) associated with the problems encountered which

corresponds to the GFD associated with the problem encountered minus any remedies

offered by the cloud provider

The GFD incorporated the following components

119866119865119863 = 119871 + 119867119877 + 119874119862

Where

L is alternatively the loss of turnover or profits as perceived by each SME

HR is the costs of the human resources invested by each SME while taking action to

resolve or remedy the most serious encountered problem

OC other costs declared by each SME These include costs such as the costs related to

ensuring an alternative service the costs related to fixing the cloud service problem

using external support any legal costs costs related to reputation damage and costs

related to loss of client(s) and other residual costs

To allow for the measurement of the NFD the value of any redress (R) offered by the service

provider for the damages caused to each SME as reported in the survey questions was

computed

40 The Better Regulation Toolbox is a set of general guidelines that set out the principles that the European Commission follows when preparing new initiatives and proposals and when managing and evaluating existing legislation In this study those principles were considered generally as they were central in

defining the survey the sample and also the methodologies to measure economic detriment and estimate

the impact on growth and jobs 41 Measured using the principles put forward in European Commission (2017) Operational guidance document on measuring personal consumer detriment Brussels



29

The detailed procedure used to estimate the economic detriment at the EU28 level included

three main steps

The first step was the computation of the following parameters from the survey with the 95

confidence interval level and 5 margin of error

the loss of turnover or profits perceived by each SME

the costs of the human resources invested by each SME while taking action to resolve

or remedy the most serious problem

the other costs covered by each SME while taking action to resolve or remedy the most

serious problem

the value of any redress offered by the service provider for the damages caused to

each SME

The second step required the definition of the number of enterprises affected by contract-

related problems (119873119901)

119873119901 = 119890119906 times 119890119901 times 119864

Where

119890119906 is the proportion (ie the percentage) of enterprises that use cloud computing

services

119890119901 is the incidence (ie the percentage) of contract-related problems

E is the total number of active enterprises

The incidence rates of contract-related problems (119890119901) by country and sector or country and

size class and the proportion of enterprises that use cloud-computing services (119890119906) by country

and sector or country and size cannot be estimated from the sample with the 95 confidence

interval level and 5 margin of error given that the sample is only representative at the EU

level overall

In order to be able to estimate the total number of enterprises experiencing contract-

related problems by country and sector and by country and size class an RAS-based42

procedure has been applied

Box 3 RAS method for estimating the total number of enterprises experiencing contract-

related problems by country and sector

The RAS method is a well-known method for data reconciliation whose aim is to achieve consistency between the entries of some non-negative matrix and pre-specified row and column totals Mathematically the method is an iterative scaling method that can be applied in this case as we just

have non-negative matrices We redistribute proportionally the differences arising from applying the EU level sectorial or size class incidence rates or from country incidence levels considering in this

case as the binding constraint the country level incidence which has been estimated with confidence from the sample (we ensure that the incidence per country is respected)

The procedure started with a preliminary estimation of the number of enterprises (119873119894119895119901)

experiencing contract-related problems in country i and sector or size class j using the following

formula

119873119894119895119901 = (

119890119894119906 + 119890119895

119906

2) times (

119890119894119901 + 119890119895

119901

2) times 119864119894119895

42 See more information at httpseceuropaeueurostatcroscontentras-method_en



30

Where

for countries included in our sample

- 119873119894119895119901 is the preliminary estimation of the number of enterprises experiencing cloud

computing problems in country i and sector or size class j

- 119890119894119906 is the proportion of enterprises using cloud computing services in country i43

computed from the survey

- 119890119895119906 is the proportion of enterprises using cloud computing services in sector or

size class j44 for all the countries in the sample

- 119890119894119901 is the incidence of cloud computing problems in country i computed from the

survey

- 119890119895119901 is the incidence of cloud computing problems in sector or size class j

computed from the survey for the whole sample

- 119864119894119895 is the total number of enterprises in country i and sector or size class j

extracted from the Eurostat Business Structure Statistics for 2015 (Eurostat

[sbs_sc_sca_r2])

While for countries not included in the sample



- 119890119894119906 is the average proportion of enterprises using cloud computing services in all

countries of the sample computed from the survey


size class j45 for all of the countries in the sample

- 119890119894119901 is the average incidence of cloud computing problems in all countries of the

sample as computed from the survey

- 119890119895119901 is the incidence of cloud computing problems in sectorsize class j computed

from the survey



[sbs_sc_sca_r2])

In practice this formula takes the joint incidence by country and sector or by country and size

class to be the average of the two marginal incidences which would be the case if the two

distributions were independent In this way it allows a preliminary estimation of the number

of enterprises experiencing cloud computing problems in country i and sector or size class j

43 We use two alternative measures of incidence allowing us to develop two scenarios From the survey data we compute the incidence by country and sector and country and size class considering the answers given by respondents in two alternative ways In one case we compute the incidence as the ratio of

those enterprises that declared they are using cloud computing to all enterprises contacted that declared they are either using or not using cloud computing or that refused to respond to the survey based on criteria that can be seen as meaning that the survey does not apply to them (around 16) Alternatively also from the survey data we can compute the incidence of cloud computing usage as the ratio of those that declared they are using cloud services to the sum of those that explicitly mentioned that they are either using or not using cloud services (around 50) This second scenario can be considered as a theoretical but most unlikely future scenario where a consistent number of EU SMEs use

cloud computing 44 See the previous footnote 45 See the previous footnote



31

After obtaining that preliminary estimation 119873119894119895119901 the RAS method of reconciliation is applied by

considering as the binding constraint the total number of enterprises experiencing problems

as that value was estimated directly from the sample with the required confidence and error

levels

This reconciliation of totals performed by the RAS method dismisses the assumption of

independence as it distributes the error across the margins

Concerning the sectors not covered in the sample46 the total number of enterprises

experiencing contract-related problems by country and sector can also be computed by

following the same procedure as above In that case sector incidence would be replaced by

the European average incidence on the other sectors Given the sampling procedure that was

followed in which the sectors with the highest incidence of cloud computing usage were

selected to be covered by the survey applying those incidences of use of cloud computing as

representative to the other sectors would overestimate the impacts Given this situation only

the results for the selected sectors are presented and this constitutes a lower threshold for the

true detriment47

Once the values of the number of enterprises experiencing cloud computing problems for each

country and sector and country and size class are computed they can be aggregated to the

EU level just by summing up the number of enterprises experiencing cloud computing service

problems per country

Finally the third step was the computation of the total losscostvalue of redress by country

sector and size class by multiplying the number of enterprises that experienced contract-

related problems (as computed using the RAS model) by the 95 trimmed mean values

per enterprise for each variable (from the survey)48

The GFD is then computed considering alternatively lost turnover and lost profits and adding

the human resource costs and the other costs NFD is computed taking the two measures of

GFD and subtracting the value of any redress offered by the service provider for the damages

caused to each SME

Afterwards two measures are obtained covering both GFD and NFD computed at country and

sector country and size class and at EU level

Consequences of encountered problems at the macro level

Following the quantification of the economic detriment the consequent impact on growth

and jobs was estimated using one of the methodologies suggested in the impact assessment

toolbox presented by the Joint Research Centre49 of the European Commission

The goal was to estimate the overall GVA and employment content of the detriment In order

to do that the following methodology was used

The starting point was the declared turnover loss one of the components of total detriment

aggregated by country and sector and by country and SME size We first estimated the financial

detriment suffered by each enterprise by considering the different components of detriment

then we aggregated these effects to the EU28 level by summing up the effects suffered by

46 As previously stated only the following sectors were covered by the study Manufacturing (C) Wholesale and retail trade repair of motor vehicles and motorcycles (G) Professional scientific and technical activities (M) Administrative and support service activities (N) and Information and communication (J) 47 Recall that the selected sectors comprise a total of 797 of SMEs and GE250 using cloud computing

services 48 Given each variable the 95 trimmed version was obtained by discarding the 5 lowest and highest observations it is a statistic in the middle of the data range 49 EU Science Hub (2016) Input-output economics Brussels



32

each enterprise across all enterprises When estimating the macroeconomic effects of the

contract-related cloud computing problems one must consider the overall turnover loss that

was suffered by all enterprises that experienced those problems as turnover is the variable

that best summarises the overall enterprise-level effects that are transmitted into the

economic system through the supply chains and that can be related to aggregate economic

variables thus avoiding double counting

This allowed the team to estimate the so-called direct impacts (the direct consequences in

the enterprises that face contract-related cloud computing problems associated with the

reduction of their economic activity due to those problems) This was done by estimating the

GVA and employment contents of the turnover losses caused by contract-related cloud

computing problems at country and sector level by considering the GVA and employment

coefficients of total turnover at country and sector and country and size class level computed

from Eurostat Business Structure Statistics for 2015 (Eurostat)50

The results were aggregated at the EU level by summing up country results from calculating

the direct GVA and employment contents

Additionally at the aggregate EU level the so-called indirect impacts were also estimated

Indirect effects are the effects on the enterprises that are not directly affected by contract-

related cloud computing problems but that are indirectly affected in their activity by the losses

of turnover from the enterprises that directly experience the problem To estimate these

indirect effects we start by estimating the turnover losses in supplier industries These indirect

losses of turnover arise when the businesses that experience the direct turnover losses reduce

their demand for products from their suppliers and then those supplier enterprises also

experience turnover losses The input-output methodology is used to estimate the turnover

losses in supplier enterprises Essentially this methodology allows us to estimate the amount

of turnover that is lost in one supplier enterprise when the demand from another enterprise is

reduced given the existing technology A symmetric input-output table at basic prices (sector

by sector) available in Eurostat51 for the EU28 was used to estimate the technological

intersectoral relations in the EU economy The methodology used is described in the following

box

Box 4 The Input-Output Methodology

Input-output analysis is the most commonly used benchmark within the study of intersectoral relations The representation of the underlying economies either as a coherent statistical framework as a structural analysis tool of the productive systems or as an economic model is based on a correlation between production and demand through the proportions of the different branches (supply side) or products (demand side) that support that same economies The correspondence between a certain branch of activity and a certain group of products is thereby a condition for coherence of the

input-output analysis

The input-output tables appear as a synthesis of a large amount of statistical data processed in accordance with the goal of specifying the characteristics of the use of the productive factors and products to satisfy the demand ie the open and disaggregated flows (in sectorial terms) that link in both ways demand production and income

The matrix representation of the basic flows characterises the activities of a given economy in a given period It allows a two-dimensional interpretation of the relationships and balances in the flows to be used ie a horizontal (in line) interpretation ndash articulating production and demand that leads to a

separation between intermediate and final demand ndash and a vertical interpretation (in column) ndash

51 Eurostat Symmetric input-output table at basic prices (product by product) Brussels



33

articulating production and income that leads to the separation between intermediate inputs and

value added

Input-Output matrices

The general shape of an input-output table encompasses four quadrants that correspond to the intersectoral trade of products associated with intermediate consumption (1st quadrant) to the breakdown of each sectorrsquos production through the diverse final uses (2nd quadrant) to the sectorial

decomposition of the GVA (3rd quadrant) and to the nonmarket transfers between sectors of the economy (4th quadrant)

The first quadrant has a square shape (n x n sectors) while the 2nd and 3rd have a rectangular shape (depending on the number of final uses and the number of the GVA components considered) The

equilibrium conditions reflect sector by sector the usage of the production and the mobilised resources and the income generated in the production ie

119883119894 = sum 119883119894119895 + 119884119894

119895

(use logic to be read in line the gross production of each sector is depleted feeding the intermediate

and final demand)

119883119894 = sum 119883119894119895 + 119884119894

119894

(resources and income logic to be read in column the gross production of each sector integrates

the value of the intermediate consumption and of the income generated)

The sectorial equilibrium ie the equality between uses and resources (119883119894 = 119883119895 for 119894 = 119895) leads on

an aggregated level to a match between the sum of the elements of the 2nd and the 3rd quadrants that sustains the ldquothree approachesrdquo of national accounting expenditure income and production

Matrixes coefficients and multipliers

From the general tables we can obtain the technical coefficient matrix (matrix A) Each element of the matrix A (119886119894119895 = 119883119894119895119883119895) expresses the ldquotechnological demandrdquo from the sector j to the sector i ie

the production of the sector i used as an input for the production of the sector j This vertical proportion representing the technological support of the intersectoral flows and the deepening of the intermediate demand from the productive units into the technical characteristics of their respective productive processes is called the technical coefficient (of production)

The input-output analysis as an economic model uses these proportions or coefficients to represent

the function of the economy requiring the adoption of a set of hypotheses namely on the direction of the economic flows ie the role of the supply and demand dynamics

In formal terms the input-output model is considered to be based on the dynamics of the demand The production is obtained through an endogenous process supported by the technical coefficient matrix responding to a final demand determined exogenously Building up the Leontief model in its

OUTPUT (Demand)

INPUT

(Production)Intermediate inputs to

production

(1st Q)

Final demand

(2nd Q)

Primary inputs to

production

(3rd Q)

Primary inputs to final

demand

(4th Q)



34

reduced form leads to a system of n simultaneous equations like 119883119894 = sum 119886119894119895119884119895119895 written as 119883 = (119868 minus 119860)minus1119884

in matricial notation

Input-output based modelling brings out a matrix (119868 minus 119860)minus1 whose elements are designated as 119886119894119895

The elements of the (119868 minus 119860)minus1 matrix express as coefficients of the simultaneous equations system

that allows to determinate the production according to the final demand the variation (direct and indirect) of the production of a sector according to the unitary change of the final demand of another sector These are called production multipliers also arising as sectorial interdependence indicators

The production multipliers can be partial when they indicate the variation of the production of a sector i led by a unitary variation of the final demand of a sector j and measured by the corresponding element of the matrix 119886119894119895 or total when they indicate a variation of the production of all sectors led

by a unitary variation of the final demand of a sector and measured by the sum of the corresponding column of the matrix (sum 119886119894119895119895 )

The nature of the measured effects

Taking into account the nature of the used multipliers it is possible to measure direct and indirect effects

Direct impacts Activity effects (value added employment income) associated directly with the value of the lost production due to contract-related problems

Indirect impacts Backward linkage effects meaning the activation of multiple ldquoexternalrdquo effects on demand linked to the loss in production due to contract-related problems They concern the supply

chains that are interrupted due to the production loss associated with contract-related problems

Once the indirect turnover losses were measured their GVA and employment contents were

estimated using the same methodology as for the direct effects

To compute the relative direct and indirect impacts we divided the estimated GVA and

employment content by the total GVA and employment at the EU level

Further qualitative analysis

In addition to the quantitative assessment of the overall impact on growth and jobs taking

into account the results of previous activities (namely the interviews within the case studies

and desk research) other more qualitative effects of the problems encountered namely in

terms of competition competitiveness and market functioning were qualitatively assessed To

this end case studies were used in order to have a more in-depth view of the topic

More generally the case studies allowed the study team to

produce useful insights on the specific problems that were identified in the survey

illustrate in practical terms the economic detriment to SMEs and to understand the

causal links between the signed contracts and the encountered problems

include the perspectives of those stakeholders that were not involved in the previous

study Tasks

This subtask included interviews (33) with eight types of stakeholders namely SMEs cloud

brokers service providers SMEs associations national authorities national SMEs Envoys EEN

associations and chambers of commerce This array of stakeholders contacted was used to

obtain a detailed view of the issue of the economic detriment to SMEs arising from unfair and

unbalanced cloud computing contracts52

nine SMEs

one cloud broker

10 service providers

three SMEs associations

six national authorities

one national SMEs Envoy

52 The questionnaires used detailing the topics covered during the interviews can be found in Annex 8



35

two EEN associations

one Chamber of Commerce

Finally three webinars were used to validate and disseminate the results of the study with the

main participating stakeholders

22 Main limitations encountered

This study mainly used data collected from CATI as this tool followed a more direct approach

in contacting SMEs by phone The online questionnaire proved not to be as effective during

the data collection phase as we succeeded in obtaining only three completed questionnaires

from a total of 141 requests to SMEs and European Associations contacted On the other hand

500 completed questionnaires were collected from the SMEs that use cloud computing through

the CATI

In order to maximise the possibility that the SMEs contacted will respond to the survey the

study chose to contact SMEs from the 12 countries that have the most usage of cloud

computing This approach was taken to achieve a twofold purpose to maximise the quality of

the survey results and to ensure that the minimum sample target of 500 questionnaires is

met Even if the sample is randomised the willingness to participate in the survey under these

circumstances might have been positively correlated with cloud computing usage This may

increase the risk of biased results

This limitation was overcome by involving a distinctive group of stakeholders with the aim of

complementing the information gathered The stakeholdersrsquo involvement during the case

studies ensured the accuracy of the results at the EU level

Furthermore it is important to underline that all estimates based on the gathered responses

to the questionnaire should be considered as statistically significant in representing the

average values that might be observed among EU SMEs that are using cloud computing

services Therefore any features presented at the country andor sector andor

company size level were included with the sole aim of documenting gathered

information

In order to be able to estimate results at the country andor sector andor enterprise size level

the RAS model was used to distribute the overall representative results to provide robust

estimates at that level The RAS model even allows estimating the usage rate and the incidence

of problems at enterprise size sectorial and country level

Two scenarios have been developed for the economic analysis that takes into account two

different hypotheses for estimating the usage rate of cloud computing extracted from the

survey

The method of analysis of economic detriment also has some limitations The first one is related

to the fact that only the consequences of the most serious problem are considered Even if the

survey tried to measure also the effects of the second most important problem the fact that

the number of respondents that quantified its effects was very small led to values that did not

seem to be robust enough to use in the analysis This causes the estimates of detriment

that were presented to be the lower thresholds to the actual detriment Yet the

magnitude of the underestimation is limited by the fact that the sectors with the highest cloud

computing usage rates were chosen to be in the sample and they are likely to experience

above average effects A second limitation arises from the fact that many enterprises seem

not to be able to fully assess the financial impacts of problems such as reputational damages

or loss of clients in terms of financial variables and this may also lead to some underestimation

of the true effects that we perceive that might be present but that we are not able to assess



36

In terms of measuring the indirect impacts not only does the possible underestimation of the

direct impacts on turnover also affect these impacts but also using the input-output

methodology has limitations While the input-output methodology allows measuring backward

linkages it does not allow considering the downstream effects on clients or final consumers

that are associated with the contract-related cloud computing problems due to relative changes

in the costs borne by enterprises and that are not fully absorbed and thus trickle down to the

consumer level as SMEs pass on the increased costs caused by the problems encountered



37

3 Usage of cloud computing across EU SMEs the state of play

First this section presents the analysis of the services contracted by the SMEs the types of

contracts and the negotiability and customisation of CTampC Furthermore it investigates the

incidence and frequency of contract-related cloud computing problems experienced by SMEs

with an emphasis on the most serious problems encountered and their respective causes

Second it presents the types of actions taken by the SMEs in order to address the contract-

related problems as well as the results of the actions taken and possible difficulties encountered

while taking action

And finally it explores the reasons why some SMEs decided not to take action

31 Cloud computing usage rate

In conducting the survey 3173 SMEs replied have been collected out of which

503 from SMEs that declared that they had contracted at least one cloud computing

service during the period 2016ndash201753

509 from SMEs that declared they did not contract any cloud computing service during

the period 2016ndash2017

2164 from SMEs that refused to participate in the survey

The estimation of the rate of usage of cloud computing depends on the hypothesis about the

distribution of the willingness to participate in the survey

For the purpose of the study it was assumed that only SMEs not using cloud computing were

present among those SMEs that were not willing to provide information (2164) Under this

hypothesis the rate of usage of cloud computing services is 159 calculated as the

number of SMEs that declared they are using cloud computing services (503) divided by the

number of SMEs that replied (3173) This can be considered as the central scenario for this

study It provides an indication of the current detriments suffered by SMEs

A theoretical scenario has been constructed by assuming that SMEs using cloud computing

services and SMEs not using cloud computing services are equally distributed among the SMEs

that were not willing to provide information (2164)54 The purpose of this scenario is to provide

an indication of the theoretical evolution of the detriment in case of increasing usage of cloud

computing among EU SMEs

At 159 the rate of usage of cloud computing among SMEs still appears to be low especially

when compared with the 45 that is the most recent estimated usage rate among large

enterprises55

This can be due to a variety of different reasons During the interviews performed it emerged56

that

some SMEs are reluctant to use services that they cannot fully understand (for

example for micro and small enterprises it is difficult to assess how the new services

can improve their everyday work)

53 The distribution by country size and sector of the 503 SMEs that declared they contracted at least one cloud computing service can be found in Annex 5 54 Under this assumption the rate of usage of cloud computing services is 499 calculated as the number of SMEs that declared they are using cloud computing services (503) divided by the total of SMEs

that were willing to provide information (3173 ndash 2164 = 1009) 55 Eurostat Cloud computing - statistics on the use by enterprises Brussels 56 Case study interview with UEAPME European Association of Craft Small and Medium Enterprises representing about 12 million enterprises across Europe



38

other SMEs perceive that costs are still high and that it takes too long to recover

the investment (break-even point)

the division of responsibilities between SMEs and providers can sometimes be

a major source of problems as it is poorly documentedexplicated leading to overlaps

and gaps especially with respect to security aspects it is not uncommon for SMEs to

be confused about their responsibilities concerning security such as who makes

backups of data or software which type of failoverredundancy is offered by the

provider and what still needs to be done by the customer All of these issues can

persuade SMEs to not outsource cloud services

asymmetric information when it comes to negotiating and customising CTampC might

limit the capacity of SMEs to find solutions that fit their needs

in contrast to the traditional provision of on-site information technology resources the

multi-tenant nature of cloud computing usually raises questions with respect to

privacy confidentiality and data integrity Cloud computing presents its own set

of security issues coupled with the risks and threats inherent in traditional information

technology computing

32 Types of cloud computing services contracted

Figure 7 presents the most commonly contracted cloud computing services as resulted from

the survey

Two services are more frequently contracted because of their applicability and prevalence

in a wide range of sectors

collaboration and communication services (71) that might include among

others applications used for instant communication video conferencing business

visualisation e-mail antivirus for desktop or PC customer relationship management

or social media monitoring

storage and hosting services (65) that comprises services such as server

platforms for online storage sharing hosting websites files images and similar

content

The third most commonly contracted service (43) is associated to security support (this is

related to the need for protecting the corporate network when accessed via remote devices

such as laptops or other wireless and mobile devices)

The next eight significant types of cloud computing services contracted do not range far from

each other with their usage varying between 43 and 26

No significant differences emerged from the analysis at countrysector level (see section B

within Annex 5 for further details)



39

Figure 7 The cloud computing services most commonly contracted by SMEs during 2016-

2017 ( of respondents 503 of answers 2522)57


A more detailed analysis of the numbers behind Figure 7 reveals the complexity of the

subscribed cloud computing packages

the answers from the (503) SMEs that declared that are using CC services also

revealed that 2522 services have been contracted over the period 2016 ndash 2017 (Table

7) that implies each SME contracted on average five different services

micro enterprises are the size class contracting the highest number of services (ie

55 on average Table 7) this might be related to the fact that the medium-sized

enterprises might have the financial and technical capacity to develop more

effectiveefficient solutions internally58

Table 7 The cloud computing services most commonly contracted by SMEs during 2016-2017 by SMEs size class ( of respondents 503)

SME size class

of respondents

of contracted services

Average of contracted

services Micro 91 503 55

Small 140 723 52

Medium 272 1296 48

Total 503 2522 50


57 Multiple choice question 58 Eight out of the 10 service providers interviewed under Task 2 stated that the usage depends on the enterprisesrsquo size as medium-sized enterprises are better able to internalise most of the needed IT

services



40

Even the analysis of the frequency of the answers provided allowed the research team to better

understand how the usage of CC is evolving among SMEs (Figure 8) around 40 of SMEs

contracted a limited number of cloud services (one two or three)59

Figure 8 Frequency of the number of contracted services ( of respondents 503 of answers 2522)


Furthermore the analysis of the mix of contracted services revealed that there are two

services lsquoPlatform to create software applicationsrsquo and lsquoStorage and hostingrsquo that are most

commonly contracted either alone (12) or together (6)

The number the types and the mix of contracted services showed that EU SMEs are having a

lsquobasicrsquo usage of cloud computing

This is also confirmed by the results reported in Table 8 services falling under the SaaS model

are the most contracted ones (47) This cloud computing model was the first one introduced

to the market (1999) and the easiest to use (as it includes applications that can be run directly

from a web browser without any downloads or installations required although some require

plug-ins)

The medium-sized enterprises present a different trend from the small and micro firms as

they probably need a more advanced package of services For the medium-sized enterprises

the IaaS model (47) is the most contracted followed by PaaS (30) and finally by SaaS

(21)



41

Table 8 Services contracted by SMEs size ( of respondents 503 of answers 2522)

SMEs size Total

respondents of services contracted

out of which

SaaS PaaS IaaS Mixed

Micro 91 503 252 149 97 5

50 30 19 1

Small 140 723 332 224 157 10

46 31 22 1

Medium 272 1296 609 393 276 18

21 30 47 1

Total 503 2522 1193 766 530 33

47 30 21 1


33 Types of contracts and relative costs

In this section we analyse if SMEs have the possibility to negotiate CTampC the degree of

customisation of contracted services and the types of subscriptions chosen by SMEs

Negotiability of CTampC

In the survey SMEs that are using CC services were asked if they were able to negotiate CTampC

(Figure 9) The majority of the SMEs declared they signed standard terms and

conditions offered by the provider (ie 64 of SMEs either did not try to negotiate or were

not able to negotiate CTampC see Figure 9)

Figure 9 Negotiability of the CTampC among SMEs that contracted cloud computing services ( of respondents 503)


Only 19 of the SMEs using cloud computing (97 out of 503) were able to negotiate

the CTampC in relation to all cloud computing contracted services while 17 were able

to negotiate contract terms and conditions for a limited number of services

This trend is maintained at the country and sectorial levels as well (see Annex 5 for further

details)



42

Together with the negotiability of CTampC also the reasons for not negotiating have been

investigated (Figure 10) The decision to adopt the standard CTampC is made either because

these meet the usersrsquo expectations (41) or because it is assumedknown that a negotiation

would have no chance to succeed (28)

Figure 10 Reasons provided by SMEs for not trying to negotiate ( of respondents 229)


The possibility of the SMEs negotiating the services contracted correlates with the size class

As seen in Table 9 only 106 of the services contracted have been negotiated by the SMEs

It can be stated that on average SMEs negotiate CTampC related to less than one service out of

the average of five used

Table 9 Number of services for which SMEs were able to negotiate CTampC

SMEs

size

Total of

respond

of services

contracted

of customised

services

of services

SMEs were able to

negotiate

out of which


Micro 91 503 48 24 11 10 3 0

Small 140 723 123 89 36 31 20 2

Medium 272 1296 120 155 78 44 31 2

Total 503 2522 106 268 125 85 54 4


After the negotiability of CTampC the research team explored the types of services for which

SMEs negotiated signed contracts (Figure 11) Surprisingly the most commonly contracted

services (ie collaboration and communication storage and hosting and security services)60

do not appear among the ones for which negotiating CTampC is possible Rather negotiability is

higher for those services that due to their nature are more lsquobusiness drivenrsquo (such as business

applications mobile services and data management) Figure 11 presents for each contracted

service the number of SMEs that were able to negotiate CTampC (in blue) and the number of



43

SMEs that signed standard CTampC for the specific service contracted (in grey) The total of the

numbers in each row represents the number of SMEs that declared contracting a specific

service61 Detailed information related to all services can be found in Annex 5

Figure 11 Services in relation to which SMEs were able to negotiate the CTampC ( of respondents 179 of answers 264)


Customisation of contracted services

SMEs that didnrsquot sign standard CTampC were asked if the negotiation allowed the customisation

of the contracted services

Figure 12 shows that out of the 179 SMEs (36 of the SMEs that are using CC services) that

were able to negotiate the CTampC only 101 (representing 20 of all surveyed SMEs that

are using cloud services) pointed out that besides simply negotiating the CTampC they

were able to fully customise the service package according to their needs

61 For example for lsquobusiness applicationsrsquo out of the total number of 190 SMEs that contracted this service (cf Figure 7) only 30 SMEs were able to negotiate CTampC while 160 signed standard CTampCs



44

Figure 12 Share of SMEs that declared they were able to customise the service package

according to their specific needs ( of respondents 503)


The ability of SMEs to customise the purchased service package correlates with the size class

(as illustrated in Figure 12)

Table 10 SMEs that declared they were able to customise the service package according to their specific needs by enterprise size ( of respondents 503)

Size category

Total

Respondents

SMEs that did

not negotiate

CTampC

SME negotiated CTampC

Full customisation

Partial customisation

No Customisation

Micro 91 69 16 6 0

100 76 17 7 0

Small 140 86 27 15 12

100 61 19 11 9

Medium 272 169 58 26 19

100 62 21 10 7

Total 503 324 101 47 31

100 64 56 26 17


Types of contract subscription

The majority of respondents have signed a paid subscription with fixed or variable fees

(79 of the total users Figure 13) It should to be noted that 73 SMEs did not provide any

response as most of them did not know the type of subscription contracted



45

Figure 13 Type of cloud computing subscription ( of respondents 503 of answers 489)62


This trend is maintained across both countries and sectors without any significant differences

62 Multiple choice question



46

4 Contract-related problems encountered by SMEs

The current section presents an overview of the types and most frequent contract related

problems encountered by SMEs while using cloud computing services

Moreover the most serious problems (that is the problems that created the highest impact

on SMEsrsquo everyday activities andor in terms of costs faced to resolve them) have been

identified together with their causes

Finally actions taken by SMEs to remedy the encountered problems are analysed together

with results of the actions and the main difficulties encountered

41 Types and frequency of encountered problems

Nearly one-quarter (24) of the SMEs using cloud computing (ie 122 out of 503)

encountered contract-related problems during the period 2016ndash2017 (Figure 11)

The incidence seems to be higher for micro and medium-sized enterprises

Table 11 Share of respondents that indicated encounteringnot encountering problems by size

of SMEs Micro Small Medium Total

Did not encounter problems

66 116 199 381

Encountered problems

25 24 73 122

27 17 27 24


Problems encountered by the SMEs have been further analysed by taking into account the

following two dimensions frequency and incidence

Table 12 Frequency and incidence of contract-related problems

Dimension of analysis Details

Frequency

(F)

The frequency shows how often did the mentioned problem appeared and it is measured on a scale from 1 to 4

1 - rarely (at least once in the last 12

months)

2 - occasionally (at least once every 3 months)

3 - frequently (at least once a month)

4 - very frequently (at least once a week)

Incidence

(I)

Number of SMEs that encountered the problem during 2016-2017number of SMEs that contracted at least one cloud computing service during 2016-2017


Four problems have been faced by more than 25 of the cloud computing users (Figure 14)

low speed of service (55)

unsatisfactory availability or discontinuity of the service (49)

forced updates to the service (32)

lack of clarity of the instructions on how to use cloud computing services (26)


contracts

47

Figure 14 Incidence and frequency of contract-related problems among SMEs that declared they encountered problems during 2016-2017 ( of respondents 122 of answers 505)63





48

No significant differences emerged from the analysis at the sectorial and country levels

(please see Annex 5 for further details)

The cases studies64 included in-depth interviews with the SMEs that already contributed in

the survey In particular problems encountered by them were discussed with a special focus

on the following lack of clarity and transparency of contract terms and conditions unilateral

modification of the servicecontracts and limited liability of cloud providers

Five out of the eight SMEs that were interviewed recognised the fact that the lack of clarity

of the instructions on how to use cloud computing services is a problem that they are facing

This was explained by the fact that there is no common understanding of what cloud

computing is and how it operates The SME users expressed the need for better information

when contracting such services

The findings from the consultation of cloud providers (ten providers have been interviewed

during the case studied) indicated that business users for different reasons very often

encounter difficulties in understanding the CTampC This problem is particularly relevant

due to

lack of knowledge on how to use cloud computing services of the SME users

lack of attention of the SME users when signing the contracts

Two additional problems even if faced by less than 20 of the users are among the ones

that appeared most frequently65

lack of clarity and transparency of CTampCs (frequency = 215)

limited liability of the provider (frequency = 179)

During the consultations with national authorities and SMEs the participants indicated that

the limited liability of cloud providers commonly manifested when the following undesired

anomalies occurred

information access was interrupted or there was a problem of information

portability this group of anomalies encompasses technical aspects of the

information delivery including risks caused for example by denial-of-service attacks

These kinds of technical problems are most likely to cause liability Especially regular

updates can despite being administered properly result in downtime and thus in a

potential economic loss

data privacy and data protection were affected making information available to

the public can infringe on privacy and data protection provisions since cloud

computing services are of a cross-border nature privacy law conflicts between

national legislations are likely to occur Furthermore cloud computing services need

to comply with the principles of authenticity and integrity of information However the

entry into force of the General Data Protection Regulation (GDPR) (EU) 201667966

on 25 May 2018 is perceived as a factor that will effectively limit this issue in the

future

Even if affecting only a limited number of SMEs67 (less than 10 of the users participating in

the SMEs survey) problems related to security68 are quite frequent especially in regard to

64 See Annex 5 for further information 65 The incidence and frequency of the full list of SMEsrsquo problems can be found in Annex 5 66 Regulation (EU) 2016679 of the European Parliament and of the Council of 27 April 2016 on the

protection of natural persons with regard to the processing of personal data and on the free movement of such data and repealing Directive 9546EC (General Data Protection Regulation) OJ L 119

452016 67 More frequently among the micro and small enterprises 68 For further analysis see Annex 5



49

the lack of protection of the data stored in the cloud against theft or viruses and


The analysis of the number of answers provided allows a deeper understanding of the

problems faced by SMEs

on average amongst the SMEs that experienced problems each SME encountered

four different problems over the period 2016 ndash 2017 (Table 13)

micro enterprises are the ones facing the highest number of problems (Table 13)

more than 23 of SMEs faced a high number of problems (between five and eight

Figure 15)69

Table 13 Number of problems faced by SMEs during 2016-2017 by SME size class ( of respondents 122)

SME size class

of SMEs that encountered problems

of encountered problems

Average of encountered problems

Micro 25 116 464

Small 24 92 383

Medium 73 290 397

Total 122 498 408


Figure 15 Frequency of the number of encountered problems ( of respondents 122 of answers 494)


42 The most serious problems encountered

Types of problems

After listing all problems encountered respondents were asked to mention the most serious

one among them survey results shows a correlation between the incidence of the declared

problems and the most serious problems experienced by the SMEs (Figure 16)

69 82 of SMEs that encountered problems declared 5 different problems 33 of SMEs faced 6 problems 66 of SMEs faced 7 problems and 49 of SMEs faced 8 different problems



50

Figure 16 The most serious problems experienced by the SMEs during 2016-2017 ( of

respondents 122)70


Additionally the survey investigated the potential existence of a second most serious

problem Nearly half of the respondents (46) declared that they encountered only one

serious problem (Figure 17) However lsquolow speed of the servicersquo and lsquounsatisfactory

availability or discontinuity of the servicersquo remained the most prominent problems as

previously presented in Figure 16

Figure 17 The second most serious problem experienced by the SMEs during 2016-2017 ( of respondents 122)71


Besides indicating the most serious problem SMEs were asked to assess the relevance of the

resulting cost (ie what percentage of costs deriving from all encountered problems was due

to the most serious problem only)

As presented in Table 14 more than 50 of the SMEs declared that the costs related to the

most serious problem represented a cost that counted for more than 80 of the overall

sustained costs The remaining 48 who declared that they had other problems did not

declare relevant costs related to the second most serious problem (either they provided values

that were not relevant72 or were not able to quantify the costs)

70 Incidence management is understood as the failure of the cloud provider to identify analyse and

correct hazards and prevent a future re-occurrence 71 Incidence management is understood as the failure of the cloud provider to identify analyse and correct hazards and prevent a future re-occurrence 72 Respondents declared values equal to zero



51

Table 14 Distribution of enterprises by the weight of the most serious problem (in terms of

the costs human resources involved and loss turnoverprofit) represented in the total costs suffered by the company by size class ( of respondents 122)

Size

Incidence of the costs related to the most serious problem compared with the total costs occurred

Below 50 Between 50 -

80 Above 80 10073 Total

Micro 7 28 0 0 2 8 16 64 25

Small 10 42 0 0 1 4 13 54 24

Medium 38 52 4 5 4 5 27 37 73

Total 55 45 4 3 7 6 56 46 122


Most affected service

All mentioned serious problems (both the first and second) were mainly related to the usage

of lsquocollaboration and communication servicesrsquo (Figure 18)74 which are indeed the most widely

used ones The next two types of cloud computing services linked to the most serious problem

are lsquobusiness applicationsrsquo and lsquostorage and hosting servicesrsquo Even though security services

are among the most widely used services (Figure 7) it seems they do not generate many

problems As also confirmed during the case studies75 (interviews with SMEs) security is often

perceived as the key risk when outsourcing information technology services because these

services may affect critical data However once cloud services are used problems related to

security appear only rarely

Figure 18 The type of cloud computing services linked with the most serious problems declared by the SMEs ( of respondents 122)76


43 Causes of the most serious problems encountered

As previously illustrated the survey investigated also the causes of the most serious problems

encountered The main cause of the most serious problems is non-conformity of the

service provided with what was established in the contract (Figure 19)

73 Enterprises that declared they encountered only one problem 74 For the analysis of the second most serious problems and its link with used services please refer to

Annex 5 75 See Case study analysis for further information 76 Multiple choice question



52

Figure 19 The main causes of the most serious problems ( of respondents 122 of

responses provided 124)77


The unfairness of CTampC78 is also perceived as a possible cause of the most serious problems

declared This was mentioned by 12 of the SMEs that encountered problems (ie 15

respondents out of 122)

However in 13 of the cases the problems encountered were not within the service

providerrsquos responsibility but resulted from technical issues with SME and internal factors

When providing further details the SMEs acknowledged that the problems may have been

caused by the enterprisersquos own mistake due to miscommunication limited training of the

employees or lack of capacityknowledge

The relevance of lsquonon conformity of the servicesrsquo lsquotechnical problemsrsquo and lsquounfairness of CTampCrsquo

is confirmed also when the analysis of the causes is restricted to most serious problems only79

(Table 15)

77 Multiple choice question 78 CTampC were considered unfair by the respondents because of the impossibility of negotiating its

content because the contract might have included limited liability of the providers andor the possibility for the provider to modify unilaterally one or more clauses 79 Unsatisfactory availability Low speed of the service and Forced updates to the service



53

Table 15 The causes of the three most serious problems ( of respondents 122 of


The 3 most serious

problems

of SMEs declaring

this as the most

serious problem

of SMEs that consider

lsquonon-conformity of the servicersquo as the cause


lsquotechnical problemsrsquo as

the cause

of SMEs that consider lsquounfairness of CTampCrsquo as the cause

of SMEs that declared other causes for the most

serious problem

encountered

Unsatisfactory availability

32 23 3 3 3

100 73 9 9 9

Low speed of

the service

27 13 5 2 7

100 48 19 7 26

Forced updates to the service

16 6 2 4 4

100 38 13 25 25


Even the second most serious problems are frequently due to similar causes (ie non-

conformity of the service provided with what was established in the contract Figure

20)

Figure 20 The main causes of the second most serious problems ( of respondents 66 of responses provided 70)81


44 Actions taken by SMEs

As anticipated in the introduction of Section 4 actions taken by SMEs in order to remedy the

encountered problems have been investigated

Nearly three-quarters (74) of the SMEs that encountered contract-related problems

(90 out of the 122 respondents) chose to take action to resolve or to remedy the most

serious problem

The 32 respondents who declared that no action had been taken provided usually more than

one justification for their answer The results that stood out were given by the fact that the

80 Multiple choice question 81 Multiple choice question



54

provider fixed the problem (16) that the problem was assessed as not that

important (8) and that the procedure was too complicated (5)

The overall trend regarding actions taken to resolve the problem is maintained for each

type of sector included in the study where between 60 and 90 of the SMEs chose to

take action (see Annex 5 for further details)

Two main actions have been taken by SMEs to resolve the encountered problems using the

direct support of the provider andor making a complaint to the customer support

service (Figure 21)

Figure 21 The actions taken by the SMEs to resolve or remedy the most serious problems

( of respondents 90 of answers 165)82


Also interestingly there are two types of actions to address the problem which have not been

declared at all both concerning legal measures going to mediationarbitration and

filing an action with a court

The replies received from the service providers during the case studies83 reveal that there

were cases where SMEs went to court to obtain compensation for the time and money lost

However providers remark that from their experience the probability that SMEs will win

these legal disputes is limited since it is difficult to demonstrate objective responsibilities

Additional insights were gained by investigating the replies within the category lsquoothersrsquo

chosen by more than 20 of the SMEs that took actions This reveals that about half of them

(21) SMEs took some type of internal measure such as changing an internal procedure or

moving the cloud computing services internally

The results revealed also that on average SMEs take more than one action to resolve or

remedy the most serious problems

At the same time among the 90 SMEs that took action 78 affirmed that they did not

encounter any difficulties in resolving the most serious problem (see question D121

from Annex 5 for further details)84

82 Multiple choice question 83 See Case study analysis (Annex 9) 84 All respondents (ie 90) that declared they took action were requested to say if they encountered

any difficulties while trying to resolve or remedy the encountered problem



55

Moreover the survey revealed that the most likely challenge for SMEs when trying to resolve

the most serious problem is the length of the procedure (Figure 22)85

Figure 22 Difficulties encountered when trying to resolve the most serious contract-related problem ( of respondents 20 of answers 34)86


The findings from the case studies revealed (through interviews with providers) that different

forms of assistance are offered when needed and that the support did not depend on the

enterprisersquos size but rather on the severity of the issue Providers also mentioned that the

length of the remedy procedure varies from a minimum of a few hours to a maximum of three

or four days

Results of the actions

Following the actions taken the majority of the SMEs signalled that their problem was

either entirely resolved (70) or partially resolved (18) as shown in Figure 23

Figure 23 The results of the actions taken to resolve or remedy the most serious problem

( of respondents 90)


85 The two responses regarding the lsquootherrsquo option were first related to the lack of a timely response from

the provider and secondly to the fact that the provider offered only partial help to resolve the problem 86 Multiple choice question The question was addressed to the 20 respondents that declared encountering problems when taking action to resolve or remedy the problem



56

The extent to which the problem was fully resolved varies across sectors ranging from 41

for administrative and support service activities to 89 for wholesale and retail trade (Figure

24)

Figure 24 Number of SMEs for which the problem was fully resolved as a result of the action(s) taken by sector ( of respondents 63)


From the service providersrsquo viewpoint if the problem falls under the providersrsquo responsibility

they try to partially compensate for the cost of the service One specific provider declared

that the approach commonly used in the market is to compensate for administrative costs

but only in exceptional cases87 to also reimburse the entire costs of the subscribed package

The reimbursed amount varies between 5 and 15 of the monthly fees Moreover within

one Expert Group Meeting there was mention of lsquoa practice in Spain on a regulated market

where money is returned to customers for downtime within 60 daysrsquo88

87 These rare cases might vary according to the specific problem The provider might consider the

reimbursement of the entire cost if the unavailability of the services exceeds the scheduled period needed in order to fix the problem 88 Expert Group Meeting on Cloud Computing Contracts Synthesis of the meeting of 910 April 2014



57

5 Consequences of the encountered problems

This section investigates the nature of the financial detriment suffered by the SMEs as

consequence of the encountered problems as identified in Section 4

This might be related to

negative consequences for business activities such as

- potential loss of turnover or profits as a consequence of the encountered

problem

- loss of clients

- reputation damages

extra work that is done with internal human resources while taking action to

resolve the encountered problems

extra effort or costs to ensure an alternative service andor to fix the cloud

service problem

legal actions taken to exercise the users rights to remedies for non-conformity of

service

The prevalence of these consequences has been verified during the implementation of the

survey and their economic assessment where possible has been discussed and validated

during the case studies and webinars

This section also discusses some more qualitative aspects of how the encountered problems

may affect individual companies

51 Qualitative assessment

SMEs declared several negative consequences for business activities arising from contract-

related problems (Figure 25)

Figure 25 Perceived consequences for business activities ( of respondents 122)


The limited availability of a service or its limited speed might reduce the capacity of SMEs to

respond to customersrsquo needs in a timely manner causing loss of clients or having a negative

impact on reputation Around one out of five SMEs that encountered problems declared that

those problems generated loss of clients or reputational damages

Reputation is a strategic intangible asset and it may play a very important role not only in

improving SMEsrsquo financial results but also (or even more importantly) in overcoming barriers

that significantly hinder their development The most important factor which builds a



58

companyrsquos reputation is the opinion and trust shared by stakeholders (especially customers

and third parties)

Interestingly Figure 25 also shows that the proportion of SMEs that perceive some financial

impacts arising from contract-related cloud computing problems in terms of lost profits or

turnover is slightly lower (16 and 14 respectively out of the 122 that faced contract-

related cloud computing problems) which suggests that at least some of those SMEs that

declared to have experienced negative consequences considered that they somehow managed

to counteract the impacts in terms of lost clients and reputational damages and that these

consequences did not translate into financial losses It is true that some of the effects of those

losses of clients or reputational damages that were reported may take some time to translate

into turnover losses and this helps in explaining why the proportion of enterprises that

declared to have experienced losses of turnover and profits is lower than that the one that

declared to have suffered from losses of clients or reputational damages Moreover this can

also be explained by the fact that it is not inherently an easy task to ask an SME to quantify

such costs as this might also depend on the person who answers and how knowledgeable he

is on the firmsrsquo accounts

Besides the consequences mentioned above the results of the survey and the findings of the

case studies confirmed that the most important consequence for cloud computing business

users is the extra work that had to be performed with internal human resources

overall 93 of the enterprises that encountered problems have had to mobilise some internal

human resources to sort out the problems (Table 16)

In particular while acting to resolve the encountered problems

76 of the enterprises have had to use technical staff to resolve the encountered

problems

administrative and senior officers and managers were used by nearly half of the

enterprises (48)

the complexity of the encountered problems forced 60 of the SMEs (73 out of 122

that encountered problems) to use at least two skill levels

Table 16 Number of enterprises in which human resources were invested while taking action to resolve or remedy the most serious problem by skill level of employee


Skill level of

enterprises

Administrative 59 48

Technical 93 76

Senior officer(s)manager(s) 59 48

At least one of the above 113 93


The importance and the prevalence of the extra work are also confirmed by the fact that about

one-third (31) of the SMEs that encountered problems reported no other consequences

besides human resources costs while taking action to resolve the most serious problem (Table

17)



59

Table 17 Number of enterprises that have incurred costs (besides human resources) while

taking action to resolve or remedy the most serious problem by type of costs ( of respondents 122)89

Other costs encountered (different from costs related to internal HR)

of enterprises

Costs related to ensuring an alternative service 42 34

Costs related to fixing the cloud service problem 39 32

Legal costs 22 18

Other residual Costs 9 7

None 38 31


It is interesting to note that when the problems were not resolved SMEs faced additional

costs related to ensuring an alternative service (34) and costs related to fixing the

cloud service problem with external support (32 Table 17)

Other hidden costs may also appear when SMEs face contract-related problems Even if legal

measures (ie going to mediationarbitration and filing an action with a court) were not

chosen as the action to resolve the problems (see Section 42 for further details) 18 of the

SMEs incurred some legal costs when exercising user rights to receiving remedies for non-

conformity of the contracted service

Whilst the perception of the nine SMEs that took part in the in-depth interviews is that the

encountered problems do not always have direct and important consequences for the financial

performance of the enterprises (ie loss of profit or turnover) it should also be noted that in

the survey not all SMEs were able to provide an estimate of the detriment encountered Such

estimation is indeed challenging and the unwillingnessincapability of the SMEs to provide an

estimate may also be due to the fact that effects on the balance sheet may only materialise

over a longer time horizon

However cloud services can be critical for SMEs This was reflected in some very high

estimates of detriment reported by individual SMEs For example this could be the case for

where the data lies at the core of the SMErsquos activity (eg an accounting firm) In extreme

cases the problem may cause the market exit of efficient companies The larger the costs

generated by the encountered problems the larger the risk of market inefficiencies

The next section is aimed at quantifying the monetary value of the consequences analysed so

far

52 Quantitative assessment

The quantification of the consequences suffered by SMEs (economic detriment) relied on the

computation of the following parameters90

proportion of enterprises that use cloud computing services (cloud computing usage

rate)91

the incidence of contract-related problems by sector--size classes (namely the

percentage of enterprises that encountered problems)

the 95 trimmed mean values by enterprise for

89 Multiple choice question 90 Please refer to Section 21 for further details on the methodology used to quantify the economic detriment 91 Please refer to Section 31 for further details



60

- losses of turnover or alternatively losses of profits

- number of working days involved in resolving the problems

- the level of other costs incurred

- the value of any redress offered by the service provider as a compensation

All of these parameters have been quantified by using the results of the survey To compute

the average and 95 trimmed mean values for each dimension of detriment only the answers

of SMEs that quantified the detriment associated with that dimension were considered

For some dimensions SMEs were asked first whether they suffered some cost and then to

quantify it SMEs that declared to have borne a specific cost due to contract-related cloud

computing problems but that were not able to provide an estimate of the detriment suffered

due to that cost cannot be considered in this quantification exercise This quantification

exercise must thus be regarded as an estimate of the financial consequences of contract-

related cloud computing problems

Table 18 presents in the first column the number of enterprises that declared that they

suffered each cost92 then in the second column it presents the number of SMEs that were

able to quantify the cost and in the third column the number of SMEs that declared some

positive value for each cost As it can be seen the difference between the number of

enterprises that declared that they suffered a cost and that were able to quantify its effect is

quite diverse across the different dimensions of detriment

Table 18 Enterprises that declared that they suffered some costs and that were able to

quantify these costs

Component

Number of

enterprises that declared

they suffered the cost

Number of

enterprises that

quantified the cost


that

quantified

with positive values

of enterprises

that

quantified


Loss of turnover na 122 17 14

Loss of profits na 122 19 16

Internal human resource costs 113 113 105 93

Other costs (at least one) 90 78 31 40

Costs related to ensuring an alternative service

42 41 15 37

Costs related to fixing the cloud service problem

39 39 15 38

Legal costs 22 22 1 5

Costs related to reputation

damage 23 23 3 13

Costs related to loss of client(s)

25 24 2 8

Other residual costs 47 34 5 15

Redress 15 15 7 47


92 For lost turnover and lost profits as it was not asked separately whether the SME experienced some loss there is no information (see Annex 4 section E for further details on how the data collection was structured)



61

Regarding turnover and profit losses all companies had to answer the question in the survey

and in that sense had to quantify those dimensions of detriment Despite this fact and as

already discussed only 14 and 16 respectively provided numbers for their estimates of

losses of turnover and profits These low figures may be due to the fact that at least some of

those SMEs that declared to having experienced other negative consequences might have

managed to counteract the impacts related to lost clients and reputational damages and other

costs and that those costs did not translate into financial losses Yet it is also true that some

of the effects of those losses of clients or reputational damages that were reported may take

some time to translate into turnover losses and this may help to explain why the proportion

of enterprises that declared to have experienced losses of turnover and profits is lower than

that which declared to have suffered losses of clients or reputational damages

For internal human resources costs 93 of the enterprises that mobilised internal human

resources declared losses of some working days that were considered in the analysis of

detriment thus most enterprises were considered in the analysis

For other costs 78 (80) of the enterprises that declared to have borne some costs were

able to quantify at least one of these costs

It is important to point out that some of the SMEs that declared to have borne costs arising

from contract-related cloud computing problems were not able to provide an estimate of the

cost of the detriment suffered This means that while there is some under-reporting of the

percentage of enterprises that faced relevant costs it does not necessarily imply a bias in the

overall estimate of detriment given that calculating average values for the impact can correct

the under-reporting problem if the true values of those that are not able to quantify have the

same distribution as those that were able to do so In practice by taking into consideration

only those that SMEs that quantified the detriment may lead to underestimation

overestimation or no bias at all

The fact that enterprises only assess the current financial losses and are not able to foresee

the future financial losses associated with problems such as the loss of clients or reputation

damages can imply an underestimation of the true detriment

Computed values have been discussed and validated during the webinars realised under Task

3 (see Annex 9 for further details)

Cloud computing usage rate

Two possible scenarios for the estimate of the usage rate of cloud computing were considered

based on the survey of SMEs

the first which is the central scenario in this study considers all enterprises that

did not respond to the survey as not using cloud computing services arriving at a

universe of 3173 SMEs In this case the usage rate corresponds to a value of 159

in the second only those enterprises that explicitly declared that they are not using

cloud computing services are added to those that declare its use corresponding to a

universe of 1009 The usage rate in this case is higher reaching a value of 499

which can be regarded as an upper estimate representing a possible future situation

in which the usage rate of cloud computing increases significantly

Incidence of contract-related problems

The sample available from the survey also allows the calculation with a 95 confidence

interval level and 5 margin of error of the incidence of contract-related problems

Losses of turnover

For all cost categories (ie loss of turnoverprofit costs of human resources other costs) and

for the value of redress the research team considered the 95 trimmed mean of the values

from the survey



62

Trimmed means are robust estimators of a general trend To compute the 95 trimmed

mean the research team i) removed 25 of observations on each side of the distribution

of survey answers ii) computed the average of the remaining observations

Using trimmed means confers one main advantage the standard error of the trimmed mean

is less affected by outliers and asymmetry than the mean93

The following tables present both trimmed mean and average values for all costs the latter

being included for illustrative purpose only

Table 19 Loss of turnover by enterprises

Value of

Losses (euro)

Number of

Enterprises

Relative frequency Cumulative

frequency

000 105 861 861

700 1 08 869

30000 1 08 877

104690 2 16 893

157035 1 08 902

200000 1 08 910

209380 1 08 918

500000 2 16 934

1000000 1 08 943

2000000 1 08 951

5000000 1 08 959

10469012 1 08 967

15000000 2 16 984

20000000 1 08 992

50000000 1 08 1000

Total 122 100


Based on these values the value of the 95 trimmed mean is euro42094 Losses by sector

size class and country are presented in Annex 5

Loss of profit

Looking at profits (Table 20) we can see that also only 156 (19) of the enterprises out of

the 122 that suffered contract-related cloud computing problems declared a loss of profits

corresponding to a 95 trimmed mean of euro177 (Annex 5)95

Table 20 Loss of profits by enterprise

Value of Losses (euro)

Number of Enterprises

Relative frequency Cumulative frequency

000 103 844 844

1200 1 08 852

93 It must be emphasised that all very high value answers (outliers) have been double-checked and they do not seem to include errors in any case we take the more robust scenario (when the 95 trimmed

mean is used) to measure the impact and present the results considering the average values only as a

sensitivity in the appendix 94 The average value is euro985869 95 The average loss of profits per enterprise is about euro1913



63

Value of

Losses (euro)

Number of

Enterprises Relative frequency

Cumulative

frequency

20938 1 08 861

51500 1 08 869

52345 1 08 877

60000 1 08 885

90000 1 08 893

150000 1 08 902

157035 1 08 910

200000 2 16 926

209380 1 08 934

300000 1 08 943

500000 2 16 959

523451 1 08 967

2093802 1 08 975

3000000 1 08 984

5234506 1 08 992

10000000 1 08 1000

Total 122 100


Internal human resources costs

When one considers the number of working days involved in resolving the problems96 there

is a significant level of dispersion and only 17 out of the 122 enterprises that suffered contract-

related cloud computing problems did not invest working days in resolving the problem97 The

95 trimmed mean was about 32 days98

To compute the human resources costs incurred when resolving the problems as the actual

values of wages of those involved in resolving the problems were not provided the number

of working days was multiplied by the average cost of labour per working day per country and

industry which was computed from Eurostat data as INDIC_SB - Personnel costs - million

euroINDIC_SB - Persons employed - number)260

Eurostat data are not differentiated by skill level but by using the average wage level by

sector and country during that period we have a robust estimate of the average cost of labour

on the affected enterprises and so the estimate is likely to be close to actual conditions

96 For the measurement of the detriment only the overall number of working days was used as the responses to the survey regarding wages were not robust and so the average wage for each country was used to estimate the human resources costs and accordingly only the overall number of working

days had to be used from the survey 97 This means that 93 of the enterprises that mobilised internal human resources to sort out the problems declared some losses of working days 98 The average number of working days involved in resolving the problem was about 72



64

Figure 26 Total number of working days involved in resolving the problem by enterprise

Source Survey of SMEs (2018)99

Other costs and value of redress

With regard to the other costs100 incurred by the SMEs to resolve the problem a qualitative

assessment has been presented in Section 51 above

With respect to these other costs Table 21 shows the number of SMEs that declared relevant

values as well as the trimmed mean and the average of the declared values for each of the

individual costs

The incidence of each of the individual other costs is quite different with the costs related to

ensuring an alternative service and costs related to fixing the cloud service problem as those

that are perceived as having greater impact Overall only seven enterprises experienced more

than one type of other costs

Table 21 Values for other costs

Component


that quantified

costs


that declared positive values

of total 122

95 trimmed

mean of the values

declared by enterprises

experiencing

each cost euro

Average of

the values declared by enterprises

experiencing each cost

euro


41 15 123 1187 5892


39 15 123 1311 13657

99 See Annex 5 for further details 100 ie costs related to ensuring an alternative service costs related to fixing the cloud service problem legal costs costs related to reputation damage costs related to loss of client(s) and other residual costs



65

Component


that quantified

costs


that

declared positive values

of total

122

95

trimmed

mean of the values



euro

Average of



euro

Legal costs 22 1 08 00 19

Costs related to reputation damage

23 3 25 00 2701

Costs related to loss of

client(s) 24 2 16 00 8663

Other residual costs 34 5 41 23 6255


As discussed above not in all cases were consulted stakeholders able to associate an

economic value with the consequence that was faced or they simply considered the costs that

were borne as not relevant

Since for some of the individual other costs there were very few answers provided we chose

to consider an aggregate value of other costs in the assessment of the detriment suffered by

SMEs given that the use of an aggregate value increases the robustness of the estimate101

To arrive at the aggregate value we first computed the total value of other costs borne by

each enterprise (by adding up each of the individual other costs) and then computed the

trimmed mean of the aggregate declared other costs The 95 trimmed mean per

enterprise that suffered problems102 of the overall other costs borne was euro341 (Table

22)103

Table 22 Parameters used in detriment assessment

Component

Number of enterprises that

declared

relevant values ()

of the 122 enterprises that

faced problems

95 trimmed mean of the

values declared by enterprises

that quantified the component

euro

Average of the values declared by enterprises that quantified the component

euro

Turnover losses 17 139 41954 985869

Profit losses 19 156 17690 191346

Costs of human resources

105 861 36006 80621

Other costs 30 246 34124 371871

Redress 7 57 095 6042


101 For this reason the trimmed mean based on total other costs has been used instead of the trimmed

means for each individual other cost 102 The trimmed mean has been computed over 122 SMEs 103 An average of euro3718 per enterprise



66

Finally also the value of any redress offered by the service providers to compensate for

the problem has been computed Only seven enterprises out of the 122 that suffered contract-

related cloud computing problems (6) declared to having received a positive amount as

redress corresponding to a 95 trimmed mean of about euro1 per enterprise that

suffered problems104 which shows that SMEs are not able to be compensated for the costs

suffered

Table 22 summarises the parameters discussed above for each component of detriment that

is used in the quantitative analysis

Measuring the economic detriment

Having those parameters and the total number of enterprises that experienced contract-

related cloud computing problems it is possible to compute the value of the economic

detriment they suffered by using the formulas presented in Section 21 of this report

Gross financial detriment is measured by taking into account alternatively the loss of turnover

or profits as perceived by each SME and then adding the costs of the human resources

invested by each SME while taking action to resolve or remedy the most serious encountered

problem and the other costs declared by each SME including costs such as the costs related

to ensuring an alternative service the costs related to fixing the cloud service problem any

legal costs costs related to reputation damage and costs related to loss of client(s) and other

residual costs

The measures of gross financial detriment per enterprise computed from the previous

parameters are presented in Table 23 and those for net financial detriment are shown in Table

24

Table 23 Measures of gross and net financial detriment per enterprise considering lost turnover (euro)

Component

95 trimmed mean of

the values declared by

enterprises that

quantified the

component

euro

Average of the

values declared by

enterprises that

quantified the

component

euro


Costs of human resources 3601 321 8062 56

Other costs 3412 304 37187 259

Gross detriment 11208 1000 143836 1000

Redress 10 604

Net detriment 11199 143232

Source Survey of SMEs (2018) and Eurostat Business Statistics

104 An average of euro6042



67

Table 24 Measures of gross and net financial detriment per enterprise considering lost

profits (euro)

Component

95 trimmed mean of


enterprises that

quantified the

component

euro

Average of the

values declared by

enterprises that

quantified the

component

euro

Profit losses 1769 201 19135 297


3601 410 8062 125

Other costs 3412 389 37187 578

Gross detriment 8782 1000

64384 1000

Redress 10 604



As mentioned above considering these values two scenarios have been developed that take

into account the two measures of cloud computing usage rate

The estimates presented are lower thresholds of the actual detriment as they only consider

the most serious problem which represents less than 80 of the total losses for 48 of the

companies105 The size of underestimation is limited by the fact that sectors with the highest

usage rates of cloud computing are considered in the analysis and they are likely to bear more

costs than the average sector

Table 25 to Table 30 below present the results for economic detriment at the EU level

The interpretation of the results on the economic detriment caused by contract-related

cloud computing problems shows that in the central scenario (when 159 of the total

number of enterprises use cloud computing) the number of enterprises that suffered contract-

related problems across the EU28 is around 583000 (Table 25) In the alternative

scenario (when about 50 of the enterprises use cloud computing) this value increases to

about 18 million

105 The risk of underestimation is less pronounced as the sectors selected for the sample are those for which the usage rate of cloud computing is higher



68

Table 25 Number of enterprises at the EU28 level suffering economic detriment

Scenario 1

(average incidence of CC use

159)

Scenario 2


499)

(number)

Secto

r

Manufacturing 82256 245581

Wholesale and retail trade repair of motor vehicles and motorcycles

198877 628761

Information and communication 49890 156187

Professional scientific and technical activities

195098 599588

Administrative and support service activities

56803 203001

Total 582924 1833118

Siz

e

cla

ss Micro 548001 1722427

Small 22827 70148

Medium 12096 40543

Total 582924 1833118

Source Computations based on Survey of SMEs (2018) and Eurostat

When considering lost turnover and all other costs incurred (Table 24) contract-

related problems generated a gross economic detriment that ranges from approximately

euro650 million in the scenario of 159 cloud computing usage to about euro21 billion in the

scenario of 499 cloud computing usage When considering the lost profits and all other

costs incurred (Table 27) the value of gross detriment goes from just over euro500 million

in the scenario of 159 cloud computing usage to about euro16 billion in the scenario of

499 cloud computing usage

Table 26 Gross economic detriment at the EU28 level - considering lost turnover and all other costs incurred

Scenario 1 (average incidence of CC

use 159)


use 499)

(euro million)

Secto

r



1673 5235


Professional scientific and technical

activities 1557 4723


1918 6495

Total 6534 20546

Siz

e

cla

ss Micro 4816 15124

Small 1144 3562

Medium 574 1861

Total 6534 20546




69

Table 27 Gross economic detriment at the EU28 level - considering lost profits and all other

costs incurred

Scenario 1 (average incidence of CC use

159)


499)

(euro million)

Secto

r


Wholesale and retail trade repair

of motor vehicles and motorcycles 1548 4852



1421 4323

Administrative and support service


Total 5119 16098

Siz

e

cla

ss Micro 4013 12609

Small 801 2488

Medium 306 1002

Total 5119 16098


The value of the gross detriment per enterprise that faces problems when considering

lost turnover and all other costs incurred is about euro1100 When considering lost profits

and all the other costs incurred the value of the detriment per enterprise is around euro880

Table 28 Average gross economic detriment per SME

Average gross economic detriment per SME suffering economic

detriment euro

Considering lost turnover and all

other costs incurred

Considering lost profit and all other

costs incurred

Micro 8788 7323

Small 50116 35090

Medium 47454 25298

Total 11209 8782

The net economic detriment associated with contract-related cloud computing problems

ranges from around euro650 million to euro21 billion when considering lost turnover and

all other costs incurred (Table 29) and from euro501 million to euro16 billion when considering

the lost profits and all other costs incurred (Table 30)



70

Table 29 Net economic detriment at the EU 28 level - considering lost turnover and all



use 159)


use 499)

(euro million)

Secto

r


Wholesale and retail trade repair of

motor vehicles and motorcycles 1673 5234



1556 4722



Total 6528 20529

Siz

e

cla

ss Micro 4815 15118

Small 1143 3562

Medium 570 1850

Total 6528 20529


Table 30 Net economic detriment at the EU28 level - considering lost profits and all other

costs incurred


159)


499)

(euro million)

Secto

r



1548 4851



1420 4322


1152 3928

Total 5114 16081

Siz

e

cla

ss Micro 4011 12603

Small 800 2488

Medium 302 990

Total 5114 16081


Moving to the analysis of the different components of detriment considering the more detailed

results presented in Annex 5 one can see that the overall turnover loss (Table 77) arising

from contract-related cloud computing problems across the EU28 ranges from euro245 million

to euro770 million when the 95 trimmed mean loss per enterprise is considered depending on

the cloud computing usage rate

In the measures of detriment that consider the lost turnover and all other costs incurred this

component is the most significant component of detriment in both scenarios with values

around 37 (Figure 27) When measuring detriment considering the lost profits and all other

costs incurred the most important component of detriment varies across the different



71

scenarios being either the other costs covered106 or the costs of human resources invested

in resolving the problem

The costs of human resources involved in resolving the problem represent around 32 of

the total detriment when considering lost turnover (Table 23)

Even if figures by industry should be looked at carefully in all scenarios in which detriment is

measured considering the lost turnover and all other costs incurred the sectors lsquoWholesale

and retail trade repair of motor vehicles and motorcyclesrsquo lsquoProfessional scientific and

technical activitiesrsquo and lsquoAdministrative and support service activitiesrsquo together account for

about 90 of the overall gross detriment In the scenarios in which detriment is measured

considering lost profits and all other costs incurred lsquoWholesale and retail trade repair of

motor vehicles and motorcyclesrsquo and lsquoProfessional scientific and technical activitiesrsquo together

account for about 60 of the total detriment

In all scenarios micro enterprises account for close to 70 of the global economic detriment

106 These costs include costs related to ensuring an alternative service costs related to fixing the cloud service problem legal costs costs related to reputation damage costs related to loss of client(s) and other residual costs



72

6 Impacts of the economic detriment

This section assesses (in quantitative terms) the impact on growth and jobs of the quantified

SMEs detriment identified and provides a qualitative evaluation of the overall impact of the

problems encountered by SMEs in terms of market functioningfailures and competitiveness

In order to quantify the effects on growth and jobs the research team estimated

the direct impact meaning the GVA and employment contents of the turnover lost

by SMEs that are affected directly by the contract-related problems This is done by

taking from Eurostat data for each countrysector

- the output per employee

- the output per unit of GVA107

Dividing the turnover losses estimated by these coefficients allows to estimate the GVA

associated with the turnover losses as follow

119863119868(119866119881119860)119894 = sum119871(119879)119894119895

119884119894119895 119866119881119860119894119895frasl

5

119895=1

Where

119863119868(119866119881119860)119894 is the direct impact in terms of GVA for the country i considering the five

sectors under the scope of the study

119871(119879)119894119895 is the loss turnover for the country i in the sector j

119884119894119895 is the average total output produced in the country i and in the sector j during the

period 2014-2016 computed from Eurostat National accounts aggregates by industry

(up to NACE A64) [nama_10_a64]

119866119881119860119894119895 is the average total GVA produced in the country i and in the sector j during

the period 2014-2016 computed from Eurostat National accounts aggregates by

industry (up to NACE A64) [nama_10_a64]

The same approach has been used for the estimate of the loss of jobs associated with the

turnover losses

119863119868(119864)119894 = sum119871(119879)119894119895

119884119894119895 119864119894119895frasl

5

119895=1

Where

- 119863119868(E)119894 is the direct impact in terms of employment for the country i considering

the five sectors under the scope of the study

- 119871(119879)119894119895 is the loss turnover for the country i in the sector j

- 119884119894119895 is the average total output produced in the country i and in the sector j

during the period 2014-2016 computed from Eurostat National accounts

aggregates by industry (up to NACE A64) [nama_10_a64]

- 119864119894119895 is the average number of employees in the country i and in the sector j


aggregates by industry (up to NACE A64) [nama_10_a64_e]

107 Average values for 2014-2016 were considered to increase robustness and to cover almost the same period as we are considering in the assessment



73

For instance in the first scenario the total turnover losses arising from contract-related cloud

computing problems in manufacturing in Belgium is euro448 million (Table 81) Since each

person in manufacturing in Belgium produces euro4293 thousand of output (Table 84) that

turnover is associated with 104 jobs And given that for each euro of GVA in manufacturing in

Belgium there are euro41 of turnover (Table 83) that turnover is associated euro 108 million of

GVA

indirect impacts also measured as GVA and employment losses but in the supplier

industries were also assessed by using the input-output methodology presented in

Box 4

The basic requirement is to estimate the amount of turnover that is lost in supplier industries

given the existing supply chains The input-output methodology allows estimating those losses

based on the interlinkages between sectors existing in a given economy We then use the

input-output tables for the EU28 to estimate how much turnover would be lost in the supplier

industries due to the turnover losses associated with contract-related cloud computing

problems in the industries directly affected by those problems After estimating the turnover

losses in the supplier industries it is possible to measure the GVA and employment contents

of the production lost in those industries by using the same procedure described above that

was used for direct effects The input-output analysis is only used to estimate the turnover

losses in supplier industries when the methodology described above is applied

61 Direct impacts

At the enterprise level we estimated the financial detriment suffered by each enterprise by

considering different components and then aggregated those measures to the EU28 level by

adding up the effects suffered by each enterprise across all enterprises

When estimating the macroeconomic effects of the contract-related problems as discussed in

the methodology one must consider the overall turnover losses that were sustained by all

enterprises that experienced those problems This is due to the fact that turnover is the

variable that summarises the overall effects at the enterprise level and that is transmitted to

the economic system through the supply chains and can be related to aggregate economic

variables At the same time by considering turnover as an overall effect helps to avoid double

counting

Estimated turnover losses are presented in section 52 by considering the average loss of

turnover experienced by each enterprise and the total number of enterprises that suffered

problems related to cloud computing As discussed in that section there may be some

underestimation of the loss of turnover as we are only considering the consequences of the

most serious problem and also because enterprises many times are not able to assess108 how

some costs such as loss of clients or reputational damages translate into turnover losses or

other financial losses

Keeping the previous considerations in mind the overall results show that depending on the

scenario of cloud computing usage the direct loss of jobs associated with the loss of turnover

caused by contract-related cloud computing problems ranges from 3672 to 11816 jobs At

maximum this represents 001 of the total employment in the EU28 showing that the

overall direct effects of contract-related problems in terms of jobs is quite limited

With respect to gross value added the direct impact of the losses of turnover caused by

contract-related cloud computing problems ranges from euro119 million to euro379 million which

is again negligible when considering the overall EU28 level

108 Namely because there is a time lag and no linear proportion between the costs and damage (eg reputational damage) and the turnover losses



74

Table 31 Direct impact on growth and jobs of the losses of turnover caused by contract-

related cloud computing problems at the EU28 level

Scenario 1

(average incidence of CC use 159)


499)

Impact on GVA euro million 1191 3788

EU GVA 000 000

Impact on jobs

Persons 3672 11816

EU

employment 000 001


Annex 7 presents tables that provide details by sector and country The tables that provide

details by country and sector show that effects are more significant in the sectors

lsquoProfessional scientific and technical activitiesrsquo and lsquoAdministrative and support service

activitiesrsquo One can also find some differences across countries

62 Indirect impacts

Turning to the indirect effects as mentioned we measured the consequences of the turnover

losses on supplier industries by using the input-output model to identify the supply chains

It is important to take into account that not only the described limitations related to the direct

effects do not fully translate into the indirect effects but the methodology used is also not

able to capture some opportunity costs that are particularly relevant for instance for human

resources or downstream effects namely on final consumers Thus the current

measurement of indirect effects must be seen as a lower threshold to the true indirect effects

Despite these limitations the input-output methodology is the best available methodology to

explore the interlinkages that exist between sectors and to estimate the indirect impacts

arising from contract-related problems

The measured indirect impacts on supplier industries are similar in magnitude to the direct

effects

Depending on the scenario of cloud computing usage the loss of jobs in supplier industries

associated with the loss of turnover caused by cloud computing contract-related problems

ranges from 1733 to 5402 Losses of GVA range from euro99 million to euro308 million

Overall adding direct and indirect effects we may refer to maximum impacts of about 5400

jobs (000 of EU28 employment) in scenario 1 and 17818 jobs in scenario 2 (001 of

total employment Regarding the loss of GVA the sum of direct and indirect effects adds up

to euro220 million in scenario 1 and to euro687 million in scenario 2 (both 000 of EU28 GVA)

which shows that the impact is not very significant at the EU28 level

Table 32 Indirect impact on growth and jobs of the losses of turnover caused by contract-related cloud computing problems at the EU28 level

Scenario 1



499)


EU GVA 000 000

Impact on jobs Persons 1733 5402

EU employment 000 000




75

63 Other qualitative impacts of contract-related problems

The previous sections show that even with some possible underestimation the overall direct

and indirect impacts are not very significant for the time being but as was pointed out in the

analysis some companies have already experienced problems that had very significant effects

(demonstrated by the size of the average of all detriment components compared with the

95 trimmed mean presented in Table 22) and in a scenario of increasing usage rates these

effects are likely to become more relevant and more likely to affect the market

The analysis also revealed that some SMEs had difficulties in quantifying the costs relating to

cloud computing problems

However it is important to keep in mind that besides those quantitative impacts there might

be some other more qualitative effects arising from contract-related cloud computing

problems that create distortions affecting the allocative efficiency in the EU economy

eventually diminishing the overall welfare

The efficiency with which goods and services are produced or distributed is fundamental to

ensuring the competitiveness of the various business entities Using the best available

technologies and taking full advantage of them to reduce costs or improve the quality of the

goods and services provided are relevant factors in ensuring SMEsrsquo competitiveness

In the ongoing debate on macroeconomic imbalances and external competitiveness there has

been an increasing interest in competitiveness indicators regarding both cost competitiveness

and quality and non-cost competitiveness

General industrial economics theories show that contract-related problems as they increase

transaction costs may affect that competitiveness as they are a type of context cost which

are costs that affect the activity of enterprises and are not imputable to the investor to his

business or to his organisation These context costs gain increasing relevance with the

increasing integration of various enterprises into the global economy given that in a scenario

in which enterprises located in different territories face different contextual costs those costs

may significantly distort competition favouring the enterprises located in jurisdictions with

lower context costs

Contract-related problems are therefore a type of problem that may impact competitiveness

of enterprises and hinder their development in several different ways They may represent an

additional cost that reduces the price competitiveness of enterprises But they can also

constitute a non-cost barrier to competitiveness if they affect the presence of enterprises in

the market and their ability to efficiently supply their products namely if those problems

significantly reduce the possibility of accessing the best available technologies

Taking into account the previous considerations it is then important to analyse whether the

contract-related problems encountered and described above may have generated other

significant effects through both cost and non-cost competitiveness109

The analysis so far has already shown that contract-related problems have an impact in terms

of reputation and loss of clients besides the financial impacts on enterprise performance Even

if SMEs are not able to translate those effects into financial costs they are likely to have an

impact over the long run

During the interviews and case studies questions were also raised about whether the contract-

related problems might have caused other problems such as reputation damages or losses of

109 The outliers in the sample showed that in a few extreme cases the effects of contract related problems had very high effects and although these values have been excluded using the Trimmed Mean they should not be disregarded when trying to understand the whole context



76

competitiveness that may have impacted significantly on the economic performance of the

companies affected

For the time being it seems that given the fact that at the micro level (ie enterprise level)

most of the detriment is associated with extra work required to sort out the problems

enterprises are able to accommodate this effect at least to some extent

The relatively low value of detriment per enterprise perceived by SMEs as being caused by

contract-related problems suggests that enterprises consider they are able to absorb some of

those costs110 If those effects were greater they would have to transmit them more heavily

to their clients namely through increases in prices

Yet in considering all of the factors our general assessment is that even if enterprises are

able to partially absorb the costs they have incurred some of those costs will show up sooner

or later in financial variables and will translate into larger distortions that are likely to affect

allocative efficiency market functioning and competitiveness

110 Again the difficulties evidenced by some SMEs to quantify the costs arising from contract related problems suggests they might not be able to sufficiently account for the opportunity costs associated with solving those problems



77

7 Conclusions

Demonstrable tangible economic benefits of cloud computing have been estimated and

confirmed for some years now The main benefits realised are lower information technology

costs more effective mobile working higher productivity standardisation of processes better

ability to enter new business areas and the ability to open up in new locations

While the above list of the benefits is not exhaustive it certainly provides an impression of

the high potential economic advantages that can be gained from the usage of cloud computing

compared to more traditional alternatives such as on-premises information technology

infrastructure

All in all the growing usage of cloud computing is expected to have a relevant impact on

increasing EU GDP and creating additional jobs111

The present study investigated the cloud computing services that are most commonly used

by micro small and medium-sized enterprises in the EU In particular a survey was

conducted on 3173 EU SMEs

The survey results allowed the estimation of the usage rate of cloud computing across SMEs

as 159 calculated from the number of SMEs that declared they are using cloud computing

services (503) divided by the number of SMEs reached (3173)

However EU SMEs are still only making basic use of cloud computing services in terms of the

number and types of contracted services

on average SMEs that declared that they used cloud services contracted five

different cloud computing services but one-third of the SMEs that used cloud

computing contracted only a limited number of services (up to three)

furthermore the use of cloud computing is mainly related to more mature applications

(such as collaboration and communication tools storage and hosting support)

Although the usage of cloud computing services is growing the following potential factors

limiting cloud computing usage were investigated during the interviews with different

stakeholders (including cloud services providersbrokers SMEs business associations ndash

including EEN associations Chamber of Commerce national authorities national SMEs

Envoy)

some SMEs have difficulties in assessing how the new services can improve their

everyday work

other SMEs perceive that costs of cloud services are still high and that it takes too

long to recover the investment

the division of responsibilities between SMEs and cloud providers can

sometimes become a major source of problems as it is not always clearly

documentedexplicated leading to overlaps and gaps especially with respect to

security aspects It is not uncommon for SMEs to be confused about their

responsibilities concerning security such as who makes backups of data or software

which type of failoverredundancy is offered by the provider and what still needs to

be done by the customer All of these issues can have an impact on the willingness of

SMEs to outsource cloud services

security matters generally influence SMEsrsquo decisions about what types of services to

be used One of the aspects that has been mentioned during the interviews as a factor

influencing the SMEsrsquo choices is the reputation of the provider more precisely

whether the cloud provider has had incidents of data breaches in the past

111 European Commission (2012) Quantitative Estimates of the Demand for Cloud Computing in Europe and the Likely Barriers to Up-take SMART 20110045 Brussels



78

Another important factor discussed during the interviews is the asymmetry of information

when it comes to negotiating and customising the services covered by the CTampC and that

might limit the capacity of SMEs to find solutions that fit their needs

As a consequence the survey results showed that the SMEs tended to sign the standard

terms and conditions offered by the cloud provider (this is true for 64 out of 503 SMEs

that are using cloud computing services) either because they did not try at all to negotiate

(46) or were not able to do so (18) The decision to adopt the standard terms and

conditions was made either because these met the usersrsquo expectations (18) or because it

was assumedknown that a negotiation would have no chance to succeed (13)

In contrast to the traditional provision of on-premises IT resources the multi-tenant nature

of cloud computing usually raises concerns with respect to privacy confidentiality and

data integrity Cloud computing presents its own set of security issues which coupled with

the risks and threats inherent in traditional IT computing are also limiting its usage

However the stakeholders involved in the study indicated that the shortcomings in the SMEsrsquo

capacity for negotiating cloud computing contracts could be helped somewhat by the entry

into force of the GDPR as the new legislative framework gives SMEs more control over data

once the service providers apply the regulation

While the main objective of the study was to deliver the necessary evidence to support the

European Commission in its assessment of the need for and extent of any further EU efforts

to increase SMEsrsquo trust in cloud services it investigated

the prevalence nature scope and scale of the contract-related problems that SMEs

encounter in relation to cloud computing services

whether and to what extent enterprises are able to protect themselves against

contract-related problems when deciding to use cloud services

Based on the results of the survey it was estimated that around one SME cloud computing

user out of four (24) encountered contract-related problems during the period 2016-

2017 The main problems were related to the non-conformity of the service provided with

what was established in the contract concerning

the speed of service (55 of those SMEs who experienced problems)

the availability or continuity of the service (49)

updates to the service (32)

clarity of the instructions on how to use cloud computing services (26)

Problems related to security even if having impact on only a limited number of SMEs (less

than 10 of the cloud computing users that experienced problems) were quite frequent

especially with regard to the lack of protection of the data stored in the cloud against theft or

viruses and unauthorised disclosure of or access to data (both showing frequencies of almost

once every three months)

This was an important element arising from the study as security is often perceived as the

key risk when outsourcing information technology services because it may affect critical data

Clearly enterprises attach high importance to the protection of their information technology





Cloud computing users who experienced problems in relation to cloud computing services

were asked to select the most serious among them (ie the problem that created the highest

impact on the everyday activities andor in terms of costs faced in order to resolve it) The

analysis of the results showed a correlation between the most frequent problems and the

problems with the highest impacts on enterprises Indeed unsatisfactory availability or



79

discontinuity of the service low speed of the service and forced updates were

considered as the most serious problems

The main cause of the most serious problems was the non-conformity of the service

provided with what was established in the contract (51 of the 122 SMEs declaring

that they encountered problems) The unfairness of contract terms was also perceived as a

possible cause for the most serious problems declared this being mentioned by 15

respondents out of 122 (12) Some practical examples were provided in the Surveyrsquos open

questions and the contract terms were considered to be unfair by the respondents when there

was no possibility of negotiating their content or when they included limited liability of the

providers or the possibility for them to unilaterally amend the contract

However in 19 of the cases the problems encountered were not under the service providerrsquos

responsibility but arose from technical issues and enterprisesrsquo internal factors112

In order to protect themselves the majority of the SMEs (74 of those that encountered

problems) chose to take action to resolve or to remedy the problems encountered

Conversely for those SMEs that decided not to take any action this was justified by the fact

that the cloud provider fixed the problem or that the problem was assessed as not important

or the procedure was considered to be too complicated Interestingly there are two types of

actions which SMEs showed reluctance to use both concerning legal measures going to

mediationarbitration and filing an action with a court This is because the costs associated

with these proceedings did not appear to be worth it

Following the actions taken to address the problem the majority of the SMEs indicated that

their problem was either entirely resolved (70) or partially resolved (18) but the vast

majority of the surveyed SMEs that experienced problems (88) were not offered any redress

by the cloud service providers for the damage caused

The research team estimated that 582924 micro small and medium-sized enterprises

have encountered contract-related problems while using cloud computing and have

faced an economic detriment that is related to different components

losses of turnover and profits

costs of human resources

other costs incurred113

Regarding the human resources invested by the SMEs to address problems members of the

technical staff were by far the most used (76 of the enterprises that faced problems

invested in such resources) Furthermore about one-third (31) of the SMEs reported no

other costs besides human resources when taking action to resolve the cloud computing

problems The ones that did indicate other actions mostly sustained costs related to ensuring

an alternative service (34) and costs related to fixing the cloud service problem (32)

Contract-related problems generated a gross economic detriment measured by

considering lost turnover and all other costs equal to euro6534 million

The loss of turnover was the most significant component of the detriment representing

37 of the total detriment while costs of human resources involved in resolving the

problem represent around 32 of the total detriment

Micro enterprises accounted for around 74 of the global economic detriment (compared to

175 for small and 88 for the medium) but it is in small enterprises that the average

112 When providing further details the cloud computing users acknowledged the fact that there were

cases where the enterprisersquos own mistake such as a miscommunication or lack of capacityknowledge

was admitted to be the cause of the cloud computing problem 113 These costs include overall costs in ensuring an alternative service and costs related to fixing the cloud service problem



80

gross detriment per enterprise was highest (ie euro 5012 compared to euro 4745 for medium

and euro878 for micro enterprises)

It is important to note that this estimate is a lower threshold of actual detriment as

not all SMEs that declared to have borne a specific cost due to contract-related cloud

computing problems were able to provide an estimate of the detriment suffered

it only considers the costs associated with the most serious problem During the

survey 48 of the enterprises that encountered contract-related problems declared

that costs related to the most serious problem represented less than 80 of the total

losses However they were not able to provide relevant estimations regarding the

other encountered problems

However the magnitude of the underestimation is limited by the fact that the Member States

and the sectors chosen to be in the sample are those with highest cloud computing usage

rates and so are likely to bear costs above the average

Having computed the economic detriment suffered by micro small and medium-sized

enterprises the following have also been considered

direct impacts of a reduction in economic activity of the enterprises suffering from

contract-related cloud computing problems on their overall gross value added and

employment

effects on the gross value added and employment of supplier industries arising from

the turnover losses they suffer (indirect impacts)114

Direct impacts were estimated by considering the gross value added and employment

contents of the turnover losses at country and sector levels and the coefficients of total

turnover at country and sector levels computed from Eurostat data115

The overall results show that the 3672 direct jobs were lost in the sectors where contract-

related problems were encountered With respect to gross value added the direct impact of

the losses of turnover was a reduction of euro119 million within the same sectors

The indirect effects measured as gross value added and employment lost in the supplier

industries were still quite considerable The indirect impact associated with the loss of

turnover caused by contract-related cloud computing problems led to losses of 1733 jobs

and around euro987 million of Gross Value Added

Again it should be emphasised that the measured indirect effects must be seen as lower

thresholds to the actual indirect effects not only because of the above-mentioned limitations

but also because the input-output methodology while very good at estimating backward

linkages along the supply chain has some limitations in capturing opportunity costs and

intangibles or downstream effects of the problems in client industries or final consumers

Besides measuring the detriment caused by contract-related cloud computing service

problems the analysis addressed the issue of whether those problems might have generated

other effects

114 These indirect losses arise from the fact that the industries that suffered from the direct turnover losses reduced their demand for products from their suppliers 115 National accounts aggregated by industry (up to NACE A64) [nama_10_a64]



81

Results show that contract-related cloud computing problems had an impact on enterprises

in dimensions such as reputational damages or loss of clients but that these effects did not

translate116 into very significant effects on financial variables during the period considered

The study covered the problems faced by SMEs during 2016ndash2017 The survey has been

implemented during 2018 The fact that some enterprises were not able to provide an

estimate of the detriment encountered may also be due to the fact that effects on the balance

sheet may only materialise over a longer time horizon

The analysis also has shown that most enterprises incurred internal human resources costs

or other external costs in order to resolve those problems The allocation of resources to

resolve those problems is likely to create some inefficiencies and to affect the competitiveness

of the companies

Given the size of the effects estimated and even if it is likely that there is some

underestimation enterprises are probably still able to at least partially absorb some of the

costs caused by cloud computing problems

But as we have seen there have already been some cases of contract-related cloud computing

problems that had very large impacts

Over time as increasing usage rates lead to rising incidence of contract-related cloud

computing problems and the longer term consequences of reputational damages and losses

of clients on financial variables become evident it will make it more likely that enterprises

will stop being able to absorb the effects of the encountered problems and this will increase

the impact of those problems on allocative efficiency market functioning and

competitiveness eventually affecting clients and final consumers and reducing the aggregate

welfare

116 The study covered the problems faced during 2016 ndash 2017 The survey has been implemented during

2018 The fact that some enterprises were not able to provide an estimate of the detriment encountered may also be due to the fact that effects on the balance sheet may only materialise over a longer time horizon



82

Annex 1 Methodology for the Survey of SMEs

In order to maximise the response to the survey of SMEs a detailed introduction to the online

survey and CATI was prepared and discussed with the EC for approval The introduction

presented the purpose of the study the sponsor and last but not least the reason it is

beneficial for the SME to cooperate with the study

During the interview phase it was of utmost importance to speak with the person in each

enterprise who has the most knowledge about the topic of cloud computing So we

recommended adding a so-called ldquoscreenerrdquo question in order to verify if the interviewer is

speaking with the most suitable interlocutor within the enterprise

The screener question can be found below

S1 Would you describe yourself as the person familiar with the services that your enterprise is using over the internet (cloud computing services) and have general knowledge about the enterprise

1 Yes that is me

2 No that is someone else

ltIf 1 go to Section Bgt

ltIf 2gt

lsquoI am sorry but I would like to speak to the person familiar with the services that the enterprise is using over the internet (cloud computing) and has general knowledge about the enterprise Can you give me hisher name or connect mersquo

ltIf connected to new person re-ask question S1gt

ltIf given name note down new name and make call back appointmentgt

In the CATI quotas were set at country level size classes and sectors in such a way that

when the target per country andor size class was achieved the remaining sample records of

this countrysize class were disabled automatically

The CATI was handled by the Global Data Collection Company (GDCC) The assigned project

manager of GDCC was responsible for drafting detailed briefing instructions for the

interviewers This assigned project manager was responsible for giving the initial briefing to

the interviewers in cooperation with the team leaders and senior interviewers depending on

the language of the questionnaire The initial briefing was held via web conference since the

project was implemented in various locations The team leaders were briefed using the English

version of the questionnaire and they went through the test link by clicking on all the available

options After this initial briefing the team leaders briefed the interviewers in all locations If

any changes were necessary during the process the team leaders held the briefings again

Whenever a new interviewer was added to the project heshe was additionally briefed

All briefings were held in one of the GDCC briefing rooms In these rooms up to 15

interviewers were instructed simultaneously on this project The questionnaire was projected

on the big screen during the briefings All relevant notesremarks from the briefings were

incorporated into the project briefing document and made electronically available to the

interviewers in the interview application

After the briefing the interviewers conducted dummy interviews in the so-called ldquotest moderdquo

of the data collection application in order to familiarise with the questionnaire

Relevant issues which arose during the fieldwork were promptly communicated to ALL

interviewers working on the project via a bulletin board in the CATI platform andor a revision



83

of the briefing form which was also available to the interviewer via the questionnaire in

electronically format

During the fieldwork a maximum of 10 phone calls were made to each SME in order to obtain

an interview If no interview was conducted after those 10 attempts the addressee was

considered as a non-response

Call-back appointments were not terminated after 10 attempts as experience has shown that

once a potential respondent has given permission to schedule a call to do the interview often

more attempts are needed to conduct the interview

The interviews for the survey were conducted as much as possible during the usual opening

hours of businesses in the respective countries

The team engaged in the fieldwork was comprised not only of a significant number of

experienced (native speaker) interviewers but for almost every EU country at least two native

speaker evaluators were available The evaluators aside from being very experienced

interviewers were selected for this ask because of their background (education) and

knowledge of the specific country Evaluators were responsible for the final check of the

translations and where necessary suggesting country-specific changes The final translation

checks however were performed by the GDCC translation department The research team

double-checked all the translations This methodology of centralising data collection

benefiting from the native speaker interviewersrsquo knowledge of the local markets has a proven

track record over many projects

All interviews were 100 recorded Aside from live listening-in particular parts of the

interviews were recorded in order to be listened to by a native speaker team leader or

evaluator Besides listening to the interviews the team leaders andor evaluators also called

back respondents who participated in an interview during this call-back a short interview

with verification questions about the recent interview was held The only reason for conducting

a call-back was to recollect information that was first collected incorrectly and further

questions needed to be asked All of the respondents who had completed interviews were

called back in order to record the name of the enterprise and to match the data from the

sample with the enterprise that had completed the survey The quality checking procedure

was generally random but there was also a focus on outliners where applicable117

Overall at least 10 of all interviews per country were covered by the quality control

procedures as mentioned above In the dataset the monitored interviews were labelled

accordingly

Besides this quality procedure the conducted CATI interviews were continuously checked for

outliers The data from interviews with (for example) a deviation in the average interview

time (too short or too long) were checked and when necessary corrective action was taken

This action either involved a telephone call in order to verify the data or the data were

removed from the dataset

After finalising the fieldwork a short fieldwork report was prepared

117 An outlier means something outside of the average therefore GDCC looked at interviewers who

conduct interviews much longershorter than the average or who had more or fewer refusals than the

average or who had a lower or higher incidence rate than the average Focusing on these main (outlier) points helped to determine if the interviewer was doing things correctly and if not the interviewer was retrained in order to help normalise the performance



84

Annex 2 Stakeholders list

No Category Member State InstitutionCompany Contribution

1 Cloud broker The

Netherlands BPdelivery Interview

2 EEN The Netherlands

The Dutch Chamber of Commerce Interview

3 EEN Romania ARIES T - Romanian Association for Electronic Industry and

Software - Transylvania Branch

Interview

4 EEN France CCI Paris IDF Interview

5 National authority

Italy The Italian Data Protection Authority

Interview and Webinar


Romania

Romanian National Computer

Security Incident Response Team (CERT)

Interview


Romania The National Supervisory Authority for Personal Data Processing of Romania

Interview


France

Commission Nationale de

lInformatique et des Liberteacutes (CNIL)

Interview


Poland Inspector General for the Protection of Personal Data



Estonia Estonian Data Protection Inspectorate

Interview

11 Service provider

Sweden Glesys Interview

12 Service provider

Spain Ibermaacutetica Interview

13 Service provider

Spain Gigas Interview

14 Service provider

Sweden Hetzner Interview

15 Service provider

Ireland Blueface Interview

16 Service provider

Romania Star Storage Interview

17 Service provider

Romania GTS Interview



85


18 Service provider

Portugal PT Empresas Interview

19 Service

provider Romania Telekom Interview

20 Service provider

Ireland Salesforce Interview

21 SME Poland Biuro Rozwoju Gdanska Interview

22 SME Germany Quality Services International

GmbH Interview and Webinar

23 SME Germany Thieme Compliance GmbH Interview and Webinar

24 SME Germany Leibniz-Institut Fuumlr Astrophysik Potsdam (AIP)

Interview

25 SME Poland Konsorcjum Biuro Klub Sp Interview

26 SME France Qosmos Tech Interview

27 SME Poland Vsoft S A Interview

28 SME Spain Timbrados Elche Sl Interview

29 SME Spain Sistemas de Datos Interview and Webinar

30 SME Association

Belgium EUAPME Interview and Webinar

31 SME

Association Portugal

Associaccedilatildeo Industrial do Distrito de

Aveiro Interview

32 SME Association

The Netherlands

VNO-NCW Interview

33 SME Envoys Network

The Czech Republic

Ministry of Industry and Trade Interview



86

Annex 3 Bibliography

Relevant legislation and policy documents

Committee of the Regions (2016) lsquoEuropean Cloud Initiative and ICT Standardisation

Priorities for the Digital Single Market 2016rsquo Opinion of the Committee of the Regions (SEDEC-

VI-012)

European Commission (2003) lsquoRecommendation of 6 May 2003 concerning the definition of

micro small and medium-sized enterprisesrsquo (notified under document number C(2003) 1422)

European Commission (2012) lsquoUnleashing the Potential of Cloud Computing in Europersquo

COM(2012)529 final Brussels

European Commission (2013a) lsquoCommission Decision of 18 June 2013 on setting up the

Commission expert group on cloud computing contractsrsquo (2013C 17404) OJ 1746

European Council (2013b) lsquoCouncil resolution of 10 December 2013 on unleashing the

potential of cloud computing in Europersquo

European Commission (2014 June) lsquoCloud Service Level Agreement Standardisation

Guidelinesrsquo httpseceuropaeudigital-single-marketennewscloud-service-level-

agreement-standardisation-guidelines

European Commission (2015a) lsquoA Digital Single Market Strategy for Europersquo (COM

(2015)0192) and the accompanying Commission staff working document (SWD(2015)0100)

European Commission (2015b) lsquoCommunication on cloud select industry group service level

agreementsrsquo httpseceuropaeudigital-single-marketencloud-select-industry-group-

service-level-agreements COM (2015) 634 final

European Commission (2015c) lsquoProposal for a Directive on certain aspects concerning

contracts for the supply of digital contentrsquo (COM(2015) 634 final)

European Commission (2015d) lsquoTowards a modern more European copyright frameworkrsquo

COM20150626 final

European Commission (2016a) lsquoEuropean Cloud Initiative ndash Building a competitive data and

knowledge economy in Europersquo (COM (2016)0178) and the accompanying Commission staff

working document (SWD (2016) 0106)

European Commission (2016b) lsquoICT Standardisation Priorities for the Digital Single Marketrsquo

(COM (2016)0176)

European Commission Directorate-General for Research amp Innovation (RTD) (2016c) lsquoOpen

Innovation Open Science Open to the World ndash A vision for Europersquo

European Commission (2017a) lsquoProposal for a Regulation of the European Parliament and of

the Council on a framework for the free flow of non-personal data in the European Unionrsquo

COM(2017) 495 final Brussels

European Commission (2018a) lsquoProposal for a Regulation on promoting fairness and

transparency for business users of online intermediation servicesrsquo

European Commission (2018b) lsquoProposal for a Regulation on promoting fairness and

transparency for business users of online intermediation servicesrsquo Annexes and Impact

Assessment

European Commission (2018c) lsquoProposal for a Regulation on promoting fairness and




87

European Parliament (2017) lsquoCommission Staff Working Document Impact Assessment

Accompanying the document Proposal for a Regulation of the European Parliament and of

the Council on a framework for the free flow of non-personal data in the European Union

SWD(2017) 304 final Brussels

European Council (2016) lsquoCouncil resolution of 19 January 2016 on Towards a Digital Single

Market Actrsquo

European Parliament and European Council (2001) lsquoRegulation (EC) 452001 of the European

Parliament and of the Council of 18 December 2000 on the protection of individuals with

regard to the processing of personal data by the Community institutions and bodies and on

the free movement of such datarsquo

European Parliament and European Council (2011) lsquoDirective 201183EU of the European

Parliament and of the Council of 25 October 2011 on consumer rights amending Council

Directive 9313EEC and Directive 199944EC of the European Parliament and of the Council

and repealing Council Directive 85577EEC and Directive 977EC of the European Parliament

and of the Council Text with EEA relevancersquo

European Parliament and European Council (2015) lsquoProposal for a DIRECTIVE OF THE

EUROPEAN PARLIAMENT AND OF THE COUNCIL on certain aspects concerning contracts for

the supply of digital contentrsquo (Text with EEA relevance) SWD(2015) 274 final SWD(2015)

275 final

Reports studies and other documents

Alberto M Bento A K (2012) Cloud Computing Service and Deployment Models Layers

and Management IGI Global

Altman M Andreev L Diggory M King G Kolster E Sone A Verba S Kiskis DL

Krot (2001) lsquoOverview of The Virtual Data Center Project and Software Harvard Universityrsquo

JCDL rsquo01 First Joint Conference on Digital Libraries pp 203-204

Buyya R Broberg J and Goscinski A M (eds) (2010) Cloud computing Principles and

paradigms Vol 87 John Wiley amp Sons

Cave J Robinson N Kobzar S and Rebecca H (2015) lsquoUnderstanding Regulatory and

Consumer Interest in the Cloudrsquo Regulating the Cloud Policy for Computing Infrastructure

Cloud Security Alliance (2017) Custom Applications and IaaS Trends 2017

Department of Justice United States (2015) HERFINDAHL-HIRSCHMAN INDEX

El-Gazzar R F (2014) lsquoA literature review on cloud computing adoption issues in enterprisesrsquo

presented at the International Working Conference on Transfer and Diffusion of IT pp 214ndash

242

ESRC Centre for Competition Policy (2014 January) lsquoSmall Business as Consumers Are They

Sufficiently Well Protectedrsquo A report for the Federation of Small Businesses

European Commission (2013a) lsquoCOMMISSION DECISION of 18 June 2013 on setting up the

Commission expert group on cloud computing contractsrsquo (2013C 17404)

European Commission (2013b) Final Report of the study SMART 20130043- Uptake of Cloud

in Europe

European Commission (2013 2014) Cloud computing Experts groups meetings

European Commission (2015) Comparative Study on cloud computing contracts Publications

Office of the European Union Luxembourg

European Commission (2014b) European Commission - Strategy - Digital Single Market -

News Retrieved from European Commission - Digital Single Market



88

European Commission (2014c) Study regarding the Uptake of Cloud in Europe Follow-up of

IDC Study on Quantitative estimates of the demand for Cloud Computing in Europe and the

likely barriers to take-up

European Commission (2004d) Project Cycle Management Guidelines

European Commission (2016a) Consultation on Cloud Computing Research Innovation

Challenges for WP 2018-2020

European Commission (2016b) Measuring the economic impact of cloud computing in Europe

European Commission (2016c) Platform-to-business trading practices

European Commission (2017a) Collaboration in Research and Methodology for Official

Statistics RAS (Method)

European Commission (2017b) The Economic and Social Impact of Software and Services in

Competitiveness and Innovation

European Commission (2017c) Final results of the European Market study measuring the size

and trends of the EU data economy European Commission (2018) Consultations about Cloud

Computing

European Commission (2018a) 2018 reform of EU data protection rules

European Commission (2018b) Press release lsquoOnline platforms Commission sets new

standards on transparency and fairnessrsquo

European Commission (2018c) Operational guidance document on measuring personal

consumer detriment

Etro F (2009) lsquoThe economic impact of cloud computing on business creation employment

and output in Europersquo Review of Business and Economics vol 54 no 2 pp 179ndash208

Expert Group on Cloud Computing Contracts (2013-2014) Cloud Computing Expert Group

Gartner (2017) Predicts 2017 Cloud Computing Enters its Second Decade

Hon K Millar C and Walde I (2012) rsquoNegotiating Cloud Contract Looking at Clouds from

Both Sides Nowlsquo in Stanford Technology Law Review Vol 16 No 1

IDC Arthurrsquos Legal (2016) Switching Cloud Providers (SMART 20160032)

International Organization for Standardization (2014) lsquoInformation technology mdash Cloud

computing mdash Overview and vocabularyrsquo ISOIEC Retrieved from International Organization

for Standardization

Mahmood Z (2011) lsquoData Location and Security Issues in Cloud Computingrsquo Proceedings of

the 2nd International Conference on Emerging Intelligent Data and Web Technologies (EIDWT

rsquo11) (pp 49ndash54)

National Institute of Standards and Technology (2011) lsquoThe NIST Definition of Cloud

Computingrsquo Retrieved from National Institute of Standards and Technology

OECD (2014) Cloud computing The Concept Impacts and the Role of Government Policy

Opara-Martins J Sahandi R and Tian F (2015) lsquoA Business Analysis of Cloud Computing

Data Security and Contract Lock-in Issuesrsquo presented at P2P Parallel Grid Cloud and

Internet Computing (3PGCIC)

Pearson S (2013) lsquoPrivacy security and trust in cloud computingrsquo in Privacy and Security

for Cloud Computing Springer pp 3ndash42

Rabinobich M Rabinovich I (nd) A Dynamic Object Replication and Migration Protocol for

an



89

Rittinghouse J Ransome J (2009) Cloud Computing CRC Press Boca Raton

Rohrmann CA amp Cunha JFSR (2015) Some Legal Aspects of Cloud Computing Contracts

Journal of International Commercial Law and Technology Vol10 No1 May

SLALOM Project httpslalom-projecteu(2018)

Synergy Research Group (2017) httpswwwsrgresearchcomarticlesmicrosoft-google-

and-ibm-charge-public-cloud-expense-smaller-providers

Technopedia (2018) httpswwwtechopediacomdefinition30463virtual-data-center

Retrieved from Virtual Data Centre

Databases

Amadeus Database httpsamadeusbvdinfocomversion-

2016720homeservproduct=amadeusneo

Eurostat (2015) sbs_sc_sca_r2 Retrieved from Structural Business Statistics

httpappssoeurostateceuropaeunuishowdodataset=sbs_sc_sca_r2amplang=en

Eurostat (2016) Cloud Computing Services Retrieved from EUROSTAT - Digital Economy and

Society httpeceuropaeueurostatwebdigital-economy-and-societydatadatabase

Eurostat (2016) lsquoCloud computing - statistics on the use by enterprisesrsquo

httpeceuropaeueurostatstatistics-explainedindexphpCloud_computing_-

_statistics_on_the_use_by_enterprises

Eurostat (2017) Cloud computing services [isoc_cicce_use]



90

Annex 4 Survey questionnaire

A Background information

(Everyone answers section A)

A1 What is the name of your company

[open question]

A2 Where is your company located

(People who answer A2 m) are taken straight to the end of the survey)

[single choice question]

a) Czech Republic

b) Estonia c) France d) Germany e) Ireland f) Italy g) Poland h) Portugal

i) Romania

j) Sweden k) Spain l) Netherlands m) Other (please specify)

A3 In which sector is your company mainly active

(People who answer A3 f) are taken straight to the end of the survey)

[multiple choice question]

a) Manufacturing b) Wholesale and retail trade repair of motor vehicles and motorcycles c) Information and communication d) Professional scientific and technical activities e) Administrative and support service activities

f) Other (please specify)

A4 Since how long does your company exist


a) Less than 1 year b) Between 1 and 5 years

c) Between 5 and 10 years d) Over 10 years

A5 What is the number of employees in your company

(People who answer A5 d) are taken straight to the end of the survey)

= Compulsory question



91



Nordm of employees in FTE (full-time equivalent)

a) Less than 10 employees b) 10 to 49 employees c) 50 to 250 employees d) More than 250 employees

B Use of Cloud Computing Services

(Everyone answers Section B)

B1 In the last two years has your company used any of the following cloud computing services for

the purpose of conducting business

(People who answer B1 q) are taken straight to the end of the survey)


a) Business applications (eg applications used for accounting invoicing planning payments payroll human resources management)

b) Sales amp Marketing services (eg web configuration forms for marketing and sales purposes)

c) Collaboration and communication services (eg video conference system business

visualisation technology instant communications applications e-mail account virtual

desktop antivirus for sever or PC applications for customer relationship management social media monitoring)

d) Cloud enablement amp IT Operations (eg application integration and monitoring business process management IT operationrisk management)

e) Service amp Support tools (eg project and portfolio management solutions services

operations management) f) Data Management (eg datacontent management) g) Big data (eg business intelligence and data analytics applications) h) Storage and hosting services (eg server platform for online storage sharing hosting

websites files images and similar content) i) Virtual Data Centre (eg usage of a pool of virtualised infrastructure as processor

memory storage space and networking components)

j) High Performance Computing (eg usage of high performance computing clusters workloads and applications)

k) Mobile (eg usage of managed mobility to serve a multitude of mobile devices anywhere anytime)

l) Networking services (eg creation of an internal private cloud and virtual local networks utilising a pooled server for storing company data and running applications needed each day)

m) Platform to create software applications (eg conception and creation of application through testing and deployment)

n) Security services (eg secure content management endpoint protection malware protection)

o) Internet of things (eg asset tracking deployable components intelligent spaces) p) Other (please specify)

q) None of the above my company is not using cloud computing services

B11 For the cloud computing services that you have used in the last two years were you able to

negotiate contract terms and conditions

(People who answer B11 b) are taken to Question B111)

(People who answer B11 d) are taken to Question B113)



92

(People who answer B11 a) or b) are taken to Question B112)


a) Yes we were able to negotiate contract terms and conditions for all the cloud computing services used

b) Yes we were able to negotiate contract terms and conditions but only in relation to some

services c) No we were not able to negotiate any contract terms and conditions d) We didnrsquot try to negotiate

B111 Please specify in relation to which services were you able to negotiate the contract terms and

conditions


a) Business applications (eg applications used for accounting invoicing planning

payments payroll human resources management) b) Sales amp Marketing services (eg web configuration forms for marketing and sales

purposes)

c) Collaboration and communication services (eg video conference system business visualisation technology instant communications applications e-mail account virtual desktop antivirus for sever or PC applications for customer relationship management social media monitoring)


e) Service amp Support tools (eg project and portfolio management solutions services operations management)

f) Data Management (eg datacontent management) g) Big data (eg business intelligence and data analytics applications) h) Storage and hosting services (eg server platform for online storage sharing hosting

web-sites files images and similar content) i) Virtual Data Centre (eg usage of a pool of virtualised infrastructure as processor

memory storage space and networking components) j) High Performance Computing (eg usage of high performance computing clusters

workloads and applications) k) Mobile (eg usage of managed mobility to serve a multitude of mobile devices anywhere

anytime) l) Networking services (eg creation of an internal private cloud and virtual local networks

utilising a pooled server for storing company data and running applications needed each

day) m) Platform to create software applications (eg conception and creation of application

through testing and deployment) n) Security services (eg secure content management endpoint protection malware

protection)

o) Internet of things (eg asset tracking deployable components intelligent spaces)

p) Other (please specify)

B112 For the cloud computing services for which you negotiated the contract terms and conditions

were you able to customise the service package according to your specific needs


a) Yes (please specify what you were able to customise) b) Partially (please specify what you werewere not able to customise) c) No (please specify)

B113 Please specify why you didnrsquot try to negotiate any contract terms and conditions


a) We were pleased with the offered contract terms and conditions

b) We knew it would be pointless c) We assumed it would be pointless d) Could not find a contact



93

e) Other (please specify)

B2 What type of contract(s) did you have for cloud computing services during the last two years

(People who answer B3 d) are taken straight to section C)


a) Paid subscription ndash Fixed Fees b) Paid subscription ndash Variable Fees c) Partly with and partly without payment d) Without payment (eg advertising financed) e) I donrsquot know (please specify)

B21 For the year(s) you were paying aseveral subscription(s) could you please indicate the average

amount you paid per month for the cloud computing services

(NB the amount declared should not include over-extra charges or hidden fees)

[open question]

Amount in local currency please specify the currency applied

C Problems encountered with cloud computing services

(Everyone answers Section C)

C1 What type of problems and how often did you encounter them in relation to cloud computing

services in the last two years

Problems

Very

frequently

(at least once a week)

Frequentl

y (at least once a month)

Occasiona

lly (at least

once every 3 months)

Rarely (at

least once in the last

12 months)

Never

a) Lack of timely updates of the cloud service

b) Forced updates to the service that eliminated or changed a necessary function

c) Unsatisfactory amount of data that could be processed

d) Failure of the cloud provider to identify analyse and correct

hazards and prevent a future re-occurrence (incidence management)

e) Low speed of the service

f) The lack of clarity and

completeness of the instructions and information regarding access andor download of the cloud service

g) Unsatisfactory availability or

discontinuity of the service (eg due to a crash unannounced maintenance or other interruptions

of service)



94


h) Unsatisfactory number of users that could have access to the

service

i) The lack of compatibility of the service with user hardware or software

j) Data could not be exported at all

k) Data could not be retrieved in

easily usable format

l) Extra costs were imposed for data portability

m) The provider deleted the data

upon contract termination

n) Destruction or loss of data

o) Loss or alteration of data transmitted stored or processed via the cloud service

p) Unauthorised disclosure of or access to data

q) Lack of protection of the data stored in the cloud against theft or viruses

r) Lack of clarity and transparency of contract terms and conditions

s) Termination of the contract and interruption of the service by the service provider with no or little prior notice to the user

t) Unilateral modification of the servicecontract by the cloud provider

u) Limited liability of the cloud provider

C2 Did you encounter any other problems in relation to cloud computing services in the last two

years


a) Yes (please specify) b) No

C3 Which was the most serious problem you experienced in the last two years

The most serious problem is the one that created the highest impact (on your everyday activities

andor in terms of costs faced to solve it)


a) Lack of timely updates of the cloud service b) Forced updates to the service that eliminated or changed a necessary function c) Unsatisfactory amount of data that could be processed d) Failure of the cloud provider to identify analyse and correct hazards and prevent a future

re-occurrence (incidence management) e) Low speed of the service



95


f) The lack of clarity and completeness of the instructions and information regarding access andor download of the cloud service

g) Unsatisfactory availability or discontinuity of the service (eg due to a crash unannounced

maintenance or other interruptions of service) h) Unsatisfactory number of users that could have access to the service i) The lack of compatibility of the service with user hardware or software j) Data could not be exported at all k) Data could not be retrieved in easily usable format l) Extra costs were imposed for data portability

m) The provider deleted the data upon contract termination n) Destruction or loss of data o) Loss or alteration of data transmitted stored or processed via the cloud service p) Unauthorised disclosure of or access to data

q) Lack of protection of the data stored in the cloud against theft or viruses r) Lack of clarity and transparency of contract terms and conditions s) Termination of the contract and interruption of the service by the service provider with no or

little prior notice to the user t) Unilateral modification of the servicecontract by the cloud provider u) Limited liability of the cloud provider v) Other (please specify)

C31 What caused the most serious problem


a) The services received did not conform with the performance that was promised in the

contract b) The contract terms and conditions of the cloud provider were unfair

c) Other (please specify)

C32 To which type of cloud computing services was the most serious problem linked




c) Collaboration and communication services (eg video conference system business visualisation technology instant communications applications e-mail account virtual desktop antivirus for server or PC applications for customer relationship management social media monitoring)

d) Cloud enablement amp IT Operations (eg application integration and monitoring business

process management IT operationrisk management) e) Service amp Support tools (eg project and portfolio management solutions services






l) Networking services (eg creation of an internal private cloud and virtual local networks

utilising a pooled server for storing company data and running applications needed each day)




96

n) Security services (eg secure content management endpoint protection malware

protection)


C4 Which was the second most serious problem you experienced in the last two years



People who select C4 a) are taken straight to Section D)


a) I only encountered one serious problem in the last 2 years

b) Lack of timely updates of the cloud service c) Forced updates to the service that eliminated or changed a necessary function

d) Unsatisfactory amount of data that could be processed e) Failure of the cloud provider to identify analyse and correct hazards and prevent a future

re-occurrence (incidence management) f) Low speed of the service g) The lack of clarity and completeness of the instructions and information regarding access


h) Unsatisfactory availability or discontinuity of the service (eg due to a crash unannounced maintenance or other interruptions of service)

i) Unsatisfactory number of users that could have access to the service j) The lack of compatibility of the service with user hardware or software k) Data could not be exported at all l) Data could not be retrieved in easily usable format

m) Extra costs were imposed for data portability

n) The provider deleted the data upon contract termination o) Destruction or loss of data p) Loss or alteration of data transmitted stored or processed via the cloud service q) Unauthorised disclosure of or access to data r) Lack of protection of the data stored in the cloud against theft or viruses s) Lack of clarity and transparency of contract terms and conditions t) Termination of the contract and interruption of the service by the service provider with no or

little prior notice to the user u) Unilateral modification of the servicecontract by the cloud provider v) Limited liability of the cloud provider w) Other (please specify)

C41 What caused the second most serious problem


a) The services received did not conform with the performance that was promised in the contract

b) The contract terms and conditions of the cloud provider were unfair c) Other (please specify)

C42 To which type of cloud computing services was the second most serious problem

linked




purposes)

c) Collaboration and communication services (eg video conference system business visualisation technology instant communications applications e-mail account virtual



97

desktop antivirus for server or PC applications for customer relationship management

social media monitoring)



f) Data Management (eg datacontent management) g) Big data (eg business intelligence and data analytics applications)

h) Storage and hosting services (eg server platform for online storage sharing hosting web-sites files images and similar content)

i) Virtual Data Centre (eg usage of a pool of virtualised infrastructure as processor memory storage space and networking components)


k) Mobile (eg usage of managed mobility to serve a multitude of mobile devices anywhere


utilising a pooled server for storing company data and running applications needed each day) m) Platform to create software applications (eg conception and creation of application


protection)


D Actions taken by your company in order to address the most serious

problem

(Everyone who encountered problems answers Section D)

D1 Did your company take action to resolve or remedy the most serious problem experienced

(People who select D1 b) are taken straight to question D2)

a) Yes

b) No

D11 What actions has your company taken to resolve or remedy this problem


a) Used the support services of the provider b) Made a complaint to the provider c) Withheld payment for the service

d) Asked the provider for a refund e) Asked the provider for compensation for damages or losses f) Changed provider g) Went to mediationarbitration (the dispute was taken to a third party mediatorarbitrator) h) Filed an action with a court i) Hired a third party expert to resolve the problem

j) Other (please specify)

D12 What was the result of the actions taken to resolve or remedy this problem


a) The problem was fully resolved

b) The problem was partially resolved c) The problem was not yet resolved but I was informed that the investigation was ongoing

d) The problem was not resolved and I have not received any reply e) Not resolved and I decided not to do anything about it

D121 Did you encounter any difficulties when taking action to resolve or remedy this problem



98



a) No I did not encounter any difficulties b) Yes there was no contact point to make a complaint or attempt to resolve issues c) Yes the procedure took too long d) Yes the procedure was too expensive e) Yes foreign law applied

f) Yes the procedure was only possible abroad g) Yes language difficulties (eg the procedure was in a foreign language) h) Yes the action taken was not suited to resolve the problem i) Yes it was not possible to enforce the decision after the resolution j) Other (please specify)

D2 Why did your company decide not to take any action to resolve or remedy this problem


a) Provider fixed the problem on its own

b) The cloud provider was unlikely to find a solution to the problem

c) The cloud provider excluded its liability for the problem

d) The cloud provider restricted its liability for damages (eg to a certain type of damage or

to a monetary threshold (a franchise or a maximum amount)

e) Limited access to dispute resolution (eg contract terms restrict how and where your

company can take legal action)

f) We tried to complain about other problems in the past but it was not successful

g) High cost of proceedings

h) It would take too long

i) The procedure was too complicated

j) We didnt know where to complain

k) Lack of knowledge how to start the proceeding

l) The applicable procedure is in a foreign country or in foreign language (specify which

foreign country)

m) The company did not want to damage business relationship with the cloud provider

n) The problem was not that important

o) Other (please specify)

E Economic detriment related to the most serious problems encountered

(Everyone who encountered problems answers Section E)

E1 What were the human resources invested by your company while taking action to resolve or

remedy the most serious problem

[open question]

Nordm of employees

involved in solving the problem separately per skill level of employee(s)

Nordm of work days

involved for solving the problem separately per skill level employee(s)

Average monthly

compensation of employee(s) involved in solving the problem (amount in local

currency)118

118 Total labour cost that includes gross wages and employer social security contributions



99


Administrative

Technical

Senior

official(s)manager(s)

E2 Select what costs has your company covered (besides the human resources mentioned

before) while taking action to resolve or remedy the most serious problem

Please provide the costs without considering any reimbursement or compensation you may have

received from the provider(s) who rendered the service(s)


a) Costs related to ensuring an alternative service (please specify the amount in local currency)

b) Costs related to fixing the cloud service problem (please specify the amount in local currency)

c) Legal costs (please specify the amount in local currency) d) Costs related to reputation damage (please specify the amount in local currency) e) Costs related to loss of client(s) (please specify the amount in local currency) f) Other costs (please specify what was the cost related to and the amount in local currency)

E3 What is the loss of turnover and profit caused by the most serious problem encountered

[open question] Please specify amount in local currency

Lost turnoveryear

Lost profityear

E4 Did the cloud provider offer any redress for the damages caused to your company


a) Yes I was offered financial compensation (please specify the amount in local currency) b) Yes I was offered a reduction in the cost of subscription (please specify the amount in

local currency) c) Other (please specify the redress and the amount in local currency) d) No the cloud provider did not offer any redress for the damages caused

E5 Considering the costs human resources involved and loss of turnoverprofit related to the most

serious problem what share they represented of the total costs suffered by your company from

problems faced while using cloud computing services

(People who select E5 a) or b) are taken straight to section F)

(People who select C4 a) are taken straight to section F after answering E5)


a) Above 80 b) 50 to 80 c) Below 50

E6 What were the human resources invested by your company while trying to resolve or remedy

the second most serious problem

[open question]

Nordm of employees

involved in solving the problem separately

Nordm of work days

involved for solving the problem separately

Average monthly

compensation of employee(s) involved

in solving the problem



100

per skill level of

employee(s)

per skill level

employee(s)

(amount in local

currency)119

Administrative

Technical

Senior


E7 Select which costs has your company covered (besides the human resources mentioned before)

while taking action to resolve or remedy the second most serious problem

[multiple choice question] Please provide the costs without considering any reimbursement or

compensation you may have received from the provider(s) who rendered the service(s)

a) Costs related to ensuring an alternative service (please specify the amount in local

currency) b) Costs related to fixing the cloud service problem (please specify the amount in local

currency) c) Legal costs (please specify the amount in local currency) d) Costs related to reputation damage (please specify the amount in local currency)

e) Costs related to loss of client (please specify the amount in local currency) f) Other costs (please specify what was the cost related to and the amount in local currency)

E8 What is the loss of turnover and profit caused by the second most serious problem

encountered


Lost turnoveryear

Lost profityear



a) Yes I was offered financial compensation (please specify the amount in local currency) b) Yes I was offered a reduction in the cost of subscription (please specify the amount in local

currency) c) Other (please specify the redress and the amount in local currency) d) No the cloud provider did not offer any redress for the damages caused

F Background information on turnover and profit

G (Everyone answers Section F)

F1 Please complete the following table specifying the amount in local currency

[open question]

The annual turnover in

2016


2017

The annual profit before

tax in 2016


tax in 2017




101

Annex 5 SME Survey results



Type of sector Total

Manufacturing 137

Wholesale and retail trade 131

Information and communication 83

Professional scientific and technical activities 92

Administrative and support services 92





102


B1 In the last two years has your company used any of the following cloud computing services

for the purpose of conducting business

Services

Sectors

Collaboration and

communication services

Storage and hosting

services

Security

services

Networking

services


61 60 49 40

Information and communication 79 78 41 52

Manufacturing 70 54 48 42


71 70 40 39

Wholesale and retail trade 72 62 38 38

B11 For the cloud computing services that you have used in the last two years were you

able to negotiate contract terms and conditions



103

B111 Please specify in relation to which services you were able to negotiate the contract

terms and conditions120

120 The first figure presents for each contracted service the number of SMEs that were able to negotiate

CTampC (in blue) and the number of SMEs that signed standard CTampC for the specific service contracted

(in grey) The total of the numbers in each row represents the number of SMEs that declared contracting a specific service For example for lsquobusiness applicationsrsquo out of the total number of 190 SMEs that contracted this service only 30 SMEs were able to negotiate CTampC while 160 signed standard CTampCs



104

B112 For the cloud computing services for which you negotiated the contract terms and

conditions were you able to customise the service package according to your specific needs



105


B2 What type of contract(s) did you have for cloud computing services during the last two

years

B21 For the year(s) you were paying aseveral subscription(s) could you please indicate the

average amount you paid per month for the cloud computing services

Country of answers Average in euros

CZ 18 850

EE 18 112

FR 34 4675

DE 33 861

IE 19 1127

IT 58 716

NL 21 6672

PL 20 411

PT 7 433



106


RO 7 278

ES 13 127

SE 19 2866

Total 267 1787


C1 What types of problems and how often did you encounter them in relation to cloud

computing services in the last two years




107





108





109

C42 To which type of cloud computing services was the second most serious problem linked

D Actions taken by your company in order to address the most serious problem

D1 Did your company take action to resolve or remedy the most serious problem

experienced



110



D121 Did you encounter any difficulties when taking action to resolve or remedy this

problem



111



E1 What were the human resources invested by your company while taking action to resolve


Human resources invested - working days involved in resolving the problem by sector

Sector Number of

enterprises

95 Trimmed

mean Average

Manufacturing 28 334 804

Wholesale and retail trade 22 255 268

Information and communication 25 244 264

Professional scientific and technical activities 31 442 477

Administrative and support service activities 16 1036 2388

Total 122 322 721

Human resources invested - working days involved in resolving the problem by size class

Size class Number of enterprises

95 Trimmed mean

Average

Micro 25 300 404

Small 24 236 258

Medium 73 368 982

Total 122 322 721

Human resources invested - working days involved in solving the problem by country

Country Number of

enterprises

95

Trimmed mean Average

CZ 7 226 229

EE 5 222 220

FR 22 282 395

DE 19 471 1074

IE 4 094 100

IT 13 315 338

NL 6 4057 5117

PL 13 286 308

PT 3 300 700



112

Country Number of

enterprises

95


CZ 7 226 229

RO 1 200 200

ES 11 631 718

SE 18 251 361

Total 122 322 721

E2 Select what costs your company has covered (besides the human resources mentioned


of enterprises



Legal costs 22 18

Costs related to reputation damage 23 19

Costs related to loss of client(s) 25 21

Other costs 9 7

None 38 31

Total 122


Country Loss of turnover Loss of profit

CZ 0 0 0 0

EE 1 20 1 20

FR 4 18 5 23

DE 2 11 1 5

IE 2 50 2 50

IT 2 15 1 8

NL 1 17 2 33

PL 0 0 0 0

PT 0 0 0 0

RO 0 0 0 0

ES 0 0 0 0

SE 5 28 7 39

Total 17 19


of enterprises

Financial compensation 4 3

Reduction in the cost of subscription 8 7

Other 5 4

The company did not offer any redress 107 88

E5 Considering the costs human resources involved and loss of turnoverprofit related to the

most serious problem what share did they represent of the total costs suffered by your

company from problems faced while using cloud computing services of enterprises

Below 50 105 87

50 to 80 8 7



113

of enterprises

Above 80 9 7

Total 122 100

E6 What were the human resources invested by your company while trying to resolve or

remedy the second most serious problem

Skill level of enterprises


Technical 93 76

Senior officersmanager(s) 59 48

E7 Select which costs your company has covered (besides the human resources mentioned

before) while taking action to resolve or remedy the second most serious problem of enterprises



Legal costs 22 18



Other costs 9 7

None 38 31

Total 122


encountered121


CZ 0 0 0 0

EE 1 20 1 20

FR 4 18 5 23

DE 2 11 1 5

IE 2 50 2 50

IT 2 15 1 8

NL 1 17 2 33

PL 0 0 0 0

PT 0 0 0 0

RO 0 0 0 0

ES 0 0 0 0

SE 5 28 7 39

Total 17 19

E9 Did the cloud provider offer any redress for the damages caused to your company of enterprises



Other 5 4


121 Please see section 52 for a better understanding of why in the detriment equation it was considered only the most serious problem



114

Annex 6 Economic detriment ndash further results

This annex presents more detailed results of the analyses that were performed to carry out

the economic detriment assessment allowing for more in-depth analysis of impact

Incidence cloud computing usage by sector size or country level

For the scenarios presented it is possible to compute the incidence of cloud computing usage

The sample answering the questionnaire is representative of the overall population of EU

SMEs We present in Table 33 to Table 35 some features at the country and enterprise

size or sector level with the sole aim of documenting the gathered information

The data show evidence of significant differences across those dimensions

Table 33 Incidence of cloud computing usage by sector

Sector Scenario 1 Scenario 2


Wholesale and retail trade 111 364


Professional scientific and technical activities 195 574

Administrative and support service activities 131 543

Total 159 499


Table 34 Incidence of cloud computing usage by enterprise size class

Size class Scenario 1 Scenario 2

Micro 178 535

Small 226 606

Medium 133 447

Total 159 499


Table 35 Incidence of cloud computing usage by country

Country Scenario 1 Scenario 2

CZ 172 698

EE 323 690

FR 79 272

DE 80 449

IE 468 710

IT 719 870

NL 205 612

PL 143 315

PT 455 606

RO 278 833

ES 538 648

SE 138 673

Total 159 499




115

Distribution of enterprises that suffered the different costs while taking action to resolve or

remedy the most serious problem by sector size or country level

Again with the sole aim of documenting the gathered information Table 36 to Table 46

present the differences by country enterprise size and sector of the distribution of

enterprises that experienced the various costs while resolving the most serious contract-

related cloud computing problem

Table 36 Number and of total enterprises that faced problems in which human resources were invested while taking action to resolve or remedy the most serious problem by

country and skill level of employee ( of respondents 122)

Country Administrative Technical

Senior

officersmanager(s)

CZ 2 29 3 43 4 57

DE 9 47 15 79 8 42

EE 4 80 4 80 3 60

ES 4 36 6 55 5 45

FR 8 36 19 86 11 50

IE 1 25 2 50 3 75

IT 7 54 10 77 4 31

NL 4 67 6 100 4 67

PL 5 38 12 92 5 38

PT 1 33 2 67 0 0

RO 1 100 1 100 0 0

SE 13 72 13 72 12 67

Total 59 93 59


Table 37 Number and of total enterprises that faced problems in which human resources

were invested while taking action to resolve or remedy the most serious problem by sector and skill level of employee ( of respondents 122)

Sector Administrative Technical

Senior

officersmanager(s)


activities 6 46 9 69 10 77

Information and commun 18 75 21 88 12 50

Manufacturing 13 42 22 71 11 35

Profess scientific and

technical activities 10 34 27 93 14 48


12 48 14 56 12 48

Total 59 93 59




116


were invested while taking action to resolve or remedy the most serious problem by size class and skill level of employee ( of respondents 122)

Size class Administrative Technical

Senior officers

manager(s)

Micro 11 52 12 57 11 52

Small 24 75 22 69 16 50

Medium 24 35 59 86 32 46

Total 59 93 59


Table 39 Number and of total enterprises that faced problems that have incurred costs

(besides human resources) while taking action to resolve or remedy the most serious

problem by country and type of costs ( of respondents 122)

Co

un

try

Costs related to

ensuring an

alternative service

Costs related to

fixing the cloud

service problem

Legal costs

Costs

related to reputation

damage

Costs

related to loss of

client(s)

Other

costsNone

CZ 3 43 0 0 0 0 0 0 1 14 3 43

DE 4 21 6 32 2 11 2 11 3 16 5 26

EE 0 0 2 40 0 0 0 0 0 0 3 60

ES 7 64 1 9 0 0 0 0 0 0 3 27

FR 13 59 13 59 12

55 11 50 11 50 18 82

IE 1 25 3 75 0 0 0 0 1 25 0 0

IT 4 31 2 15 1 8 1 8 2 15 2 15

NL 1 17 1 17 1 17 2 33 1 17 5 83

PL 1 8 1 8 2 15 1 8 1 8 2 15

PT 1 33 1 33 0 0 1 33 1 33 0 0

RO 1 100 0 0 1 100 1 100 1 100 1 100

SE 6 33 9 50 3 17 4 22 3 17 5 28

Total 42 39 22 23 25 47



(besides human resources) while taking action to resolve or remedy the most serious problem by sector and type of costs ( of respondents 122)

Sector

Costs related to ensuring

an alternative

service

Costs

related to fixing the

cloud service problem

Legal costs

Costs


damage


Other

costsNone


activities

5 38 1 8 2 15 1 8 1 8 6 46

Information and

commun 12 50 11 46 7 29 7 29 7 29 8 33



117

Sector


an alternative

service

Costs



Legal costs

Costs


damage

Costs related

to loss of client(s)

Other costsNone

Manufacturing 8 26 6 19 3 10 4 13 5 16 8 26

Profess

scientific and technical activities

13 45 12 41 10 34 10 34 11 38 16 55

Wholesale and

retail trade

repair of motor vehicles and motorcycles

4 16 9 36 0 0 1 4 1 4 9 36

Total 42 39 22 23 25 47


Table 41 Number and of total enterprises that faced problems that have incurred costs (besides human resources) while taking action to resolve or remedy the most serious

problem by enterprise size class and type of costs ( of respondents 122)

Size class


an

alternative service

Costs related to fixing the

cloud

service problem

Legal costs

Costs related to

reputation

damage

Costs related to

loss of

client(s)

Other

costs

None

Micro 6 29 11 52 4 19 6 29 5 24 8 38

Small 13 41 12 38 9 28 7 22 8 25 13 41

Medium 23 33 16 23 9 13 10 14 12 17 26 38

Total 42 39 22 23 25 47


Table 42 Number and of total enterprises that faced problems that reported loss of turnover or profit caused by the most serious problem encountered by sector ( of

respondents 122)

Sector Loss of turnover Loss of profit

Administrative and support




Professional scientific and

technical activities 1 3 3 10


of motor vehicles and motorcycles 4 16 5 20

Total 17 19




118

Table 43 Number and of total enterprises that faced problems that reported loss of

turnover or profit caused by the most serious problem encountered by size class ( of respondents 122)

Size class Loss of turnover Loss of profit

Micro 2 10 4 19

Small 8 25 8 25

Medium 7 10 7 10

Total 17 19


Table 44 Number and of total enterprises that faced problems that have been provided any kind of redress for the damage caused by country and type of redress ( of respondents

122)

Country

Financial

compensation

Reduction in the

cost of subscription

Other

The company did

not offer any redress

CZ 1 14 0 0 1 14 5 71

DE 0 0 0 0 1 5 18 95

EE 0 0 0 0 0 0 5 100

ES 0 0 0 0 0 0 11 100

FR 2 9 1 5 1 5 19 86

IE 0 0 0 0 0 0 4 100

IT 1 8 0 0 0 0 12 92

NL 0 0 2 33 1 17 4 67

PL 0 0 3 23 0 0 10 77

PT 0 0 1 33 0 0 2 67

RO 0 0 0 0 0 0 1 100

SE 0 0 1 6 1 6 16 89

Total 4 8 5 107


Table 45 Number and of total enterprises that faced problems that have been provided any kind of redress for the damage caused by sector and type of redress ( of respondents

122)

Sector

Financial compensation

Reduction in

the cost of subscription

Other

The company

did not offer any redress

Administrative and

support service activities 2 15 1 8 0 0 10 77

Information and communication

1 4 1 4 3 13 20 83

Manufacturing 0 0 2 6 1 3 29 94


1 3 2 7 1 3 25 86

Wholesale and retail trade repair of motor

vehicles and motorcycles 0 0 2 8 0 0 23 92

Total 4 8 5 107




119

Table 46 Number and of total enterprises that faced problems that have been provided

any kind of redress for the damage caused by size class and type of redress ( of respondents 122)

Size class

Financial

compensation

Reduction in the cost of

subscription Other

The company did not offer any redress

Micro 1 5 1 5 0 0 19 90

Small 0 0 2 6 2 6 28 88

Medium 3 4 5 7 3 4 60 87

Total 4 8 5 107


Distribution of enterprises by the weight of the most serious problem by sector enterprise

size or country level



enterprises that experienced the various costs while solving the most serious contract-related

cloud computing problem

Table 47 Distribution of enterprises by the weight of the most serious problem (in terms of the costs human resources involved and loss turnoverprofit) represented in the total

costs suffered by the company by country ( of respondents 122)

Country Below 50 50 to 80 Above 80 100122 Total

CZ 3 43 0 0 0 0 4 57 7

DE 3 60 0 0 0 0 2 40 5

EE 11 50 1 5 0 0 10 45 22

ES 11 58 1 5 1 5 6 32 19

FR 3 75 0 0 0 0 1 25 4

IE 5 38 0 0 0 0 8 62 13

IT 1 17 0 0 1 17 4 67 6

NL 5 38 0 0 1 8 7 54 13

PL 2 67 0 0 0 0 1 33 3

PT 1 11 0 0 0 0 8 89 9

RO 3 38 0 0 0 0 5 63 8

SE 7 10 2 3 4 6 56 81 69

Total 55 31 4 2 7 4 112 63 178


122 Enterprises that declared they encountered only one problem



120


the costs human resources involved and loss turnoverprofit) represented in the total costs suffered by the company by sector ( of respondents 122)

Sector Below 50 50 to 80 Above 80 100123 Total


26 74 0 0 5 14 4 11 35


20 56 0 0 0 0 16 44 36

Manufacturing 30 64 3 6 0 0 14 30 47


39 65 8 13 1 2 12 20 60

Wholesale and retail

trade repair of motor vehicles and motorcycles

29 57 0 0 12 24 10 20 51

Total 144 63 11 5 18 8 56 24 229



costs suffered by the company by size class ( of respondents 122) Below 50 Between 50 -


Micro 7 28 0 0 2 8 16 64 25

Small 10 42 0 0 1 4 13 54 24

Medium 38 52 4 5 4 5 27 37 73

Total 55 45 4 3 7 6 56 46 122



remedy the second most serious problem by sector size or country level


present the differences by country size and sector of the distribution of enterprises that

experienced the various costs while resolving the second most serious contract-related cloud

computing problem

Table 50 Number and of enterprises in which human resources were invested while

taking action to resolve or remedy the second most serious problem by country and skill

level of employee ( of respondents 55)


Senior officersmanager(s)

CZ 0 0 1 33 2 67

DE 5 45 9 82 3 27

EE 3 100 3 100 1 33

ES 1 33 2 67 1 33

FR 4 36 7 64 4 36

IE 1 33 2 67 1 33

IT 2 40 3 60 1 20

123 Enterprises that declared they encountered only one problem 124 Enterprises that declared they encountered only one problem



121


Senior

officersmanager(s)

NL 1 100 1 100 1 100

PL 2 40 5 100 0 0

PT 1 50 1 50 2 100

RO 0 0 0 0 0 0

SE 3 43 5 71 2 29

Total 23 39 18



were invested while taking action to resolve or remedy the second most serious problem

by sector and skill level of employee ( of respondents 55)


Senior

officersmanager(s)


activities 3 50 4 67 2 33





Wholesale and retail trade


5 42 7 58 5 42

Total 23 39 18


Table 52 Number and of total enterprises that faced problems in which human resources were invested while taking action to resolve or remedy the second most serious problem

by size class and skill level of employee ( of respondents 55)


Senior officers

manager(s)

Micro 3 38 5 63 2 25

Small 10 63 13 81 6 38

Medium 10 32 21 68 10 32

Total 23 39 18



(besides human resources) while taking action to resolve or remedy the second most serious problem by country and type of costs ( of respondents 55)

Co

un

try Costs

related to

ensuring an

alternative service

Costs

related to

fixing the cloud

service problem

Legal costs

Costs related

to reputation damage

Costs

related to loss of

client(s)

Other

costsnone



122

CZ 0 0 0 0 0 0 0 0 0 0 3 100

DE 5 45 4 36 3 27 3 27 3 27 9 82

EE 0 0 2 67 0 0 0 0 0 0 1 33

ES 1 33 0 0 0 0 0 0 0 0 2 67

FR 6 55 5 45 5 45 5 45 5 45 10 91

IE 1 33 0 0 0 0 0 0 0 0 2 67

IT 2 40 1 20 1 20 1 20 2 40 3 60

NL 0 0 0 0 0 0 0 0 0 0 1 100

PL 0 0 1 20 1 20 1 20 1 20 2 40

PT 1 50 0 0 0 0 1 50 1 50 0 0

RO 1 100 1 100 1 100

1 100 1 100 1 100

SE 1 14 2 29 1 14 2 29 2 29 5 71

Total 18 16 12 5 14 15


Table 54 Number and of total enterprises that faced problems that have incurred costs (besides human resources) while taking action to resolve or remedy the second most

serious problem by sector and type of costs ( of respondents 55)

Sector

Costs

related to ensuring

an alternative service

Costs



Legal costs


damage

Costs related to

loss of client(s)

Other costs

none


activities 1 17 1 17 2 33 1 17 1 17 5 83

Information and commun

3 30 3 30 1 10 2 20 2 20 6 60

manufacturing 4 25 5 31 4 25 4 25 4 25 15 94

Profess scientific and technical

activities

7 64 6 55 5 45 6 55 6 55 7 64



3 25 1 8 0 0 1 8 2 17 6 50

Total 18 16 12 5 14 15




123


(besides human resources) while taking action to resolve or remedy the second most serious problem by enterprise size class and type of costs ( of respondents 55)

Size class


an alternative

service



Legal

costs

Costs related to

reputation damage

Costs related to

loss of client(s)

Other

costsnone

Micro 3 19 4 25 2 13 0 0 2 13 2 13

Small 12 39 8 26 7 23 0 0 9 29 10 32

Medium 3 38 4 50 3 38 5 63 3 38 3 38

Total 18 16 12 5 14 15


Table 56 Number and of total enterprises that faced problems that reported loss of turnover or profit caused by the second most serious problem encountered by size class (

of respondents 55)


Micro 0 0 1 13

Small 5 31 5 31

Medium 2 6 2 6

Total 7 8


Table 57 Number and of total enterprises that faced problems that reported loss of turnover or profit caused by the second most serious problem encountered by sector ( of

respondents 55)



1 17 1 17






of motor vehicles and motorcycles Total

2 17 2 17

Total 7 8


Distribution of enterprises that have been provided any kind of redress for the damage caused

by the contract-related cloud computing problems by sector size or country level


present the differences by country size and sector of the distribution of enterprises that have

been provided any kind of redress for the damage caused by the contract-related cloud

computing problems



124


any kind of redress for the damage caused by country and type of redress ( of respondents 55)

Country

Financial

compensation


subscription Other

The company did not offer any

redress

CZ 1 33 0 0 0 0 2 67

DE 0 0 0 0 0 0 11 100

EE 0 0 0 0 0 0 3 100

ES 0 0 0 0 0 0 3 100

FR 1 9 0 0 0 0 10 91

IE 0 0 0 0 0 0 3 100

IT 0 0 0 0 0 0 5 100

NL 0 0 0 0 0 0 1 100

PL 0 0 1 20 0 0 4 80

PT 0 0 1 50 0 0 1 50

RO 0 0 0 0 0 0 1 100

SE 0 0 1 14 0 0 6 86

Total 2 3 0 50


Table 59 Number and of total enterprises that faced problems that have been provided any kind of redress for the damage caused by sector and type of redress


Country

Financial

compensation


subscription Other



2 33 0 0 0 0 4 67

Information and

communication 0 0 0 0 0 0 10 100


Professional

scientific and

technical activities

0 0 1 9 0 0 10 91


0 0 1 8 0 0 10 83

Total 2 3 0 50




125

Table 60 Number of enterprises that have been provided any kind of redress for the

damage caused by size class and type of redress ( of respondents 55)

Country

Financial

compensation


subscription Other


Micro 0 0 2 13 0 0 14 88

Small 2 6 0 0 0 0 29 94

Medium 0 0 1 13 0 0 7 88

Total 2 3 0 50


Distribution of loss of turnover by sector size or country level

Having estimated the different components of turnover Table 61 to Table 63 present the loss

of turnover in enterprises by country size and sector caused by the contract-related cloud

computing problems documenting significant differences

Table 61 Loss of turnover per enterprise by sector

Sectors

Number of

enterprises ()

95 Trimmed mean125

(euro)

Average

(euro)






Total 122 41954 985869


Table 62 Loss of turnover per enterprise by size class

Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 25 023 4217

Small 24 271159 1119043

Medium 73 99060 1278261

Total 122 41954 985869


Table 63 Loss of turnover per enterprise by country

Country Number of enterprises

()

95 Trimmed mean

(euro)

Average

(euro)

CZ 7 000 000

DE 19 160819 894737

EE 5 117 140

125 A trimmed mean is a method of averaging that removes a small designated percentage of the largest and smallest values before calculating the mean



126


()

95

Trimmed mean

(euro)

Average

(euro)

ES 11 000 000

FR 22 742424 3009091

IE 4 4583333 5125000

IT 13 192308 423077

NL 6 3889 5000

PL 13 000 000

PT 3 000 000

RO 1 000 000

SE 18 100166 613600

Total 122 41954 985869


Distribution of loss of profits by sector size or country level

Table 64 to Table 66 present the loss of profits by country enterprise size and sector caused

by the contract-related cloud computing problems once again documenting significant

differences

Table 64 Loss of profits per enterprise by sector

Sector


()

95

Trimmed mean

(euro)

Average

(euro)






Total 122 17690 191346


Table 65 Loss of profits per enterprise by size class

Size class

Number of

enterprises

()

95

Trimmed mean

(euro)

Average

(euro)

Micro 25 063 5742

Small 24 38235 50293

Medium 73 18681 301282

Total 122 17690 191346


Table 66 Loss of profits per enterprise by country


()

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 000 000

DE 19 877 15789

EE 5 200 240

ES 11 000 000



127


()

95

Trimmed mean

(euro)

Average

(euro)

FR 22 161111 613182

IE 4 152778 162500

IT 13 14957 38462

NL 6 17315 18583

PL 13 000 000

PT 3 000 000

RO 1 000 000

SE 18 221012 460637

Total 122 17690 191346


Distribution of working days per enterprise involved in resolving the problem by sector size

or country level

Table 67 to Table 69 present the distribution of working days per enterprise involved in

resolving the problem caused by the contract-related cloud computing problems by country

size and sector again documenting significant differences

Table 67 Human resources invested - working days per enterprise involved in resolving the problem by sector

Sector


()

95 Trimmed

mean

( days)

Average

( days)






Total 122 322 721


Table 68 Human resources invested - working days per enterprise involved in resolving the problem by size class

Size class

Number of

enterprises

()

95

Trimmed mean

( days)

Average

( days)

Micro 25 300 404

Small 24 236 258

Medium 73 368 982

Total 122 322 721




128

Table 69 Human resources Invested - working days per enterprise involved in resolving the

problem by country

Country


()

95 Trimmed

mean

( days)

Average

( days)

CZ 7 226 229

DE 19 471 1074

EE 5 222 220

ES 11 631 718

FR 22 282 395

IE 4 094 100

IT 13 315 338

NL 6 4057 5117

PL 13 286 308

PT 3 300 700

RO 1 200 200

SE 18 251 361

Total 122 322 721


Distribution of other costs covered per enterprise by sector size or country level

Table 70 to Table 72 present the other costs covered per enterprise to resolve the contract-

related cloud computing problems by country size and sector documenting again significant

differences

Table 70 Other costs covered per enterprise by sector

Sector


()

95

Trimmed mean

(euro)

Average

(euro)






Total 122 34124 371871


Table 71 Other costs covered per enterprise by size class

Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 25 2278 10725

Small 24 178472 389792

Medium 73 39973 489660

Total 122 34124 371871




129

Table 72 Other costs covered per enterprise by country

Country

Number of

enterprises

()

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 387 535

DE 19 183333 665000

EE 5 6111 7000

ES 11 115657 229091

FR 22 682 50659

IE 4 166667 175000

IT 13 184615 416154

NL 6 15935 16917

PL 13 14575 37479

PT 3 3333 3333

RO 1 000 000

SE 18 332811 1241741

Total 122 34124 371871


Distribution of the total value of redress received per enterprise by sector size or country

level

Table 73 to Table 75 present the total value of redress received per enterprise for contract-

related cloud computing problems by country size and sector

Table 73 Total value of redress received per enterprise by sector

Sector

Number of

enterprises

()

95 Trimmed

mean

(euro)

Average

(euro)






Total 122 095 6042


Table 74 Total value of redress received per enterprise by size class

Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 0 000 00

Small 0 000 00

Medium 7 17120 57096

Total 122 095 6042




130

Table 75 Total value of redress received per enterprise by country


(euro)

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 1867 5354

DE 19 000 000

EE 5 000 000

ES 11 000 000

FR 22 000 13636

IE 4 000 000

IT 13 1346 3462

NL 6 000 000

PL 13 2504 3123

PT 3 000 000

RO 1 000 000

SE 18 1939 17448

Total 122 095 6042


Costs or labour per working day by sector and country level

Table 76 Cost of labour per working day (euro per day per worker)

Country Manufacturing


trade repair of

motor vehicles and motorcycles

Information and

communication

Professional


Administrative

and support service

activities

Total

economy

AT 2089 1323 2194 1331 1201 1616

BE 2285 1512 2294 1363 1190 1670

BG 705 691 1435 471 622 665

CY 705 691 1435 471 622 665

CZ 544 408 930 469 352 500

DE 2069 1080 2070 1568 821 1503

DK 1978 1601 2248 2281 1580 1871

EE 616 522 861 538 458 577

EL 721 434 945 307 407 505

ES 1352 827 1912 1072 725 1028

FI 1929 1366 2186 1764 1083 1639

FR 2055 1526 2487 2163 276 1791

HR 452 405 692 275 327 410

HU 506 336 662 368 309 424

IE 1967 1281 2605 2163 1189 1493

IT 1407 772 1702 659 840 1052

LT 383 305 627 317 317 351

LU 2204 1754 2862 2942 1192 2097

LV 969 315 590 333 276 347

MT 405 475 1017 333 571 477

NL 2083 1087 1970 1499 688 1286

PL 456 303 626 332 385 391



131


Wholesale

and retail trade

repair of motor

vehicles and motorcycles

Information

and communication




service activities

Total

economy

PT 640 524 1106 385 330 547

RO 290 236 576 333 230 287

SE 2197 1675 2618 2088 1259 1922

SI 871 731 980 523 546 762

SK 551 368 810 404 314 470

UK 1745 1047 2230 1989 1146 1455

EU 28 1491 1774 3687 1695 511 1118

Note Costs were computed as (INDIC_SB - Personnel costs - million euroINDIC_SB - Persons employed - number)260

Source Eurostat

Distribution of the overall components of financial detriment by sector and size class in the

different scenarios

The following tables present the distribution of the estimated components of financial

detriment by sector and enterprise size class for the different scenarios showing relevant

differences across those dimensions

Table 77 Lost turnover at the EU-28 level in SMEs experiencing cloud computing service problems

Scenario 1

(average incidence126 of CC

use 159)

Scenario 2 (average incidence of CC use 499)

(euro million)

Secto

r


Wholesale and retail trade repair of motor vehicles

and motorcycles 240 728




Total 2446 7691

Siz

e

cla

ss Micro 1405 4402

Small 598 1866

Medium 442 1423

Total 2446 7691


126 Average percentage of cloud computing services used



132

Table 78 Lost profits at the EU28 level in SMEs experiencing cloud computing service

problems


(Scenario 2 (average incidence of CC use 499)

(euro million)

Secto

r



114 345




Total 1031 3243

Siz

e

cla

ss Micro 602 1887

Small 255 792

Medium 174 564

Total 1031 3243


Table 79 Costs of human resources invested in resolving the problem in SMEs experiencing cloud computing service problems at the EU28 level

Scenario 1


Scenario 2


(euro million)

Secto

r



474 1511




Total 2099 6600

Siz

e

cla

ss Micro 1961 6167

Small 97 295

Medium 41 138

Total 2099 6600


Table 80 Other costs covered by SMEs experiencing cloud computing service problems at the EU28 level

Scenario 1


Scenario 2


(euro million)

Secto

r



959 2996




Total 1989 6255



133

Scenario 1


Scenario 2


(euro million)

Siz

e

cla

ss Micro 1450 4555

Small 449 1401

Medium 90 300

Total 1989 6255


Table 81 Total value of redress received by SMEs experiencing cloud computing service problems at the EU28 level

Scenario 2


Scenario 1


(euro million)

Secto

r

Manufacturing 00 00






Total 06 17

Siz

e

cla

ss Micro 02 06

Small 00 00

Medium 04 11

Total 06 17


Figure 27 Distribution by component of gross detriment considering lost turnover and all the other costs incurred


Scenario 1 (average incidence of cloud computing use 159)




134

Figure 28 Distribution by sector of gross detriment considering lost turnover and all other

costs incurred


Figure 29 Distribution by enterprise size class of gross detriment considering lost turnover

and all other costs incurred




Scenario 1





135

Figure 30 Distribution by country of gross detriment considering lost turnover and all other

costs incurred




136

Annex 7 Impacts on jobs and growth detailed results

Inputs for the assessment of macroeconomic impacts

The following two tables present the results of the estimation of turnover losses by industry

and country in the two scenarios that are used as inputs on assessment of impacts on jobs

and growth

Table 82 Turnover losses arising from contract-related cloud computing service problems - Scenario 1 considering average incidence of CC use 159 (euro million)

Co

un

try

Manufacturing


trade repair of

motor

vehicles and

motorcycles

Information

and communication

Professional

scientific



service

activities

Total

AT 06 02 00 01 10 19

BE 54 01 00 01 50 106

BG 02 00 00 00 05 07

CY 08 03 01 05 44 61

CZ 40 68 19 69 80 275

DE 02 06 02 06 03 21

DK 41 29 09 36 138 254

EE 92 86 09 69 136 392

EL 62 02 01 01 108 173

ES 07 00 00 00 85 92

FI 13 02 01 02 29 47

FR 15 01 00 00 35 51

HR 39 02 00 01 189 231

HU 05 01 00 01 08 15

IE 18 01 01 02 105 128

IT 14 06 04 12 38 73

LT 03 01 00 01 15 19

LU 23 09 01 08 39 81

LV 12 05 01 02 18 37

MT 01 00 00 00 03 05

NL 02 01 00 01 08 11

PL 00 00 00 00 03 03

PT 12 03 01 04 41 61

RO 01 00 00 00 02 03

SE 04 01 00 01 13 20

SI 07 02 01 02 20 32

SK 05 01 00 01 08 15

UK 25 07 06 11 162 211

EU28 515 240 59 237 1395 2446

Note values refer to the turnover losses estimated by country and sector that are used in the assessment of impacts The total value is the estimate of total turnover loss in this scenario

Source Survey of SMEs (2018) and Eurostat



137

Table 83 Turnover losses arising from contract-related cloud computing service problems -

Scenario 2 considering average incidence of CC use 499 - (euro million)

Co

un

try

Manufacturing


trade repair of

motor vehicles

and motorcycle

s

Information and

communication

Profession

al scientific


Administrative and

support service

activities

Total

AT 17 05 01 03 35 61

BE 156 03 01 02 172 333

BG 05 00 00 00 17 22

CY 22 09 03 13 144 191

CZ 112 211 57 198 288 866

DE 07 18 07 20 12 65

DK 110 91 26 98 474 800

EE 278 256 30 218 452 1234

EL 168 05 02 02 366 544

ES 18 01 00 00 271 290

FI 37 07 02 05 96 147

FR 42 02 00 01 115 160

HR 113 06 01 02 605 728

HU 15 03 01 02 27 48

IR 50 04 02 06 340 402

IT 38 19 11 32 129 230

LT 07 02 01 02 48 61

LU 66 29 03 23 135 256

LV 33 15 02 06 62 117

MT 04 01 00 01 10 16

NL 07 02 01 02 25 36

PL 01 01 00 01 08 11

PT 32 09 04 10 136 191

RO 02 01 00 01 07 10

SE 12 03 01 03 45 62

SI 19 06 02 07 67 101

SK 13 02 01 03 27 46

UK 67 19 16 31 530 663

EU28 1450 728 175 694 4645 769

1

Note values refer to the turnover losses estimated by country and sector that are used in the

assessment of impacts The total value is the estimate of total turnover loss in this scenario




138

Parameters for the assessment of macroeconomic impacts

Table 84 Output per unit of GVA by sector

(euro value of turnover by euro of GVA ndash average values 2014 - 2016)



repair of motor vehicles

and motorcycles

Information and

communication

Professional


Administrative

and support service

activities

AT 31 18 22 20 15

BE 41 20 22 21 20

BG 44 20 19 22 24

CY 33 17 30 15 16

CZ 38 21 19 25 29

DE 29 17 19 17 16

DK 27 18 21 19 21

EE 40 19 19 19 18

EL 36 19 20 18 22

ES 40 18 20 18 18

FI 35 19 20 18 17

FR 33 20 19 22 17

HR 29 19 19 18 20

HU 40 21 17 16 18

IE 24 18 39 19 19

IT 38 19 22 17 21

LT 30 14 16 16 17

LU 37 30 49 20 80

LV 32 18 19 17 21

MT 33 16 26 23 19

NL 41 17 20 19 15

PL 36 16 20 17 20

PT 38 16 22 21 16

RO 28 26 18 22 21

SE 30 16 20 18 18

SI 31 19 21 19 17

SK 46 20 20 24 26

UK 29 18 17 16 18

Note Values refer to the GVA content of the direct turnover losses caused by contract-related cloud computing service problems Values are computed by dividing the estimated turnover losses by the

coefficients of GVA at sector and country level taken from Eurostat

Source SMEs survey (2018) and Eurostat National accounts aggregates by industry (up to NACE A64) [nama_10_a64]



139

Table 85 Output per unit of employment by sector

(euro million of turnover by thousand persons employedndash average values 2014 - 2016)



trade repair of motor


Information

and communication

Professional

scientific and


Administrati

ve and support service

activities

AT 2789 1006 2094 1227 864

BE 4293 1566 2999 1533 788

BG 453 197 499 306 160

CY 871 468 2187 814 414

CZ 1106 466 1047 625 485

DE 2414 780 2031 1060 721

DK 3251 1214 2246 1564 1118

EE 967 497 740 712 626

ES 2754 616 1770 858 474

FI 3160 1078 2014 1100 748

FR 2862 1077 2263 1650 898

GR 1643 392 1263 416 476

HR 603 364 702 652 432

HU 1137 320 658 384 255

IR 8130 1091 11774 1822 2848

IT 2329 899 2006 977 754

LT 944 378 711 406 303

LU 2988 3000 8840 1977 4646

LV 689 378 648 389 387

MT 1084 513 1866 1264 617

NL 3923 1047 2190 1314 556

PL 862 467 824 646 378

PT 1151 537 1397 648 275

RO 584 323 917 958 337

SE 3272 1189 2874 1706 955

SI 1236 647 1072 609 354

SK 1452 456 962 760 485

UK 2550 910 1750 1080 708

Note These values express the value of output that is produced by one employee in each industry For instance each worker in manufacturing in Belgium produces and output of euro4293 thousand Source Eurostat national accounts aggregates by industry (up to NACE A64) [nama_10_a64]



140

Detailed results of the assessment of macroeconomic impacts

Table 86 Direct gross value added content of the losses of turnover caused by contract-

related cloud computing service problems ndash Scenario 1 considering average incidence of CC use 159

Co

un

try

Sectors

Manufact

Wholesale

and retail trade repair

of motor vehicles and motorcycles

Information and

communication

Professional


Admin and

support service

activities

Total

(

of ctry

GVA)

(euro million)

AT 02 01 00 01 13 18 000

BE 02 02 00 02 22 29 000

BG 03 02 00 01 08 14 000

CY 00 00 00 00 02 03 000

CZ 14 00 00 00 18 33 000

DE 14 17 05 21 85 143 000

DK 01 00 00 00 07 09 000

EE 00 00 00 00 03 03 000

EL 07 05 01 05 18 34 000

ES 10 01 00 00 107 118 000

FI 01 00 00 01 08 10 000

FR 12 33 10 31 47 133 000

HR 02 00 00 00 04 07 000

HU 03 01 01 02 23 31 000

IE 01 03 01 03 02 10 000

IT 24 44 04 41 64 178 000

LT 02 01 00 01 06 10 000

LU 00 00 00 00 00 01 000

LV 01 00 00 00 04 05 000

MT 00 00 00 00 01 02 000

NL 04 01 00 01 69 76 000

PL 17 01 00 00 55 74 000

PT 02 00 00 00 54 55 000

RO 05 00 00 00 17 23 000

SE 05 04 02 06 21 38 000

SI 02 00 00 01 05 07 000

SK 03 01 00 01 11 16 000

UK 09 04 03 07 89 112 000

To

tal

EUR

million 146 126 30 128 761 1191

of

total 000 000 000 na 001 000



Source SMEs survey (2018) and Eurostat national accounts aggregates by industry (up to NACE A64) [nama_10_a64]



141

Table 87 Direct employment content of the losses of turnover caused by contract-related

cloud computing service problems Scenario 1 considering average incidence of CC use 159

Co

un

try

Sector

Manufact


trade repair


Information

and communication



Admin

and support service

activities

Total ( of

ctry GVA)

(euro million)

BE 2 2 0 3 56 63 000

BG 26 25 1 7 112 171 001

CZ 49 2 0 1 103 155 000

DK 1 1 0 1 13 15 000

DE 17 38 5 34 191 285 000

EE 2 0 0 0 9 10 000

EL 14 24 1 19 83 141 000

IE 0 6 0 4 1 11 013

ES 14 3 0 1 398 417 000

HR 9 3 0 1 18 31 000

IT 39 96 5 71 180 391 002

CY 2 1 0 0 7 10 000

LV 4 2 0 2 19 27 001

LT 6 5 0 3 34 48 001

LU 0 0 0 0 1 1 000

HU 10 9 2 10 161 192 001

MT 1 0 0 0 3 5 000

NL 5 1 0 2 189 197 000

AT 3 2 0 2 23 30 000

PL 72 4 1 1 286 363 000

PT 6 0 0 0 311 317 000

RO 25 2 0 0 104 132 000

SI 4 1 0 2 23 29 001

SK 9 5 1 2 59 76 001

FI 1 1 0 1 18 21 000

SE 4 5 1 7 40 57 001

UK 10 7 3 10 229 260 000

To

tal Persons 348 306 31 225 2761 3672

of

total 000 000 000 000 002 000

Note Values refer to the employment content of the direct turnover losses caused by contract-related cloud computing service problems Values are computed by dividing the estimated turnover losses by

the coefficients of employment at sector and country level taken from Eurostat




142


related cloud computing service problems Scenario 2 considering average incidence of CC use 499 - euro million

Co

un

try

Sector

Manufact


repair of

motor vehicles and

motorcycles

Information

and communication



Admin

and support service

activities

Total

(

of ctry

GVA)

AT 06 04 01 03 43 57 000

BE 05 05 01 06 74 91 000

BG 07 08 01 03 26 45 001

CY 01 01 00 00 06 09 001

CZ 41 01 00 01 60 104 001

DE 38 53 13 57 293 455 000

DK 03 01 01 01 23 29 000

EE 01 00 00 00 10 11 001

EL 18 15 02 13 60 108 001

ES 28 03 00 01 342 376 000

FI 03 01 00 02 26 33 000

FR 33 104 30 90 169 427 000

HR 05 02 00 01 13 22 001

HU 08 04 02 06 77 98 001

IE 03 10 02 11 06 32 000

IT 73 132 14 129 211 560 000

LT 06 04 00 02 21 33 001

LU 00 00 00 00 01 02 000

LV 02 01 00 01 12 16 001

MT 01 00 00 00 03 05 001

NL 12 02 01 03 224 242 000

PL 46 03 01 01 186 237 001

PT 05 00 00 00 170 175 001

RO 15 01 00 00 56 72 001

SE 13 12 06 18 73 121 000

SI 04 01 00 02 16 23 001

SK 08 03 01 02 37 52 001

UK 23 10 09 19 292 354 000

To

tal

EUR

million 411 382 88 375 2532 3788

of

total 000 000 000 na 004 000






143

Table 89 Direct Employment content of the losses of turnover caused by contract-related


Co

un

try

Sector

Manufac

t


trade repair of

motor vehicles

and motorcy

cles

Informati

on and communi

cation

Professio

nal scientific


Admin and

support service

activities

Total ( of ctry

employment)

(Persons)

AT 7 6 1 6 77 97 000

BE 5 6 1 8 183 203 000

BG 72 76 4 19 384 555 002

CY 4 3 0 1 24 31 001

CZ 141 6 1 3 356 506 001

DE 46 117 13 93 657 925 000

DK 2 2 1 1 43 49 000

EE 5 0 0 0 28 33 001

EL 40 73 3 56 284 455 001

ES 41 10 0 3 1277 1331 001

FI 4 2 0 2 60 69 000

FR 39 196 25 120 321 701 000

HR 24 8 1 4 63 99 001

HU 28 28 5 27 535 623 001

IE 1 17 1 11 4 33 000

IT 119 284 15 223 599 1242 001

LT 18 14 1 8 116 157 001

LU 0 0 0 0 2 3 000

LV 10 5 1 4 65 85 001

MT 2 1 0 1 11 15 001

NL 13 4 1 5 612 634 001

PL 195 11 2 4 970 1182 001

PT 16 1 0 1 986 1004 002

RO 72 6 0 1 342 420 000

SE 12 16 4 19 136 186 000

SI 11 3 1 5 78 97 001

SK 25 14 2 7 199 247 001

UK 26 21 9 29 749 834 000

To

tal

Persons 977 930 92 660 9157 11816

of total 000 000 000 000 006 001






144

Table 90 Indirect loss of gross value added at EU28 level by sector

Scenario 1

(average incidence of CC

use 159)

Scenario 2


use 499)

(euro million)

Agriculture forestry and fishing 20 59

Mining and quarrying 09 27


Electricity gas steam and air conditioning supply 22 68

Water supply sewerage waste management and remediation activities 13 39

Construction 20 64

Wholesale and retail trade repair of motor vehicles and motorcycles 98 301

Transportation and storage 76 237

Accommodation and food service activities 18 59


Financial and insurance activities 66 207

Real estate activities 72 226



Public administration and defence compulsory social security 11 33

Education 10 33

Human health and social work activities 02 07

Arts entertainment and recreation 05 17

Other service activities 10 33

Activities of households as employers undiff goods- and services-

producing activities of households for own use 00 00

Total euro million 987 3079

of EU28 total 000 000

Note Values refer to the GVA content of the indirect turnover losses caused by contract-related cloud computing service problems Values are computed by dividing the estimated indirect turnover losses

by the coefficients of GVA at EU sector level taken from Eurostat


Table 91 Indirect loss of Employment at EU28 level by sector

Scenario 1 (average

incidence of CC use 159)

Scenario 2 (average


(Persons)






Construction 43 135









145

Scenario 1


use 159)

Scenario 2


use 499)

(Persons)




Education 26 82




Activities of households as employers undiff goods- and services-producing activities of households for own use

1 2

Total Persons 1733 5402


Note Values refer to the employment content of the indirect turnover losses caused by contract-

related cloud computing service problems Values are computed by dividing the estimated indirect turnover losses by the coefficients of employment at EU sector level taken from Eurostat




146

Annex 8 Case study questionnaires by stakeholder type

EY Interview Guide ndash Cloud computing contracts (service providers and cloud

brokers)

Introduction

Welcome to the interview person

Thank you for joining over the phone

Introduction of the persons present in the call

Introduction of the topic

We are currently conducting a study on cloud computing services More specifically we are

looking into to what extent SMEs use this type of service and whether they encounter

problems in using these services

For the purpose of this study cloud computing is considered as ldquoa model for enabling

ubiquitous convenient on-demand network access to a shared pool of configurable

computing resources (eg networks servers storage applications and services) that can

be rapidly provisioned and released with minimal management effort or service provider

interactionrdquo

As part of the study an SME survey was conducted to get a better understanding of the

incidence and the scope of problems encountered with this type of service In order to

complement and to get a better understanding of the results we obtained from the survey

we also want to get a better understanding of the services offered to SMEs by providers and

what types of problems are notified to providers

Timing 2 min

General introduction questions

General questions to the person being interviewed

Generate understanding of the position and knowledge of the interviewee on the specific subject and

check whether this is the best representative to interview from the national authority

Can you tell a bit more about yourself and what position do you hold

Can you reply to our questionnaire and if not can you put us in contact with somebody who can

Can you tell us a little more about the cloud computing provider you work for What type of services do you offer

What can you tell us about the contracts being offered by the cloud computing provider to SMEs

Elements to be evaluated

Understanding of the function Understanding if the person is competent enough to give relevant answers to the topic in

question Understanding of the extent of knowledge that the person has of cloud computing contracts

and company

Timing 05 min



147

Services offered to SMEs and differences compared to services offered to larger enterprises

Cloud computing services offered to SMEs

The objective of this section is to get full understanding of whether and how the provider considers

SMEs as a specific type of customer

What kind of cloud computing contracts do you offer To what extent do SMEs rely on this service What is the size of the SMEs to which you provide this service Do you offer services for micro enterprises and what is the difference between the service

offered to micro and larger enterprises

Do you offer this service based on a fee or for free

How flexible are you on the contracts that you offer in terms of negotiating Do you have standard terms amp conditions for SMEs or are they negotiable Do companies tend to negotiate the terms of the contract or are they satisfied with the service

offered in the contract To what extent can SMEs monitor the performance of the contract

Elements to be discussed

Understanding of the company and type of services offered Understanding if and how SMEs are considered as a specific category of customer Knowledge and understanding on the type of the service used paid or not by SME customers

Knowledge and understanding of the whether the contracts are negotiated or not

Timing 10 min

Complaints received and actions taken by the provider to address the issues encountered

Complaints received from SMEs concerning the services provided

Objective is to get an understanding of the number and scope of complaints that providers receive and to what extent SME complaints are different from other complaints received

How often do you receive complaints from SME customers Compared to other customers is this higher or lower

What types of complaints do you receive from SMEs (different from other groups) Which was the most serious problem encountered that you received a complaint about and to

which type of cloud computing service was it related What caused these problems What is the internal procedure to handle these problems In the past 12 months did you receive complaints not directly from customers but through

3rd party complaints-handling bodies

To what extent was this complaint different from other complaints you received directly from customers


Understanding of the types of complaints received from SMEs Understanding of severity and frequency of complaints received from SMEs

Taking into account both the type of problem most often encountered and its frequency the following problems appear as most relevant

Low speed of services Unsatisfactory availability or discontinuity of the service

Forced updates to the service that eliminated or changed a necessary function



148

Lack of clarity and transparency of contract terms and conditions

Timing 10 min

Specific actions taken by provider in order to address the problems

What is the standard procedure to handle complaints To what extent do you as cloud computing provider provide assistance to the SMEs when they

encounter a problem

How much time does it in general take to solve issues encountered by SMEs (in line with other complaints handled for other customers)

When encountering a problem in general what type of action do SMEs expect you as provider to take

Have you experienced that consumers easily switch provider or terminate the contract Does

this happen more often after they have filed a complaint

What types of costs do you compensate to SME customers when they encounter a problem Do customers in general accept the offered remedies Have you encountered cases where the

SME customer was not happy with the solution offered What other solutions were offered in place

Did the complaint escalate Any court proceedings arbitrationhellip


Understanding of the actions taken by the cloud computing provider Were these remedies enough to solve the problem The resources involved and used in the resolving of the problem

Where there any extra costs covered by the company

Timing 10 min

Future perspectives on the topic

How will Cloud computing services for SMEs and the legal framework evolve in the future

To what extend do you think cloud computing services will become moreless important in the future

Is there a need for nationalEuropean authorities to work more on this topic Is the current legal framework sufficient Will some further adjustments need to be made due

to further evolutions of the cloud computing landscape

Do you see any other evolutionstrends that could be relevant with regard to cloud computing services for SMEs


Further evolution of the field of cloud computing services

Legalpolicy consequences of potential future evolutions

Timing 5 min

Closing of interview

Thank you for your interest and for your time

Any further questions

Timing 2 min



149

EY Interview Guide ndash Cloud computing contracts (Associations of SMEs)

D Introduction




Timing 2 min


Generate understanding of the position and knowledge of the interviewee on the specific subject

Can you tell a bit more about the types of activities that the companies in your association

are performing

Timing 05 min

Cloud computing services used (IT)

The objective of this section is to get full understanding of what cloud computing services are used for by the members of the SME associations

Are you aware of any of the following Cloud Computing services being used by SMEs

Collaboration and communication services Storage and hosting services Security services

Networking services

Data management Business applications

Are you aware of any other cloud computing services being used by SMEs

Timing 5 min

Type of contracts (legal)

The objective of this section is to get full understanding of what kind of contract the SMEs which are part of the association have

What type of cloud computing contract do the companies in your association have (with or

without remuneration if with remuneration- how much do they pay per month) What is the average duration of the contracts

Do the companies in your association have a preferred provider or type of package of services Do the companies in your association negotiate their cloud computing contracts What parts

are they able to negotiate if any Are the companies in your association satisfied with the degree of customisation of the

contracts What specific needs do the companies in your association have regarding cloud computing

Do they succeed in covering them in the process of negotiating cloud computing contracts with the providers of cloud computing services

Timing 10 min

Problems encountered (legalIT)



150

Objective is to get a better understanding of the problems encountered by the members of SME associations while contracting cloud computing services

Are you aware of any of the following problems existing with cloud computing services used by SMEs

low speed of the service unsatisfactory availability or discontinuity of the service forced updates to the service that eliminated or changed a necessary function

lack of clarity and completeness of the instructions and information regarding access andor download of the cloud service

lack of clarity and transparency of contract terms and conditions

Are you aware of any other problems existing with cloud computing services used by SMEs

What was the action taken by companies inside your association in order to resolve the issues

Do the companies in your association usually decide to take legal action

Do you believe that unfair contract terms and conditions of the cloud provider could be considered as

a cause of the problems of the companies that are members in your association

Why you diddid not consider security matters as one of the problems declared

Timing 15 min

Costs of the cloud computing services contract (legalIT)

Objective is to get an understanding of the costs sustained by the members of the SME associations while contracting cloud computing services

Would you consider that there have been any negative effects on the everyday business

activities of the companies in your association after facing the mentioned problem If yes please explain what the negative effects were

What types of costs have the companies sustained while resolving the problems Were they offered any compensation from the cloud provider

Timing 5 min


How will the SMEs use the cloud computing services in the future

To what extend do you think cloud computing services will become moreless important for companies in the future

Do you see any other evolutionstrends that could be relevant with regard to cloud computing

services for SMEs

Timing 5 min




Timing 5 min



151

EY Interview Guide ndash Cloud computing contracts (National authorities and national

SMEs envoys)

E Introduction






looking into the extent to which SMEs use this type of service and whether they encounter






interactionrdquo

More concretely the following services are included collaboration and communication

services storage and hosting services security service networking services data

management business applications service and support tools cloud enablement and IT

operations virtual data centre mobile data centre

As part of the study an SME survey was conducted Results of the survey show that the

incidence of problems is relatively high in ltyour countrygt The objective of this interview is

to get a better understanding of the national context with regard to this subject

Timing 5 min



Generate understanding of the position and knowledge of the interviewee on the specific subject and check whether this is the best person to interview within the national authority

Can you tell a bit more about yourself and what position do you hold To what extent are you familiar with the subject of cloud computing services


Understanding of the function Understanding if the person is competent to give relevant answers to the problematic in

question Understanding of the extent that the person has of cloud computing contracts

Timing 05 min

Legal framework of cloud computing contracts

Cloud computing contracts in ltyour countrygt

Generate understanding of the overall situation in the country policy attention given to the subject and the specific legal framework applicable

Cloud computing services are a relative new service To what extent are national authorities working on this issue

Any data available



152

Knowledgeawareness of the availability of these services in ltyour countrygt

Specific attention for this topic at policy level

Under what applicable legal framework do these services fall Are there specific national initiatives developed with regard to this type of services

Our study focuses specifically on the situation of cloud computing services used within SMEs Do you have any knowledge of the existence of specific rules applicable only to SMEs in your country

Do you think the legal framework is sufficiently protecting cloud computing users and more

specifically SMEs Do you think that Terms amp Conditions are clear for SMEs Should they have specific rules for

this group of customers What is (or should be) the possibility of SMEs to monitor performance of contract Terms and

Conditions

What remedies are at SMEsrsquo disposal Is switching providers a remedy


Knowledge and understanding of the specific sector Knowledge and understanding of the extent that these services are used

Knowledge and understanding of the legal framework applicable in the country

Timing 10 min

Problems with regard to cloud computing services

Notifications received on problems encountered by SMEs

Are you aware of any problems existing with cloud computing services used by SMEs

Have you received any complaints with regard to this type of services

Have there been any complaints on the terms amp conditions of the contracts How are these complaints handled What is the intended procedure to follow

What follow up is given to complaints regarding cloud computing services

Do you as a national authority have sufficient competences to enforce regulations in your country


Knowledge and understanding of the problems encountered by SMEs Understanding of the types of problems encountered

Understanding of how complaints are handled and if complaints did lead to further actions taken by public authorities

Relevant information


low speed of services unsatisfactory availability or discontinuity of the service



Timing 10 min


How will cloud computing services for SMEs and the legal framework evolve in the future




153

Do you consider it likely that more problems will arise with regard to cloud computing

services

Is there a need for nationalEuropean authorities to work more on this topic Is the current legal framework sufficient Will some further adjustments need to be made

due to further evolutions of the cloud computing landscape



Further evolution of the field of cloud computing services Legalpolicy consequences of potential future evolutions

To what extent national authorities are working on the topic or will address more attention to it in the future

Timing 10 min

Closing of Interview





154

Annex 9 Case study analysis

Case study interviews

Objectives

The objective of the case studies was to produce useful insights on the specific problems that

were identified by the survey and complement the results obtained by using CATI and the

online survey Additional information was gained through interviews that also involved

stakeholders that had not previously participated in the Online Survey and CATI thus these

inputs were used to further enrich the results that have been obtained so far

Scope

The case studies targeted the following categories of stakeholders

Cloud service providers

National authorities

SMEs that already provided information either in the online survey or during the CATI

and that declared their availability for an in-depth interview

National SMEs Envoy

European SMEs associations (including Enterprise Europe Network associations)

Cloud brokers


The topics discussed with each type of stakeholder involved in the case study interviews are

presented in Figure 31

Figure 31 Topics discussed with each type of stakeholder

Stakeholder category

Topics discussed

SMEs that declared their availability for

an in-depth interview127

- type of contract (services included duration service providers what has been negotiated - if any and what degree of customisation)

- possibility to monitor performance of contract if SMEs can or cannot monitor

service performance and if they only detect the most obvious and impactful service performance defects and what types of modifications occur in practice

- costs of the cloud computing services contract(s)

- problems encountered by those SMEs (the reasons why they decide not to take any legal action and costs of the legal actions)

- in the case of lodging a complaint if the details regarding the internal procedure

of the provider (if any) were investigated how much time it took and how the

problems were resolved

- the security matters declaredwhy they did not consider security as one of the problems declared

- actions taken (HR and financial costs of actions taken)

- results of the actions taken

- disruptionreduction of activity

127 The in-depth interviews with the SMEs already included in CATI involved discussing the problems encountered by them and with a special focus on the following contract-related problems lack of clarity

and transparency of contract terms and conditions unilateral modification of the servicecontracts and

limited liability of cloud providers The special emphasis on these problems is given with the aim of complementing the information already obtained by the CATI The interviews targeted three different departments where possible legal IT and managementfinance departments



155

Stakeholder

category Topics discussed

- identification of activities affected by the problem encountered employees involved in order to resolve the problem sectorsdepartments of the SME affected by the problem encountered

- potential loss of competitiveness (business opportunities lost) in terms of profitturnover lost customers market shares

- additional costs (eg costs related to ensuring an alternative service)

Cloud service providers and cloud brokers

- types of cloud computing contracts offered to SMEs

- services offered to SMEs and differences from services offered to larger enterprises

- the level of negotiability and customisation of the services offered to SMEs

- flexibility regarding the negotiation of cloud computing contracts

- contract-related problems encountered by SMEs

- causes of the contract-related problems encountered by SMEs

- actions taken by service providers and cloud brokers to address contract-related problems encountered by SMEs

- costs compensations for contract-related problems encountered by SMEs

- escalation of contract-related issues to court proceedings

Competent national authorities

- familiarity with the subject of cloud computing services used by SMEs

- coverage of the topic of cloud computing in the activity of the authority

- specific attention to the cloud computing topic at policy and legal levels

- awareness of the most important issues encountered by SMEs with cloud computing services

- complaints from SMEs regarding cloud computing services

SMEs Envoy - familiarity with the subject of cloud computing services used by SMEs





SMEs associations

- awareness of specific cloud computing services used by SMEs

- type of contract (services included duration service providers what has been negotiated - if any and what was the degree of customisation) concluded by the SMEs in the associations

- average duration of cloud computing contracts concluded by SMEs

- satisfaction of SMEs regarding the degree of customisation of cloud computing contracts


- in the case of lodging a complaint were the details regarding the internal procedure of the provider (if any) further investigated how much time it took and how the problems were resolved


- identification of activities affected by the problem encountered employees involved in order to resolve the problem sectorsdepartments of the SME

affected by the problem encountered



156

Findings

During the CATI and the online survey 20 SMEs mentioned their availability to be contacted

for in-depth interviews Out of these 20 companies nine SMEs managed to take part in the

case study interviews They represented five sectors wholesale and retail trade repair of

motor vehicles and motorcycles professional scientific and technical activities information

and communication and manufacturing

Additionally in the process of conducting the interviews another 104 stakeholders from 12

Member States (see Figure 32) have been contacted Of these 24 agreed to participate in

the case study interviews

Figure 32 Stakeholders contacted for in-depth interviews

Finally in total 33 interviews were conducted with SMEs (see Figure 33 for SMEs involved by

country sector and size) and SMEs associations a Chamber of Commerce EEN National

Authorities an SME Envoy and service providers (see Figure 34 for the stakeholders list by

category country and name)

Figure 33 The list of SMEs involved

No Country Sector Size

1 Poland Manufacturing Medium-sized

2 Germany Manufacturing Small

3 Germany Information and communication Medium-sized

4 Germany Professional scientific and technical activities Medium-sized

5 Poland Information and communication Small

6 France Information and communication Medium-sized

7 Poland Professional scientific and technical activities Medium-sized

8 Spain Professional scientific and technical activities Small

9 Spain Information and communication Small



157

Figure 34 Details of stakeholders who participated in the in-depth interviews

Category Country

Chamber of Commerce The Netherlands

Cloud broker The Netherlands

EEN Romania

France

National authority

Italy

Romania

Romania

France

Poland

Estonia

Service provider

Sweden

Spain

Spain

Sweden

Ireland

Romania

Romania

Portugal

Romania

Germany

SME Association

EU

Portugal

The Netherlands

SME Envoys Network The Czech Republic

Services contracted

Use and types of cloud computing services contracted by EU SMEs

The use of cloud computing services by SMEs is increasing Each type of stakeholder was

aware of the spread of the use of the service

More precisely the interviews revealed that 50 of the national authorities (three out of six

respondents) the national SME Envoy the members of EEN and one cloud broker shared the

opinion that SMEs are using more cloud computing services compared to previous years

A quarter of the cloud providers observed that the usage of a specific cloud computing model

depends on the enterprise size with smaller enterprises relying more on the SaaS model

especially in contracting communication and collaboration services This confirmed the CATI

results as it showed that 50 of the micro enterprises chose a service from the SaaS model

Security



158

Security issues are generally an important matter for SMEs leading them to be concerned at

least about the general aspects of the security thresholds of the service provider Another

aspect that is taken into account is the reputation of the provider more precisely whether the

cloud provider has had incidents of data breaches in the past This was the case for 66 of

the respondents (six out of nine participants) One out of nine SME participants (11)

interviewed preferred to store its data on its own servers as a result of its complexity and of

privacy concerns Generally it can be observed from the in-depth interviews that if the

companyrsquos sector of activity is connected with IT services the more inclined it is to pay

attention to data security aspects

Types of contracts and relative costs

Duration and costs

Half of the service providers (five out of ten respondents) stated that they preferred to offer

flexibility regarding the duration of the contracts ranging from hourly contracts to yearly

subscriptions On average from the responses obtained from the providers during the case

study interviews it could be estimated that contracts had a duration of 12 months The Dutch

Chamber of Commerce also confirmed this information

Negotiability and customisation of CTampC

Most (90) of the service providers (nine out of ten respondents) and one cloud broker

affirmed that they offer SMEs the possibility of negotiating the CTampC to respond to the need

for customisation of service packages However the providers consider that SMEs might not

yet have formed a habit of negotiating cloud computing contracts The in-depth interviews

have shown that in most cases all representatives of SME associations and EEN members

said that their members do not try to negotiate cloud computing contracts Moreover 60

of service providers (six out of ten respondents) believe that SMEs are generally satisfied with

the degree of customisation of cloud computing services offered in standard contracts with

the only negotiation point being the price

Cloud providers indicated that the size of the enterprise was a factor in the initiation of the

negotiation and in the success in negotiating a cloud computing contract Hence 40 of cloud

computing providers (four out of ten respondents) and one cloud broker mentioned that

medium-sized enterprises have an increased tendency to negotiate their service contracts

Types of subscriptions

All of the SMEs interviewed stated that they had contracts with paid subscription Seven out

of the nine SMEs included in the case study interviews had contracts with fixed fees the rest

mentioning variable fees At the same time SMEs with variable fees prefer flexibility of

duration and costs either because of the limited need for the service inside the enterprise or

because they were still exploring the business opportunities that the service may offer One

exception was the SME active in the information and communication sector which had

concluded long-term fixed fees contracts This company purchased cloud computing services

in order to use them widely in the activity of the enterprise or to include them in the service

packages that they offer

Out of the total number of service providers that were interviewed half of them (five out of

ten providers) and one cloud broker only offered contracts with paid subscription and the

other 50 of service providers (five out of ten respondents) sometime offered free trials to

SMEs in the cases where they see potential for signing a more significant contract with paid

subscription afterwards



159

Legal framework of contracts

In-depth interviews have revealed that stakeholders believe that the current legal framework

both at national and EU levels needs some improvement in order to make it more suitable to

the needs of SMEs and technological advancement

National authorities the Chamber of Commerce and the national SME Envoy specified that

the currently applicable legal framework is a mix of several legal acts which partially regulated

cloud computing services and mainly focus on general data protection cybersecurity or e-

privacy All of the national authorities interviewed had a positive attitude towards the adoption

of specific legislation targeting SMEs and cloud computing services at national and EU levels

One-fifth of the service providers (two out of ten respondents) and the cloud broker also

believed that the legal framework was not sufficient and argued that guidance through what

could be a code of conduct regarding cloud computing services and how to use it should be

provided at the EU level in order to raise awareness and have a better understanding about

cloud computing services

This opinion was shared by the SMEs as 56 of the participants (five out of nine respondents)

believed that the legal framework could be improved Their suggestions included introducing

a uniform legislation at the EU level and providing a fair contract template that would balance

the powers between service providers and users


SMEs encountered a moderate amount of issues related to cloud computing contracts Most

frequently they experienced three specific problems unavailability of service low speed and

forced updates Data security although not considered among the leading problems by any

of the SMEs included in the case studies was mentioned as being a constant concern

The most serious problems encountered by SMEs

More than three-quarters (78) of the SMEs (seven out of nine respondents) indicated that

the most serious problem that they encountered was unsatisfactory availability or

discontinuity of the service followed by 11 of SMEs (one out of nine respondents) that

reported low speed of the service and forced updates to the service that eliminated or changed

a necessary function

Other problems encountered by SMEs

The second most important problem indicated by 22 of the SMEs interviewed (two out of

nine respondents) was data security In particular for one SME that operates in the

professional scientific and technical activities sector data security was so important that it

preferred to store its data on its own servers rather than contracting cloud computing

services It maintained that the market didnrsquot offer sufficient information regarding data

protection in order for it to trust the available service providers

However in all but one case the issues either did not affect the day-to-day activities of the

enterprises or only affected the internal processes of the enterprises due to the lack of the

availability of the servers In one case however an SME whose cloud computing problems

affected external business operation chose to move this activity to its own data storage

solutions In this specific case the SME was an IT operating company with storage

infrastructure already in place so its costs were not as high as for any other SME experiencing

this

National authorities and SME Envoys have little information about contract-related problems

encountered by SMEs mentioning the fact that they received few complaints regarding cloud

computing services



160

When asked about what they considered as the most significant problems encountered by

SMEs service providers provided responses that were similar to those of their customers

Unsatisfactory availability or discontinuity of the service was recognised as the most serious

problem Other problems mentioned include the failure of the provider to identify analyse

and correct hazards and prevent a future re-occurrence high subscription fee and lack of

alignment of the CTampC

Actions taken

In all cases the action that the SMEs first took in order to resolve issues related to cloud

computing service was to formally notify the providers As a result of the complaints in seven

of eight cases the cloud computing service providers resolved the issues The duration of the

action to resolve the problems ranged from a few hours to a few days None of the SMEs

chose to take legal actions when encountering issues with the cloud computing services either

because the issue was resolved quickly it didnrsquot have an impact on the activity of the business

or because they felt intimidated by the reputation and size of the provider

A second action that SMEs took was to involve their staff in resolving the issues Six of the

eight enterprises involved one or two members of the IT or technical departments in the

process of addressing the cloud computing issues The exception was represented by one

enterprise which after the incident decided to renounce the cloud computing contract given

that it took its IT staff 10 days to resolve the problem with its cloud computing service

Another enterprise chose to pay for one member of its IT staff to work during the weekend

to ensure that any issues would be immediately addressed

Nearly one-third (30) of the service providers (three out of ten respondents) and one cloud

broker who participated in the in-depth interviews consider that an important problem arises

from the SMEsrsquo limited technical knowledge that does not allow them to clearly understand

the problems that they encounter

Service providers offered different levels of support through online forums customer care

lines and if the problem was not resolved at the site of the client Exceptionally 10 of the

service providers (one out of ten respondents) offered 247 customer support at no additional

cost


According to 90 of the service providers (nine out of ten respondents) finding a solution

can vary from a couple of minutes to three days depending on the problem encountered

Usually problems are resolved within a day in the order of arrival

In the cases where service providers required a longer period of time to resolve an issue

80 of service providers (eight out of ten respondents) withheld payment to compensate for

the time spent resolving the issue Moreover in cases when the problems significantly affect

the activity of an SME 50 of the service providers (five out of ten respondents) offered

compensation according to the type of contract and the level of damages or losses caused to

the SME on a case-by-case basis Compensations usually ranged between 5-15 of the

monthly fee for the contract Another 20 of service providers (two out of ten respondents)

did not offer any type of compensation

None of the SMEs interviewed escalated the problem to court for three reasons the issue was

resolved within a few days it did not impact the activity of the business or they felt intimidated

by the reputation and size of the service provider


In the opinion of stakeholders cloud computing services will enable SMEs to become more

flexible develop faster compete with the larger enterprises in a complex market and also

generate more revenue



161

In particular SMEs associations view the evolution of the cloud computing market toward

more affordable and specialised services More than two-thirds (70) of service providers

(seven out of ten respondents) argued that cloud computing services will evolve by developing

new features According to 20 of the service providers the features that will become

increasingly relevant are artificial intelligence block chain and data analysis

At the same time 66 of national authorities (four out of six respondents) and one national

SME Envoy believe that the right of awareness the right to privacy and data protection as

well as cybersecurity will become more important topics in the future Also the SME Envoy

mentioned possible issues emerging in the future such as non-standard functionalities of some

operational processes or defining a new model of operation of ICT services

The two associations within the EEN considered that the legal framework on how cloud

computing is regulated should be adapted to the emerging technologies Moreover the

associations consider that SMEs still have a long way to evolve in order to assimilate the

complexity of cloud computing services but a better regulated system might help them in

this direction The cloud broker further recognised the need for the authorities to work more

on this and he recommended applying European legislation rather than national legislation

to promote uniformity of the system

Case study interviews conclusions

The results of the case study interviews offered useful insights and complemented the results

already obtained through the CATI The various stakeholders involved confirmed the fact that

the usage of cloud computing across SMEs in the EU is growing and there is a need for

improvement of the current legal framework in order to follow the technological advancement

The interviews further explain the CATI results as the trend is that SMEs do to not try to

negotiate CTampC even if the cloud providers are offering this possibility Moreover the most

serious problems the actions taken to resolve them and the results of the actions are

confirmed by the information gained through the interviews and are comparable with the

earlier results of the study

Overall stakeholders who participated in the case study interviews believed that cloud

computing services will play more important role in the development of SMEs as they could

even help them compete with larger enterprises in a complex market achieve higher profits

and become more efficient

Validation Webinars

The webinars were organised with the objective of validating and triangulating the results of

the study Intended to be complementary to the tasks that were performed so far ie the

desk research CATI online survey and interviews with key stakeholders the webinars

focused on the most important topics of discussion that had emerged ensuring a higher level

of detail Therefore webinars have been used to validate the results obtained and to produce

further useful insights on the problems that were identified during the study in order to gain

a better understanding of the overall situation across the EU

In preparation of the webinars all 33 participants in the case study interviews were invited

to attend The invitation applied to four events in which the stakeholders could participate

Six stakeholders replied that they were available to participate in the webinars three SMEs

(two from Germany and one from Poland) two national authorities (one from Italy and one

from Poland) and one SME association representing the interests of European SMEs

businesses in the different sectors of the economy within the EU

In the end three webinars were held as a result of the preference of the stakeholders for the

time and date of the events



162

The events were held using Zoomcopy128 a software tool that facilitates the organisation of

interactive conference calls The advantages considered when choosing the software included

the high quality of video audio and simultaneous screen sharing ease of use and features

that include screen sharing on iPhone and iPad and Zoom Rooms Other notable

characteristics include the software features specially designed for webinars that allow the

participants in the event to perform actions such as raising their hands to announce their

intention to take part in the conversation pooling and a questionanswer dialogue with live

or text answers and close captioning

The participants made contributions regarding

cloud computing services contracted by SMEs during the last two years

the negotiability and customisation of CTampC

the most important problems encountered by SMEs while using cloud computing and

the difficulties encountered when taking action

security problems as factors limiting cloud computing usage

the economic detriment

final conclusions of the study

Regarding the topic of cloud computing services contracted by SMEs during the last two years

the stakeholders involved agreed on the results obtained on the extent of usage at the EU

level

Regarding the negotiability of CTampC the SME association agreed with the information

presented and found it to be in line with its expectations based on the information that the

SME association had Furthermore in the view of the German SMEs and one Polish SME SMEs

donrsquot consider the negotiation of CTampT and the customisation of the cloud services when

acquiring cloud computing services confirming the CATI results that show that the largest

proportion of 46 of SMEs did not try to negotiate CTampC In particular the representatives

of SMEs added that the SME could only negotiate different IT infrastructures but not the

limitation of responsibility that would cover service shortages In their opinion this could be

a general issue for SMEs

Overall the SMEs representatives agreed with the results of the project and commented that

their enterprises can relate to the issues presented In particular concerning the incidence of

contract-related problems the participants discussed the link between the methodology of

sampling of the SMEs that participated in the survey and the data that was presented

concluding that the data was considered to be relevant at the EU level

Regarding the problems encountered by SMEs while using cloud computing services the

national authority representative mentioned receiving few complaints from SMEs on issues

related to cloud computing contracts Additionally the stakeholder mentioned that the

General Data Protection Regulation (GDPR) is already proving to be very useful since it

facilitates the attribution of responsibility for problems that may arise in the provision of cloud

computing services Additionally related to the issues that SMEs encounter when trying to

resolve difficulties with cloud computing services the SMEs representatives added that the

most important issue was finding the contact information of the employee of the service

provider who would be assigned to resolve the problem after a formal complaint to the service

provider was made These statements confirm the results of the CATI as 52 of the SMEs

interviewed stated that they had made a complaint to the provider and that the second

difficulty encountered when trying to solve the problem was trying to reach the appropriate

contact point (35)

The participants in the discussion on security problems mentioned the effects of the GDPR on

cloud computing contracts a topic raised mainly by the representatives of the national

128 Zoom



163

authorities The representatives added that the lack of SME capacity in negotiating cloud

computing contracts could be helped by the GDPR as it would give SMEs more control over

their data after the service providers apply the regulation The GDPR is considered to place

new obligations on cloud providers that will affect how they implement cloud services The

GDPR will strengthen user privacy as it increases the obligations on providers to protect SMEsrsquo

data and secondly it grants users new powers over how their information is collected used

and stored129

Additionally the representative of the Italian national authority and the German SME

intervened regarding the topic of economic detriment asking if the indirect costs have been

considered It was mentioned that the study looked at the client losses and reputational

damages where the case and furthermore it addressed the overall costs involved in ensuring

an alternative service and costs related to fixing the cloud service problem with external

support The stakeholders commented that they agreed with the issues that were presented

during the webinar which they also experienced They also added that in their opinion there

is a need for more transparency and better regulated services that will eventually lead to

fewer economic losses

During the concluding remarks the participants had several comments and suggestions The

Italian national authority representative added that he would be interested in an updated

version of the study conducted a year after the webinar in order to see the effects of the

enforcement of the GDPR regulation Furthermore the SME from Germany agreed with the

observation of the national authority regarding the effects of the GDPR on cloud computing

contracts and considered that its evolution should be observed together with the issues

concerning internet services as a whole

The SME representatives suggested that a platform should be created that could facilitate a

comparison between cloud computing services in order to better present the types of services

and prices available on the market The SMEs complained about the fact that they all had

difficulties when choosing between cloud computing providers In this case the availability of

only standard services on the market would allow the SME to make a direct comparison

The stakeholders involved in the webinars found the study findings to be in accordance with

the developments in the cloud computing market They provided significant comments and

recommendations especially concerning the future influence that the GDPR could have on the

sector This could mean a better distribution of responsibility especially regarding data

privacy and data protection Moreover the study was seen as being representative at the EU

level and as cloud computing is rapidly evolving the stakeholders expressed the desire to

observe the progress made in SME usage of cloud computing services by supporting the idea

of performing a second study at a later date

129 Analysis performed by Insight Company which is a leading provider of computer hardware software cloud solutions and IT services



164

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by contacting the Europe Direct service (httpeuropaeueuropedirectindex_enhtm) or

calling 00 800 6 7 8 9 10 11 (freephone number from anywhere in the EU) () () The information given is free as are most calls (though some operators phone boxes or hotels may charge you)

Priced publications

bull via EU Bookshop (httpbookshopeuropaeu)



165

Getting in touch with the EU

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find the address of the centre nearest you at httpseuropaeueuropean-unioncontact_en

On the phone or by email

Europe Direct is a service that answers your questions about the European Union You can

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purposes

doi 102838962608

ISBN 978-92-79-96750-4

[Cata

logue n

um

ber]

DS-0

3-1

8-4

21-E

N-N

Study on the economic detriment to small and medium-sized enterprises arising from

unfair and unbalanced cloud computing contracts

EUROPEAN COMMISSION

Directorate-General for Justice and Consumers Directorate A Civil and commercial justice Unit A2 ndash Contract Law Contact Unit A2 E-mail JUST-A2eceuropaeu European Commission B-1049 Brussels

EUROPEAN COMMISSION





contracts

Final Report

















Freephone number ()

00 800 6 7 8 9 10 11




1

CONTENTS


Glossary 4

1 Introduction 7























7 Conclusions 77












2


Acronym Description






EU European Union










MS Member State












3

EU Member States

AT Austria

BE Belgium

BG Bulgaria

CY Cyprus


DE Germany

DK Denmark

EE Estonia

EL Greece

ES Spain

FI Finland

FR France

HR Croatia

HU Hungary

IE Ireland

IT Italy

LV Latvia

LT Lithuania

LU Luxembourg

MT Malta

NL The Netherlands

PL Poland

PT Portugal

RO Romania

SE Sweden

SI Slovenia

SK Slovakia




4

Glossary


Active enterprise


period

Eurostat

Cloud computing





Cloud Service



2014







Data portability







Eurostat


United Kingdom

Eurostat



Eurostat



5


Frequency

(F)



Incidence

(I)










Eurostat


(PPP)



Eurostat

Platform as a

Service (PaaS)














6










2014

Service performance










Virtual Data Centre



data centres





7

1 Introduction






Contract Law

























8


































9




the contractrsquo10


initiatives




























Brussels



10






unaffected and


















Objectives




services















competitiveness





11

Scope














Territorial scope


Timeline


2017

Stakeholders










SMEs associations












12



euro10 million


























of service




concerns



related problems



competitiveness











13






14






be used







measured






15





enterprises


computing
















Cloud computing

model


Details











protection






management




16

Cloud

computing

model


Details


Platform to create



deployment










































17



contract








the team to






























18





European Unionrsquo






































19

















the EU level



contracts

20






21



survey










services

Number of SMEs that





[isoc_cicce_use]


study objectives

Number of SMEs that







NA










contracts

22


EU MS


EU15 EU13





Total active SMEs

(Country level)

(EU28 level)

AT 40393 646288 280850 31959 38422 1196 137 EU15

BE 31302 8139 569950 64858 72996 1214 261 EU15

BG 26991 1619 298559 33975 35594 1093 127 EU13


CZ 38203 6877 961287 109390 116267 1163 416 EU13

DE 411527 61729 1985471 225938 287667 1200 1029 EU15

DK 22681 9072 187367 21322 30394 1447 109 EU15

EE 6439 1417 61513 7000 8416 1239 030 EU13

EL 15368 1383 764471 86993 88376 1133 316 EU15

ES 125000 21250 2337621 116881 138131 561 494 EU15

FI 19187 10361 209328 23821 34182 1496 122 EU15

FR 139335 22294 2765282 314677 336970 1160 1205 EU15

HR 12249 2695 134007 15249 17944 1227 064 EU13

HU 30852 3394 504904 57456 60850 1136 218 EU13

IE 5514 1930 224742 25575 27505 1195 098 EU15

IT 182182 38258 3497783 398032 436290 1186 1560 EU15

LT 13604 2177 172527 19633 21809 1172 078 EU13

LU 3939 670 27841 3168 3838 1208 014 EU15

LV 9226 738 100216 11404 12142 1109 043 EU13

MT 1885 509 24123 2745 3254 1251 012 EU13

NL 48115 15397 1042588 118642 134039 1229 479 EU15

PL 69282 4850 1534086 174572 179422 1119 642 EU13

PT 37353 6350 769043 53833 60183 746 215 EU15

RO 50987 3569 405493 46143 49712 1089 178 EU13

SE 36047 16221 649412 155859 172080 2510 615 EU15

SI 6912 1382 127603 14521 15903 1182 057 EU13

SK 14363 2442 414630 33170 35612 830 127 EU13

UK 199528 65844 1734989 312298 378142 1955 1352 EU15

Tot EU28

1598464 317028 21785686 2479112 2796141 12 100

Selected Countries





23




[sbs_sc_sca_r2])













study objectives)





referred to as M)






24


NACE Code

Sectors

A B C = B100 x

A CD



EU28 level

of enter (with more

than 10 empl)

buying CC services

of enter (with more

than 10 empl)

buying CC services

out of the total



18732 19 3559 1

F Construction 200369 15 30055 11


motorcycles

351278 18 63230 24




55905 52 29070 11



97073 34 33004 12



Total 1326794 21 268384 (D) 100

Selected Sectors

















25




Where



Our case



e = 5

Z = 196
















CATI



barriers



business







26



Sector

Country


activities

Inform and comm

Manufact

Profess scientific


Wholesale

and retail trade

Total

CZ 13 17 62 30 52 174

EE 5 22 8 12 15 62

FR 184 129 262 126 308 1009

DE 99 123 185 226 249 882

IE 4 18 6 6 13 47

IT 8 9 100 7 15 139

NL 36 49

24 37 146

PL 24 69 16 78 92 279

PT 7 2 9 2 24 44

RO 8 20 2 27 15 72

ES 7 11

26 21 65

SE 41 33 59 30 91 254

Total 436 502 709 594 932 3173






27


Country

Number of




Total Participation

rate ()

A B C = A + B BC

CZ 131 43 174 25

DE 33 158 191 83

EE 715 29 744 4

ES 724 54 778 7

FR 16 294 310 95

IE 24 31 55 56

IT 97 115 212 54

NL 152 49 201 24

PL 11 127 138 92

PT 48 33 81 41

RO 11 24 35 69

SE 202 52 254 20

Total 2164 1009 3173 32






the survey








28


1009)














119866119865119863 = 119871 + 119867119877 + 119874119862

Where










computed






29


three main steps







serious problem


each SME



119873119901 = 119890119906 times 119890119901 times 119864

Where


services







level overall











formula

119873119894119895119901 = (

119890119894119906 + 119890119895

119906

2) times (

119890119894119901 + 119890119895

119901

2) times 119864119894119895




30

Where









survey





[sbs_sc_sca_r2])











from the survey



[sbs_sc_sca_r2])










31




levels











true detriment47












caused to each SME

















32





























box










33


value added






119883119894 = sum 119883119894119895 + 119884119894

119895


and final demand)

119883119894 = sum 119883119894119895 + 119884119894

119894











OUTPUT (Demand)

INPUT


production

(1st Q)

Final demand

(2nd Q)

Primary inputs to

production

(3rd Q)


demand

(4th Q)



34




























study Tasks






nine SMEs

one cloud broker








35











the CATI
















information







survey















36










37








while taking action
























enterprises55


that








38



















the survey









content










39














SME size class

of respondents




Small 140 723 52

Medium 272 1296 48

Total 503 2522 50



services



40















plug-ins)




(21)



41


SMEs size Total


out of which


Micro 91 503 252 149 97 5

50 30 19 1

Small 140 723 332 224 157 10

46 31 22 1

Medium 272 1296 609 393 276 18

21 30 47 1

Total 503 2522 1193 766 530 33

47 30 21 1
















details)



42












SMEs

size

Total of

respond

of services

contracted

of customised

services

of services

SMEs were able to

negotiate

out of which


Micro 91 503 48 24 11 10 3 0

Small 140 723 123 89 36 31 20 2

Medium 272 1296 120 155 78 44 31 2

Total 503 2522 106 268 125 85 54 4











43
















44







Size category

Total

Respondents

SMEs that did

not negotiate

CTampC


Full customisation


No Customisation

Micro 91 69 16 6 0

100 76 17 7 0

Small 140 86 27 15 12

100 61 19 11 9

Medium 272 169 58 26 19

100 62 21 10 7

Total 503 324 101 47 31

100 64 56 26 17








45







46
















66 116 199 381


25 24 73 122

27 17 27 24






Frequency

(F)



months)




Incidence

(I)









contracts

47






48















due to









anomalies occurred














future








49









Figure 15)69


SME size class




Micro 25 116 464

Small 24 92 383

Medium 73 290 397

Total 122 498 408





Types of problems







50


respondents 122)70





















51



Size




Micro 7 28 0 0 2 8 16 64 25

Small 10 42 0 0 1 4 13 54 24

Medium 38 52 4 5 4 5 27 37 73

Total 55 45 4 3 7 6 56 46 122






















52














(Table 15)





53



The 3 most serious

problems

of SMEs declaring

this as the most

serious problem





the cause



serious problem

encountered


32 23 3 3 3

100 73 9 9 9

Low speed of

the service

27 13 5 2 7

100 48 19 7 26


16 6 2 4 4

100 38 13 25 25




20)








serious problem






54








service (Figure 21)
























55









or four days











56



24)














57







problem

- loss of clients





service problem


service




















58


and third parties)






















problems


enterprises (48)





Skill level of

enterprises


Technical 93 76







17)



59




of enterprises



Legal costs 22 18


None 38 31























far





rate)91







60






















Component

Number of



Number of

enterprises that

quantified the cost


that

quantified


of enterprises

that

quantified







42 41 15 37


39 39 15 38



damage 23 23 3 13


25 24 2 8


Redress 15 15 7 47





61













































Losses of turnover



from the survey



62









Value of

Losses (euro)

Number of

Enterprises


frequency

000 105 861 861

700 1 08 869

30000 1 08 877

104690 2 16 893

157035 1 08 902

200000 1 08 910

209380 1 08 918

500000 2 16 934

1000000 1 08 943

2000000 1 08 951

5000000 1 08 959

10469012 1 08 967

15000000 2 16 984

20000000 1 08 992

50000000 1 08 1000

Total 122 100




Loss of profit








000 103 844 844

1200 1 08 852






63

Value of

Losses (euro)

Number of


Cumulative

frequency

20938 1 08 861

51500 1 08 869

52345 1 08 877

60000 1 08 885

90000 1 08 893

150000 1 08 902

157035 1 08 910

200000 2 16 926

209380 1 08 934

300000 1 08 943

500000 2 16 959

523451 1 08 967

2093802 1 08 975

3000000 1 08 984

5234506 1 08 992

10000000 1 08 1000

Total 122 100



















64








individual costs






Component


that quantified

costs



of total 122

95 trimmed

mean of the values


experiencing

each cost euro

Average of



euro


41 15 123 1187 5892


39 15 123 1311 13657




65

Component


that quantified

costs


that


of total

122

95

trimmed

mean of the values



euro

Average of



euro



23 3 25 00 2701


client(s) 24 2 16 00 8663













22)103


Component


declared

relevant values ()


faced problems




euro


euro


Profit losses 19 156 17690 191346


105 861 36006 80621

Other costs 30 246 34124 371871

Redress 7 57 095 6042






66






suffered













residual costs



24


Component

95 trimmed mean of


enterprises that

quantified the

component

euro

Average of the

values declared by

enterprises that

quantified the

component

euro



Other costs 3412 304 37187 259

Gross detriment 11208 1000 143836 1000

Redress 10 604






67


profits (euro)

Component

95 trimmed mean of


enterprises that

quantified the

component

euro

Average of the

values declared by

enterprises that

quantified the

component

euro

Profit losses 1769 201 19135 297


3601 410 8062 125

Other costs 3412 389 37187 578


64384 1000

Redress 10 604
















about 18 million




68


Scenario 1


159)

Scenario 2


499)

(number)

Secto

r



198877 628761



195098 599588


56803 203001

Total 582924 1833118

Siz

e

cla

ss Micro 548001 1722427

Small 22827 70148

Medium 12096 40543

Total 582924 1833118











use 159)


use 499)

(euro million)

Secto

r



1673 5235





1918 6495

Total 6534 20546

Siz

e

cla

ss Micro 4816 15124

Small 1144 3562

Medium 574 1861

Total 6534 20546




69


costs incurred


159)


499)

(euro million)

Secto

r






1421 4323



Total 5119 16098

Siz

e

cla

ss Micro 4013 12609

Small 801 2488

Medium 306 1002

Total 5119 16098







detriment euro




costs incurred

Micro 8788 7323

Small 50116 35090

Medium 47454 25298

Total 11209 8782







70




use 159)


use 499)

(euro million)

Secto

r






1556 4722



Total 6528 20529

Siz

e

cla

ss Micro 4815 15118

Small 1143 3562

Medium 570 1850

Total 6528 20529



costs incurred


159)


499)

(euro million)

Secto

r



1548 4851



1420 4322


1152 3928

Total 5114 16081

Siz

e

cla

ss Micro 4011 12603

Small 800 2488

Medium 302 990

Total 5114 16081













71

















72













119863119868(119866119881119860)119894 = sum119871(119879)119894119895

119884119894119895 119866119881119860119894119895frasl

5

119895=1

Where











turnover losses

119863119868(119864)119894 = sum119871(119879)119894119895

119884119894119895 119864119894119895frasl

5

119895=1

Where













73






GVA



Box 4











61 Direct impacts










counting



















74



Scenario 1



499)


EU GVA 000 000

Impact on jobs

Persons 3672 11816

EU

employment 000 001






62 Indirect impacts












effects










Scenario 1



499)


EU GVA 000 000






75




























lower context costs



















76


companies affected















77

7 Conclusions








infrastructure




















Envoy)


everyday work


















78




















































79

















































80


















employment




















other effects




81











of the companies












welfare





82












1 Yes that is me



ltIf 2gt




























83

































accordingly












84



1 Cloud broker The






Interview






Romania



Interview



Interview


France



Interview






Interview

11 Service provider


12 Service provider


13 Service provider


14 Service provider


15 Service provider


16 Service provider


17 Service provider




85


18 Service provider


19 Service


20 Service provider







Interview






30 SME Association


31 SME



Aveiro Interview

32 SME Association

The Netherlands

VNO-NCW Interview


The Czech Republic




86





VI-012)




















COM20150626 final





(COM (2016)0176)










Assessment





87






Market Actrsquo













275 final















242






in Europe








88















Computing





consumer detriment










for Standardization













an



89









Databases













90





[open question]




a) Czech Republic


i) Romania
















91


































92







conditions




purposes)












protection)













93









[open question]






Problems

Very

frequently


Frequentl


Occasiona

lly (at least


Rarely (at


12 months)

Never











of service)



94



service

















years











95






























96


protection)






















linked




purposes)




97













protection)



problem




a) Yes

b) No














98





















foreign country)








[open question]

Nordm of employees


Nordm of work days


Average monthly


currency)118




99


Administrative

Technical

Senior












Lost turnoveryear

Lost profityear














[open question]

Nordm of employees


Nordm of work days


Average monthly





100

per skill level of

employee(s)

per skill level

employee(s)

(amount in local

currency)119

Administrative

Technical

Senior











encountered


Lost turnoveryear

Lost profityear








[open question]


2016


2017


tax in 2016


tax in 2017




101





Manufacturing 137









102




Services

Sectors

Collaboration and


Storage and hosting

services

Security

services

Networking

services


61 60 49 40




71 70 40 39






103








104





105



years




CZ 18 850

EE 18 112

FR 34 4675

DE 33 861

IE 19 1127

IT 58 716

NL 21 6672

PL 20 411

PT 7 433



106


RO 7 278

ES 13 127

SE 19 2866

Total 267 1787







107





108





109




experienced



110




problem



111






Sector Number of

enterprises

95 Trimmed

mean Average






Total 122 322 721



95 Trimmed mean

Average

Micro 25 300 404

Small 24 236 258

Medium 73 368 982

Total 122 322 721


Country Number of

enterprises

95


CZ 7 226 229

EE 5 222 220

FR 22 282 395

DE 19 471 1074

IE 4 094 100

IT 13 315 338

NL 6 4057 5117

PL 13 286 308

PT 3 300 700



112

Country Number of

enterprises

95


CZ 7 226 229

RO 1 200 200

ES 11 631 718

SE 18 251 361

Total 122 322 721



of enterprises



Legal costs 22 18



Other costs 9 7

None 38 31

Total 122



CZ 0 0 0 0

EE 1 20 1 20

FR 4 18 5 23

DE 2 11 1 5

IE 2 50 2 50

IT 2 15 1 8

NL 1 17 2 33

PL 0 0 0 0

PT 0 0 0 0

RO 0 0 0 0

ES 0 0 0 0

SE 5 28 7 39

Total 17 19


of enterprises



Other 5 4





Below 50 105 87

50 to 80 8 7



113

of enterprises

Above 80 9 7

Total 122 100





Technical 93 76






Legal costs 22 18



Other costs 9 7

None 38 31

Total 122


encountered121


CZ 0 0 0 0

EE 1 20 1 20

FR 4 18 5 23

DE 2 11 1 5

IE 2 50 2 50

IT 2 15 1 8

NL 1 17 2 33

PL 0 0 0 0

PT 0 0 0 0

RO 0 0 0 0

ES 0 0 0 0

SE 5 28 7 39

Total 17 19




Other 5 4





114

















Total 159 499




Micro 178 535

Small 226 606

Medium 133 447

Total 159 499




CZ 172 698

EE 323 690

FR 79 272

DE 80 449

IE 468 710

IT 719 870

NL 205 612

PL 143 315

PT 455 606

RO 278 833

ES 538 648

SE 138 673

Total 159 499




115










Senior

officersmanager(s)

CZ 2 29 3 43 4 57

DE 9 47 15 79 8 42

EE 4 80 4 80 3 60

ES 4 36 6 55 5 45

FR 8 36 19 86 11 50

IE 1 25 2 50 3 75

IT 7 54 10 77 4 31

NL 4 67 6 100 4 67

PL 5 38 12 92 5 38

PT 1 33 2 67 0 0

RO 1 100 1 100 0 0

SE 13 72 13 72 12 67

Total 59 93 59





Senior

officersmanager(s)


activities 6 46 9 69 10 77






12 48 14 56 12 48

Total 59 93 59




116




Senior officers

manager(s)

Micro 11 52 12 57 11 52

Small 24 75 22 69 16 50

Medium 24 35 59 86 32 46

Total 59 93 59





Co

un

try

Costs related to

ensuring an

alternative service

Costs related to

fixing the cloud

service problem

Legal costs

Costs


damage

Costs

related to loss of

client(s)

Other

costsNone

CZ 3 43 0 0 0 0 0 0 1 14 3 43

DE 4 21 6 32 2 11 2 11 3 16 5 26

EE 0 0 2 40 0 0 0 0 0 0 3 60

ES 7 64 1 9 0 0 0 0 0 0 3 27

FR 13 59 13 59 12

55 11 50 11 50 18 82

IE 1 25 3 75 0 0 0 0 1 25 0 0

IT 4 31 2 15 1 8 1 8 2 15 2 15

NL 1 17 1 17 1 17 2 33 1 17 5 83

PL 1 8 1 8 2 15 1 8 1 8 2 15

PT 1 33 1 33 0 0 1 33 1 33 0 0

RO 1 100 0 0 1 100 1 100 1 100 1 100

SE 6 33 9 50 3 17 4 22 3 17 5 28

Total 42 39 22 23 25 47




Sector


an alternative

service

Costs



Legal costs

Costs


damage


Other

costsNone


activities

5 38 1 8 2 15 1 8 1 8 6 46

Information and

commun 12 50 11 46 7 29 7 29 7 29 8 33



117

Sector


an alternative

service

Costs



Legal costs

Costs


damage

Costs related


Other costsNone

Manufacturing 8 26 6 19 3 10 4 13 5 16 8 26

Profess


13 45 12 41 10 34 10 34 11 38 16 55

Wholesale and

retail trade


4 16 9 36 0 0 1 4 1 4 9 36

Total 42 39 22 23 25 47




Size class


an

alternative service


cloud

service problem

Legal costs

Costs related to

reputation

damage

Costs related to

loss of

client(s)

Other

costs

None

Micro 6 29 11 52 4 19 6 29 5 24 8 38

Small 13 41 12 38 9 28 7 22 8 25 13 41

Medium 23 33 16 23 9 13 10 14 12 17 26 38

Total 42 39 22 23 25 47



respondents 122)










Total 17 19




118




Micro 2 10 4 19

Small 8 25 8 25

Medium 7 10 7 10

Total 17 19



122)

Country

Financial

compensation

Reduction in the


Other

The company did


CZ 1 14 0 0 1 14 5 71

DE 0 0 0 0 1 5 18 95

EE 0 0 0 0 0 0 5 100

ES 0 0 0 0 0 0 11 100

FR 2 9 1 5 1 5 19 86

IE 0 0 0 0 0 0 4 100

IT 1 8 0 0 0 0 12 92

NL 0 0 2 33 1 17 4 67

PL 0 0 3 23 0 0 10 77

PT 0 0 1 33 0 0 2 67

RO 0 0 0 0 0 0 1 100

SE 0 0 1 6 1 6 16 89

Total 4 8 5 107



122)

Sector


Reduction in


Other

The company


Administrative and



1 4 1 4 3 13 20 83



1 3 2 7 1 3 25 86



Total 4 8 5 107




119



Size class

Financial

compensation


subscription Other


Micro 1 5 1 5 0 0 19 90

Small 0 0 2 6 2 6 28 88

Medium 3 4 5 7 3 4 60 87

Total 4 8 5 107











CZ 3 43 0 0 0 0 4 57 7

DE 3 60 0 0 0 0 2 40 5

EE 11 50 1 5 0 0 10 45 22

ES 11 58 1 5 1 5 6 32 19

FR 3 75 0 0 0 0 1 25 4

IE 5 38 0 0 0 0 8 62 13

IT 1 17 0 0 1 17 4 67 6

NL 5 38 0 0 1 8 7 54 13

PL 2 67 0 0 0 0 1 33 3

PT 1 11 0 0 0 0 8 89 9

RO 3 38 0 0 0 0 5 63 8

SE 7 10 2 3 4 6 56 81 69

Total 55 31 4 2 7 4 112 63 178





120





26 74 0 0 5 14 4 11 35


20 56 0 0 0 0 16 44 36

Manufacturing 30 64 3 6 0 0 14 30 47


39 65 8 13 1 2 12 20 60



29 57 0 0 12 24 10 20 51

Total 144 63 11 5 18 8 56 24 229





Micro 7 28 0 0 2 8 16 64 25

Small 10 42 0 0 1 4 13 54 24

Medium 38 52 4 5 4 5 27 37 73

Total 55 45 4 3 7 6 56 46 122







computing problem






CZ 0 0 1 33 2 67

DE 5 45 9 82 3 27

EE 3 100 3 100 1 33

ES 1 33 2 67 1 33

FR 4 36 7 64 4 36

IE 1 33 2 67 1 33

IT 2 40 3 60 1 20




121


Senior

officersmanager(s)

NL 1 100 1 100 1 100

PL 2 40 5 100 0 0

PT 1 50 1 50 2 100

RO 0 0 0 0 0 0

SE 3 43 5 71 2 29

Total 23 39 18






Senior

officersmanager(s)









5 42 7 58 5 42

Total 23 39 18





Senior officers

manager(s)

Micro 3 38 5 63 2 25

Small 10 63 13 81 6 38

Medium 10 32 21 68 10 32

Total 23 39 18




Co

un

try Costs

related to

ensuring an

alternative service

Costs

related to

fixing the cloud

service problem

Legal costs

Costs related


Costs

related to loss of

client(s)

Other

costsnone



122

CZ 0 0 0 0 0 0 0 0 0 0 3 100

DE 5 45 4 36 3 27 3 27 3 27 9 82

EE 0 0 2 67 0 0 0 0 0 0 1 33

ES 1 33 0 0 0 0 0 0 0 0 2 67

FR 6 55 5 45 5 45 5 45 5 45 10 91

IE 1 33 0 0 0 0 0 0 0 0 2 67

IT 2 40 1 20 1 20 1 20 2 40 3 60

NL 0 0 0 0 0 0 0 0 0 0 1 100

PL 0 0 1 20 1 20 1 20 1 20 2 40

PT 1 50 0 0 0 0 1 50 1 50 0 0

RO 1 100 1 100 1 100

1 100 1 100 1 100

SE 1 14 2 29 1 14 2 29 2 29 5 71

Total 18 16 12 5 14 15




Sector

Costs

related to ensuring


Costs



Legal costs


damage

Costs related to

loss of client(s)

Other costs

none


activities 1 17 1 17 2 33 1 17 1 17 5 83


3 30 3 30 1 10 2 20 2 20 6 60

manufacturing 4 25 5 31 4 25 4 25 4 25 15 94


activities

7 64 6 55 5 45 6 55 6 55 7 64



3 25 1 8 0 0 1 8 2 17 6 50

Total 18 16 12 5 14 15




123



Size class


an alternative

service



Legal

costs

Costs related to

reputation damage

Costs related to

loss of client(s)

Other

costsnone

Micro 3 19 4 25 2 13 0 0 2 13 2 13

Small 12 39 8 26 7 23 0 0 9 29 10 32

Medium 3 38 4 50 3 38 5 63 3 38 3 38

Total 18 16 12 5 14 15



of respondents 55)


Micro 0 0 1 13

Small 5 31 5 31

Medium 2 6 2 6

Total 7 8



respondents 55)



1 17 1 17







2 17 2 17

Total 7 8







computing problems



124



Country

Financial

compensation


subscription Other


redress

CZ 1 33 0 0 0 0 2 67

DE 0 0 0 0 0 0 11 100

EE 0 0 0 0 0 0 3 100

ES 0 0 0 0 0 0 3 100

FR 1 9 0 0 0 0 10 91

IE 0 0 0 0 0 0 3 100

IT 0 0 0 0 0 0 5 100

NL 0 0 0 0 0 0 1 100

PL 0 0 1 20 0 0 4 80

PT 0 0 1 50 0 0 1 50

RO 0 0 0 0 0 0 1 100

SE 0 0 1 14 0 0 6 86

Total 2 3 0 50




Country

Financial

compensation


subscription Other



2 33 0 0 0 0 4 67

Information and



Professional

scientific and


0 0 1 9 0 0 10 91


0 0 1 8 0 0 10 83

Total 2 3 0 50




125



Country

Financial

compensation


subscription Other


Micro 0 0 2 13 0 0 14 88

Small 2 6 0 0 0 0 29 94

Medium 0 0 1 13 0 0 7 88

Total 2 3 0 50







Sectors

Number of

enterprises ()

95 Trimmed mean125

(euro)

Average

(euro)






Total 122 41954 985869



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 25 023 4217

Small 24 271159 1119043

Medium 73 99060 1278261

Total 122 41954 985869




()

95 Trimmed mean

(euro)

Average

(euro)

CZ 7 000 000

DE 19 160819 894737

EE 5 117 140




126


()

95

Trimmed mean

(euro)

Average

(euro)

ES 11 000 000

FR 22 742424 3009091

IE 4 4583333 5125000

IT 13 192308 423077

NL 6 3889 5000

PL 13 000 000

PT 3 000 000

RO 1 000 000

SE 18 100166 613600

Total 122 41954 985869





differences


Sector


()

95

Trimmed mean

(euro)

Average

(euro)






Total 122 17690 191346



Size class

Number of

enterprises

()

95

Trimmed mean

(euro)

Average

(euro)

Micro 25 063 5742

Small 24 38235 50293

Medium 73 18681 301282

Total 122 17690 191346




()

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 000 000

DE 19 877 15789

EE 5 200 240

ES 11 000 000



127


()

95

Trimmed mean

(euro)

Average

(euro)

FR 22 161111 613182

IE 4 152778 162500

IT 13 14957 38462

NL 6 17315 18583

PL 13 000 000

PT 3 000 000

RO 1 000 000

SE 18 221012 460637

Total 122 17690 191346



or country level





Sector


()

95 Trimmed

mean

( days)

Average

( days)






Total 122 322 721



Size class

Number of

enterprises

()

95

Trimmed mean

( days)

Average

( days)

Micro 25 300 404

Small 24 236 258

Medium 73 368 982

Total 122 322 721




128


problem by country

Country


()

95 Trimmed

mean

( days)

Average

( days)

CZ 7 226 229

DE 19 471 1074

EE 5 222 220

ES 11 631 718

FR 22 282 395

IE 4 094 100

IT 13 315 338

NL 6 4057 5117

PL 13 286 308

PT 3 300 700

RO 1 200 200

SE 18 251 361

Total 122 322 721





differences


Sector


()

95

Trimmed mean

(euro)

Average

(euro)






Total 122 34124 371871



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 25 2278 10725

Small 24 178472 389792

Medium 73 39973 489660

Total 122 34124 371871




129


Country

Number of

enterprises

()

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 387 535

DE 19 183333 665000

EE 5 6111 7000

ES 11 115657 229091

FR 22 682 50659

IE 4 166667 175000

IT 13 184615 416154

NL 6 15935 16917

PL 13 14575 37479

PT 3 3333 3333

RO 1 000 000

SE 18 332811 1241741

Total 122 34124 371871



level




Sector

Number of

enterprises

()

95 Trimmed

mean

(euro)

Average

(euro)






Total 122 095 6042



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 0 000 00

Small 0 000 00

Medium 7 17120 57096

Total 122 095 6042




130



(euro)

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 1867 5354

DE 19 000 000

EE 5 000 000

ES 11 000 000

FR 22 000 13636

IE 4 000 000

IT 13 1346 3462

NL 6 000 000

PL 13 2504 3123

PT 3 000 000

RO 1 000 000

SE 18 1939 17448

Total 122 095 6042






trade repair of


Information and

communication

Professional


Administrative

and support service

activities

Total

economy

AT 2089 1323 2194 1331 1201 1616

BE 2285 1512 2294 1363 1190 1670

BG 705 691 1435 471 622 665

CY 705 691 1435 471 622 665

CZ 544 408 930 469 352 500

DE 2069 1080 2070 1568 821 1503

DK 1978 1601 2248 2281 1580 1871

EE 616 522 861 538 458 577

EL 721 434 945 307 407 505

ES 1352 827 1912 1072 725 1028

FI 1929 1366 2186 1764 1083 1639

FR 2055 1526 2487 2163 276 1791

HR 452 405 692 275 327 410

HU 506 336 662 368 309 424

IE 1967 1281 2605 2163 1189 1493

IT 1407 772 1702 659 840 1052

LT 383 305 627 317 317 351

LU 2204 1754 2862 2942 1192 2097

LV 969 315 590 333 276 347

MT 405 475 1017 333 571 477

NL 2083 1087 1970 1499 688 1286

PL 456 303 626 332 385 391



131


Wholesale

and retail trade

repair of motor


Information

and communication




service activities

Total

economy

PT 640 524 1106 385 330 547

RO 290 236 576 333 230 287

SE 2197 1675 2618 2088 1259 1922

SI 871 731 980 523 546 762

SK 551 368 810 404 314 470

UK 1745 1047 2230 1989 1146 1455

EU 28 1491 1774 3687 1695 511 1118


Source Eurostat


different scenarios





Scenario 1


use 159)


(euro million)

Secto

r







Total 2446 7691

Siz

e

cla

ss Micro 1405 4402

Small 598 1866

Medium 442 1423

Total 2446 7691





132


problems



(euro million)

Secto

r



114 345




Total 1031 3243

Siz

e

cla

ss Micro 602 1887

Small 255 792

Medium 174 564

Total 1031 3243



Scenario 1


Scenario 2


(euro million)

Secto

r



474 1511




Total 2099 6600

Siz

e

cla

ss Micro 1961 6167

Small 97 295

Medium 41 138

Total 2099 6600



Scenario 1


Scenario 2


(euro million)

Secto

r



959 2996




Total 1989 6255



133

Scenario 1


Scenario 2


(euro million)

Siz

e

cla

ss Micro 1450 4555

Small 449 1401

Medium 90 300

Total 1989 6255



Scenario 2


Scenario 1


(euro million)

Secto

r

Manufacturing 00 00






Total 06 17

Siz

e

cla

ss Micro 02 06

Small 00 00

Medium 04 11

Total 06 17








134


costs incurred







Scenario 1





135


costs incurred




136





and growth


Co

un

try

Manufacturing


trade repair of

motor

vehicles and

motorcycles

Information

and communication

Professional

scientific



service

activities

Total

AT 06 02 00 01 10 19

BE 54 01 00 01 50 106

BG 02 00 00 00 05 07

CY 08 03 01 05 44 61

CZ 40 68 19 69 80 275

DE 02 06 02 06 03 21

DK 41 29 09 36 138 254

EE 92 86 09 69 136 392

EL 62 02 01 01 108 173

ES 07 00 00 00 85 92

FI 13 02 01 02 29 47

FR 15 01 00 00 35 51

HR 39 02 00 01 189 231

HU 05 01 00 01 08 15

IE 18 01 01 02 105 128

IT 14 06 04 12 38 73

LT 03 01 00 01 15 19

LU 23 09 01 08 39 81

LV 12 05 01 02 18 37

MT 01 00 00 00 03 05

NL 02 01 00 01 08 11

PL 00 00 00 00 03 03

PT 12 03 01 04 41 61

RO 01 00 00 00 02 03

SE 04 01 00 01 13 20

SI 07 02 01 02 20 32

SK 05 01 00 01 08 15

UK 25 07 06 11 162 211

EU28 515 240 59 237 1395 2446





137



Co

un

try

Manufacturing


trade repair of

motor vehicles

and motorcycle

s

Information and

communication

Profession

al scientific


Administrative and

support service

activities

Total

AT 17 05 01 03 35 61

BE 156 03 01 02 172 333

BG 05 00 00 00 17 22

CY 22 09 03 13 144 191

CZ 112 211 57 198 288 866

DE 07 18 07 20 12 65

DK 110 91 26 98 474 800

EE 278 256 30 218 452 1234

EL 168 05 02 02 366 544

ES 18 01 00 00 271 290

FI 37 07 02 05 96 147

FR 42 02 00 01 115 160

HR 113 06 01 02 605 728

HU 15 03 01 02 27 48

IR 50 04 02 06 340 402

IT 38 19 11 32 129 230

LT 07 02 01 02 48 61

LU 66 29 03 23 135 256

LV 33 15 02 06 62 117

MT 04 01 00 01 10 16

NL 07 02 01 02 25 36

PL 01 01 00 01 08 11

PT 32 09 04 10 136 191

RO 02 01 00 01 07 10

SE 12 03 01 03 45 62

SI 19 06 02 07 67 101

SK 13 02 01 03 27 46

UK 67 19 16 31 530 663

EU28 1450 728 175 694 4645 769

1






138







and motorcycles

Information and

communication

Professional


Administrative

and support service

activities

AT 31 18 22 20 15

BE 41 20 22 21 20

BG 44 20 19 22 24

CY 33 17 30 15 16

CZ 38 21 19 25 29

DE 29 17 19 17 16

DK 27 18 21 19 21

EE 40 19 19 19 18

EL 36 19 20 18 22

ES 40 18 20 18 18

FI 35 19 20 18 17

FR 33 20 19 22 17

HR 29 19 19 18 20

HU 40 21 17 16 18

IE 24 18 39 19 19

IT 38 19 22 17 21

LT 30 14 16 16 17

LU 37 30 49 20 80

LV 32 18 19 17 21

MT 33 16 26 23 19

NL 41 17 20 19 15

PL 36 16 20 17 20

PT 38 16 22 21 16

RO 28 26 18 22 21

SE 30 16 20 18 18

SI 31 19 21 19 17

SK 46 20 20 24 26

UK 29 18 17 16 18






139







Information

and communication

Professional

scientific and


Administrati


activities

AT 2789 1006 2094 1227 864

BE 4293 1566 2999 1533 788

BG 453 197 499 306 160

CY 871 468 2187 814 414

CZ 1106 466 1047 625 485

DE 2414 780 2031 1060 721

DK 3251 1214 2246 1564 1118

EE 967 497 740 712 626

ES 2754 616 1770 858 474

FI 3160 1078 2014 1100 748

FR 2862 1077 2263 1650 898

GR 1643 392 1263 416 476

HR 603 364 702 652 432

HU 1137 320 658 384 255

IR 8130 1091 11774 1822 2848

IT 2329 899 2006 977 754

LT 944 378 711 406 303

LU 2988 3000 8840 1977 4646

LV 689 378 648 389 387

MT 1084 513 1866 1264 617

NL 3923 1047 2190 1314 556

PL 862 467 824 646 378

PT 1151 537 1397 648 275

RO 584 323 917 958 337

SE 3272 1189 2874 1706 955

SI 1236 647 1072 609 354

SK 1452 456 962 760 485

UK 2550 910 1750 1080 708




140




Co

un

try

Sectors

Manufact

Wholesale



Information and

communication

Professional


Admin and

support service

activities

Total

(

of ctry

GVA)

(euro million)

AT 02 01 00 01 13 18 000

BE 02 02 00 02 22 29 000

BG 03 02 00 01 08 14 000

CY 00 00 00 00 02 03 000

CZ 14 00 00 00 18 33 000

DE 14 17 05 21 85 143 000

DK 01 00 00 00 07 09 000

EE 00 00 00 00 03 03 000

EL 07 05 01 05 18 34 000

ES 10 01 00 00 107 118 000

FI 01 00 00 01 08 10 000

FR 12 33 10 31 47 133 000

HR 02 00 00 00 04 07 000

HU 03 01 01 02 23 31 000

IE 01 03 01 03 02 10 000

IT 24 44 04 41 64 178 000

LT 02 01 00 01 06 10 000

LU 00 00 00 00 00 01 000

LV 01 00 00 00 04 05 000

MT 00 00 00 00 01 02 000

NL 04 01 00 01 69 76 000

PL 17 01 00 00 55 74 000

PT 02 00 00 00 54 55 000

RO 05 00 00 00 17 23 000

SE 05 04 02 06 21 38 000

SI 02 00 00 01 05 07 000

SK 03 01 00 01 11 16 000

UK 09 04 03 07 89 112 000

To

tal

EUR

million 146 126 30 128 761 1191

of

total 000 000 000 na 001 000






141



Co

un

try

Sector

Manufact


trade repair


Information

and communication



Admin

and support service

activities

Total ( of

ctry GVA)

(euro million)

BE 2 2 0 3 56 63 000

BG 26 25 1 7 112 171 001

CZ 49 2 0 1 103 155 000

DK 1 1 0 1 13 15 000

DE 17 38 5 34 191 285 000

EE 2 0 0 0 9 10 000

EL 14 24 1 19 83 141 000

IE 0 6 0 4 1 11 013

ES 14 3 0 1 398 417 000

HR 9 3 0 1 18 31 000

IT 39 96 5 71 180 391 002

CY 2 1 0 0 7 10 000

LV 4 2 0 2 19 27 001

LT 6 5 0 3 34 48 001

LU 0 0 0 0 1 1 000

HU 10 9 2 10 161 192 001

MT 1 0 0 0 3 5 000

NL 5 1 0 2 189 197 000

AT 3 2 0 2 23 30 000

PL 72 4 1 1 286 363 000

PT 6 0 0 0 311 317 000

RO 25 2 0 0 104 132 000

SI 4 1 0 2 23 29 001

SK 9 5 1 2 59 76 001

FI 1 1 0 1 18 21 000

SE 4 5 1 7 40 57 001

UK 10 7 3 10 229 260 000

To

tal Persons 348 306 31 225 2761 3672

of

total 000 000 000 000 002 000






142



Co

un

try

Sector

Manufact


repair of

motor vehicles and

motorcycles

Information

and communication



Admin

and support service

activities

Total

(

of ctry

GVA)

AT 06 04 01 03 43 57 000

BE 05 05 01 06 74 91 000

BG 07 08 01 03 26 45 001

CY 01 01 00 00 06 09 001

CZ 41 01 00 01 60 104 001

DE 38 53 13 57 293 455 000

DK 03 01 01 01 23 29 000

EE 01 00 00 00 10 11 001

EL 18 15 02 13 60 108 001

ES 28 03 00 01 342 376 000

FI 03 01 00 02 26 33 000

FR 33 104 30 90 169 427 000

HR 05 02 00 01 13 22 001

HU 08 04 02 06 77 98 001

IE 03 10 02 11 06 32 000

IT 73 132 14 129 211 560 000

LT 06 04 00 02 21 33 001

LU 00 00 00 00 01 02 000

LV 02 01 00 01 12 16 001

MT 01 00 00 00 03 05 001

NL 12 02 01 03 224 242 000

PL 46 03 01 01 186 237 001

PT 05 00 00 00 170 175 001

RO 15 01 00 00 56 72 001

SE 13 12 06 18 73 121 000

SI 04 01 00 02 16 23 001

SK 08 03 01 02 37 52 001

UK 23 10 09 19 292 354 000

To

tal

EUR

million 411 382 88 375 2532 3788

of

total 000 000 000 na 004 000






143



Co

un

try

Sector

Manufac

t


trade repair of

motor vehicles

and motorcy

cles

Informati

on and communi

cation

Professio

nal scientific


Admin and

support service

activities

Total ( of ctry

employment)

(Persons)

AT 7 6 1 6 77 97 000

BE 5 6 1 8 183 203 000

BG 72 76 4 19 384 555 002

CY 4 3 0 1 24 31 001

CZ 141 6 1 3 356 506 001

DE 46 117 13 93 657 925 000

DK 2 2 1 1 43 49 000

EE 5 0 0 0 28 33 001

EL 40 73 3 56 284 455 001

ES 41 10 0 3 1277 1331 001

FI 4 2 0 2 60 69 000

FR 39 196 25 120 321 701 000

HR 24 8 1 4 63 99 001

HU 28 28 5 27 535 623 001

IE 1 17 1 11 4 33 000

IT 119 284 15 223 599 1242 001

LT 18 14 1 8 116 157 001

LU 0 0 0 0 2 3 000

LV 10 5 1 4 65 85 001

MT 2 1 0 1 11 15 001

NL 13 4 1 5 612 634 001

PL 195 11 2 4 970 1182 001

PT 16 1 0 1 986 1004 002

RO 72 6 0 1 342 420 000

SE 12 16 4 19 136 186 000

SI 11 3 1 5 78 97 001

SK 25 14 2 7 199 247 001

UK 26 21 9 29 749 834 000

To

tal

Persons 977 930 92 660 9157 11816

of total 000 000 000 000 006 001






144


Scenario 1


use 159)

Scenario 2


use 499)

(euro million)






Construction 20 64










Education 10 33












Scenario 1 (average


Scenario 2 (average


(Persons)






Construction 43 135









145

Scenario 1


use 159)

Scenario 2


use 499)

(Persons)




Education 26 82





1 2








146



brokers)

Introduction












interactionrdquo






Timing 2 min












and company

Timing 05 min



147













Timing 10 min
















148


Timing 10 min



encounter a problem











Timing 10 min










Timing 5 min




Timing 2 min



149


D Introduction




Timing 2 min




are performing

Timing 05 min





Networking services



Timing 5 min









Timing 10 min




150












Timing 15 min






Timing 5 min





services for SMEs

Timing 5 min




Timing 5 min



151


SMEs envoys)

E Introduction












interactionrdquo








Timing 5 min








Timing 05 min





Any data available



152








Conditions





Timing 10 min
















Timing 10 min






153


services







Timing 10 min






154



Objectives






Scope






National SMEs Envoy


Cloud brokers






Topics discussed




















155

Stakeholder


























SMEs associations












156

Findings



























157


Category Country



EEN Romania

France

National authority

Italy

Romania

Romania

France

Poland

Estonia

Service provider

Sweden

Spain

Spain

Sweden

Ireland

Romania

Romania

Portugal

Romania

Germany

SME Association

EU

Portugal

The Netherlands


Services contracted











Security



158











Duration and costs





































159











































this



computing services



160







Actions taken






















cost






















161
































Validation Webinars


















162



















level



























contact point (35)



128 Zoom



163







and stored129

































164


Free publications

bull one copy







Priced publications




165


In person










Online



EU publications











purposes

doi 102838962608

ISBN 978-92-79-96750-4

[Cata

logue n

um

ber]

DS-0

3-1

8-4

21-E

N-N

EUROPEAN COMMISSION





contracts

Final Report

















Freephone number ()

00 800 6 7 8 9 10 11




1

CONTENTS


Glossary 4

1 Introduction 7























7 Conclusions 77












2


Acronym Description






EU European Union










MS Member State












3

EU Member States

AT Austria

BE Belgium

BG Bulgaria

CY Cyprus


DE Germany

DK Denmark

EE Estonia

EL Greece

ES Spain

FI Finland

FR France

HR Croatia

HU Hungary

IE Ireland

IT Italy

LV Latvia

LT Lithuania

LU Luxembourg

MT Malta

NL The Netherlands

PL Poland

PT Portugal

RO Romania

SE Sweden

SI Slovenia

SK Slovakia




4

Glossary


Active enterprise


period

Eurostat

Cloud computing





Cloud Service



2014







Data portability







Eurostat


United Kingdom

Eurostat



Eurostat



5


Frequency

(F)



Incidence

(I)










Eurostat


(PPP)



Eurostat

Platform as a

Service (PaaS)














6










2014

Service performance










Virtual Data Centre



data centres





7

1 Introduction






Contract Law

























8


































9




the contractrsquo10


initiatives




























Brussels



10






unaffected and


















Objectives




services















competitiveness





11

Scope














Territorial scope


Timeline


2017

Stakeholders










SMEs associations












12



euro10 million


























of service




concerns



related problems



competitiveness











13






14






be used







measured






15





enterprises


computing
















Cloud computing

model


Details











protection






management




16

Cloud

computing

model


Details


Platform to create



deployment










































17



contract








the team to






























18





European Unionrsquo






































19

















the EU level



contracts

20






21



survey










services

Number of SMEs that





[isoc_cicce_use]


study objectives

Number of SMEs that







NA










contracts

22


EU MS


EU15 EU13





Total active SMEs

(Country level)

(EU28 level)

AT 40393 646288 280850 31959 38422 1196 137 EU15

BE 31302 8139 569950 64858 72996 1214 261 EU15

BG 26991 1619 298559 33975 35594 1093 127 EU13


CZ 38203 6877 961287 109390 116267 1163 416 EU13

DE 411527 61729 1985471 225938 287667 1200 1029 EU15

DK 22681 9072 187367 21322 30394 1447 109 EU15

EE 6439 1417 61513 7000 8416 1239 030 EU13

EL 15368 1383 764471 86993 88376 1133 316 EU15

ES 125000 21250 2337621 116881 138131 561 494 EU15

FI 19187 10361 209328 23821 34182 1496 122 EU15

FR 139335 22294 2765282 314677 336970 1160 1205 EU15

HR 12249 2695 134007 15249 17944 1227 064 EU13

HU 30852 3394 504904 57456 60850 1136 218 EU13

IE 5514 1930 224742 25575 27505 1195 098 EU15

IT 182182 38258 3497783 398032 436290 1186 1560 EU15

LT 13604 2177 172527 19633 21809 1172 078 EU13

LU 3939 670 27841 3168 3838 1208 014 EU15

LV 9226 738 100216 11404 12142 1109 043 EU13

MT 1885 509 24123 2745 3254 1251 012 EU13

NL 48115 15397 1042588 118642 134039 1229 479 EU15

PL 69282 4850 1534086 174572 179422 1119 642 EU13

PT 37353 6350 769043 53833 60183 746 215 EU15

RO 50987 3569 405493 46143 49712 1089 178 EU13

SE 36047 16221 649412 155859 172080 2510 615 EU15

SI 6912 1382 127603 14521 15903 1182 057 EU13

SK 14363 2442 414630 33170 35612 830 127 EU13

UK 199528 65844 1734989 312298 378142 1955 1352 EU15

Tot EU28

1598464 317028 21785686 2479112 2796141 12 100

Selected Countries





23




[sbs_sc_sca_r2])













study objectives)





referred to as M)






24


NACE Code

Sectors

A B C = B100 x

A CD



EU28 level

of enter (with more

than 10 empl)

buying CC services

of enter (with more

than 10 empl)

buying CC services

out of the total



18732 19 3559 1

F Construction 200369 15 30055 11


motorcycles

351278 18 63230 24




55905 52 29070 11



97073 34 33004 12



Total 1326794 21 268384 (D) 100

Selected Sectors

















25




Where



Our case



e = 5

Z = 196
















CATI



barriers



business







26



Sector

Country


activities

Inform and comm

Manufact

Profess scientific


Wholesale

and retail trade

Total

CZ 13 17 62 30 52 174

EE 5 22 8 12 15 62

FR 184 129 262 126 308 1009

DE 99 123 185 226 249 882

IE 4 18 6 6 13 47

IT 8 9 100 7 15 139

NL 36 49

24 37 146

PL 24 69 16 78 92 279

PT 7 2 9 2 24 44

RO 8 20 2 27 15 72

ES 7 11

26 21 65

SE 41 33 59 30 91 254

Total 436 502 709 594 932 3173






27


Country

Number of




Total Participation

rate ()

A B C = A + B BC

CZ 131 43 174 25

DE 33 158 191 83

EE 715 29 744 4

ES 724 54 778 7

FR 16 294 310 95

IE 24 31 55 56

IT 97 115 212 54

NL 152 49 201 24

PL 11 127 138 92

PT 48 33 81 41

RO 11 24 35 69

SE 202 52 254 20

Total 2164 1009 3173 32






the survey








28


1009)














119866119865119863 = 119871 + 119867119877 + 119874119862

Where










computed






29


three main steps







serious problem


each SME



119873119901 = 119890119906 times 119890119901 times 119864

Where


services







level overall











formula

119873119894119895119901 = (

119890119894119906 + 119890119895

119906

2) times (

119890119894119901 + 119890119895

119901

2) times 119864119894119895




30

Where









survey





[sbs_sc_sca_r2])











from the survey



[sbs_sc_sca_r2])










31




levels











true detriment47












caused to each SME

















32





























box










33


value added






119883119894 = sum 119883119894119895 + 119884119894

119895


and final demand)

119883119894 = sum 119883119894119895 + 119884119894

119894











OUTPUT (Demand)

INPUT


production

(1st Q)

Final demand

(2nd Q)

Primary inputs to

production

(3rd Q)


demand

(4th Q)



34




























study Tasks






nine SMEs

one cloud broker








35











the CATI
















information







survey















36










37








while taking action
























enterprises55


that








38



















the survey









content










39














SME size class

of respondents




Small 140 723 52

Medium 272 1296 48

Total 503 2522 50



services



40















plug-ins)




(21)



41


SMEs size Total


out of which


Micro 91 503 252 149 97 5

50 30 19 1

Small 140 723 332 224 157 10

46 31 22 1

Medium 272 1296 609 393 276 18

21 30 47 1

Total 503 2522 1193 766 530 33

47 30 21 1
















details)



42












SMEs

size

Total of

respond

of services

contracted

of customised

services

of services

SMEs were able to

negotiate

out of which


Micro 91 503 48 24 11 10 3 0

Small 140 723 123 89 36 31 20 2

Medium 272 1296 120 155 78 44 31 2

Total 503 2522 106 268 125 85 54 4











43
















44







Size category

Total

Respondents

SMEs that did

not negotiate

CTampC


Full customisation


No Customisation

Micro 91 69 16 6 0

100 76 17 7 0

Small 140 86 27 15 12

100 61 19 11 9

Medium 272 169 58 26 19

100 62 21 10 7

Total 503 324 101 47 31

100 64 56 26 17








45







46
















66 116 199 381


25 24 73 122

27 17 27 24






Frequency

(F)



months)




Incidence

(I)









contracts

47






48















due to









anomalies occurred














future








49









Figure 15)69


SME size class




Micro 25 116 464

Small 24 92 383

Medium 73 290 397

Total 122 498 408





Types of problems







50


respondents 122)70





















51



Size




Micro 7 28 0 0 2 8 16 64 25

Small 10 42 0 0 1 4 13 54 24

Medium 38 52 4 5 4 5 27 37 73

Total 55 45 4 3 7 6 56 46 122






















52














(Table 15)





53



The 3 most serious

problems

of SMEs declaring

this as the most

serious problem





the cause



serious problem

encountered


32 23 3 3 3

100 73 9 9 9

Low speed of

the service

27 13 5 2 7

100 48 19 7 26


16 6 2 4 4

100 38 13 25 25




20)








serious problem






54








service (Figure 21)
























55









or four days











56



24)














57







problem

- loss of clients





service problem


service




















58


and third parties)






















problems


enterprises (48)





Skill level of

enterprises


Technical 93 76







17)



59




of enterprises



Legal costs 22 18


None 38 31























far





rate)91







60






















Component

Number of



Number of

enterprises that

quantified the cost


that

quantified


of enterprises

that

quantified







42 41 15 37


39 39 15 38



damage 23 23 3 13


25 24 2 8


Redress 15 15 7 47





61













































Losses of turnover



from the survey



62









Value of

Losses (euro)

Number of

Enterprises


frequency

000 105 861 861

700 1 08 869

30000 1 08 877

104690 2 16 893

157035 1 08 902

200000 1 08 910

209380 1 08 918

500000 2 16 934

1000000 1 08 943

2000000 1 08 951

5000000 1 08 959

10469012 1 08 967

15000000 2 16 984

20000000 1 08 992

50000000 1 08 1000

Total 122 100




Loss of profit








000 103 844 844

1200 1 08 852






63

Value of

Losses (euro)

Number of


Cumulative

frequency

20938 1 08 861

51500 1 08 869

52345 1 08 877

60000 1 08 885

90000 1 08 893

150000 1 08 902

157035 1 08 910

200000 2 16 926

209380 1 08 934

300000 1 08 943

500000 2 16 959

523451 1 08 967

2093802 1 08 975

3000000 1 08 984

5234506 1 08 992

10000000 1 08 1000

Total 122 100



















64








individual costs






Component


that quantified

costs



of total 122

95 trimmed

mean of the values


experiencing

each cost euro

Average of



euro


41 15 123 1187 5892


39 15 123 1311 13657




65

Component


that quantified

costs


that


of total

122

95

trimmed

mean of the values



euro

Average of



euro



23 3 25 00 2701


client(s) 24 2 16 00 8663













22)103


Component


declared

relevant values ()


faced problems




euro


euro


Profit losses 19 156 17690 191346


105 861 36006 80621

Other costs 30 246 34124 371871

Redress 7 57 095 6042






66






suffered













residual costs



24


Component

95 trimmed mean of


enterprises that

quantified the

component

euro

Average of the

values declared by

enterprises that

quantified the

component

euro



Other costs 3412 304 37187 259

Gross detriment 11208 1000 143836 1000

Redress 10 604






67


profits (euro)

Component

95 trimmed mean of


enterprises that

quantified the

component

euro

Average of the

values declared by

enterprises that

quantified the

component

euro

Profit losses 1769 201 19135 297


3601 410 8062 125

Other costs 3412 389 37187 578


64384 1000

Redress 10 604
















about 18 million




68


Scenario 1


159)

Scenario 2


499)

(number)

Secto

r



198877 628761



195098 599588


56803 203001

Total 582924 1833118

Siz

e

cla

ss Micro 548001 1722427

Small 22827 70148

Medium 12096 40543

Total 582924 1833118











use 159)


use 499)

(euro million)

Secto

r



1673 5235





1918 6495

Total 6534 20546

Siz

e

cla

ss Micro 4816 15124

Small 1144 3562

Medium 574 1861

Total 6534 20546




69


costs incurred


159)


499)

(euro million)

Secto

r






1421 4323



Total 5119 16098

Siz

e

cla

ss Micro 4013 12609

Small 801 2488

Medium 306 1002

Total 5119 16098







detriment euro




costs incurred

Micro 8788 7323

Small 50116 35090

Medium 47454 25298

Total 11209 8782







70




use 159)


use 499)

(euro million)

Secto

r






1556 4722



Total 6528 20529

Siz

e

cla

ss Micro 4815 15118

Small 1143 3562

Medium 570 1850

Total 6528 20529



costs incurred


159)


499)

(euro million)

Secto

r



1548 4851



1420 4322


1152 3928

Total 5114 16081

Siz

e

cla

ss Micro 4011 12603

Small 800 2488

Medium 302 990

Total 5114 16081













71

















72













119863119868(119866119881119860)119894 = sum119871(119879)119894119895

119884119894119895 119866119881119860119894119895frasl

5

119895=1

Where











turnover losses

119863119868(119864)119894 = sum119871(119879)119894119895

119884119894119895 119864119894119895frasl

5

119895=1

Where













73






GVA



Box 4











61 Direct impacts










counting



















74



Scenario 1



499)


EU GVA 000 000

Impact on jobs

Persons 3672 11816

EU

employment 000 001






62 Indirect impacts












effects










Scenario 1



499)


EU GVA 000 000






75




























lower context costs



















76


companies affected















77

7 Conclusions








infrastructure




















Envoy)


everyday work


















78




















































79

















































80


















employment




















other effects




81











of the companies












welfare





82












1 Yes that is me



ltIf 2gt




























83

































accordingly












84



1 Cloud broker The






Interview






Romania



Interview



Interview


France



Interview






Interview

11 Service provider


12 Service provider


13 Service provider


14 Service provider


15 Service provider


16 Service provider


17 Service provider




85


18 Service provider


19 Service


20 Service provider







Interview






30 SME Association


31 SME



Aveiro Interview

32 SME Association

The Netherlands

VNO-NCW Interview


The Czech Republic




86





VI-012)




















COM20150626 final





(COM (2016)0176)










Assessment





87






Market Actrsquo













275 final















242






in Europe








88















Computing





consumer detriment










for Standardization













an



89









Databases













90





[open question]




a) Czech Republic


i) Romania
















91


































92







conditions




purposes)












protection)













93









[open question]






Problems

Very

frequently


Frequentl


Occasiona

lly (at least


Rarely (at


12 months)

Never











of service)



94



service

















years











95






























96


protection)






















linked




purposes)




97













protection)



problem




a) Yes

b) No














98





















foreign country)








[open question]

Nordm of employees


Nordm of work days


Average monthly


currency)118




99


Administrative

Technical

Senior












Lost turnoveryear

Lost profityear














[open question]

Nordm of employees


Nordm of work days


Average monthly





100

per skill level of

employee(s)

per skill level

employee(s)

(amount in local

currency)119

Administrative

Technical

Senior











encountered


Lost turnoveryear

Lost profityear








[open question]


2016


2017


tax in 2016


tax in 2017




101





Manufacturing 137









102




Services

Sectors

Collaboration and


Storage and hosting

services

Security

services

Networking

services


61 60 49 40




71 70 40 39






103








104





105



years




CZ 18 850

EE 18 112

FR 34 4675

DE 33 861

IE 19 1127

IT 58 716

NL 21 6672

PL 20 411

PT 7 433



106


RO 7 278

ES 13 127

SE 19 2866

Total 267 1787







107





108





109




experienced



110




problem



111






Sector Number of

enterprises

95 Trimmed

mean Average






Total 122 322 721



95 Trimmed mean

Average

Micro 25 300 404

Small 24 236 258

Medium 73 368 982

Total 122 322 721


Country Number of

enterprises

95


CZ 7 226 229

EE 5 222 220

FR 22 282 395

DE 19 471 1074

IE 4 094 100

IT 13 315 338

NL 6 4057 5117

PL 13 286 308

PT 3 300 700



112

Country Number of

enterprises

95


CZ 7 226 229

RO 1 200 200

ES 11 631 718

SE 18 251 361

Total 122 322 721



of enterprises



Legal costs 22 18



Other costs 9 7

None 38 31

Total 122



CZ 0 0 0 0

EE 1 20 1 20

FR 4 18 5 23

DE 2 11 1 5

IE 2 50 2 50

IT 2 15 1 8

NL 1 17 2 33

PL 0 0 0 0

PT 0 0 0 0

RO 0 0 0 0

ES 0 0 0 0

SE 5 28 7 39

Total 17 19


of enterprises



Other 5 4





Below 50 105 87

50 to 80 8 7



113

of enterprises

Above 80 9 7

Total 122 100





Technical 93 76






Legal costs 22 18



Other costs 9 7

None 38 31

Total 122


encountered121


CZ 0 0 0 0

EE 1 20 1 20

FR 4 18 5 23

DE 2 11 1 5

IE 2 50 2 50

IT 2 15 1 8

NL 1 17 2 33

PL 0 0 0 0

PT 0 0 0 0

RO 0 0 0 0

ES 0 0 0 0

SE 5 28 7 39

Total 17 19




Other 5 4





114

















Total 159 499




Micro 178 535

Small 226 606

Medium 133 447

Total 159 499




CZ 172 698

EE 323 690

FR 79 272

DE 80 449

IE 468 710

IT 719 870

NL 205 612

PL 143 315

PT 455 606

RO 278 833

ES 538 648

SE 138 673

Total 159 499




115










Senior

officersmanager(s)

CZ 2 29 3 43 4 57

DE 9 47 15 79 8 42

EE 4 80 4 80 3 60

ES 4 36 6 55 5 45

FR 8 36 19 86 11 50

IE 1 25 2 50 3 75

IT 7 54 10 77 4 31

NL 4 67 6 100 4 67

PL 5 38 12 92 5 38

PT 1 33 2 67 0 0

RO 1 100 1 100 0 0

SE 13 72 13 72 12 67

Total 59 93 59





Senior

officersmanager(s)


activities 6 46 9 69 10 77






12 48 14 56 12 48

Total 59 93 59




116




Senior officers

manager(s)

Micro 11 52 12 57 11 52

Small 24 75 22 69 16 50

Medium 24 35 59 86 32 46

Total 59 93 59





Co

un

try

Costs related to

ensuring an

alternative service

Costs related to

fixing the cloud

service problem

Legal costs

Costs


damage

Costs

related to loss of

client(s)

Other

costsNone

CZ 3 43 0 0 0 0 0 0 1 14 3 43

DE 4 21 6 32 2 11 2 11 3 16 5 26

EE 0 0 2 40 0 0 0 0 0 0 3 60

ES 7 64 1 9 0 0 0 0 0 0 3 27

FR 13 59 13 59 12

55 11 50 11 50 18 82

IE 1 25 3 75 0 0 0 0 1 25 0 0

IT 4 31 2 15 1 8 1 8 2 15 2 15

NL 1 17 1 17 1 17 2 33 1 17 5 83

PL 1 8 1 8 2 15 1 8 1 8 2 15

PT 1 33 1 33 0 0 1 33 1 33 0 0

RO 1 100 0 0 1 100 1 100 1 100 1 100

SE 6 33 9 50 3 17 4 22 3 17 5 28

Total 42 39 22 23 25 47




Sector


an alternative

service

Costs



Legal costs

Costs


damage


Other

costsNone


activities

5 38 1 8 2 15 1 8 1 8 6 46

Information and

commun 12 50 11 46 7 29 7 29 7 29 8 33



117

Sector


an alternative

service

Costs



Legal costs

Costs


damage

Costs related


Other costsNone

Manufacturing 8 26 6 19 3 10 4 13 5 16 8 26

Profess


13 45 12 41 10 34 10 34 11 38 16 55

Wholesale and

retail trade


4 16 9 36 0 0 1 4 1 4 9 36

Total 42 39 22 23 25 47




Size class


an

alternative service


cloud

service problem

Legal costs

Costs related to

reputation

damage

Costs related to

loss of

client(s)

Other

costs

None

Micro 6 29 11 52 4 19 6 29 5 24 8 38

Small 13 41 12 38 9 28 7 22 8 25 13 41

Medium 23 33 16 23 9 13 10 14 12 17 26 38

Total 42 39 22 23 25 47



respondents 122)










Total 17 19




118




Micro 2 10 4 19

Small 8 25 8 25

Medium 7 10 7 10

Total 17 19



122)

Country

Financial

compensation

Reduction in the


Other

The company did


CZ 1 14 0 0 1 14 5 71

DE 0 0 0 0 1 5 18 95

EE 0 0 0 0 0 0 5 100

ES 0 0 0 0 0 0 11 100

FR 2 9 1 5 1 5 19 86

IE 0 0 0 0 0 0 4 100

IT 1 8 0 0 0 0 12 92

NL 0 0 2 33 1 17 4 67

PL 0 0 3 23 0 0 10 77

PT 0 0 1 33 0 0 2 67

RO 0 0 0 0 0 0 1 100

SE 0 0 1 6 1 6 16 89

Total 4 8 5 107



122)

Sector


Reduction in


Other

The company


Administrative and



1 4 1 4 3 13 20 83



1 3 2 7 1 3 25 86



Total 4 8 5 107




119



Size class

Financial

compensation


subscription Other


Micro 1 5 1 5 0 0 19 90

Small 0 0 2 6 2 6 28 88

Medium 3 4 5 7 3 4 60 87

Total 4 8 5 107











CZ 3 43 0 0 0 0 4 57 7

DE 3 60 0 0 0 0 2 40 5

EE 11 50 1 5 0 0 10 45 22

ES 11 58 1 5 1 5 6 32 19

FR 3 75 0 0 0 0 1 25 4

IE 5 38 0 0 0 0 8 62 13

IT 1 17 0 0 1 17 4 67 6

NL 5 38 0 0 1 8 7 54 13

PL 2 67 0 0 0 0 1 33 3

PT 1 11 0 0 0 0 8 89 9

RO 3 38 0 0 0 0 5 63 8

SE 7 10 2 3 4 6 56 81 69

Total 55 31 4 2 7 4 112 63 178





120





26 74 0 0 5 14 4 11 35


20 56 0 0 0 0 16 44 36

Manufacturing 30 64 3 6 0 0 14 30 47


39 65 8 13 1 2 12 20 60



29 57 0 0 12 24 10 20 51

Total 144 63 11 5 18 8 56 24 229





Micro 7 28 0 0 2 8 16 64 25

Small 10 42 0 0 1 4 13 54 24

Medium 38 52 4 5 4 5 27 37 73

Total 55 45 4 3 7 6 56 46 122







computing problem






CZ 0 0 1 33 2 67

DE 5 45 9 82 3 27

EE 3 100 3 100 1 33

ES 1 33 2 67 1 33

FR 4 36 7 64 4 36

IE 1 33 2 67 1 33

IT 2 40 3 60 1 20




121


Senior

officersmanager(s)

NL 1 100 1 100 1 100

PL 2 40 5 100 0 0

PT 1 50 1 50 2 100

RO 0 0 0 0 0 0

SE 3 43 5 71 2 29

Total 23 39 18






Senior

officersmanager(s)









5 42 7 58 5 42

Total 23 39 18





Senior officers

manager(s)

Micro 3 38 5 63 2 25

Small 10 63 13 81 6 38

Medium 10 32 21 68 10 32

Total 23 39 18




Co

un

try Costs

related to

ensuring an

alternative service

Costs

related to

fixing the cloud

service problem

Legal costs

Costs related


Costs

related to loss of

client(s)

Other

costsnone



122

CZ 0 0 0 0 0 0 0 0 0 0 3 100

DE 5 45 4 36 3 27 3 27 3 27 9 82

EE 0 0 2 67 0 0 0 0 0 0 1 33

ES 1 33 0 0 0 0 0 0 0 0 2 67

FR 6 55 5 45 5 45 5 45 5 45 10 91

IE 1 33 0 0 0 0 0 0 0 0 2 67

IT 2 40 1 20 1 20 1 20 2 40 3 60

NL 0 0 0 0 0 0 0 0 0 0 1 100

PL 0 0 1 20 1 20 1 20 1 20 2 40

PT 1 50 0 0 0 0 1 50 1 50 0 0

RO 1 100 1 100 1 100

1 100 1 100 1 100

SE 1 14 2 29 1 14 2 29 2 29 5 71

Total 18 16 12 5 14 15




Sector

Costs

related to ensuring


Costs



Legal costs


damage

Costs related to

loss of client(s)

Other costs

none


activities 1 17 1 17 2 33 1 17 1 17 5 83


3 30 3 30 1 10 2 20 2 20 6 60

manufacturing 4 25 5 31 4 25 4 25 4 25 15 94


activities

7 64 6 55 5 45 6 55 6 55 7 64



3 25 1 8 0 0 1 8 2 17 6 50

Total 18 16 12 5 14 15




123



Size class


an alternative

service



Legal

costs

Costs related to

reputation damage

Costs related to

loss of client(s)

Other

costsnone

Micro 3 19 4 25 2 13 0 0 2 13 2 13

Small 12 39 8 26 7 23 0 0 9 29 10 32

Medium 3 38 4 50 3 38 5 63 3 38 3 38

Total 18 16 12 5 14 15



of respondents 55)


Micro 0 0 1 13

Small 5 31 5 31

Medium 2 6 2 6

Total 7 8



respondents 55)



1 17 1 17







2 17 2 17

Total 7 8







computing problems



124



Country

Financial

compensation


subscription Other


redress

CZ 1 33 0 0 0 0 2 67

DE 0 0 0 0 0 0 11 100

EE 0 0 0 0 0 0 3 100

ES 0 0 0 0 0 0 3 100

FR 1 9 0 0 0 0 10 91

IE 0 0 0 0 0 0 3 100

IT 0 0 0 0 0 0 5 100

NL 0 0 0 0 0 0 1 100

PL 0 0 1 20 0 0 4 80

PT 0 0 1 50 0 0 1 50

RO 0 0 0 0 0 0 1 100

SE 0 0 1 14 0 0 6 86

Total 2 3 0 50




Country

Financial

compensation


subscription Other



2 33 0 0 0 0 4 67

Information and



Professional

scientific and


0 0 1 9 0 0 10 91


0 0 1 8 0 0 10 83

Total 2 3 0 50




125



Country

Financial

compensation


subscription Other


Micro 0 0 2 13 0 0 14 88

Small 2 6 0 0 0 0 29 94

Medium 0 0 1 13 0 0 7 88

Total 2 3 0 50







Sectors

Number of

enterprises ()

95 Trimmed mean125

(euro)

Average

(euro)






Total 122 41954 985869



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 25 023 4217

Small 24 271159 1119043

Medium 73 99060 1278261

Total 122 41954 985869




()

95 Trimmed mean

(euro)

Average

(euro)

CZ 7 000 000

DE 19 160819 894737

EE 5 117 140




126


()

95

Trimmed mean

(euro)

Average

(euro)

ES 11 000 000

FR 22 742424 3009091

IE 4 4583333 5125000

IT 13 192308 423077

NL 6 3889 5000

PL 13 000 000

PT 3 000 000

RO 1 000 000

SE 18 100166 613600

Total 122 41954 985869





differences


Sector


()

95

Trimmed mean

(euro)

Average

(euro)






Total 122 17690 191346



Size class

Number of

enterprises

()

95

Trimmed mean

(euro)

Average

(euro)

Micro 25 063 5742

Small 24 38235 50293

Medium 73 18681 301282

Total 122 17690 191346




()

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 000 000

DE 19 877 15789

EE 5 200 240

ES 11 000 000



127


()

95

Trimmed mean

(euro)

Average

(euro)

FR 22 161111 613182

IE 4 152778 162500

IT 13 14957 38462

NL 6 17315 18583

PL 13 000 000

PT 3 000 000

RO 1 000 000

SE 18 221012 460637

Total 122 17690 191346



or country level





Sector


()

95 Trimmed

mean

( days)

Average

( days)






Total 122 322 721



Size class

Number of

enterprises

()

95

Trimmed mean

( days)

Average

( days)

Micro 25 300 404

Small 24 236 258

Medium 73 368 982

Total 122 322 721




128


problem by country

Country


()

95 Trimmed

mean

( days)

Average

( days)

CZ 7 226 229

DE 19 471 1074

EE 5 222 220

ES 11 631 718

FR 22 282 395

IE 4 094 100

IT 13 315 338

NL 6 4057 5117

PL 13 286 308

PT 3 300 700

RO 1 200 200

SE 18 251 361

Total 122 322 721





differences


Sector


()

95

Trimmed mean

(euro)

Average

(euro)






Total 122 34124 371871



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 25 2278 10725

Small 24 178472 389792

Medium 73 39973 489660

Total 122 34124 371871




129


Country

Number of

enterprises

()

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 387 535

DE 19 183333 665000

EE 5 6111 7000

ES 11 115657 229091

FR 22 682 50659

IE 4 166667 175000

IT 13 184615 416154

NL 6 15935 16917

PL 13 14575 37479

PT 3 3333 3333

RO 1 000 000

SE 18 332811 1241741

Total 122 34124 371871



level




Sector

Number of

enterprises

()

95 Trimmed

mean

(euro)

Average

(euro)






Total 122 095 6042



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 0 000 00

Small 0 000 00

Medium 7 17120 57096

Total 122 095 6042




130



(euro)

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 1867 5354

DE 19 000 000

EE 5 000 000

ES 11 000 000

FR 22 000 13636

IE 4 000 000

IT 13 1346 3462

NL 6 000 000

PL 13 2504 3123

PT 3 000 000

RO 1 000 000

SE 18 1939 17448

Total 122 095 6042






trade repair of


Information and

communication

Professional


Administrative

and support service

activities

Total

economy

AT 2089 1323 2194 1331 1201 1616

BE 2285 1512 2294 1363 1190 1670

BG 705 691 1435 471 622 665

CY 705 691 1435 471 622 665

CZ 544 408 930 469 352 500

DE 2069 1080 2070 1568 821 1503

DK 1978 1601 2248 2281 1580 1871

EE 616 522 861 538 458 577

EL 721 434 945 307 407 505

ES 1352 827 1912 1072 725 1028

FI 1929 1366 2186 1764 1083 1639

FR 2055 1526 2487 2163 276 1791

HR 452 405 692 275 327 410

HU 506 336 662 368 309 424

IE 1967 1281 2605 2163 1189 1493

IT 1407 772 1702 659 840 1052

LT 383 305 627 317 317 351

LU 2204 1754 2862 2942 1192 2097

LV 969 315 590 333 276 347

MT 405 475 1017 333 571 477

NL 2083 1087 1970 1499 688 1286

PL 456 303 626 332 385 391



131


Wholesale

and retail trade

repair of motor


Information

and communication




service activities

Total

economy

PT 640 524 1106 385 330 547

RO 290 236 576 333 230 287

SE 2197 1675 2618 2088 1259 1922

SI 871 731 980 523 546 762

SK 551 368 810 404 314 470

UK 1745 1047 2230 1989 1146 1455

EU 28 1491 1774 3687 1695 511 1118


Source Eurostat


different scenarios





Scenario 1


use 159)


(euro million)

Secto

r







Total 2446 7691

Siz

e

cla

ss Micro 1405 4402

Small 598 1866

Medium 442 1423

Total 2446 7691





132


problems



(euro million)

Secto

r



114 345




Total 1031 3243

Siz

e

cla

ss Micro 602 1887

Small 255 792

Medium 174 564

Total 1031 3243



Scenario 1


Scenario 2


(euro million)

Secto

r



474 1511




Total 2099 6600

Siz

e

cla

ss Micro 1961 6167

Small 97 295

Medium 41 138

Total 2099 6600



Scenario 1


Scenario 2


(euro million)

Secto

r



959 2996




Total 1989 6255



133

Scenario 1


Scenario 2


(euro million)

Siz

e

cla

ss Micro 1450 4555

Small 449 1401

Medium 90 300

Total 1989 6255



Scenario 2


Scenario 1


(euro million)

Secto

r

Manufacturing 00 00






Total 06 17

Siz

e

cla

ss Micro 02 06

Small 00 00

Medium 04 11

Total 06 17








134


costs incurred







Scenario 1





135


costs incurred




136





and growth


Co

un

try

Manufacturing


trade repair of

motor

vehicles and

motorcycles

Information

and communication

Professional

scientific



service

activities

Total

AT 06 02 00 01 10 19

BE 54 01 00 01 50 106

BG 02 00 00 00 05 07

CY 08 03 01 05 44 61

CZ 40 68 19 69 80 275

DE 02 06 02 06 03 21

DK 41 29 09 36 138 254

EE 92 86 09 69 136 392

EL 62 02 01 01 108 173

ES 07 00 00 00 85 92

FI 13 02 01 02 29 47

FR 15 01 00 00 35 51

HR 39 02 00 01 189 231

HU 05 01 00 01 08 15

IE 18 01 01 02 105 128

IT 14 06 04 12 38 73

LT 03 01 00 01 15 19

LU 23 09 01 08 39 81

LV 12 05 01 02 18 37

MT 01 00 00 00 03 05

NL 02 01 00 01 08 11

PL 00 00 00 00 03 03

PT 12 03 01 04 41 61

RO 01 00 00 00 02 03

SE 04 01 00 01 13 20

SI 07 02 01 02 20 32

SK 05 01 00 01 08 15

UK 25 07 06 11 162 211

EU28 515 240 59 237 1395 2446





137



Co

un

try

Manufacturing


trade repair of

motor vehicles

and motorcycle

s

Information and

communication

Profession

al scientific


Administrative and

support service

activities

Total

AT 17 05 01 03 35 61

BE 156 03 01 02 172 333

BG 05 00 00 00 17 22

CY 22 09 03 13 144 191

CZ 112 211 57 198 288 866

DE 07 18 07 20 12 65

DK 110 91 26 98 474 800

EE 278 256 30 218 452 1234

EL 168 05 02 02 366 544

ES 18 01 00 00 271 290

FI 37 07 02 05 96 147

FR 42 02 00 01 115 160

HR 113 06 01 02 605 728

HU 15 03 01 02 27 48

IR 50 04 02 06 340 402

IT 38 19 11 32 129 230

LT 07 02 01 02 48 61

LU 66 29 03 23 135 256

LV 33 15 02 06 62 117

MT 04 01 00 01 10 16

NL 07 02 01 02 25 36

PL 01 01 00 01 08 11

PT 32 09 04 10 136 191

RO 02 01 00 01 07 10

SE 12 03 01 03 45 62

SI 19 06 02 07 67 101

SK 13 02 01 03 27 46

UK 67 19 16 31 530 663

EU28 1450 728 175 694 4645 769

1






138







and motorcycles

Information and

communication

Professional


Administrative

and support service

activities

AT 31 18 22 20 15

BE 41 20 22 21 20

BG 44 20 19 22 24

CY 33 17 30 15 16

CZ 38 21 19 25 29

DE 29 17 19 17 16

DK 27 18 21 19 21

EE 40 19 19 19 18

EL 36 19 20 18 22

ES 40 18 20 18 18

FI 35 19 20 18 17

FR 33 20 19 22 17

HR 29 19 19 18 20

HU 40 21 17 16 18

IE 24 18 39 19 19

IT 38 19 22 17 21

LT 30 14 16 16 17

LU 37 30 49 20 80

LV 32 18 19 17 21

MT 33 16 26 23 19

NL 41 17 20 19 15

PL 36 16 20 17 20

PT 38 16 22 21 16

RO 28 26 18 22 21

SE 30 16 20 18 18

SI 31 19 21 19 17

SK 46 20 20 24 26

UK 29 18 17 16 18






139







Information

and communication

Professional

scientific and


Administrati


activities

AT 2789 1006 2094 1227 864

BE 4293 1566 2999 1533 788

BG 453 197 499 306 160

CY 871 468 2187 814 414

CZ 1106 466 1047 625 485

DE 2414 780 2031 1060 721

DK 3251 1214 2246 1564 1118

EE 967 497 740 712 626

ES 2754 616 1770 858 474

FI 3160 1078 2014 1100 748

FR 2862 1077 2263 1650 898

GR 1643 392 1263 416 476

HR 603 364 702 652 432

HU 1137 320 658 384 255

IR 8130 1091 11774 1822 2848

IT 2329 899 2006 977 754

LT 944 378 711 406 303

LU 2988 3000 8840 1977 4646

LV 689 378 648 389 387

MT 1084 513 1866 1264 617

NL 3923 1047 2190 1314 556

PL 862 467 824 646 378

PT 1151 537 1397 648 275

RO 584 323 917 958 337

SE 3272 1189 2874 1706 955

SI 1236 647 1072 609 354

SK 1452 456 962 760 485

UK 2550 910 1750 1080 708




140




Co

un

try

Sectors

Manufact

Wholesale



Information and

communication

Professional


Admin and

support service

activities

Total

(

of ctry

GVA)

(euro million)

AT 02 01 00 01 13 18 000

BE 02 02 00 02 22 29 000

BG 03 02 00 01 08 14 000

CY 00 00 00 00 02 03 000

CZ 14 00 00 00 18 33 000

DE 14 17 05 21 85 143 000

DK 01 00 00 00 07 09 000

EE 00 00 00 00 03 03 000

EL 07 05 01 05 18 34 000

ES 10 01 00 00 107 118 000

FI 01 00 00 01 08 10 000

FR 12 33 10 31 47 133 000

HR 02 00 00 00 04 07 000

HU 03 01 01 02 23 31 000

IE 01 03 01 03 02 10 000

IT 24 44 04 41 64 178 000

LT 02 01 00 01 06 10 000

LU 00 00 00 00 00 01 000

LV 01 00 00 00 04 05 000

MT 00 00 00 00 01 02 000

NL 04 01 00 01 69 76 000

PL 17 01 00 00 55 74 000

PT 02 00 00 00 54 55 000

RO 05 00 00 00 17 23 000

SE 05 04 02 06 21 38 000

SI 02 00 00 01 05 07 000

SK 03 01 00 01 11 16 000

UK 09 04 03 07 89 112 000

To

tal

EUR

million 146 126 30 128 761 1191

of

total 000 000 000 na 001 000






141



Co

un

try

Sector

Manufact


trade repair


Information

and communication



Admin

and support service

activities

Total ( of

ctry GVA)

(euro million)

BE 2 2 0 3 56 63 000

BG 26 25 1 7 112 171 001

CZ 49 2 0 1 103 155 000

DK 1 1 0 1 13 15 000

DE 17 38 5 34 191 285 000

EE 2 0 0 0 9 10 000

EL 14 24 1 19 83 141 000

IE 0 6 0 4 1 11 013

ES 14 3 0 1 398 417 000

HR 9 3 0 1 18 31 000

IT 39 96 5 71 180 391 002

CY 2 1 0 0 7 10 000

LV 4 2 0 2 19 27 001

LT 6 5 0 3 34 48 001

LU 0 0 0 0 1 1 000

HU 10 9 2 10 161 192 001

MT 1 0 0 0 3 5 000

NL 5 1 0 2 189 197 000

AT 3 2 0 2 23 30 000

PL 72 4 1 1 286 363 000

PT 6 0 0 0 311 317 000

RO 25 2 0 0 104 132 000

SI 4 1 0 2 23 29 001

SK 9 5 1 2 59 76 001

FI 1 1 0 1 18 21 000

SE 4 5 1 7 40 57 001

UK 10 7 3 10 229 260 000

To

tal Persons 348 306 31 225 2761 3672

of

total 000 000 000 000 002 000






142



Co

un

try

Sector

Manufact


repair of

motor vehicles and

motorcycles

Information

and communication



Admin

and support service

activities

Total

(

of ctry

GVA)

AT 06 04 01 03 43 57 000

BE 05 05 01 06 74 91 000

BG 07 08 01 03 26 45 001

CY 01 01 00 00 06 09 001

CZ 41 01 00 01 60 104 001

DE 38 53 13 57 293 455 000

DK 03 01 01 01 23 29 000

EE 01 00 00 00 10 11 001

EL 18 15 02 13 60 108 001

ES 28 03 00 01 342 376 000

FI 03 01 00 02 26 33 000

FR 33 104 30 90 169 427 000

HR 05 02 00 01 13 22 001

HU 08 04 02 06 77 98 001

IE 03 10 02 11 06 32 000

IT 73 132 14 129 211 560 000

LT 06 04 00 02 21 33 001

LU 00 00 00 00 01 02 000

LV 02 01 00 01 12 16 001

MT 01 00 00 00 03 05 001

NL 12 02 01 03 224 242 000

PL 46 03 01 01 186 237 001

PT 05 00 00 00 170 175 001

RO 15 01 00 00 56 72 001

SE 13 12 06 18 73 121 000

SI 04 01 00 02 16 23 001

SK 08 03 01 02 37 52 001

UK 23 10 09 19 292 354 000

To

tal

EUR

million 411 382 88 375 2532 3788

of

total 000 000 000 na 004 000






143



Co

un

try

Sector

Manufac

t


trade repair of

motor vehicles

and motorcy

cles

Informati

on and communi

cation

Professio

nal scientific


Admin and

support service

activities

Total ( of ctry

employment)

(Persons)

AT 7 6 1 6 77 97 000

BE 5 6 1 8 183 203 000

BG 72 76 4 19 384 555 002

CY 4 3 0 1 24 31 001

CZ 141 6 1 3 356 506 001

DE 46 117 13 93 657 925 000

DK 2 2 1 1 43 49 000

EE 5 0 0 0 28 33 001

EL 40 73 3 56 284 455 001

ES 41 10 0 3 1277 1331 001

FI 4 2 0 2 60 69 000

FR 39 196 25 120 321 701 000

HR 24 8 1 4 63 99 001

HU 28 28 5 27 535 623 001

IE 1 17 1 11 4 33 000

IT 119 284 15 223 599 1242 001

LT 18 14 1 8 116 157 001

LU 0 0 0 0 2 3 000

LV 10 5 1 4 65 85 001

MT 2 1 0 1 11 15 001

NL 13 4 1 5 612 634 001

PL 195 11 2 4 970 1182 001

PT 16 1 0 1 986 1004 002

RO 72 6 0 1 342 420 000

SE 12 16 4 19 136 186 000

SI 11 3 1 5 78 97 001

SK 25 14 2 7 199 247 001

UK 26 21 9 29 749 834 000

To

tal

Persons 977 930 92 660 9157 11816

of total 000 000 000 000 006 001






144


Scenario 1


use 159)

Scenario 2


use 499)

(euro million)






Construction 20 64










Education 10 33












Scenario 1 (average


Scenario 2 (average


(Persons)






Construction 43 135









145

Scenario 1


use 159)

Scenario 2


use 499)

(Persons)




Education 26 82





1 2








146



brokers)

Introduction












interactionrdquo






Timing 2 min












and company

Timing 05 min



147













Timing 10 min
















148


Timing 10 min



encounter a problem











Timing 10 min










Timing 5 min




Timing 2 min



149


D Introduction




Timing 2 min




are performing

Timing 05 min





Networking services



Timing 5 min









Timing 10 min




150












Timing 15 min






Timing 5 min





services for SMEs

Timing 5 min




Timing 5 min



151


SMEs envoys)

E Introduction












interactionrdquo








Timing 5 min








Timing 05 min





Any data available



152








Conditions





Timing 10 min
















Timing 10 min






153


services







Timing 10 min






154



Objectives






Scope






National SMEs Envoy


Cloud brokers






Topics discussed




















155

Stakeholder


























SMEs associations












156

Findings



























157


Category Country



EEN Romania

France

National authority

Italy

Romania

Romania

France

Poland

Estonia

Service provider

Sweden

Spain

Spain

Sweden

Ireland

Romania

Romania

Portugal

Romania

Germany

SME Association

EU

Portugal

The Netherlands


Services contracted











Security



158











Duration and costs





































159











































this



computing services



160







Actions taken






















cost






















161
































Validation Webinars


















162



















level



























contact point (35)



128 Zoom



163







and stored129

































164


Free publications

bull one copy







Priced publications




165


In person










Online



EU publications











purposes

doi 102838962608

ISBN 978-92-79-96750-4

[Cata

logue n

um

ber]

DS-0

3-1

8-4

21-E

N-N

















Freephone number ()

00 800 6 7 8 9 10 11




1

CONTENTS


Glossary 4

1 Introduction 7























7 Conclusions 77












2


Acronym Description






EU European Union










MS Member State












3

EU Member States

AT Austria

BE Belgium

BG Bulgaria

CY Cyprus


DE Germany

DK Denmark

EE Estonia

EL Greece

ES Spain

FI Finland

FR France

HR Croatia

HU Hungary

IE Ireland

IT Italy

LV Latvia

LT Lithuania

LU Luxembourg

MT Malta

NL The Netherlands

PL Poland

PT Portugal

RO Romania

SE Sweden

SI Slovenia

SK Slovakia




4

Glossary


Active enterprise


period

Eurostat

Cloud computing





Cloud Service



2014







Data portability







Eurostat


United Kingdom

Eurostat



Eurostat



5


Frequency

(F)



Incidence

(I)










Eurostat


(PPP)



Eurostat

Platform as a

Service (PaaS)














6










2014

Service performance










Virtual Data Centre



data centres





7

1 Introduction






Contract Law

























8


































9




the contractrsquo10


initiatives




























Brussels



10






unaffected and


















Objectives




services















competitiveness





11

Scope














Territorial scope


Timeline


2017

Stakeholders










SMEs associations












12



euro10 million


























of service




concerns



related problems



competitiveness











13






14






be used







measured






15





enterprises


computing
















Cloud computing

model


Details











protection






management




16

Cloud

computing

model


Details


Platform to create



deployment










































17



contract








the team to






























18





European Unionrsquo






































19

















the EU level



contracts

20






21



survey










services

Number of SMEs that





[isoc_cicce_use]


study objectives

Number of SMEs that







NA










contracts

22


EU MS


EU15 EU13





Total active SMEs

(Country level)

(EU28 level)

AT 40393 646288 280850 31959 38422 1196 137 EU15

BE 31302 8139 569950 64858 72996 1214 261 EU15

BG 26991 1619 298559 33975 35594 1093 127 EU13


CZ 38203 6877 961287 109390 116267 1163 416 EU13

DE 411527 61729 1985471 225938 287667 1200 1029 EU15

DK 22681 9072 187367 21322 30394 1447 109 EU15

EE 6439 1417 61513 7000 8416 1239 030 EU13

EL 15368 1383 764471 86993 88376 1133 316 EU15

ES 125000 21250 2337621 116881 138131 561 494 EU15

FI 19187 10361 209328 23821 34182 1496 122 EU15

FR 139335 22294 2765282 314677 336970 1160 1205 EU15

HR 12249 2695 134007 15249 17944 1227 064 EU13

HU 30852 3394 504904 57456 60850 1136 218 EU13

IE 5514 1930 224742 25575 27505 1195 098 EU15

IT 182182 38258 3497783 398032 436290 1186 1560 EU15

LT 13604 2177 172527 19633 21809 1172 078 EU13

LU 3939 670 27841 3168 3838 1208 014 EU15

LV 9226 738 100216 11404 12142 1109 043 EU13

MT 1885 509 24123 2745 3254 1251 012 EU13

NL 48115 15397 1042588 118642 134039 1229 479 EU15

PL 69282 4850 1534086 174572 179422 1119 642 EU13

PT 37353 6350 769043 53833 60183 746 215 EU15

RO 50987 3569 405493 46143 49712 1089 178 EU13

SE 36047 16221 649412 155859 172080 2510 615 EU15

SI 6912 1382 127603 14521 15903 1182 057 EU13

SK 14363 2442 414630 33170 35612 830 127 EU13

UK 199528 65844 1734989 312298 378142 1955 1352 EU15

Tot EU28

1598464 317028 21785686 2479112 2796141 12 100

Selected Countries





23




[sbs_sc_sca_r2])













study objectives)





referred to as M)






24


NACE Code

Sectors

A B C = B100 x

A CD



EU28 level

of enter (with more

than 10 empl)

buying CC services

of enter (with more

than 10 empl)

buying CC services

out of the total



18732 19 3559 1

F Construction 200369 15 30055 11


motorcycles

351278 18 63230 24




55905 52 29070 11



97073 34 33004 12



Total 1326794 21 268384 (D) 100

Selected Sectors

















25




Where



Our case



e = 5

Z = 196
















CATI



barriers



business







26



Sector

Country


activities

Inform and comm

Manufact

Profess scientific


Wholesale

and retail trade

Total

CZ 13 17 62 30 52 174

EE 5 22 8 12 15 62

FR 184 129 262 126 308 1009

DE 99 123 185 226 249 882

IE 4 18 6 6 13 47

IT 8 9 100 7 15 139

NL 36 49

24 37 146

PL 24 69 16 78 92 279

PT 7 2 9 2 24 44

RO 8 20 2 27 15 72

ES 7 11

26 21 65

SE 41 33 59 30 91 254

Total 436 502 709 594 932 3173






27


Country

Number of




Total Participation

rate ()

A B C = A + B BC

CZ 131 43 174 25

DE 33 158 191 83

EE 715 29 744 4

ES 724 54 778 7

FR 16 294 310 95

IE 24 31 55 56

IT 97 115 212 54

NL 152 49 201 24

PL 11 127 138 92

PT 48 33 81 41

RO 11 24 35 69

SE 202 52 254 20

Total 2164 1009 3173 32






the survey








28


1009)














119866119865119863 = 119871 + 119867119877 + 119874119862

Where










computed






29


three main steps







serious problem


each SME



119873119901 = 119890119906 times 119890119901 times 119864

Where


services







level overall











formula

119873119894119895119901 = (

119890119894119906 + 119890119895

119906

2) times (

119890119894119901 + 119890119895

119901

2) times 119864119894119895




30

Where









survey





[sbs_sc_sca_r2])











from the survey



[sbs_sc_sca_r2])










31




levels











true detriment47












caused to each SME

















32





























box










33


value added






119883119894 = sum 119883119894119895 + 119884119894

119895


and final demand)

119883119894 = sum 119883119894119895 + 119884119894

119894











OUTPUT (Demand)

INPUT


production

(1st Q)

Final demand

(2nd Q)

Primary inputs to

production

(3rd Q)


demand

(4th Q)



34




























study Tasks






nine SMEs

one cloud broker








35











the CATI
















information







survey















36










37








while taking action
























enterprises55


that








38



















the survey









content










39














SME size class

of respondents




Small 140 723 52

Medium 272 1296 48

Total 503 2522 50



services



40















plug-ins)




(21)



41


SMEs size Total


out of which


Micro 91 503 252 149 97 5

50 30 19 1

Small 140 723 332 224 157 10

46 31 22 1

Medium 272 1296 609 393 276 18

21 30 47 1

Total 503 2522 1193 766 530 33

47 30 21 1
















details)



42












SMEs

size

Total of

respond

of services

contracted

of customised

services

of services

SMEs were able to

negotiate

out of which


Micro 91 503 48 24 11 10 3 0

Small 140 723 123 89 36 31 20 2

Medium 272 1296 120 155 78 44 31 2

Total 503 2522 106 268 125 85 54 4











43
















44







Size category

Total

Respondents

SMEs that did

not negotiate

CTampC


Full customisation


No Customisation

Micro 91 69 16 6 0

100 76 17 7 0

Small 140 86 27 15 12

100 61 19 11 9

Medium 272 169 58 26 19

100 62 21 10 7

Total 503 324 101 47 31

100 64 56 26 17








45







46
















66 116 199 381


25 24 73 122

27 17 27 24






Frequency

(F)



months)




Incidence

(I)









contracts

47






48















due to









anomalies occurred














future








49









Figure 15)69


SME size class




Micro 25 116 464

Small 24 92 383

Medium 73 290 397

Total 122 498 408





Types of problems







50


respondents 122)70





















51



Size




Micro 7 28 0 0 2 8 16 64 25

Small 10 42 0 0 1 4 13 54 24

Medium 38 52 4 5 4 5 27 37 73

Total 55 45 4 3 7 6 56 46 122






















52














(Table 15)





53



The 3 most serious

problems

of SMEs declaring

this as the most

serious problem





the cause



serious problem

encountered


32 23 3 3 3

100 73 9 9 9

Low speed of

the service

27 13 5 2 7

100 48 19 7 26


16 6 2 4 4

100 38 13 25 25




20)








serious problem






54








service (Figure 21)
























55









or four days











56



24)














57







problem

- loss of clients





service problem


service




















58


and third parties)






















problems


enterprises (48)





Skill level of

enterprises


Technical 93 76







17)



59




of enterprises



Legal costs 22 18


None 38 31























far





rate)91







60






















Component

Number of



Number of

enterprises that

quantified the cost


that

quantified


of enterprises

that

quantified







42 41 15 37


39 39 15 38



damage 23 23 3 13


25 24 2 8


Redress 15 15 7 47





61













































Losses of turnover



from the survey



62









Value of

Losses (euro)

Number of

Enterprises


frequency

000 105 861 861

700 1 08 869

30000 1 08 877

104690 2 16 893

157035 1 08 902

200000 1 08 910

209380 1 08 918

500000 2 16 934

1000000 1 08 943

2000000 1 08 951

5000000 1 08 959

10469012 1 08 967

15000000 2 16 984

20000000 1 08 992

50000000 1 08 1000

Total 122 100




Loss of profit








000 103 844 844

1200 1 08 852






63

Value of

Losses (euro)

Number of


Cumulative

frequency

20938 1 08 861

51500 1 08 869

52345 1 08 877

60000 1 08 885

90000 1 08 893

150000 1 08 902

157035 1 08 910

200000 2 16 926

209380 1 08 934

300000 1 08 943

500000 2 16 959

523451 1 08 967

2093802 1 08 975

3000000 1 08 984

5234506 1 08 992

10000000 1 08 1000

Total 122 100



















64








individual costs






Component


that quantified

costs



of total 122

95 trimmed

mean of the values


experiencing

each cost euro

Average of



euro


41 15 123 1187 5892


39 15 123 1311 13657




65

Component


that quantified

costs


that


of total

122

95

trimmed

mean of the values



euro

Average of



euro



23 3 25 00 2701


client(s) 24 2 16 00 8663













22)103


Component


declared

relevant values ()


faced problems




euro


euro


Profit losses 19 156 17690 191346


105 861 36006 80621

Other costs 30 246 34124 371871

Redress 7 57 095 6042






66






suffered













residual costs



24


Component

95 trimmed mean of


enterprises that

quantified the

component

euro

Average of the

values declared by

enterprises that

quantified the

component

euro



Other costs 3412 304 37187 259

Gross detriment 11208 1000 143836 1000

Redress 10 604






67


profits (euro)

Component

95 trimmed mean of


enterprises that

quantified the

component

euro

Average of the

values declared by

enterprises that

quantified the

component

euro

Profit losses 1769 201 19135 297


3601 410 8062 125

Other costs 3412 389 37187 578


64384 1000

Redress 10 604
















about 18 million




68


Scenario 1


159)

Scenario 2


499)

(number)

Secto

r



198877 628761



195098 599588


56803 203001

Total 582924 1833118

Siz

e

cla

ss Micro 548001 1722427

Small 22827 70148

Medium 12096 40543

Total 582924 1833118











use 159)


use 499)

(euro million)

Secto

r



1673 5235





1918 6495

Total 6534 20546

Siz

e

cla

ss Micro 4816 15124

Small 1144 3562

Medium 574 1861

Total 6534 20546




69


costs incurred


159)


499)

(euro million)

Secto

r






1421 4323



Total 5119 16098

Siz

e

cla

ss Micro 4013 12609

Small 801 2488

Medium 306 1002

Total 5119 16098







detriment euro




costs incurred

Micro 8788 7323

Small 50116 35090

Medium 47454 25298

Total 11209 8782







70




use 159)


use 499)

(euro million)

Secto

r






1556 4722



Total 6528 20529

Siz

e

cla

ss Micro 4815 15118

Small 1143 3562

Medium 570 1850

Total 6528 20529



costs incurred


159)


499)

(euro million)

Secto

r



1548 4851



1420 4322


1152 3928

Total 5114 16081

Siz

e

cla

ss Micro 4011 12603

Small 800 2488

Medium 302 990

Total 5114 16081













71

















72













119863119868(119866119881119860)119894 = sum119871(119879)119894119895

119884119894119895 119866119881119860119894119895frasl

5

119895=1

Where











turnover losses

119863119868(119864)119894 = sum119871(119879)119894119895

119884119894119895 119864119894119895frasl

5

119895=1

Where













73






GVA



Box 4











61 Direct impacts










counting



















74



Scenario 1



499)


EU GVA 000 000

Impact on jobs

Persons 3672 11816

EU

employment 000 001






62 Indirect impacts












effects










Scenario 1



499)


EU GVA 000 000






75




























lower context costs



















76


companies affected















77

7 Conclusions








infrastructure




















Envoy)


everyday work


















78




















































79

















































80


















employment




















other effects




81











of the companies












welfare





82












1 Yes that is me



ltIf 2gt




























83

































accordingly












84



1 Cloud broker The






Interview






Romania



Interview



Interview


France



Interview






Interview

11 Service provider


12 Service provider


13 Service provider


14 Service provider


15 Service provider


16 Service provider


17 Service provider




85


18 Service provider


19 Service


20 Service provider







Interview






30 SME Association


31 SME



Aveiro Interview

32 SME Association

The Netherlands

VNO-NCW Interview


The Czech Republic




86





VI-012)




















COM20150626 final





(COM (2016)0176)










Assessment





87






Market Actrsquo













275 final















242






in Europe








88















Computing





consumer detriment










for Standardization













an



89









Databases













90





[open question]




a) Czech Republic


i) Romania
















91


































92







conditions




purposes)












protection)













93









[open question]






Problems

Very

frequently


Frequentl


Occasiona

lly (at least


Rarely (at


12 months)

Never











of service)



94



service

















years











95






























96


protection)






















linked




purposes)




97













protection)



problem




a) Yes

b) No














98





















foreign country)








[open question]

Nordm of employees


Nordm of work days


Average monthly


currency)118




99


Administrative

Technical

Senior












Lost turnoveryear

Lost profityear














[open question]

Nordm of employees


Nordm of work days


Average monthly





100

per skill level of

employee(s)

per skill level

employee(s)

(amount in local

currency)119

Administrative

Technical

Senior











encountered


Lost turnoveryear

Lost profityear








[open question]


2016


2017


tax in 2016


tax in 2017




101





Manufacturing 137









102




Services

Sectors

Collaboration and


Storage and hosting

services

Security

services

Networking

services


61 60 49 40




71 70 40 39






103








104





105



years




CZ 18 850

EE 18 112

FR 34 4675

DE 33 861

IE 19 1127

IT 58 716

NL 21 6672

PL 20 411

PT 7 433



106


RO 7 278

ES 13 127

SE 19 2866

Total 267 1787







107





108





109




experienced



110




problem



111






Sector Number of

enterprises

95 Trimmed

mean Average






Total 122 322 721



95 Trimmed mean

Average

Micro 25 300 404

Small 24 236 258

Medium 73 368 982

Total 122 322 721


Country Number of

enterprises

95


CZ 7 226 229

EE 5 222 220

FR 22 282 395

DE 19 471 1074

IE 4 094 100

IT 13 315 338

NL 6 4057 5117

PL 13 286 308

PT 3 300 700



112

Country Number of

enterprises

95


CZ 7 226 229

RO 1 200 200

ES 11 631 718

SE 18 251 361

Total 122 322 721



of enterprises



Legal costs 22 18



Other costs 9 7

None 38 31

Total 122



CZ 0 0 0 0

EE 1 20 1 20

FR 4 18 5 23

DE 2 11 1 5

IE 2 50 2 50

IT 2 15 1 8

NL 1 17 2 33

PL 0 0 0 0

PT 0 0 0 0

RO 0 0 0 0

ES 0 0 0 0

SE 5 28 7 39

Total 17 19


of enterprises



Other 5 4





Below 50 105 87

50 to 80 8 7



113

of enterprises

Above 80 9 7

Total 122 100





Technical 93 76






Legal costs 22 18



Other costs 9 7

None 38 31

Total 122


encountered121


CZ 0 0 0 0

EE 1 20 1 20

FR 4 18 5 23

DE 2 11 1 5

IE 2 50 2 50

IT 2 15 1 8

NL 1 17 2 33

PL 0 0 0 0

PT 0 0 0 0

RO 0 0 0 0

ES 0 0 0 0

SE 5 28 7 39

Total 17 19




Other 5 4





114

















Total 159 499




Micro 178 535

Small 226 606

Medium 133 447

Total 159 499




CZ 172 698

EE 323 690

FR 79 272

DE 80 449

IE 468 710

IT 719 870

NL 205 612

PL 143 315

PT 455 606

RO 278 833

ES 538 648

SE 138 673

Total 159 499




115










Senior

officersmanager(s)

CZ 2 29 3 43 4 57

DE 9 47 15 79 8 42

EE 4 80 4 80 3 60

ES 4 36 6 55 5 45

FR 8 36 19 86 11 50

IE 1 25 2 50 3 75

IT 7 54 10 77 4 31

NL 4 67 6 100 4 67

PL 5 38 12 92 5 38

PT 1 33 2 67 0 0

RO 1 100 1 100 0 0

SE 13 72 13 72 12 67

Total 59 93 59





Senior

officersmanager(s)


activities 6 46 9 69 10 77






12 48 14 56 12 48

Total 59 93 59




116




Senior officers

manager(s)

Micro 11 52 12 57 11 52

Small 24 75 22 69 16 50

Medium 24 35 59 86 32 46

Total 59 93 59





Co

un

try

Costs related to

ensuring an

alternative service

Costs related to

fixing the cloud

service problem

Legal costs

Costs


damage

Costs

related to loss of

client(s)

Other

costsNone

CZ 3 43 0 0 0 0 0 0 1 14 3 43

DE 4 21 6 32 2 11 2 11 3 16 5 26

EE 0 0 2 40 0 0 0 0 0 0 3 60

ES 7 64 1 9 0 0 0 0 0 0 3 27

FR 13 59 13 59 12

55 11 50 11 50 18 82

IE 1 25 3 75 0 0 0 0 1 25 0 0

IT 4 31 2 15 1 8 1 8 2 15 2 15

NL 1 17 1 17 1 17 2 33 1 17 5 83

PL 1 8 1 8 2 15 1 8 1 8 2 15

PT 1 33 1 33 0 0 1 33 1 33 0 0

RO 1 100 0 0 1 100 1 100 1 100 1 100

SE 6 33 9 50 3 17 4 22 3 17 5 28

Total 42 39 22 23 25 47




Sector


an alternative

service

Costs



Legal costs

Costs


damage


Other

costsNone


activities

5 38 1 8 2 15 1 8 1 8 6 46

Information and

commun 12 50 11 46 7 29 7 29 7 29 8 33



117

Sector


an alternative

service

Costs



Legal costs

Costs


damage

Costs related


Other costsNone

Manufacturing 8 26 6 19 3 10 4 13 5 16 8 26

Profess


13 45 12 41 10 34 10 34 11 38 16 55

Wholesale and

retail trade


4 16 9 36 0 0 1 4 1 4 9 36

Total 42 39 22 23 25 47




Size class


an

alternative service


cloud

service problem

Legal costs

Costs related to

reputation

damage

Costs related to

loss of

client(s)

Other

costs

None

Micro 6 29 11 52 4 19 6 29 5 24 8 38

Small 13 41 12 38 9 28 7 22 8 25 13 41

Medium 23 33 16 23 9 13 10 14 12 17 26 38

Total 42 39 22 23 25 47



respondents 122)










Total 17 19




118




Micro 2 10 4 19

Small 8 25 8 25

Medium 7 10 7 10

Total 17 19



122)

Country

Financial

compensation

Reduction in the


Other

The company did


CZ 1 14 0 0 1 14 5 71

DE 0 0 0 0 1 5 18 95

EE 0 0 0 0 0 0 5 100

ES 0 0 0 0 0 0 11 100

FR 2 9 1 5 1 5 19 86

IE 0 0 0 0 0 0 4 100

IT 1 8 0 0 0 0 12 92

NL 0 0 2 33 1 17 4 67

PL 0 0 3 23 0 0 10 77

PT 0 0 1 33 0 0 2 67

RO 0 0 0 0 0 0 1 100

SE 0 0 1 6 1 6 16 89

Total 4 8 5 107



122)

Sector


Reduction in


Other

The company


Administrative and



1 4 1 4 3 13 20 83



1 3 2 7 1 3 25 86



Total 4 8 5 107




119



Size class

Financial

compensation


subscription Other


Micro 1 5 1 5 0 0 19 90

Small 0 0 2 6 2 6 28 88

Medium 3 4 5 7 3 4 60 87

Total 4 8 5 107











CZ 3 43 0 0 0 0 4 57 7

DE 3 60 0 0 0 0 2 40 5

EE 11 50 1 5 0 0 10 45 22

ES 11 58 1 5 1 5 6 32 19

FR 3 75 0 0 0 0 1 25 4

IE 5 38 0 0 0 0 8 62 13

IT 1 17 0 0 1 17 4 67 6

NL 5 38 0 0 1 8 7 54 13

PL 2 67 0 0 0 0 1 33 3

PT 1 11 0 0 0 0 8 89 9

RO 3 38 0 0 0 0 5 63 8

SE 7 10 2 3 4 6 56 81 69

Total 55 31 4 2 7 4 112 63 178





120





26 74 0 0 5 14 4 11 35


20 56 0 0 0 0 16 44 36

Manufacturing 30 64 3 6 0 0 14 30 47


39 65 8 13 1 2 12 20 60



29 57 0 0 12 24 10 20 51

Total 144 63 11 5 18 8 56 24 229





Micro 7 28 0 0 2 8 16 64 25

Small 10 42 0 0 1 4 13 54 24

Medium 38 52 4 5 4 5 27 37 73

Total 55 45 4 3 7 6 56 46 122







computing problem






CZ 0 0 1 33 2 67

DE 5 45 9 82 3 27

EE 3 100 3 100 1 33

ES 1 33 2 67 1 33

FR 4 36 7 64 4 36

IE 1 33 2 67 1 33

IT 2 40 3 60 1 20




121


Senior

officersmanager(s)

NL 1 100 1 100 1 100

PL 2 40 5 100 0 0

PT 1 50 1 50 2 100

RO 0 0 0 0 0 0

SE 3 43 5 71 2 29

Total 23 39 18






Senior

officersmanager(s)









5 42 7 58 5 42

Total 23 39 18





Senior officers

manager(s)

Micro 3 38 5 63 2 25

Small 10 63 13 81 6 38

Medium 10 32 21 68 10 32

Total 23 39 18




Co

un

try Costs

related to

ensuring an

alternative service

Costs

related to

fixing the cloud

service problem

Legal costs

Costs related


Costs

related to loss of

client(s)

Other

costsnone



122

CZ 0 0 0 0 0 0 0 0 0 0 3 100

DE 5 45 4 36 3 27 3 27 3 27 9 82

EE 0 0 2 67 0 0 0 0 0 0 1 33

ES 1 33 0 0 0 0 0 0 0 0 2 67

FR 6 55 5 45 5 45 5 45 5 45 10 91

IE 1 33 0 0 0 0 0 0 0 0 2 67

IT 2 40 1 20 1 20 1 20 2 40 3 60

NL 0 0 0 0 0 0 0 0 0 0 1 100

PL 0 0 1 20 1 20 1 20 1 20 2 40

PT 1 50 0 0 0 0 1 50 1 50 0 0

RO 1 100 1 100 1 100

1 100 1 100 1 100

SE 1 14 2 29 1 14 2 29 2 29 5 71

Total 18 16 12 5 14 15




Sector

Costs

related to ensuring


Costs



Legal costs


damage

Costs related to

loss of client(s)

Other costs

none


activities 1 17 1 17 2 33 1 17 1 17 5 83


3 30 3 30 1 10 2 20 2 20 6 60

manufacturing 4 25 5 31 4 25 4 25 4 25 15 94


activities

7 64 6 55 5 45 6 55 6 55 7 64



3 25 1 8 0 0 1 8 2 17 6 50

Total 18 16 12 5 14 15




123



Size class


an alternative

service



Legal

costs

Costs related to

reputation damage

Costs related to

loss of client(s)

Other

costsnone

Micro 3 19 4 25 2 13 0 0 2 13 2 13

Small 12 39 8 26 7 23 0 0 9 29 10 32

Medium 3 38 4 50 3 38 5 63 3 38 3 38

Total 18 16 12 5 14 15



of respondents 55)


Micro 0 0 1 13

Small 5 31 5 31

Medium 2 6 2 6

Total 7 8



respondents 55)



1 17 1 17







2 17 2 17

Total 7 8







computing problems



124



Country

Financial

compensation


subscription Other


redress

CZ 1 33 0 0 0 0 2 67

DE 0 0 0 0 0 0 11 100

EE 0 0 0 0 0 0 3 100

ES 0 0 0 0 0 0 3 100

FR 1 9 0 0 0 0 10 91

IE 0 0 0 0 0 0 3 100

IT 0 0 0 0 0 0 5 100

NL 0 0 0 0 0 0 1 100

PL 0 0 1 20 0 0 4 80

PT 0 0 1 50 0 0 1 50

RO 0 0 0 0 0 0 1 100

SE 0 0 1 14 0 0 6 86

Total 2 3 0 50




Country

Financial

compensation


subscription Other



2 33 0 0 0 0 4 67

Information and



Professional

scientific and


0 0 1 9 0 0 10 91


0 0 1 8 0 0 10 83

Total 2 3 0 50




125



Country

Financial

compensation


subscription Other


Micro 0 0 2 13 0 0 14 88

Small 2 6 0 0 0 0 29 94

Medium 0 0 1 13 0 0 7 88

Total 2 3 0 50







Sectors

Number of

enterprises ()

95 Trimmed mean125

(euro)

Average

(euro)






Total 122 41954 985869



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 25 023 4217

Small 24 271159 1119043

Medium 73 99060 1278261

Total 122 41954 985869




()

95 Trimmed mean

(euro)

Average

(euro)

CZ 7 000 000

DE 19 160819 894737

EE 5 117 140




126


()

95

Trimmed mean

(euro)

Average

(euro)

ES 11 000 000

FR 22 742424 3009091

IE 4 4583333 5125000

IT 13 192308 423077

NL 6 3889 5000

PL 13 000 000

PT 3 000 000

RO 1 000 000

SE 18 100166 613600

Total 122 41954 985869





differences


Sector


()

95

Trimmed mean

(euro)

Average

(euro)






Total 122 17690 191346



Size class

Number of

enterprises

()

95

Trimmed mean

(euro)

Average

(euro)

Micro 25 063 5742

Small 24 38235 50293

Medium 73 18681 301282

Total 122 17690 191346




()

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 000 000

DE 19 877 15789

EE 5 200 240

ES 11 000 000



127


()

95

Trimmed mean

(euro)

Average

(euro)

FR 22 161111 613182

IE 4 152778 162500

IT 13 14957 38462

NL 6 17315 18583

PL 13 000 000

PT 3 000 000

RO 1 000 000

SE 18 221012 460637

Total 122 17690 191346



or country level





Sector


()

95 Trimmed

mean

( days)

Average

( days)






Total 122 322 721



Size class

Number of

enterprises

()

95

Trimmed mean

( days)

Average

( days)

Micro 25 300 404

Small 24 236 258

Medium 73 368 982

Total 122 322 721




128


problem by country

Country


()

95 Trimmed

mean

( days)

Average

( days)

CZ 7 226 229

DE 19 471 1074

EE 5 222 220

ES 11 631 718

FR 22 282 395

IE 4 094 100

IT 13 315 338

NL 6 4057 5117

PL 13 286 308

PT 3 300 700

RO 1 200 200

SE 18 251 361

Total 122 322 721





differences


Sector


()

95

Trimmed mean

(euro)

Average

(euro)






Total 122 34124 371871



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 25 2278 10725

Small 24 178472 389792

Medium 73 39973 489660

Total 122 34124 371871




129


Country

Number of

enterprises

()

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 387 535

DE 19 183333 665000

EE 5 6111 7000

ES 11 115657 229091

FR 22 682 50659

IE 4 166667 175000

IT 13 184615 416154

NL 6 15935 16917

PL 13 14575 37479

PT 3 3333 3333

RO 1 000 000

SE 18 332811 1241741

Total 122 34124 371871



level




Sector

Number of

enterprises

()

95 Trimmed

mean

(euro)

Average

(euro)






Total 122 095 6042



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 0 000 00

Small 0 000 00

Medium 7 17120 57096

Total 122 095 6042




130



(euro)

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 1867 5354

DE 19 000 000

EE 5 000 000

ES 11 000 000

FR 22 000 13636

IE 4 000 000

IT 13 1346 3462

NL 6 000 000

PL 13 2504 3123

PT 3 000 000

RO 1 000 000

SE 18 1939 17448

Total 122 095 6042






trade repair of


Information and

communication

Professional


Administrative

and support service

activities

Total

economy

AT 2089 1323 2194 1331 1201 1616

BE 2285 1512 2294 1363 1190 1670

BG 705 691 1435 471 622 665

CY 705 691 1435 471 622 665

CZ 544 408 930 469 352 500

DE 2069 1080 2070 1568 821 1503

DK 1978 1601 2248 2281 1580 1871

EE 616 522 861 538 458 577

EL 721 434 945 307 407 505

ES 1352 827 1912 1072 725 1028

FI 1929 1366 2186 1764 1083 1639

FR 2055 1526 2487 2163 276 1791

HR 452 405 692 275 327 410

HU 506 336 662 368 309 424

IE 1967 1281 2605 2163 1189 1493

IT 1407 772 1702 659 840 1052

LT 383 305 627 317 317 351

LU 2204 1754 2862 2942 1192 2097

LV 969 315 590 333 276 347

MT 405 475 1017 333 571 477

NL 2083 1087 1970 1499 688 1286

PL 456 303 626 332 385 391



131


Wholesale

and retail trade

repair of motor


Information

and communication




service activities

Total

economy

PT 640 524 1106 385 330 547

RO 290 236 576 333 230 287

SE 2197 1675 2618 2088 1259 1922

SI 871 731 980 523 546 762

SK 551 368 810 404 314 470

UK 1745 1047 2230 1989 1146 1455

EU 28 1491 1774 3687 1695 511 1118


Source Eurostat


different scenarios





Scenario 1


use 159)


(euro million)

Secto

r







Total 2446 7691

Siz

e

cla

ss Micro 1405 4402

Small 598 1866

Medium 442 1423

Total 2446 7691





132


problems



(euro million)

Secto

r



114 345




Total 1031 3243

Siz

e

cla

ss Micro 602 1887

Small 255 792

Medium 174 564

Total 1031 3243



Scenario 1


Scenario 2


(euro million)

Secto

r



474 1511




Total 2099 6600

Siz

e

cla

ss Micro 1961 6167

Small 97 295

Medium 41 138

Total 2099 6600



Scenario 1


Scenario 2


(euro million)

Secto

r



959 2996




Total 1989 6255



133

Scenario 1


Scenario 2


(euro million)

Siz

e

cla

ss Micro 1450 4555

Small 449 1401

Medium 90 300

Total 1989 6255



Scenario 2


Scenario 1


(euro million)

Secto

r

Manufacturing 00 00






Total 06 17

Siz

e

cla

ss Micro 02 06

Small 00 00

Medium 04 11

Total 06 17








134


costs incurred







Scenario 1





135


costs incurred




136





and growth


Co

un

try

Manufacturing


trade repair of

motor

vehicles and

motorcycles

Information

and communication

Professional

scientific



service

activities

Total

AT 06 02 00 01 10 19

BE 54 01 00 01 50 106

BG 02 00 00 00 05 07

CY 08 03 01 05 44 61

CZ 40 68 19 69 80 275

DE 02 06 02 06 03 21

DK 41 29 09 36 138 254

EE 92 86 09 69 136 392

EL 62 02 01 01 108 173

ES 07 00 00 00 85 92

FI 13 02 01 02 29 47

FR 15 01 00 00 35 51

HR 39 02 00 01 189 231

HU 05 01 00 01 08 15

IE 18 01 01 02 105 128

IT 14 06 04 12 38 73

LT 03 01 00 01 15 19

LU 23 09 01 08 39 81

LV 12 05 01 02 18 37

MT 01 00 00 00 03 05

NL 02 01 00 01 08 11

PL 00 00 00 00 03 03

PT 12 03 01 04 41 61

RO 01 00 00 00 02 03

SE 04 01 00 01 13 20

SI 07 02 01 02 20 32

SK 05 01 00 01 08 15

UK 25 07 06 11 162 211

EU28 515 240 59 237 1395 2446





137



Co

un

try

Manufacturing


trade repair of

motor vehicles

and motorcycle

s

Information and

communication

Profession

al scientific


Administrative and

support service

activities

Total

AT 17 05 01 03 35 61

BE 156 03 01 02 172 333

BG 05 00 00 00 17 22

CY 22 09 03 13 144 191

CZ 112 211 57 198 288 866

DE 07 18 07 20 12 65

DK 110 91 26 98 474 800

EE 278 256 30 218 452 1234

EL 168 05 02 02 366 544

ES 18 01 00 00 271 290

FI 37 07 02 05 96 147

FR 42 02 00 01 115 160

HR 113 06 01 02 605 728

HU 15 03 01 02 27 48

IR 50 04 02 06 340 402

IT 38 19 11 32 129 230

LT 07 02 01 02 48 61

LU 66 29 03 23 135 256

LV 33 15 02 06 62 117

MT 04 01 00 01 10 16

NL 07 02 01 02 25 36

PL 01 01 00 01 08 11

PT 32 09 04 10 136 191

RO 02 01 00 01 07 10

SE 12 03 01 03 45 62

SI 19 06 02 07 67 101

SK 13 02 01 03 27 46

UK 67 19 16 31 530 663

EU28 1450 728 175 694 4645 769

1






138







and motorcycles

Information and

communication

Professional


Administrative

and support service

activities

AT 31 18 22 20 15

BE 41 20 22 21 20

BG 44 20 19 22 24

CY 33 17 30 15 16

CZ 38 21 19 25 29

DE 29 17 19 17 16

DK 27 18 21 19 21

EE 40 19 19 19 18

EL 36 19 20 18 22

ES 40 18 20 18 18

FI 35 19 20 18 17

FR 33 20 19 22 17

HR 29 19 19 18 20

HU 40 21 17 16 18

IE 24 18 39 19 19

IT 38 19 22 17 21

LT 30 14 16 16 17

LU 37 30 49 20 80

LV 32 18 19 17 21

MT 33 16 26 23 19

NL 41 17 20 19 15

PL 36 16 20 17 20

PT 38 16 22 21 16

RO 28 26 18 22 21

SE 30 16 20 18 18

SI 31 19 21 19 17

SK 46 20 20 24 26

UK 29 18 17 16 18






139







Information

and communication

Professional

scientific and


Administrati


activities

AT 2789 1006 2094 1227 864

BE 4293 1566 2999 1533 788

BG 453 197 499 306 160

CY 871 468 2187 814 414

CZ 1106 466 1047 625 485

DE 2414 780 2031 1060 721

DK 3251 1214 2246 1564 1118

EE 967 497 740 712 626

ES 2754 616 1770 858 474

FI 3160 1078 2014 1100 748

FR 2862 1077 2263 1650 898

GR 1643 392 1263 416 476

HR 603 364 702 652 432

HU 1137 320 658 384 255

IR 8130 1091 11774 1822 2848

IT 2329 899 2006 977 754

LT 944 378 711 406 303

LU 2988 3000 8840 1977 4646

LV 689 378 648 389 387

MT 1084 513 1866 1264 617

NL 3923 1047 2190 1314 556

PL 862 467 824 646 378

PT 1151 537 1397 648 275

RO 584 323 917 958 337

SE 3272 1189 2874 1706 955

SI 1236 647 1072 609 354

SK 1452 456 962 760 485

UK 2550 910 1750 1080 708




140




Co

un

try

Sectors

Manufact

Wholesale



Information and

communication

Professional


Admin and

support service

activities

Total

(

of ctry

GVA)

(euro million)

AT 02 01 00 01 13 18 000

BE 02 02 00 02 22 29 000

BG 03 02 00 01 08 14 000

CY 00 00 00 00 02 03 000

CZ 14 00 00 00 18 33 000

DE 14 17 05 21 85 143 000

DK 01 00 00 00 07 09 000

EE 00 00 00 00 03 03 000

EL 07 05 01 05 18 34 000

ES 10 01 00 00 107 118 000

FI 01 00 00 01 08 10 000

FR 12 33 10 31 47 133 000

HR 02 00 00 00 04 07 000

HU 03 01 01 02 23 31 000

IE 01 03 01 03 02 10 000

IT 24 44 04 41 64 178 000

LT 02 01 00 01 06 10 000

LU 00 00 00 00 00 01 000

LV 01 00 00 00 04 05 000

MT 00 00 00 00 01 02 000

NL 04 01 00 01 69 76 000

PL 17 01 00 00 55 74 000

PT 02 00 00 00 54 55 000

RO 05 00 00 00 17 23 000

SE 05 04 02 06 21 38 000

SI 02 00 00 01 05 07 000

SK 03 01 00 01 11 16 000

UK 09 04 03 07 89 112 000

To

tal

EUR

million 146 126 30 128 761 1191

of

total 000 000 000 na 001 000






141



Co

un

try

Sector

Manufact


trade repair


Information

and communication



Admin

and support service

activities

Total ( of

ctry GVA)

(euro million)

BE 2 2 0 3 56 63 000

BG 26 25 1 7 112 171 001

CZ 49 2 0 1 103 155 000

DK 1 1 0 1 13 15 000

DE 17 38 5 34 191 285 000

EE 2 0 0 0 9 10 000

EL 14 24 1 19 83 141 000

IE 0 6 0 4 1 11 013

ES 14 3 0 1 398 417 000

HR 9 3 0 1 18 31 000

IT 39 96 5 71 180 391 002

CY 2 1 0 0 7 10 000

LV 4 2 0 2 19 27 001

LT 6 5 0 3 34 48 001

LU 0 0 0 0 1 1 000

HU 10 9 2 10 161 192 001

MT 1 0 0 0 3 5 000

NL 5 1 0 2 189 197 000

AT 3 2 0 2 23 30 000

PL 72 4 1 1 286 363 000

PT 6 0 0 0 311 317 000

RO 25 2 0 0 104 132 000

SI 4 1 0 2 23 29 001

SK 9 5 1 2 59 76 001

FI 1 1 0 1 18 21 000

SE 4 5 1 7 40 57 001

UK 10 7 3 10 229 260 000

To

tal Persons 348 306 31 225 2761 3672

of

total 000 000 000 000 002 000






142



Co

un

try

Sector

Manufact


repair of

motor vehicles and

motorcycles

Information

and communication



Admin

and support service

activities

Total

(

of ctry

GVA)

AT 06 04 01 03 43 57 000

BE 05 05 01 06 74 91 000

BG 07 08 01 03 26 45 001

CY 01 01 00 00 06 09 001

CZ 41 01 00 01 60 104 001

DE 38 53 13 57 293 455 000

DK 03 01 01 01 23 29 000

EE 01 00 00 00 10 11 001

EL 18 15 02 13 60 108 001

ES 28 03 00 01 342 376 000

FI 03 01 00 02 26 33 000

FR 33 104 30 90 169 427 000

HR 05 02 00 01 13 22 001

HU 08 04 02 06 77 98 001

IE 03 10 02 11 06 32 000

IT 73 132 14 129 211 560 000

LT 06 04 00 02 21 33 001

LU 00 00 00 00 01 02 000

LV 02 01 00 01 12 16 001

MT 01 00 00 00 03 05 001

NL 12 02 01 03 224 242 000

PL 46 03 01 01 186 237 001

PT 05 00 00 00 170 175 001

RO 15 01 00 00 56 72 001

SE 13 12 06 18 73 121 000

SI 04 01 00 02 16 23 001

SK 08 03 01 02 37 52 001

UK 23 10 09 19 292 354 000

To

tal

EUR

million 411 382 88 375 2532 3788

of

total 000 000 000 na 004 000






143



Co

un

try

Sector

Manufac

t


trade repair of

motor vehicles

and motorcy

cles

Informati

on and communi

cation

Professio

nal scientific


Admin and

support service

activities

Total ( of ctry

employment)

(Persons)

AT 7 6 1 6 77 97 000

BE 5 6 1 8 183 203 000

BG 72 76 4 19 384 555 002

CY 4 3 0 1 24 31 001

CZ 141 6 1 3 356 506 001

DE 46 117 13 93 657 925 000

DK 2 2 1 1 43 49 000

EE 5 0 0 0 28 33 001

EL 40 73 3 56 284 455 001

ES 41 10 0 3 1277 1331 001

FI 4 2 0 2 60 69 000

FR 39 196 25 120 321 701 000

HR 24 8 1 4 63 99 001

HU 28 28 5 27 535 623 001

IE 1 17 1 11 4 33 000

IT 119 284 15 223 599 1242 001

LT 18 14 1 8 116 157 001

LU 0 0 0 0 2 3 000

LV 10 5 1 4 65 85 001

MT 2 1 0 1 11 15 001

NL 13 4 1 5 612 634 001

PL 195 11 2 4 970 1182 001

PT 16 1 0 1 986 1004 002

RO 72 6 0 1 342 420 000

SE 12 16 4 19 136 186 000

SI 11 3 1 5 78 97 001

SK 25 14 2 7 199 247 001

UK 26 21 9 29 749 834 000

To

tal

Persons 977 930 92 660 9157 11816

of total 000 000 000 000 006 001






144


Scenario 1


use 159)

Scenario 2


use 499)

(euro million)






Construction 20 64










Education 10 33












Scenario 1 (average


Scenario 2 (average


(Persons)






Construction 43 135









145

Scenario 1


use 159)

Scenario 2


use 499)

(Persons)




Education 26 82





1 2








146



brokers)

Introduction












interactionrdquo






Timing 2 min












and company

Timing 05 min



147













Timing 10 min
















148


Timing 10 min



encounter a problem











Timing 10 min










Timing 5 min




Timing 2 min



149


D Introduction




Timing 2 min




are performing

Timing 05 min





Networking services



Timing 5 min









Timing 10 min




150












Timing 15 min






Timing 5 min





services for SMEs

Timing 5 min




Timing 5 min



151


SMEs envoys)

E Introduction












interactionrdquo








Timing 5 min








Timing 05 min





Any data available



152








Conditions





Timing 10 min
















Timing 10 min






153


services







Timing 10 min






154



Objectives






Scope






National SMEs Envoy


Cloud brokers






Topics discussed




















155

Stakeholder


























SMEs associations












156

Findings



























157


Category Country



EEN Romania

France

National authority

Italy

Romania

Romania

France

Poland

Estonia

Service provider

Sweden

Spain

Spain

Sweden

Ireland

Romania

Romania

Portugal

Romania

Germany

SME Association

EU

Portugal

The Netherlands


Services contracted











Security



158











Duration and costs





































159











































this



computing services



160







Actions taken






















cost






















161
































Validation Webinars


















162



















level



























contact point (35)



128 Zoom



163







and stored129

































164


Free publications

bull one copy







Priced publications




165


In person










Online



EU publications











purposes

doi 102838962608

ISBN 978-92-79-96750-4

[Cata

logue n

um

ber]

DS-0

3-1

8-4

21-E

N-N



1

CONTENTS


Glossary 4

1 Introduction 7























7 Conclusions 77












2


Acronym Description






EU European Union










MS Member State












3

EU Member States

AT Austria

BE Belgium

BG Bulgaria

CY Cyprus


DE Germany

DK Denmark

EE Estonia

EL Greece

ES Spain

FI Finland

FR France

HR Croatia

HU Hungary

IE Ireland

IT Italy

LV Latvia

LT Lithuania

LU Luxembourg

MT Malta

NL The Netherlands

PL Poland

PT Portugal

RO Romania

SE Sweden

SI Slovenia

SK Slovakia




4

Glossary


Active enterprise


period

Eurostat

Cloud computing





Cloud Service



2014







Data portability







Eurostat


United Kingdom

Eurostat



Eurostat



5


Frequency

(F)



Incidence

(I)










Eurostat


(PPP)



Eurostat

Platform as a

Service (PaaS)














6










2014

Service performance










Virtual Data Centre



data centres





7

1 Introduction






Contract Law

























8


































9




the contractrsquo10


initiatives




























Brussels



10






unaffected and


















Objectives




services















competitiveness





11

Scope














Territorial scope


Timeline


2017

Stakeholders










SMEs associations












12



euro10 million


























of service




concerns



related problems



competitiveness











13






14






be used







measured






15





enterprises


computing
















Cloud computing

model


Details











protection






management




16

Cloud

computing

model


Details


Platform to create



deployment










































17



contract








the team to






























18





European Unionrsquo






































19

















the EU level



contracts

20






21



survey










services

Number of SMEs that





[isoc_cicce_use]


study objectives

Number of SMEs that







NA










contracts

22


EU MS


EU15 EU13





Total active SMEs

(Country level)

(EU28 level)

AT 40393 646288 280850 31959 38422 1196 137 EU15

BE 31302 8139 569950 64858 72996 1214 261 EU15

BG 26991 1619 298559 33975 35594 1093 127 EU13


CZ 38203 6877 961287 109390 116267 1163 416 EU13

DE 411527 61729 1985471 225938 287667 1200 1029 EU15

DK 22681 9072 187367 21322 30394 1447 109 EU15

EE 6439 1417 61513 7000 8416 1239 030 EU13

EL 15368 1383 764471 86993 88376 1133 316 EU15

ES 125000 21250 2337621 116881 138131 561 494 EU15

FI 19187 10361 209328 23821 34182 1496 122 EU15

FR 139335 22294 2765282 314677 336970 1160 1205 EU15

HR 12249 2695 134007 15249 17944 1227 064 EU13

HU 30852 3394 504904 57456 60850 1136 218 EU13

IE 5514 1930 224742 25575 27505 1195 098 EU15

IT 182182 38258 3497783 398032 436290 1186 1560 EU15

LT 13604 2177 172527 19633 21809 1172 078 EU13

LU 3939 670 27841 3168 3838 1208 014 EU15

LV 9226 738 100216 11404 12142 1109 043 EU13

MT 1885 509 24123 2745 3254 1251 012 EU13

NL 48115 15397 1042588 118642 134039 1229 479 EU15

PL 69282 4850 1534086 174572 179422 1119 642 EU13

PT 37353 6350 769043 53833 60183 746 215 EU15

RO 50987 3569 405493 46143 49712 1089 178 EU13

SE 36047 16221 649412 155859 172080 2510 615 EU15

SI 6912 1382 127603 14521 15903 1182 057 EU13

SK 14363 2442 414630 33170 35612 830 127 EU13

UK 199528 65844 1734989 312298 378142 1955 1352 EU15

Tot EU28

1598464 317028 21785686 2479112 2796141 12 100

Selected Countries





23




[sbs_sc_sca_r2])













study objectives)





referred to as M)






24


NACE Code

Sectors

A B C = B100 x

A CD



EU28 level

of enter (with more

than 10 empl)

buying CC services

of enter (with more

than 10 empl)

buying CC services

out of the total



18732 19 3559 1

F Construction 200369 15 30055 11


motorcycles

351278 18 63230 24




55905 52 29070 11



97073 34 33004 12



Total 1326794 21 268384 (D) 100

Selected Sectors

















25




Where



Our case



e = 5

Z = 196
















CATI



barriers



business







26



Sector

Country


activities

Inform and comm

Manufact

Profess scientific


Wholesale

and retail trade

Total

CZ 13 17 62 30 52 174

EE 5 22 8 12 15 62

FR 184 129 262 126 308 1009

DE 99 123 185 226 249 882

IE 4 18 6 6 13 47

IT 8 9 100 7 15 139

NL 36 49

24 37 146

PL 24 69 16 78 92 279

PT 7 2 9 2 24 44

RO 8 20 2 27 15 72

ES 7 11

26 21 65

SE 41 33 59 30 91 254

Total 436 502 709 594 932 3173






27


Country

Number of




Total Participation

rate ()

A B C = A + B BC

CZ 131 43 174 25

DE 33 158 191 83

EE 715 29 744 4

ES 724 54 778 7

FR 16 294 310 95

IE 24 31 55 56

IT 97 115 212 54

NL 152 49 201 24

PL 11 127 138 92

PT 48 33 81 41

RO 11 24 35 69

SE 202 52 254 20

Total 2164 1009 3173 32






the survey








28


1009)














119866119865119863 = 119871 + 119867119877 + 119874119862

Where










computed






29


three main steps







serious problem


each SME



119873119901 = 119890119906 times 119890119901 times 119864

Where


services







level overall











formula

119873119894119895119901 = (

119890119894119906 + 119890119895

119906

2) times (

119890119894119901 + 119890119895

119901

2) times 119864119894119895




30

Where









survey





[sbs_sc_sca_r2])











from the survey



[sbs_sc_sca_r2])










31




levels











true detriment47












caused to each SME

















32





























box










33


value added






119883119894 = sum 119883119894119895 + 119884119894

119895


and final demand)

119883119894 = sum 119883119894119895 + 119884119894

119894











OUTPUT (Demand)

INPUT


production

(1st Q)

Final demand

(2nd Q)

Primary inputs to

production

(3rd Q)


demand

(4th Q)



34




























study Tasks






nine SMEs

one cloud broker








35











the CATI
















information







survey















36










37








while taking action
























enterprises55


that








38



















the survey









content










39














SME size class

of respondents




Small 140 723 52

Medium 272 1296 48

Total 503 2522 50



services



40















plug-ins)




(21)



41


SMEs size Total


out of which


Micro 91 503 252 149 97 5

50 30 19 1

Small 140 723 332 224 157 10

46 31 22 1

Medium 272 1296 609 393 276 18

21 30 47 1

Total 503 2522 1193 766 530 33

47 30 21 1
















details)



42












SMEs

size

Total of

respond

of services

contracted

of customised

services

of services

SMEs were able to

negotiate

out of which


Micro 91 503 48 24 11 10 3 0

Small 140 723 123 89 36 31 20 2

Medium 272 1296 120 155 78 44 31 2

Total 503 2522 106 268 125 85 54 4











43
















44







Size category

Total

Respondents

SMEs that did

not negotiate

CTampC


Full customisation


No Customisation

Micro 91 69 16 6 0

100 76 17 7 0

Small 140 86 27 15 12

100 61 19 11 9

Medium 272 169 58 26 19

100 62 21 10 7

Total 503 324 101 47 31

100 64 56 26 17








45







46
















66 116 199 381


25 24 73 122

27 17 27 24






Frequency

(F)



months)




Incidence

(I)









contracts

47






48















due to









anomalies occurred














future








49









Figure 15)69


SME size class




Micro 25 116 464

Small 24 92 383

Medium 73 290 397

Total 122 498 408





Types of problems







50


respondents 122)70





















51



Size




Micro 7 28 0 0 2 8 16 64 25

Small 10 42 0 0 1 4 13 54 24

Medium 38 52 4 5 4 5 27 37 73

Total 55 45 4 3 7 6 56 46 122






















52














(Table 15)





53



The 3 most serious

problems

of SMEs declaring

this as the most

serious problem





the cause



serious problem

encountered


32 23 3 3 3

100 73 9 9 9

Low speed of

the service

27 13 5 2 7

100 48 19 7 26


16 6 2 4 4

100 38 13 25 25




20)








serious problem






54








service (Figure 21)
























55









or four days











56



24)














57







problem

- loss of clients





service problem


service




















58


and third parties)






















problems


enterprises (48)





Skill level of

enterprises


Technical 93 76







17)



59




of enterprises



Legal costs 22 18


None 38 31























far





rate)91







60






















Component

Number of



Number of

enterprises that

quantified the cost


that

quantified


of enterprises

that

quantified







42 41 15 37


39 39 15 38



damage 23 23 3 13


25 24 2 8


Redress 15 15 7 47





61













































Losses of turnover



from the survey



62









Value of

Losses (euro)

Number of

Enterprises


frequency

000 105 861 861

700 1 08 869

30000 1 08 877

104690 2 16 893

157035 1 08 902

200000 1 08 910

209380 1 08 918

500000 2 16 934

1000000 1 08 943

2000000 1 08 951

5000000 1 08 959

10469012 1 08 967

15000000 2 16 984

20000000 1 08 992

50000000 1 08 1000

Total 122 100




Loss of profit








000 103 844 844

1200 1 08 852






63

Value of

Losses (euro)

Number of


Cumulative

frequency

20938 1 08 861

51500 1 08 869

52345 1 08 877

60000 1 08 885

90000 1 08 893

150000 1 08 902

157035 1 08 910

200000 2 16 926

209380 1 08 934

300000 1 08 943

500000 2 16 959

523451 1 08 967

2093802 1 08 975

3000000 1 08 984

5234506 1 08 992

10000000 1 08 1000

Total 122 100



















64








individual costs






Component


that quantified

costs



of total 122

95 trimmed

mean of the values


experiencing

each cost euro

Average of



euro


41 15 123 1187 5892


39 15 123 1311 13657




65

Component


that quantified

costs


that


of total

122

95

trimmed

mean of the values



euro

Average of



euro



23 3 25 00 2701


client(s) 24 2 16 00 8663













22)103


Component


declared

relevant values ()


faced problems




euro


euro


Profit losses 19 156 17690 191346


105 861 36006 80621

Other costs 30 246 34124 371871

Redress 7 57 095 6042






66






suffered













residual costs



24


Component

95 trimmed mean of


enterprises that

quantified the

component

euro

Average of the

values declared by

enterprises that

quantified the

component

euro



Other costs 3412 304 37187 259

Gross detriment 11208 1000 143836 1000

Redress 10 604






67


profits (euro)

Component

95 trimmed mean of


enterprises that

quantified the

component

euro

Average of the

values declared by

enterprises that

quantified the

component

euro

Profit losses 1769 201 19135 297


3601 410 8062 125

Other costs 3412 389 37187 578


64384 1000

Redress 10 604
















about 18 million




68


Scenario 1


159)

Scenario 2


499)

(number)

Secto

r



198877 628761



195098 599588


56803 203001

Total 582924 1833118

Siz

e

cla

ss Micro 548001 1722427

Small 22827 70148

Medium 12096 40543

Total 582924 1833118











use 159)


use 499)

(euro million)

Secto

r



1673 5235





1918 6495

Total 6534 20546

Siz

e

cla

ss Micro 4816 15124

Small 1144 3562

Medium 574 1861

Total 6534 20546




69


costs incurred


159)


499)

(euro million)

Secto

r






1421 4323



Total 5119 16098

Siz

e

cla

ss Micro 4013 12609

Small 801 2488

Medium 306 1002

Total 5119 16098







detriment euro




costs incurred

Micro 8788 7323

Small 50116 35090

Medium 47454 25298

Total 11209 8782







70




use 159)


use 499)

(euro million)

Secto

r






1556 4722



Total 6528 20529

Siz

e

cla

ss Micro 4815 15118

Small 1143 3562

Medium 570 1850

Total 6528 20529



costs incurred


159)


499)

(euro million)

Secto

r



1548 4851



1420 4322


1152 3928

Total 5114 16081

Siz

e

cla

ss Micro 4011 12603

Small 800 2488

Medium 302 990

Total 5114 16081













71

















72













119863119868(119866119881119860)119894 = sum119871(119879)119894119895

119884119894119895 119866119881119860119894119895frasl

5

119895=1

Where











turnover losses

119863119868(119864)119894 = sum119871(119879)119894119895

119884119894119895 119864119894119895frasl

5

119895=1

Where













73






GVA



Box 4











61 Direct impacts










counting



















74



Scenario 1



499)


EU GVA 000 000

Impact on jobs

Persons 3672 11816

EU

employment 000 001






62 Indirect impacts












effects










Scenario 1



499)


EU GVA 000 000






75




























lower context costs



















76


companies affected















77

7 Conclusions








infrastructure




















Envoy)


everyday work


















78




















































79

















































80


















employment




















other effects




81











of the companies












welfare





82












1 Yes that is me



ltIf 2gt




























83

































accordingly












84



1 Cloud broker The






Interview






Romania



Interview



Interview


France



Interview






Interview

11 Service provider


12 Service provider


13 Service provider


14 Service provider


15 Service provider


16 Service provider


17 Service provider




85


18 Service provider


19 Service


20 Service provider







Interview






30 SME Association


31 SME



Aveiro Interview

32 SME Association

The Netherlands

VNO-NCW Interview


The Czech Republic




86





VI-012)




















COM20150626 final





(COM (2016)0176)










Assessment





87






Market Actrsquo













275 final















242






in Europe








88















Computing





consumer detriment










for Standardization













an



89









Databases













90





[open question]




a) Czech Republic


i) Romania
















91


































92







conditions




purposes)












protection)













93









[open question]






Problems

Very

frequently


Frequentl


Occasiona

lly (at least


Rarely (at


12 months)

Never











of service)



94



service

















years











95






























96


protection)






















linked




purposes)




97













protection)



problem




a) Yes

b) No














98





















foreign country)








[open question]

Nordm of employees


Nordm of work days


Average monthly


currency)118




99


Administrative

Technical

Senior












Lost turnoveryear

Lost profityear














[open question]

Nordm of employees


Nordm of work days


Average monthly





100

per skill level of

employee(s)

per skill level

employee(s)

(amount in local

currency)119

Administrative

Technical

Senior











encountered


Lost turnoveryear

Lost profityear








[open question]


2016


2017


tax in 2016


tax in 2017




101





Manufacturing 137









102




Services

Sectors

Collaboration and


Storage and hosting

services

Security

services

Networking

services


61 60 49 40




71 70 40 39






103








104





105



years




CZ 18 850

EE 18 112

FR 34 4675

DE 33 861

IE 19 1127

IT 58 716

NL 21 6672

PL 20 411

PT 7 433



106


RO 7 278

ES 13 127

SE 19 2866

Total 267 1787







107





108





109




experienced



110




problem



111






Sector Number of

enterprises

95 Trimmed

mean Average






Total 122 322 721



95 Trimmed mean

Average

Micro 25 300 404

Small 24 236 258

Medium 73 368 982

Total 122 322 721


Country Number of

enterprises

95


CZ 7 226 229

EE 5 222 220

FR 22 282 395

DE 19 471 1074

IE 4 094 100

IT 13 315 338

NL 6 4057 5117

PL 13 286 308

PT 3 300 700



112

Country Number of

enterprises

95


CZ 7 226 229

RO 1 200 200

ES 11 631 718

SE 18 251 361

Total 122 322 721



of enterprises



Legal costs 22 18



Other costs 9 7

None 38 31

Total 122



CZ 0 0 0 0

EE 1 20 1 20

FR 4 18 5 23

DE 2 11 1 5

IE 2 50 2 50

IT 2 15 1 8

NL 1 17 2 33

PL 0 0 0 0

PT 0 0 0 0

RO 0 0 0 0

ES 0 0 0 0

SE 5 28 7 39

Total 17 19


of enterprises



Other 5 4





Below 50 105 87

50 to 80 8 7



113

of enterprises

Above 80 9 7

Total 122 100





Technical 93 76






Legal costs 22 18



Other costs 9 7

None 38 31

Total 122


encountered121


CZ 0 0 0 0

EE 1 20 1 20

FR 4 18 5 23

DE 2 11 1 5

IE 2 50 2 50

IT 2 15 1 8

NL 1 17 2 33

PL 0 0 0 0

PT 0 0 0 0

RO 0 0 0 0

ES 0 0 0 0

SE 5 28 7 39

Total 17 19




Other 5 4





114

















Total 159 499




Micro 178 535

Small 226 606

Medium 133 447

Total 159 499




CZ 172 698

EE 323 690

FR 79 272

DE 80 449

IE 468 710

IT 719 870

NL 205 612

PL 143 315

PT 455 606

RO 278 833

ES 538 648

SE 138 673

Total 159 499




115










Senior

officersmanager(s)

CZ 2 29 3 43 4 57

DE 9 47 15 79 8 42

EE 4 80 4 80 3 60

ES 4 36 6 55 5 45

FR 8 36 19 86 11 50

IE 1 25 2 50 3 75

IT 7 54 10 77 4 31

NL 4 67 6 100 4 67

PL 5 38 12 92 5 38

PT 1 33 2 67 0 0

RO 1 100 1 100 0 0

SE 13 72 13 72 12 67

Total 59 93 59





Senior

officersmanager(s)


activities 6 46 9 69 10 77






12 48 14 56 12 48

Total 59 93 59




116




Senior officers

manager(s)

Micro 11 52 12 57 11 52

Small 24 75 22 69 16 50

Medium 24 35 59 86 32 46

Total 59 93 59





Co

un

try

Costs related to

ensuring an

alternative service

Costs related to

fixing the cloud

service problem

Legal costs

Costs


damage

Costs

related to loss of

client(s)

Other

costsNone

CZ 3 43 0 0 0 0 0 0 1 14 3 43

DE 4 21 6 32 2 11 2 11 3 16 5 26

EE 0 0 2 40 0 0 0 0 0 0 3 60

ES 7 64 1 9 0 0 0 0 0 0 3 27

FR 13 59 13 59 12

55 11 50 11 50 18 82

IE 1 25 3 75 0 0 0 0 1 25 0 0

IT 4 31 2 15 1 8 1 8 2 15 2 15

NL 1 17 1 17 1 17 2 33 1 17 5 83

PL 1 8 1 8 2 15 1 8 1 8 2 15

PT 1 33 1 33 0 0 1 33 1 33 0 0

RO 1 100 0 0 1 100 1 100 1 100 1 100

SE 6 33 9 50 3 17 4 22 3 17 5 28

Total 42 39 22 23 25 47




Sector


an alternative

service

Costs



Legal costs

Costs


damage


Other

costsNone


activities

5 38 1 8 2 15 1 8 1 8 6 46

Information and

commun 12 50 11 46 7 29 7 29 7 29 8 33



117

Sector


an alternative

service

Costs



Legal costs

Costs


damage

Costs related


Other costsNone

Manufacturing 8 26 6 19 3 10 4 13 5 16 8 26

Profess


13 45 12 41 10 34 10 34 11 38 16 55

Wholesale and

retail trade


4 16 9 36 0 0 1 4 1 4 9 36

Total 42 39 22 23 25 47




Size class


an

alternative service


cloud

service problem

Legal costs

Costs related to

reputation

damage

Costs related to

loss of

client(s)

Other

costs

None

Micro 6 29 11 52 4 19 6 29 5 24 8 38

Small 13 41 12 38 9 28 7 22 8 25 13 41

Medium 23 33 16 23 9 13 10 14 12 17 26 38

Total 42 39 22 23 25 47



respondents 122)










Total 17 19




118




Micro 2 10 4 19

Small 8 25 8 25

Medium 7 10 7 10

Total 17 19



122)

Country

Financial

compensation

Reduction in the


Other

The company did


CZ 1 14 0 0 1 14 5 71

DE 0 0 0 0 1 5 18 95

EE 0 0 0 0 0 0 5 100

ES 0 0 0 0 0 0 11 100

FR 2 9 1 5 1 5 19 86

IE 0 0 0 0 0 0 4 100

IT 1 8 0 0 0 0 12 92

NL 0 0 2 33 1 17 4 67

PL 0 0 3 23 0 0 10 77

PT 0 0 1 33 0 0 2 67

RO 0 0 0 0 0 0 1 100

SE 0 0 1 6 1 6 16 89

Total 4 8 5 107



122)

Sector


Reduction in


Other

The company


Administrative and



1 4 1 4 3 13 20 83



1 3 2 7 1 3 25 86



Total 4 8 5 107




119



Size class

Financial

compensation


subscription Other


Micro 1 5 1 5 0 0 19 90

Small 0 0 2 6 2 6 28 88

Medium 3 4 5 7 3 4 60 87

Total 4 8 5 107











CZ 3 43 0 0 0 0 4 57 7

DE 3 60 0 0 0 0 2 40 5

EE 11 50 1 5 0 0 10 45 22

ES 11 58 1 5 1 5 6 32 19

FR 3 75 0 0 0 0 1 25 4

IE 5 38 0 0 0 0 8 62 13

IT 1 17 0 0 1 17 4 67 6

NL 5 38 0 0 1 8 7 54 13

PL 2 67 0 0 0 0 1 33 3

PT 1 11 0 0 0 0 8 89 9

RO 3 38 0 0 0 0 5 63 8

SE 7 10 2 3 4 6 56 81 69

Total 55 31 4 2 7 4 112 63 178





120





26 74 0 0 5 14 4 11 35


20 56 0 0 0 0 16 44 36

Manufacturing 30 64 3 6 0 0 14 30 47


39 65 8 13 1 2 12 20 60



29 57 0 0 12 24 10 20 51

Total 144 63 11 5 18 8 56 24 229





Micro 7 28 0 0 2 8 16 64 25

Small 10 42 0 0 1 4 13 54 24

Medium 38 52 4 5 4 5 27 37 73

Total 55 45 4 3 7 6 56 46 122







computing problem






CZ 0 0 1 33 2 67

DE 5 45 9 82 3 27

EE 3 100 3 100 1 33

ES 1 33 2 67 1 33

FR 4 36 7 64 4 36

IE 1 33 2 67 1 33

IT 2 40 3 60 1 20




121


Senior

officersmanager(s)

NL 1 100 1 100 1 100

PL 2 40 5 100 0 0

PT 1 50 1 50 2 100

RO 0 0 0 0 0 0

SE 3 43 5 71 2 29

Total 23 39 18






Senior

officersmanager(s)









5 42 7 58 5 42

Total 23 39 18





Senior officers

manager(s)

Micro 3 38 5 63 2 25

Small 10 63 13 81 6 38

Medium 10 32 21 68 10 32

Total 23 39 18




Co

un

try Costs

related to

ensuring an

alternative service

Costs

related to

fixing the cloud

service problem

Legal costs

Costs related


Costs

related to loss of

client(s)

Other

costsnone



122

CZ 0 0 0 0 0 0 0 0 0 0 3 100

DE 5 45 4 36 3 27 3 27 3 27 9 82

EE 0 0 2 67 0 0 0 0 0 0 1 33

ES 1 33 0 0 0 0 0 0 0 0 2 67

FR 6 55 5 45 5 45 5 45 5 45 10 91

IE 1 33 0 0 0 0 0 0 0 0 2 67

IT 2 40 1 20 1 20 1 20 2 40 3 60

NL 0 0 0 0 0 0 0 0 0 0 1 100

PL 0 0 1 20 1 20 1 20 1 20 2 40

PT 1 50 0 0 0 0 1 50 1 50 0 0

RO 1 100 1 100 1 100

1 100 1 100 1 100

SE 1 14 2 29 1 14 2 29 2 29 5 71

Total 18 16 12 5 14 15




Sector

Costs

related to ensuring


Costs



Legal costs


damage

Costs related to

loss of client(s)

Other costs

none


activities 1 17 1 17 2 33 1 17 1 17 5 83


3 30 3 30 1 10 2 20 2 20 6 60

manufacturing 4 25 5 31 4 25 4 25 4 25 15 94


activities

7 64 6 55 5 45 6 55 6 55 7 64



3 25 1 8 0 0 1 8 2 17 6 50

Total 18 16 12 5 14 15




123



Size class


an alternative

service



Legal

costs

Costs related to

reputation damage

Costs related to

loss of client(s)

Other

costsnone

Micro 3 19 4 25 2 13 0 0 2 13 2 13

Small 12 39 8 26 7 23 0 0 9 29 10 32

Medium 3 38 4 50 3 38 5 63 3 38 3 38

Total 18 16 12 5 14 15



of respondents 55)


Micro 0 0 1 13

Small 5 31 5 31

Medium 2 6 2 6

Total 7 8



respondents 55)



1 17 1 17







2 17 2 17

Total 7 8







computing problems



124



Country

Financial

compensation


subscription Other


redress

CZ 1 33 0 0 0 0 2 67

DE 0 0 0 0 0 0 11 100

EE 0 0 0 0 0 0 3 100

ES 0 0 0 0 0 0 3 100

FR 1 9 0 0 0 0 10 91

IE 0 0 0 0 0 0 3 100

IT 0 0 0 0 0 0 5 100

NL 0 0 0 0 0 0 1 100

PL 0 0 1 20 0 0 4 80

PT 0 0 1 50 0 0 1 50

RO 0 0 0 0 0 0 1 100

SE 0 0 1 14 0 0 6 86

Total 2 3 0 50




Country

Financial

compensation


subscription Other



2 33 0 0 0 0 4 67

Information and



Professional

scientific and


0 0 1 9 0 0 10 91


0 0 1 8 0 0 10 83

Total 2 3 0 50




125



Country

Financial

compensation


subscription Other


Micro 0 0 2 13 0 0 14 88

Small 2 6 0 0 0 0 29 94

Medium 0 0 1 13 0 0 7 88

Total 2 3 0 50







Sectors

Number of

enterprises ()

95 Trimmed mean125

(euro)

Average

(euro)






Total 122 41954 985869



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 25 023 4217

Small 24 271159 1119043

Medium 73 99060 1278261

Total 122 41954 985869




()

95 Trimmed mean

(euro)

Average

(euro)

CZ 7 000 000

DE 19 160819 894737

EE 5 117 140




126


()

95

Trimmed mean

(euro)

Average

(euro)

ES 11 000 000

FR 22 742424 3009091

IE 4 4583333 5125000

IT 13 192308 423077

NL 6 3889 5000

PL 13 000 000

PT 3 000 000

RO 1 000 000

SE 18 100166 613600

Total 122 41954 985869





differences


Sector


()

95

Trimmed mean

(euro)

Average

(euro)






Total 122 17690 191346



Size class

Number of

enterprises

()

95

Trimmed mean

(euro)

Average

(euro)

Micro 25 063 5742

Small 24 38235 50293

Medium 73 18681 301282

Total 122 17690 191346




()

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 000 000

DE 19 877 15789

EE 5 200 240

ES 11 000 000



127


()

95

Trimmed mean

(euro)

Average

(euro)

FR 22 161111 613182

IE 4 152778 162500

IT 13 14957 38462

NL 6 17315 18583

PL 13 000 000

PT 3 000 000

RO 1 000 000

SE 18 221012 460637

Total 122 17690 191346



or country level





Sector


()

95 Trimmed

mean

( days)

Average

( days)






Total 122 322 721



Size class

Number of

enterprises

()

95

Trimmed mean

( days)

Average

( days)

Micro 25 300 404

Small 24 236 258

Medium 73 368 982

Total 122 322 721




128


problem by country

Country


()

95 Trimmed

mean

( days)

Average

( days)

CZ 7 226 229

DE 19 471 1074

EE 5 222 220

ES 11 631 718

FR 22 282 395

IE 4 094 100

IT 13 315 338

NL 6 4057 5117

PL 13 286 308

PT 3 300 700

RO 1 200 200

SE 18 251 361

Total 122 322 721





differences


Sector


()

95

Trimmed mean

(euro)

Average

(euro)






Total 122 34124 371871



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 25 2278 10725

Small 24 178472 389792

Medium 73 39973 489660

Total 122 34124 371871




129


Country

Number of

enterprises

()

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 387 535

DE 19 183333 665000

EE 5 6111 7000

ES 11 115657 229091

FR 22 682 50659

IE 4 166667 175000

IT 13 184615 416154

NL 6 15935 16917

PL 13 14575 37479

PT 3 3333 3333

RO 1 000 000

SE 18 332811 1241741

Total 122 34124 371871



level




Sector

Number of

enterprises

()

95 Trimmed

mean

(euro)

Average

(euro)






Total 122 095 6042



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 0 000 00

Small 0 000 00

Medium 7 17120 57096

Total 122 095 6042




130



(euro)

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 1867 5354

DE 19 000 000

EE 5 000 000

ES 11 000 000

FR 22 000 13636

IE 4 000 000

IT 13 1346 3462

NL 6 000 000

PL 13 2504 3123

PT 3 000 000

RO 1 000 000

SE 18 1939 17448

Total 122 095 6042






trade repair of


Information and

communication

Professional


Administrative

and support service

activities

Total

economy

AT 2089 1323 2194 1331 1201 1616

BE 2285 1512 2294 1363 1190 1670

BG 705 691 1435 471 622 665

CY 705 691 1435 471 622 665

CZ 544 408 930 469 352 500

DE 2069 1080 2070 1568 821 1503

DK 1978 1601 2248 2281 1580 1871

EE 616 522 861 538 458 577

EL 721 434 945 307 407 505

ES 1352 827 1912 1072 725 1028

FI 1929 1366 2186 1764 1083 1639

FR 2055 1526 2487 2163 276 1791

HR 452 405 692 275 327 410

HU 506 336 662 368 309 424

IE 1967 1281 2605 2163 1189 1493

IT 1407 772 1702 659 840 1052

LT 383 305 627 317 317 351

LU 2204 1754 2862 2942 1192 2097

LV 969 315 590 333 276 347

MT 405 475 1017 333 571 477

NL 2083 1087 1970 1499 688 1286

PL 456 303 626 332 385 391



131


Wholesale

and retail trade

repair of motor


Information

and communication




service activities

Total

economy

PT 640 524 1106 385 330 547

RO 290 236 576 333 230 287

SE 2197 1675 2618 2088 1259 1922

SI 871 731 980 523 546 762

SK 551 368 810 404 314 470

UK 1745 1047 2230 1989 1146 1455

EU 28 1491 1774 3687 1695 511 1118


Source Eurostat


different scenarios





Scenario 1


use 159)


(euro million)

Secto

r







Total 2446 7691

Siz

e

cla

ss Micro 1405 4402

Small 598 1866

Medium 442 1423

Total 2446 7691





132


problems



(euro million)

Secto

r



114 345




Total 1031 3243

Siz

e

cla

ss Micro 602 1887

Small 255 792

Medium 174 564

Total 1031 3243



Scenario 1


Scenario 2


(euro million)

Secto

r



474 1511




Total 2099 6600

Siz

e

cla

ss Micro 1961 6167

Small 97 295

Medium 41 138

Total 2099 6600



Scenario 1


Scenario 2


(euro million)

Secto

r



959 2996




Total 1989 6255



133

Scenario 1


Scenario 2


(euro million)

Siz

e

cla

ss Micro 1450 4555

Small 449 1401

Medium 90 300

Total 1989 6255



Scenario 2


Scenario 1


(euro million)

Secto

r

Manufacturing 00 00






Total 06 17

Siz

e

cla

ss Micro 02 06

Small 00 00

Medium 04 11

Total 06 17








134


costs incurred







Scenario 1





135


costs incurred




136





and growth


Co

un

try

Manufacturing


trade repair of

motor

vehicles and

motorcycles

Information

and communication

Professional

scientific



service

activities

Total

AT 06 02 00 01 10 19

BE 54 01 00 01 50 106

BG 02 00 00 00 05 07

CY 08 03 01 05 44 61

CZ 40 68 19 69 80 275

DE 02 06 02 06 03 21

DK 41 29 09 36 138 254

EE 92 86 09 69 136 392

EL 62 02 01 01 108 173

ES 07 00 00 00 85 92

FI 13 02 01 02 29 47

FR 15 01 00 00 35 51

HR 39 02 00 01 189 231

HU 05 01 00 01 08 15

IE 18 01 01 02 105 128

IT 14 06 04 12 38 73

LT 03 01 00 01 15 19

LU 23 09 01 08 39 81

LV 12 05 01 02 18 37

MT 01 00 00 00 03 05

NL 02 01 00 01 08 11

PL 00 00 00 00 03 03

PT 12 03 01 04 41 61

RO 01 00 00 00 02 03

SE 04 01 00 01 13 20

SI 07 02 01 02 20 32

SK 05 01 00 01 08 15

UK 25 07 06 11 162 211

EU28 515 240 59 237 1395 2446





137



Co

un

try

Manufacturing


trade repair of

motor vehicles

and motorcycle

s

Information and

communication

Profession

al scientific


Administrative and

support service

activities

Total

AT 17 05 01 03 35 61

BE 156 03 01 02 172 333

BG 05 00 00 00 17 22

CY 22 09 03 13 144 191

CZ 112 211 57 198 288 866

DE 07 18 07 20 12 65

DK 110 91 26 98 474 800

EE 278 256 30 218 452 1234

EL 168 05 02 02 366 544

ES 18 01 00 00 271 290

FI 37 07 02 05 96 147

FR 42 02 00 01 115 160

HR 113 06 01 02 605 728

HU 15 03 01 02 27 48

IR 50 04 02 06 340 402

IT 38 19 11 32 129 230

LT 07 02 01 02 48 61

LU 66 29 03 23 135 256

LV 33 15 02 06 62 117

MT 04 01 00 01 10 16

NL 07 02 01 02 25 36

PL 01 01 00 01 08 11

PT 32 09 04 10 136 191

RO 02 01 00 01 07 10

SE 12 03 01 03 45 62

SI 19 06 02 07 67 101

SK 13 02 01 03 27 46

UK 67 19 16 31 530 663

EU28 1450 728 175 694 4645 769

1






138







and motorcycles

Information and

communication

Professional


Administrative

and support service

activities

AT 31 18 22 20 15

BE 41 20 22 21 20

BG 44 20 19 22 24

CY 33 17 30 15 16

CZ 38 21 19 25 29

DE 29 17 19 17 16

DK 27 18 21 19 21

EE 40 19 19 19 18

EL 36 19 20 18 22

ES 40 18 20 18 18

FI 35 19 20 18 17

FR 33 20 19 22 17

HR 29 19 19 18 20

HU 40 21 17 16 18

IE 24 18 39 19 19

IT 38 19 22 17 21

LT 30 14 16 16 17

LU 37 30 49 20 80

LV 32 18 19 17 21

MT 33 16 26 23 19

NL 41 17 20 19 15

PL 36 16 20 17 20

PT 38 16 22 21 16

RO 28 26 18 22 21

SE 30 16 20 18 18

SI 31 19 21 19 17

SK 46 20 20 24 26

UK 29 18 17 16 18






139







Information

and communication

Professional

scientific and


Administrati


activities

AT 2789 1006 2094 1227 864

BE 4293 1566 2999 1533 788

BG 453 197 499 306 160

CY 871 468 2187 814 414

CZ 1106 466 1047 625 485

DE 2414 780 2031 1060 721

DK 3251 1214 2246 1564 1118

EE 967 497 740 712 626

ES 2754 616 1770 858 474

FI 3160 1078 2014 1100 748

FR 2862 1077 2263 1650 898

GR 1643 392 1263 416 476

HR 603 364 702 652 432

HU 1137 320 658 384 255

IR 8130 1091 11774 1822 2848

IT 2329 899 2006 977 754

LT 944 378 711 406 303

LU 2988 3000 8840 1977 4646

LV 689 378 648 389 387

MT 1084 513 1866 1264 617

NL 3923 1047 2190 1314 556

PL 862 467 824 646 378

PT 1151 537 1397 648 275

RO 584 323 917 958 337

SE 3272 1189 2874 1706 955

SI 1236 647 1072 609 354

SK 1452 456 962 760 485

UK 2550 910 1750 1080 708




140




Co

un

try

Sectors

Manufact

Wholesale



Information and

communication

Professional


Admin and

support service

activities

Total

(

of ctry

GVA)

(euro million)

AT 02 01 00 01 13 18 000

BE 02 02 00 02 22 29 000

BG 03 02 00 01 08 14 000

CY 00 00 00 00 02 03 000

CZ 14 00 00 00 18 33 000

DE 14 17 05 21 85 143 000

DK 01 00 00 00 07 09 000

EE 00 00 00 00 03 03 000

EL 07 05 01 05 18 34 000

ES 10 01 00 00 107 118 000

FI 01 00 00 01 08 10 000

FR 12 33 10 31 47 133 000

HR 02 00 00 00 04 07 000

HU 03 01 01 02 23 31 000

IE 01 03 01 03 02 10 000

IT 24 44 04 41 64 178 000

LT 02 01 00 01 06 10 000

LU 00 00 00 00 00 01 000

LV 01 00 00 00 04 05 000

MT 00 00 00 00 01 02 000

NL 04 01 00 01 69 76 000

PL 17 01 00 00 55 74 000

PT 02 00 00 00 54 55 000

RO 05 00 00 00 17 23 000

SE 05 04 02 06 21 38 000

SI 02 00 00 01 05 07 000

SK 03 01 00 01 11 16 000

UK 09 04 03 07 89 112 000

To

tal

EUR

million 146 126 30 128 761 1191

of

total 000 000 000 na 001 000






141



Co

un

try

Sector

Manufact


trade repair


Information

and communication



Admin

and support service

activities

Total ( of

ctry GVA)

(euro million)

BE 2 2 0 3 56 63 000

BG 26 25 1 7 112 171 001

CZ 49 2 0 1 103 155 000

DK 1 1 0 1 13 15 000

DE 17 38 5 34 191 285 000

EE 2 0 0 0 9 10 000

EL 14 24 1 19 83 141 000

IE 0 6 0 4 1 11 013

ES 14 3 0 1 398 417 000

HR 9 3 0 1 18 31 000

IT 39 96 5 71 180 391 002

CY 2 1 0 0 7 10 000

LV 4 2 0 2 19 27 001

LT 6 5 0 3 34 48 001

LU 0 0 0 0 1 1 000

HU 10 9 2 10 161 192 001

MT 1 0 0 0 3 5 000

NL 5 1 0 2 189 197 000

AT 3 2 0 2 23 30 000

PL 72 4 1 1 286 363 000

PT 6 0 0 0 311 317 000

RO 25 2 0 0 104 132 000

SI 4 1 0 2 23 29 001

SK 9 5 1 2 59 76 001

FI 1 1 0 1 18 21 000

SE 4 5 1 7 40 57 001

UK 10 7 3 10 229 260 000

To

tal Persons 348 306 31 225 2761 3672

of

total 000 000 000 000 002 000






142



Co

un

try

Sector

Manufact


repair of

motor vehicles and

motorcycles

Information

and communication



Admin

and support service

activities

Total

(

of ctry

GVA)

AT 06 04 01 03 43 57 000

BE 05 05 01 06 74 91 000

BG 07 08 01 03 26 45 001

CY 01 01 00 00 06 09 001

CZ 41 01 00 01 60 104 001

DE 38 53 13 57 293 455 000

DK 03 01 01 01 23 29 000

EE 01 00 00 00 10 11 001

EL 18 15 02 13 60 108 001

ES 28 03 00 01 342 376 000

FI 03 01 00 02 26 33 000

FR 33 104 30 90 169 427 000

HR 05 02 00 01 13 22 001

HU 08 04 02 06 77 98 001

IE 03 10 02 11 06 32 000

IT 73 132 14 129 211 560 000

LT 06 04 00 02 21 33 001

LU 00 00 00 00 01 02 000

LV 02 01 00 01 12 16 001

MT 01 00 00 00 03 05 001

NL 12 02 01 03 224 242 000

PL 46 03 01 01 186 237 001

PT 05 00 00 00 170 175 001

RO 15 01 00 00 56 72 001

SE 13 12 06 18 73 121 000

SI 04 01 00 02 16 23 001

SK 08 03 01 02 37 52 001

UK 23 10 09 19 292 354 000

To

tal

EUR

million 411 382 88 375 2532 3788

of

total 000 000 000 na 004 000






143



Co

un

try

Sector

Manufac

t


trade repair of

motor vehicles

and motorcy

cles

Informati

on and communi

cation

Professio

nal scientific


Admin and

support service

activities

Total ( of ctry

employment)

(Persons)

AT 7 6 1 6 77 97 000

BE 5 6 1 8 183 203 000

BG 72 76 4 19 384 555 002

CY 4 3 0 1 24 31 001

CZ 141 6 1 3 356 506 001

DE 46 117 13 93 657 925 000

DK 2 2 1 1 43 49 000

EE 5 0 0 0 28 33 001

EL 40 73 3 56 284 455 001

ES 41 10 0 3 1277 1331 001

FI 4 2 0 2 60 69 000

FR 39 196 25 120 321 701 000

HR 24 8 1 4 63 99 001

HU 28 28 5 27 535 623 001

IE 1 17 1 11 4 33 000

IT 119 284 15 223 599 1242 001

LT 18 14 1 8 116 157 001

LU 0 0 0 0 2 3 000

LV 10 5 1 4 65 85 001

MT 2 1 0 1 11 15 001

NL 13 4 1 5 612 634 001

PL 195 11 2 4 970 1182 001

PT 16 1 0 1 986 1004 002

RO 72 6 0 1 342 420 000

SE 12 16 4 19 136 186 000

SI 11 3 1 5 78 97 001

SK 25 14 2 7 199 247 001

UK 26 21 9 29 749 834 000

To

tal

Persons 977 930 92 660 9157 11816

of total 000 000 000 000 006 001






144


Scenario 1


use 159)

Scenario 2


use 499)

(euro million)






Construction 20 64










Education 10 33












Scenario 1 (average


Scenario 2 (average


(Persons)






Construction 43 135









145

Scenario 1


use 159)

Scenario 2


use 499)

(Persons)




Education 26 82





1 2








146



brokers)

Introduction












interactionrdquo






Timing 2 min












and company

Timing 05 min



147













Timing 10 min
















148


Timing 10 min



encounter a problem











Timing 10 min










Timing 5 min




Timing 2 min



149


D Introduction




Timing 2 min




are performing

Timing 05 min





Networking services



Timing 5 min









Timing 10 min




150












Timing 15 min






Timing 5 min





services for SMEs

Timing 5 min




Timing 5 min



151


SMEs envoys)

E Introduction












interactionrdquo








Timing 5 min








Timing 05 min





Any data available



152








Conditions





Timing 10 min
















Timing 10 min






153


services







Timing 10 min






154



Objectives






Scope






National SMEs Envoy


Cloud brokers






Topics discussed




















155

Stakeholder


























SMEs associations












156

Findings



























157


Category Country



EEN Romania

France

National authority

Italy

Romania

Romania

France

Poland

Estonia

Service provider

Sweden

Spain

Spain

Sweden

Ireland

Romania

Romania

Portugal

Romania

Germany

SME Association

EU

Portugal

The Netherlands


Services contracted











Security



158











Duration and costs





































159











































this



computing services



160







Actions taken






















cost






















161
































Validation Webinars


















162



















level



























contact point (35)



128 Zoom



163







and stored129

































164


Free publications

bull one copy







Priced publications




165


In person










Online



EU publications











purposes

doi 102838962608

ISBN 978-92-79-96750-4

[Cata

logue n

um

ber]

DS-0

3-1

8-4

21-E

N-N



2


Acronym Description






EU European Union










MS Member State












3

EU Member States

AT Austria

BE Belgium

BG Bulgaria

CY Cyprus


DE Germany

DK Denmark

EE Estonia

EL Greece

ES Spain

FI Finland

FR France

HR Croatia

HU Hungary

IE Ireland

IT Italy

LV Latvia

LT Lithuania

LU Luxembourg

MT Malta

NL The Netherlands

PL Poland

PT Portugal

RO Romania

SE Sweden

SI Slovenia

SK Slovakia




4

Glossary


Active enterprise


period

Eurostat

Cloud computing





Cloud Service



2014







Data portability







Eurostat


United Kingdom

Eurostat



Eurostat



5


Frequency

(F)



Incidence

(I)










Eurostat


(PPP)



Eurostat

Platform as a

Service (PaaS)














6










2014

Service performance










Virtual Data Centre



data centres





7

1 Introduction






Contract Law

























8


































9




the contractrsquo10


initiatives




























Brussels



10






unaffected and


















Objectives




services















competitiveness





11

Scope














Territorial scope


Timeline


2017

Stakeholders










SMEs associations












12



euro10 million


























of service




concerns



related problems



competitiveness











13






14






be used







measured






15





enterprises


computing
















Cloud computing

model


Details











protection






management




16

Cloud

computing

model


Details


Platform to create



deployment










































17



contract








the team to






























18





European Unionrsquo






































19

















the EU level



contracts

20






21



survey










services

Number of SMEs that





[isoc_cicce_use]


study objectives

Number of SMEs that







NA










contracts

22


EU MS


EU15 EU13





Total active SMEs

(Country level)

(EU28 level)

AT 40393 646288 280850 31959 38422 1196 137 EU15

BE 31302 8139 569950 64858 72996 1214 261 EU15

BG 26991 1619 298559 33975 35594 1093 127 EU13


CZ 38203 6877 961287 109390 116267 1163 416 EU13

DE 411527 61729 1985471 225938 287667 1200 1029 EU15

DK 22681 9072 187367 21322 30394 1447 109 EU15

EE 6439 1417 61513 7000 8416 1239 030 EU13

EL 15368 1383 764471 86993 88376 1133 316 EU15

ES 125000 21250 2337621 116881 138131 561 494 EU15

FI 19187 10361 209328 23821 34182 1496 122 EU15

FR 139335 22294 2765282 314677 336970 1160 1205 EU15

HR 12249 2695 134007 15249 17944 1227 064 EU13

HU 30852 3394 504904 57456 60850 1136 218 EU13

IE 5514 1930 224742 25575 27505 1195 098 EU15

IT 182182 38258 3497783 398032 436290 1186 1560 EU15

LT 13604 2177 172527 19633 21809 1172 078 EU13

LU 3939 670 27841 3168 3838 1208 014 EU15

LV 9226 738 100216 11404 12142 1109 043 EU13

MT 1885 509 24123 2745 3254 1251 012 EU13

NL 48115 15397 1042588 118642 134039 1229 479 EU15

PL 69282 4850 1534086 174572 179422 1119 642 EU13

PT 37353 6350 769043 53833 60183 746 215 EU15

RO 50987 3569 405493 46143 49712 1089 178 EU13

SE 36047 16221 649412 155859 172080 2510 615 EU15

SI 6912 1382 127603 14521 15903 1182 057 EU13

SK 14363 2442 414630 33170 35612 830 127 EU13

UK 199528 65844 1734989 312298 378142 1955 1352 EU15

Tot EU28

1598464 317028 21785686 2479112 2796141 12 100

Selected Countries





23




[sbs_sc_sca_r2])













study objectives)





referred to as M)






24


NACE Code

Sectors

A B C = B100 x

A CD



EU28 level

of enter (with more

than 10 empl)

buying CC services

of enter (with more

than 10 empl)

buying CC services

out of the total



18732 19 3559 1

F Construction 200369 15 30055 11


motorcycles

351278 18 63230 24




55905 52 29070 11



97073 34 33004 12



Total 1326794 21 268384 (D) 100

Selected Sectors

















25




Where



Our case



e = 5

Z = 196
















CATI



barriers



business







26



Sector

Country


activities

Inform and comm

Manufact

Profess scientific


Wholesale

and retail trade

Total

CZ 13 17 62 30 52 174

EE 5 22 8 12 15 62

FR 184 129 262 126 308 1009

DE 99 123 185 226 249 882

IE 4 18 6 6 13 47

IT 8 9 100 7 15 139

NL 36 49

24 37 146

PL 24 69 16 78 92 279

PT 7 2 9 2 24 44

RO 8 20 2 27 15 72

ES 7 11

26 21 65

SE 41 33 59 30 91 254

Total 436 502 709 594 932 3173






27


Country

Number of




Total Participation

rate ()

A B C = A + B BC

CZ 131 43 174 25

DE 33 158 191 83

EE 715 29 744 4

ES 724 54 778 7

FR 16 294 310 95

IE 24 31 55 56

IT 97 115 212 54

NL 152 49 201 24

PL 11 127 138 92

PT 48 33 81 41

RO 11 24 35 69

SE 202 52 254 20

Total 2164 1009 3173 32






the survey








28


1009)














119866119865119863 = 119871 + 119867119877 + 119874119862

Where










computed






29


three main steps







serious problem


each SME



119873119901 = 119890119906 times 119890119901 times 119864

Where


services







level overall











formula

119873119894119895119901 = (

119890119894119906 + 119890119895

119906

2) times (

119890119894119901 + 119890119895

119901

2) times 119864119894119895




30

Where









survey





[sbs_sc_sca_r2])











from the survey



[sbs_sc_sca_r2])










31




levels











true detriment47












caused to each SME

















32





























box










33


value added






119883119894 = sum 119883119894119895 + 119884119894

119895


and final demand)

119883119894 = sum 119883119894119895 + 119884119894

119894











OUTPUT (Demand)

INPUT


production

(1st Q)

Final demand

(2nd Q)

Primary inputs to

production

(3rd Q)


demand

(4th Q)



34




























study Tasks






nine SMEs

one cloud broker








35











the CATI
















information







survey















36










37








while taking action
























enterprises55


that








38



















the survey









content










39














SME size class

of respondents




Small 140 723 52

Medium 272 1296 48

Total 503 2522 50



services



40















plug-ins)




(21)



41


SMEs size Total


out of which


Micro 91 503 252 149 97 5

50 30 19 1

Small 140 723 332 224 157 10

46 31 22 1

Medium 272 1296 609 393 276 18

21 30 47 1

Total 503 2522 1193 766 530 33

47 30 21 1
















details)



42












SMEs

size

Total of

respond

of services

contracted

of customised

services

of services

SMEs were able to

negotiate

out of which


Micro 91 503 48 24 11 10 3 0

Small 140 723 123 89 36 31 20 2

Medium 272 1296 120 155 78 44 31 2

Total 503 2522 106 268 125 85 54 4











43
















44







Size category

Total

Respondents

SMEs that did

not negotiate

CTampC


Full customisation


No Customisation

Micro 91 69 16 6 0

100 76 17 7 0

Small 140 86 27 15 12

100 61 19 11 9

Medium 272 169 58 26 19

100 62 21 10 7

Total 503 324 101 47 31

100 64 56 26 17








45







46
















66 116 199 381


25 24 73 122

27 17 27 24






Frequency

(F)



months)




Incidence

(I)









contracts

47






48















due to









anomalies occurred














future








49









Figure 15)69


SME size class




Micro 25 116 464

Small 24 92 383

Medium 73 290 397

Total 122 498 408





Types of problems







50


respondents 122)70





















51



Size




Micro 7 28 0 0 2 8 16 64 25

Small 10 42 0 0 1 4 13 54 24

Medium 38 52 4 5 4 5 27 37 73

Total 55 45 4 3 7 6 56 46 122






















52














(Table 15)





53



The 3 most serious

problems

of SMEs declaring

this as the most

serious problem





the cause



serious problem

encountered


32 23 3 3 3

100 73 9 9 9

Low speed of

the service

27 13 5 2 7

100 48 19 7 26


16 6 2 4 4

100 38 13 25 25




20)








serious problem






54








service (Figure 21)
























55









or four days











56



24)














57







problem

- loss of clients





service problem


service




















58


and third parties)






















problems


enterprises (48)





Skill level of

enterprises


Technical 93 76







17)



59




of enterprises



Legal costs 22 18


None 38 31























far





rate)91







60






















Component

Number of



Number of

enterprises that

quantified the cost


that

quantified


of enterprises

that

quantified







42 41 15 37


39 39 15 38



damage 23 23 3 13


25 24 2 8


Redress 15 15 7 47





61













































Losses of turnover



from the survey



62









Value of

Losses (euro)

Number of

Enterprises


frequency

000 105 861 861

700 1 08 869

30000 1 08 877

104690 2 16 893

157035 1 08 902

200000 1 08 910

209380 1 08 918

500000 2 16 934

1000000 1 08 943

2000000 1 08 951

5000000 1 08 959

10469012 1 08 967

15000000 2 16 984

20000000 1 08 992

50000000 1 08 1000

Total 122 100




Loss of profit








000 103 844 844

1200 1 08 852






63

Value of

Losses (euro)

Number of


Cumulative

frequency

20938 1 08 861

51500 1 08 869

52345 1 08 877

60000 1 08 885

90000 1 08 893

150000 1 08 902

157035 1 08 910

200000 2 16 926

209380 1 08 934

300000 1 08 943

500000 2 16 959

523451 1 08 967

2093802 1 08 975

3000000 1 08 984

5234506 1 08 992

10000000 1 08 1000

Total 122 100



















64








individual costs






Component


that quantified

costs



of total 122

95 trimmed

mean of the values


experiencing

each cost euro

Average of



euro


41 15 123 1187 5892


39 15 123 1311 13657




65

Component


that quantified

costs


that


of total

122

95

trimmed

mean of the values



euro

Average of



euro



23 3 25 00 2701


client(s) 24 2 16 00 8663













22)103


Component


declared

relevant values ()


faced problems




euro


euro


Profit losses 19 156 17690 191346


105 861 36006 80621

Other costs 30 246 34124 371871

Redress 7 57 095 6042






66






suffered













residual costs



24


Component

95 trimmed mean of


enterprises that

quantified the

component

euro

Average of the

values declared by

enterprises that

quantified the

component

euro



Other costs 3412 304 37187 259

Gross detriment 11208 1000 143836 1000

Redress 10 604






67


profits (euro)

Component

95 trimmed mean of


enterprises that

quantified the

component

euro

Average of the

values declared by

enterprises that

quantified the

component

euro

Profit losses 1769 201 19135 297


3601 410 8062 125

Other costs 3412 389 37187 578


64384 1000

Redress 10 604
















about 18 million




68


Scenario 1


159)

Scenario 2


499)

(number)

Secto

r



198877 628761



195098 599588


56803 203001

Total 582924 1833118

Siz

e

cla

ss Micro 548001 1722427

Small 22827 70148

Medium 12096 40543

Total 582924 1833118











use 159)


use 499)

(euro million)

Secto

r



1673 5235





1918 6495

Total 6534 20546

Siz

e

cla

ss Micro 4816 15124

Small 1144 3562

Medium 574 1861

Total 6534 20546




69


costs incurred


159)


499)

(euro million)

Secto

r






1421 4323



Total 5119 16098

Siz

e

cla

ss Micro 4013 12609

Small 801 2488

Medium 306 1002

Total 5119 16098







detriment euro




costs incurred

Micro 8788 7323

Small 50116 35090

Medium 47454 25298

Total 11209 8782







70




use 159)


use 499)

(euro million)

Secto

r






1556 4722



Total 6528 20529

Siz

e

cla

ss Micro 4815 15118

Small 1143 3562

Medium 570 1850

Total 6528 20529



costs incurred


159)


499)

(euro million)

Secto

r



1548 4851



1420 4322


1152 3928

Total 5114 16081

Siz

e

cla

ss Micro 4011 12603

Small 800 2488

Medium 302 990

Total 5114 16081













71

















72













119863119868(119866119881119860)119894 = sum119871(119879)119894119895

119884119894119895 119866119881119860119894119895frasl

5

119895=1

Where











turnover losses

119863119868(119864)119894 = sum119871(119879)119894119895

119884119894119895 119864119894119895frasl

5

119895=1

Where













73






GVA



Box 4











61 Direct impacts










counting



















74



Scenario 1



499)


EU GVA 000 000

Impact on jobs

Persons 3672 11816

EU

employment 000 001






62 Indirect impacts












effects










Scenario 1



499)


EU GVA 000 000






75




























lower context costs



















76


companies affected















77

7 Conclusions








infrastructure




















Envoy)


everyday work


















78




















































79

















































80


















employment




















other effects




81











of the companies












welfare





82












1 Yes that is me



ltIf 2gt




























83

































accordingly












84



1 Cloud broker The






Interview






Romania



Interview



Interview


France



Interview






Interview

11 Service provider


12 Service provider


13 Service provider


14 Service provider


15 Service provider


16 Service provider


17 Service provider




85


18 Service provider


19 Service


20 Service provider







Interview






30 SME Association


31 SME



Aveiro Interview

32 SME Association

The Netherlands

VNO-NCW Interview


The Czech Republic




86





VI-012)




















COM20150626 final





(COM (2016)0176)










Assessment





87






Market Actrsquo













275 final















242






in Europe








88















Computing





consumer detriment










for Standardization













an



89









Databases













90





[open question]




a) Czech Republic


i) Romania
















91


































92







conditions




purposes)












protection)













93









[open question]






Problems

Very

frequently


Frequentl


Occasiona

lly (at least


Rarely (at


12 months)

Never











of service)



94



service

















years











95






























96


protection)






















linked




purposes)




97













protection)



problem




a) Yes

b) No














98





















foreign country)








[open question]

Nordm of employees


Nordm of work days


Average monthly


currency)118




99


Administrative

Technical

Senior












Lost turnoveryear

Lost profityear














[open question]

Nordm of employees


Nordm of work days


Average monthly





100

per skill level of

employee(s)

per skill level

employee(s)

(amount in local

currency)119

Administrative

Technical

Senior











encountered


Lost turnoveryear

Lost profityear








[open question]


2016


2017


tax in 2016


tax in 2017




101





Manufacturing 137









102




Services

Sectors

Collaboration and


Storage and hosting

services

Security

services

Networking

services


61 60 49 40




71 70 40 39






103








104





105



years




CZ 18 850

EE 18 112

FR 34 4675

DE 33 861

IE 19 1127

IT 58 716

NL 21 6672

PL 20 411

PT 7 433



106


RO 7 278

ES 13 127

SE 19 2866

Total 267 1787







107





108





109




experienced



110




problem



111






Sector Number of

enterprises

95 Trimmed

mean Average






Total 122 322 721



95 Trimmed mean

Average

Micro 25 300 404

Small 24 236 258

Medium 73 368 982

Total 122 322 721


Country Number of

enterprises

95


CZ 7 226 229

EE 5 222 220

FR 22 282 395

DE 19 471 1074

IE 4 094 100

IT 13 315 338

NL 6 4057 5117

PL 13 286 308

PT 3 300 700



112

Country Number of

enterprises

95


CZ 7 226 229

RO 1 200 200

ES 11 631 718

SE 18 251 361

Total 122 322 721



of enterprises



Legal costs 22 18



Other costs 9 7

None 38 31

Total 122



CZ 0 0 0 0

EE 1 20 1 20

FR 4 18 5 23

DE 2 11 1 5

IE 2 50 2 50

IT 2 15 1 8

NL 1 17 2 33

PL 0 0 0 0

PT 0 0 0 0

RO 0 0 0 0

ES 0 0 0 0

SE 5 28 7 39

Total 17 19


of enterprises



Other 5 4





Below 50 105 87

50 to 80 8 7



113

of enterprises

Above 80 9 7

Total 122 100





Technical 93 76






Legal costs 22 18



Other costs 9 7

None 38 31

Total 122


encountered121


CZ 0 0 0 0

EE 1 20 1 20

FR 4 18 5 23

DE 2 11 1 5

IE 2 50 2 50

IT 2 15 1 8

NL 1 17 2 33

PL 0 0 0 0

PT 0 0 0 0

RO 0 0 0 0

ES 0 0 0 0

SE 5 28 7 39

Total 17 19




Other 5 4





114

















Total 159 499




Micro 178 535

Small 226 606

Medium 133 447

Total 159 499




CZ 172 698

EE 323 690

FR 79 272

DE 80 449

IE 468 710

IT 719 870

NL 205 612

PL 143 315

PT 455 606

RO 278 833

ES 538 648

SE 138 673

Total 159 499




115










Senior

officersmanager(s)

CZ 2 29 3 43 4 57

DE 9 47 15 79 8 42

EE 4 80 4 80 3 60

ES 4 36 6 55 5 45

FR 8 36 19 86 11 50

IE 1 25 2 50 3 75

IT 7 54 10 77 4 31

NL 4 67 6 100 4 67

PL 5 38 12 92 5 38

PT 1 33 2 67 0 0

RO 1 100 1 100 0 0

SE 13 72 13 72 12 67

Total 59 93 59





Senior

officersmanager(s)


activities 6 46 9 69 10 77






12 48 14 56 12 48

Total 59 93 59




116




Senior officers

manager(s)

Micro 11 52 12 57 11 52

Small 24 75 22 69 16 50

Medium 24 35 59 86 32 46

Total 59 93 59





Co

un

try

Costs related to

ensuring an

alternative service

Costs related to

fixing the cloud

service problem

Legal costs

Costs


damage

Costs

related to loss of

client(s)

Other

costsNone

CZ 3 43 0 0 0 0 0 0 1 14 3 43

DE 4 21 6 32 2 11 2 11 3 16 5 26

EE 0 0 2 40 0 0 0 0 0 0 3 60

ES 7 64 1 9 0 0 0 0 0 0 3 27

FR 13 59 13 59 12

55 11 50 11 50 18 82

IE 1 25 3 75 0 0 0 0 1 25 0 0

IT 4 31 2 15 1 8 1 8 2 15 2 15

NL 1 17 1 17 1 17 2 33 1 17 5 83

PL 1 8 1 8 2 15 1 8 1 8 2 15

PT 1 33 1 33 0 0 1 33 1 33 0 0

RO 1 100 0 0 1 100 1 100 1 100 1 100

SE 6 33 9 50 3 17 4 22 3 17 5 28

Total 42 39 22 23 25 47




Sector


an alternative

service

Costs



Legal costs

Costs


damage


Other

costsNone


activities

5 38 1 8 2 15 1 8 1 8 6 46

Information and

commun 12 50 11 46 7 29 7 29 7 29 8 33



117

Sector


an alternative

service

Costs



Legal costs

Costs


damage

Costs related


Other costsNone

Manufacturing 8 26 6 19 3 10 4 13 5 16 8 26

Profess


13 45 12 41 10 34 10 34 11 38 16 55

Wholesale and

retail trade


4 16 9 36 0 0 1 4 1 4 9 36

Total 42 39 22 23 25 47




Size class


an

alternative service


cloud

service problem

Legal costs

Costs related to

reputation

damage

Costs related to

loss of

client(s)

Other

costs

None

Micro 6 29 11 52 4 19 6 29 5 24 8 38

Small 13 41 12 38 9 28 7 22 8 25 13 41

Medium 23 33 16 23 9 13 10 14 12 17 26 38

Total 42 39 22 23 25 47



respondents 122)










Total 17 19




118




Micro 2 10 4 19

Small 8 25 8 25

Medium 7 10 7 10

Total 17 19



122)

Country

Financial

compensation

Reduction in the


Other

The company did


CZ 1 14 0 0 1 14 5 71

DE 0 0 0 0 1 5 18 95

EE 0 0 0 0 0 0 5 100

ES 0 0 0 0 0 0 11 100

FR 2 9 1 5 1 5 19 86

IE 0 0 0 0 0 0 4 100

IT 1 8 0 0 0 0 12 92

NL 0 0 2 33 1 17 4 67

PL 0 0 3 23 0 0 10 77

PT 0 0 1 33 0 0 2 67

RO 0 0 0 0 0 0 1 100

SE 0 0 1 6 1 6 16 89

Total 4 8 5 107



122)

Sector


Reduction in


Other

The company


Administrative and



1 4 1 4 3 13 20 83



1 3 2 7 1 3 25 86



Total 4 8 5 107




119



Size class

Financial

compensation


subscription Other


Micro 1 5 1 5 0 0 19 90

Small 0 0 2 6 2 6 28 88

Medium 3 4 5 7 3 4 60 87

Total 4 8 5 107











CZ 3 43 0 0 0 0 4 57 7

DE 3 60 0 0 0 0 2 40 5

EE 11 50 1 5 0 0 10 45 22

ES 11 58 1 5 1 5 6 32 19

FR 3 75 0 0 0 0 1 25 4

IE 5 38 0 0 0 0 8 62 13

IT 1 17 0 0 1 17 4 67 6

NL 5 38 0 0 1 8 7 54 13

PL 2 67 0 0 0 0 1 33 3

PT 1 11 0 0 0 0 8 89 9

RO 3 38 0 0 0 0 5 63 8

SE 7 10 2 3 4 6 56 81 69

Total 55 31 4 2 7 4 112 63 178





120





26 74 0 0 5 14 4 11 35


20 56 0 0 0 0 16 44 36

Manufacturing 30 64 3 6 0 0 14 30 47


39 65 8 13 1 2 12 20 60



29 57 0 0 12 24 10 20 51

Total 144 63 11 5 18 8 56 24 229





Micro 7 28 0 0 2 8 16 64 25

Small 10 42 0 0 1 4 13 54 24

Medium 38 52 4 5 4 5 27 37 73

Total 55 45 4 3 7 6 56 46 122







computing problem






CZ 0 0 1 33 2 67

DE 5 45 9 82 3 27

EE 3 100 3 100 1 33

ES 1 33 2 67 1 33

FR 4 36 7 64 4 36

IE 1 33 2 67 1 33

IT 2 40 3 60 1 20




121


Senior

officersmanager(s)

NL 1 100 1 100 1 100

PL 2 40 5 100 0 0

PT 1 50 1 50 2 100

RO 0 0 0 0 0 0

SE 3 43 5 71 2 29

Total 23 39 18






Senior

officersmanager(s)









5 42 7 58 5 42

Total 23 39 18





Senior officers

manager(s)

Micro 3 38 5 63 2 25

Small 10 63 13 81 6 38

Medium 10 32 21 68 10 32

Total 23 39 18




Co

un

try Costs

related to

ensuring an

alternative service

Costs

related to

fixing the cloud

service problem

Legal costs

Costs related


Costs

related to loss of

client(s)

Other

costsnone



122

CZ 0 0 0 0 0 0 0 0 0 0 3 100

DE 5 45 4 36 3 27 3 27 3 27 9 82

EE 0 0 2 67 0 0 0 0 0 0 1 33

ES 1 33 0 0 0 0 0 0 0 0 2 67

FR 6 55 5 45 5 45 5 45 5 45 10 91

IE 1 33 0 0 0 0 0 0 0 0 2 67

IT 2 40 1 20 1 20 1 20 2 40 3 60

NL 0 0 0 0 0 0 0 0 0 0 1 100

PL 0 0 1 20 1 20 1 20 1 20 2 40

PT 1 50 0 0 0 0 1 50 1 50 0 0

RO 1 100 1 100 1 100

1 100 1 100 1 100

SE 1 14 2 29 1 14 2 29 2 29 5 71

Total 18 16 12 5 14 15




Sector

Costs

related to ensuring


Costs



Legal costs


damage

Costs related to

loss of client(s)

Other costs

none


activities 1 17 1 17 2 33 1 17 1 17 5 83


3 30 3 30 1 10 2 20 2 20 6 60

manufacturing 4 25 5 31 4 25 4 25 4 25 15 94


activities

7 64 6 55 5 45 6 55 6 55 7 64



3 25 1 8 0 0 1 8 2 17 6 50

Total 18 16 12 5 14 15




123



Size class


an alternative

service



Legal

costs

Costs related to

reputation damage

Costs related to

loss of client(s)

Other

costsnone

Micro 3 19 4 25 2 13 0 0 2 13 2 13

Small 12 39 8 26 7 23 0 0 9 29 10 32

Medium 3 38 4 50 3 38 5 63 3 38 3 38

Total 18 16 12 5 14 15



of respondents 55)


Micro 0 0 1 13

Small 5 31 5 31

Medium 2 6 2 6

Total 7 8



respondents 55)



1 17 1 17







2 17 2 17

Total 7 8







computing problems



124



Country

Financial

compensation


subscription Other


redress

CZ 1 33 0 0 0 0 2 67

DE 0 0 0 0 0 0 11 100

EE 0 0 0 0 0 0 3 100

ES 0 0 0 0 0 0 3 100

FR 1 9 0 0 0 0 10 91

IE 0 0 0 0 0 0 3 100

IT 0 0 0 0 0 0 5 100

NL 0 0 0 0 0 0 1 100

PL 0 0 1 20 0 0 4 80

PT 0 0 1 50 0 0 1 50

RO 0 0 0 0 0 0 1 100

SE 0 0 1 14 0 0 6 86

Total 2 3 0 50




Country

Financial

compensation


subscription Other



2 33 0 0 0 0 4 67

Information and



Professional

scientific and


0 0 1 9 0 0 10 91


0 0 1 8 0 0 10 83

Total 2 3 0 50




125



Country

Financial

compensation


subscription Other


Micro 0 0 2 13 0 0 14 88

Small 2 6 0 0 0 0 29 94

Medium 0 0 1 13 0 0 7 88

Total 2 3 0 50







Sectors

Number of

enterprises ()

95 Trimmed mean125

(euro)

Average

(euro)






Total 122 41954 985869



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 25 023 4217

Small 24 271159 1119043

Medium 73 99060 1278261

Total 122 41954 985869




()

95 Trimmed mean

(euro)

Average

(euro)

CZ 7 000 000

DE 19 160819 894737

EE 5 117 140




126


()

95

Trimmed mean

(euro)

Average

(euro)

ES 11 000 000

FR 22 742424 3009091

IE 4 4583333 5125000

IT 13 192308 423077

NL 6 3889 5000

PL 13 000 000

PT 3 000 000

RO 1 000 000

SE 18 100166 613600

Total 122 41954 985869





differences


Sector


()

95

Trimmed mean

(euro)

Average

(euro)






Total 122 17690 191346



Size class

Number of

enterprises

()

95

Trimmed mean

(euro)

Average

(euro)

Micro 25 063 5742

Small 24 38235 50293

Medium 73 18681 301282

Total 122 17690 191346




()

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 000 000

DE 19 877 15789

EE 5 200 240

ES 11 000 000



127


()

95

Trimmed mean

(euro)

Average

(euro)

FR 22 161111 613182

IE 4 152778 162500

IT 13 14957 38462

NL 6 17315 18583

PL 13 000 000

PT 3 000 000

RO 1 000 000

SE 18 221012 460637

Total 122 17690 191346



or country level





Sector


()

95 Trimmed

mean

( days)

Average

( days)






Total 122 322 721



Size class

Number of

enterprises

()

95

Trimmed mean

( days)

Average

( days)

Micro 25 300 404

Small 24 236 258

Medium 73 368 982

Total 122 322 721




128


problem by country

Country


()

95 Trimmed

mean

( days)

Average

( days)

CZ 7 226 229

DE 19 471 1074

EE 5 222 220

ES 11 631 718

FR 22 282 395

IE 4 094 100

IT 13 315 338

NL 6 4057 5117

PL 13 286 308

PT 3 300 700

RO 1 200 200

SE 18 251 361

Total 122 322 721





differences


Sector


()

95

Trimmed mean

(euro)

Average

(euro)






Total 122 34124 371871



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 25 2278 10725

Small 24 178472 389792

Medium 73 39973 489660

Total 122 34124 371871




129


Country

Number of

enterprises

()

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 387 535

DE 19 183333 665000

EE 5 6111 7000

ES 11 115657 229091

FR 22 682 50659

IE 4 166667 175000

IT 13 184615 416154

NL 6 15935 16917

PL 13 14575 37479

PT 3 3333 3333

RO 1 000 000

SE 18 332811 1241741

Total 122 34124 371871



level




Sector

Number of

enterprises

()

95 Trimmed

mean

(euro)

Average

(euro)






Total 122 095 6042



Size class


()

95 Trimmed mean

(euro)

Average

(euro)

Micro 0 000 00

Small 0 000 00

Medium 7 17120 57096

Total 122 095 6042




130



(euro)

95

Trimmed mean

(euro)

Average

(euro)

CZ 7 1867 5354

DE 19 000 000

EE 5 000 000

ES 11 000 000

FR 22 000 13636

IE 4 000 000

IT 13 1346 3462

NL 6 000 000

PL 13 2504 3123

PT 3 000 000

RO 1 000 000

SE 18 1939 17448

Total 122 095 6042






trade repair of


Information and

communication

Professional


Administrative

and support service

activities

Total

economy

AT 2089 1323 2194 1331 1201 1616

BE 2285 1512 2294 1363 1190 1670

BG 705 691 1435 471 622 665

CY 705 691 1435 471 622 665

CZ 544 408 930 469 352 500

DE 2069 1080 2070 1568 821 1503

DK 1978 1601 2248 2281 1580 1871

EE 616 522 861 538 458 577

EL 721 434 945 307 407 505

ES 1352 827 1912 1072 725 1028

FI 1929 1366 2186 1764 1083 1639

FR 2055 1526 2487 2163 276 1791

HR 452 405 692 275 327 410

HU 506 336 662 368 309 424

IE 1967 1281 2605 2163 1189 1493

IT 1407 772 1702 659 840 1052

LT 383 305 627 317 317 351

LU 2204 1754 2862 2942 1192 2097

LV 969 315 590 333 276 347

MT 405 475 1017 333 571 477

NL 2083 1087 1970 1499 688 1286

PL 456 303 626 332 385 391



131


Wholesale

and retail trade

repair of motor


Information

and communication




service activities

Total

economy

PT 640 524 1106 385 330 547

RO 290 236 576 333 230 287

SE 2197 1675 2618 2088 1259 1922

SI 871 731 980 523 546 762

SK 551 368 810 404 314 470

UK 1745 1047 2230 1989 1146 1455

EU 28 1491 1774 3687 1695 511 1118


Source Eurostat


different scenarios





Scenario 1


use 159)


(euro million)

Secto

r







Total 2446 7691

Siz

e

cla

ss Micro 1405 4402

Small 598 1866

Medium 442 1423

Total 2446 7691





132


problems



(euro million)

Secto

r



114 345




Total 1031 3243

Siz

e

cla

ss Micro 602 1887

Small 255 792

Medium 174 564

Total 1031 3243



Scenario 1


Scenario 2


(euro million)

Secto

r



474 1511




Total 2099 6600

Siz

e

cla

ss Micro 1961 6167

Small 97 295

Medium 41 138

Total 2099 6600



Scenario 1


Scenario 2


(euro million)

Secto

r



959 2996




Total 1989 6255



133

Scenario 1


Scenario 2


(euro million)

Siz

e

cla

ss Micro 1450 4555

Small 449 1401

Medium 90 300

Total 1989 6255



Scenario 2


Scenario 1


(euro million)

Secto

r

Manufacturing 00 00






Total 06 17

Siz

e

cla

ss Micro 02 06

Small 00 00

Medium 04 11

Total 06 17








134


costs incurred







Scenario 1





135


costs incurred




136





and growth


Co

un

try

Manufacturing


trade repair of

motor

vehicles and

motorcycles

Information

and communication

Professional

scientific



service

activities

Total

AT 06 02 00 01 10 19

BE 54 01 00 01 50 106

BG 02 00 00 00 05 07

CY 08 03 01 05 44 61

CZ 40 68 19 69 80 275

DE 02 06 02 06 03 21

DK 41 29 09 36 138 254

EE 92 86 09 69 136 392

EL 62 02 01 01 108 173

ES 07 00 00 00 85 92

FI 13 02 01 02 29 47

FR 15 01 00 00 35 51

HR 39 02 00 01 189 231

HU 05 01 00 01 08 15

IE 18 01 01 02 105 128

IT 14 06 04 12 38 73

LT 03 01 00 01 15 19

LU 23 09 01 08 39 81

LV 12 05 01 02 18 37

MT 01 00 00 00 03 05

NL 02 01 00 01 08 11

PL 00 00 00 00 03 03

PT 12 03 01 04 41 61

RO 01 00 00 00 02 03

SE 04 01 00 01 13 20

SI 07 02 01 02 20 32

SK 05 01 00 01 08 15

UK 25 07 06 11 162 211

EU28 515 240 59 237 1395 2446





137



Co

un

try

Manufacturing


trade repair of

motor vehicles

and motorcycle

s

Information and

communication

Profession

al scientific


Administrative and

support service

activities

Total

AT 17 05 01 03 35 61

BE 156 03 01 02 172 333

BG 05 00 00 00 17 22

CY 22 09 03 13 144 191

CZ 112 211 57 198 288 866

DE 07 18 07 20 12 65

DK 110 91 26 98 474 800

EE 278 256 30 218 452 1234

EL 168 05 02 02 366 544

ES 18 01 00 00 271 290

FI 37 07 02 05 96 147

FR 42 02 00 01 115 160

HR 113 06 01 02 605 728

HU 15 03 01 02 27 48

IR 50 04 02 06 340 402

IT 38 19 11 32 129 230

LT 07 02 01 02 48 61

LU 66 29 03 23 135 256

LV 33 15 02 06 62 117

MT 04 01 00 01 10 16

NL 07 02 01 02 25 36

PL 01 01 00 01 08 11

PT 32 09 04 10 136 191

RO 02 01 00 01 07 10

SE 12 03 01 03 45 62

SI 19 06 02 07 67 101

SK 13 02 01 03 27 46

UK 67 19 16 31 530 663

EU28 1450 728 175 694 4645 769

1






138







and motorcycles

Information and

communication

Professional


Administrative

and support service

activities

AT 31 18 22 20 15

BE 41 20 22 21 20

BG 44 20 19 22 24

CY 33 17 30 15 16

CZ 38 21 19 25 29

DE 29 17 19 17 16

DK 27 18 21 19 21

EE 40 19 19 19 18

EL 36 19 20 18 22

ES 40 18 20 18 18

FI 35 19 20 18 17

FR 33 20 19 22 17

HR 29 19 19 18 20

HU 40 21 17 16 18

IE 24 18 39 19 19

IT 38 19 22 17 21

LT 30 14 16 16 17

LU 37 30 49 20 80

LV 32 18 19 17 21

MT 33 16 26 23 19

NL 41 17 20 19 15

PL 36 16 20 17 20

PT 38 16 22 21 16

RO 28 26 18 22 21

SE 30 16 20 18 18

SI 31 19 21 19 17

SK 46 20 20 24 26

UK 29 18 17 16 18






139







Information

and communication

Professional

scientific and


Administrati


activities

AT 2789 1006 2094 1227 864

BE 4293 1566 2999 1533 788

BG 453 197 499 306 160

CY 871 468 2187 814 414

CZ 1106 466 1047 625 485

DE 2414 780 2031 1060 721

DK 3251 1214 2246 1564 1118

EE 967 497 740 712 626

ES 2754 616 1770 858 474

FI 3160 1078 2014 1100 748

FR 2862 1077 2263 1650 898

GR 1643 392 1263 416 476

HR 603 364 702 652 432

HU 1137 320 658 384 255

IR 8130 1091 11774 1822 2848

IT 2329 899 2006 977 754

LT 944 378 711 406 303

LU 2988 3000 8840 1977 4646

LV 689 378 648 389 387

MT 1084 513 1866 1264 617

NL 3923 1047 2190 1314 556

PL 862 467 824 646 378

PT 1151 537 1397 648 275

RO 584 323 917 958 337

SE 3272 1189 2874 1706 955

SI 1236 647 1072 609 354

SK 1452 456 962 760 485

UK 2550 910 1750 1080 708




140




Co

un

try

Sectors

Manufact

Wholesale



Information and

communication

Professional


Admin and

support service

activities

Total

(

of ctry

GVA)

(euro million)

AT 02 01 00 01 13 18 000

BE 02 02 00 02 22 29 000

BG 03 02 00 01 08 14 000

CY 00 00 00 00 02 03 000

CZ 14 00 00 00 18 33 000

DE 14 17 05 21 85 143 000

DK 01 00 00 00 07 09 000

EE 00 00 00 00 03 03 000

EL 07 05 01 05 18 34 000

ES 10 01 00 00 107 118 000

FI 01 00 00 01 08 10 000

FR 12 33 10 31 47 133 000

HR 02 00 00 00 04 07 000

HU 03 01 01 02 23 31 000

IE 01 03 01 03 02 10 000

IT 24 44 04 41 64 178 000

LT 02 01 00 01 06 10 000

LU 00 00 00 00 00 01 000

LV 01 00 00 00 04 05 000

MT 00 00 00 00 01 02 000

NL 04 01 00 01 69 76 000

PL 17 01 00 00 55 74 000

PT 02 00 00 00 54 55 000

RO 05 00 00 00 17 23 000

SE 05 04 02 06 21 38 000

SI 02 00 00 01 05 07 000

SK 03 01 00 01 11 16 000

UK 09 04 03 07 89 112 000

To

tal

EUR

million 146 126 30 128 761 1191

of

total 000 000 000 na 001 000






141



Co

un

try

Sector

Manufact


trade repair


Information

and communication



Admin

and support service

activities

Total ( of

ctry GVA)

(euro million)

BE 2 2 0 3 56 63 000

BG 26 25 1 7 112 171 001

CZ 49 2 0 1 103 155 000

DK 1 1 0 1 13 15 000

DE 17 38 5 34 191 285 000

EE 2 0 0 0 9 10 000

EL 14 24 1 19 83 141 000

IE 0 6 0 4 1 11 013

ES 14 3 0 1 398 417 000

HR 9 3 0 1 18 31 000

IT 39 96 5 71 180 391 002

CY 2 1 0 0 7 10 000

LV 4 2 0 2 19 27 001

LT 6 5 0 3 34 48 001

LU 0 0 0 0 1 1 000

HU 10 9 2 10 161 192 001

MT 1 0 0 0 3 5 000

NL 5 1 0 2 189 197 000

AT 3 2 0 2 23 30 000

PL 72 4 1 1 286 363 000

PT 6 0 0 0 311 317 000

RO 25 2 0 0 104 132 000

SI 4 1 0 2 23 29 001

SK 9 5 1 2 59 76 001

FI 1 1 0 1 18 21 000

SE 4 5 1 7 40 57 001

UK 10 7 3 10 229 260 000

To

tal Persons 348 306 31 225 2761 3672

of

total 000 000 000 000 002 000






142



Co

un

try

Sector

Manufact


repair of

motor vehicles and

motorcycles

Information

and communication



Admin

and support service

activities

Total

(

of ctry

GVA)

AT 06 04 01 03 43 57 000

BE 05 05 01 06 74 91 000

BG 07 08 01 03 26 45 001

CY 01 01 00 00 06 09 001

CZ 41 01 00 01 60 104 001

DE 38 53 13 57 293 455 000

DK 03 01 01 01 23 29 000

EE 01 00 00 00 10 11 001

EL 18 15 02 13 60 108 001

ES 28 03 00 01 342 376 000

FI 03 01 00 02 26 33 000

FR 33 104 30 90 169 427 000

HR 05 02 00 01 13 22 001

HU 08 04 02 06 77 98 001

IE 03 10 02 11 06 32 000

IT 73 132 14 129 211 560 000

LT 06 04 00 02 21 33 001

LU 00 00 00 00 01 02 000

LV 02 01 00 01 12 16 001

MT 01 00 00 00 03 05 001

NL 12 02 01 03 224 242 000

PL 46 03 01 01 186 237 001

PT 05 00 00 00 170 175 001

RO 15 01 00 00 56 72 001

SE 13 12 06 18 73 121 000

SI 04 01 00 02 16 23 001

SK 08 03 01 02 37 52 001

UK 23 10 09 19 292 354 000

To

tal

EUR

million 411 382 88 375 2532 3788

of

total 000 000 000 na 004 000






143



Co

un

try

Sector

Manufac

t


trade repair of

motor vehicles

and motorcy

cles

Informati

on and communi

cation

Professio

nal scientific


Admin and

support service

activities

Total ( of ctry

employment)

(Persons)

AT 7 6 1 6 77 97 000

BE 5 6 1 8 183 203 000

BG 72 76 4 19 384 555 002

CY 4 3 0 1 24 31 001

CZ 141 6 1 3 356 506 001

DE 46 117 13 93 657 925 000

DK 2 2 1 1 43 49 000

EE 5 0 0 0 28 33 001

EL 40 73 3 56 284 455 001

ES 41 10 0 3 1277 1331 001

FI 4 2 0 2 60 69 000

FR 39 196 25 120 321 701 000

HR 24 8 1 4 63 99 001

HU 28 28 5 27 535 623 001

IE 1 17 1 11 4 33 000

IT 119 284 15 223 599 1242 001

LT 18 14 1 8 116 157 001

LU 0 0 0 0 2 3 000

LV 10 5 1 4 65 85 001

MT 2 1 0 1 11 15 001

NL 13 4 1 5 612 634 001

PL 195 11 2 4 970 1182 001

PT 16 1 0 1 986 1004 002

RO 72 6 0 1 342 420 000

SE 12 16 4 19 136 186 000

SI 11 3 1 5 78 97 001

SK 25 14 2 7 199 247 001

UK 26 21 9 29 749 834 000

To

tal

Persons 977 930 92 660 9157 11816

of total 000 000 000 000 006 001






144


Scenario 1


use 159)

Scenario 2


use 499)

(euro million)






Construction 20 64










Education 10 33












Scenario 1 (average


Scenario 2 (average


(Persons)






Construction 43 135









145

Scenario 1


use 159)

Scenario 2


use 499)

(Persons)




Education 26 82





1 2








146



brokers)

Introduction












interactionrdquo






Timing 2 min












and company

Timing 05 min



147













Timing 10 min
















148


Timing 10 min



encounter a problem











Timing 10 min










Timing 5 min




Timing 2 min



149


D Introduction




Timing 2 min




are performing

Timing 05 min





Networking services



Timing 5 min









Timing 10 min




150












Timing 15 min






Timing 5 min





services for SMEs

Timing 5 min




Timing 5 min



151


SMEs envoys)

E Introduction












interactionrdquo








Timing 5 min








Timing 05 min





Any data available



152








Conditions





Timing 10 min
















Timing 10 min






153


services







Timing 10 min






154



Objectives






Scope






National SMEs Envoy


Cloud brokers






Topics discussed




















155

Stakeholder


























SMEs associations












156

Findings



























157


Category Country



EEN Romania

France

National authority

Italy

Romania

Romania

France

Poland

Estonia

Service provider

Sweden

Spain

Spain

Sweden

Ireland

Romania

Romania

Portugal

Romania

Germany

SME Association

EU

Portugal

The Netherlands


Services contracted











Security



158











Duration and costs





































159











































this



computing services



160







Actions taken






















cost






















161
































Validation Webinars


















162



















level



























contact point (35)



128 Zoom



163







and stored129

































164


Free publications

bull one copy







Priced publications




165


In person










Online



EU publications











purposes

doi 102838962608

ISBN 978-92-79-96750-4

[Cata

logue n

um

ber]

DS-0

3-1

8-4

21-E

N-N

study on the economic detriment to small and medium-sized

Documents