Report 18 Feb 2026

Software & Cloud Platforms - InSight Analysis - Germany

This report examines how German enterprises invest in software, cloud platforms, and related capabilities. It illustrates what is driving demand, where budgets are shifting, and what topics will shape priorities in the medium term.

The report links the macroeconomic context with IT market dynamics, then translates the findings into actionable insights for vendors and IT users. It highlights how cloud adoption, subscription economics, and governance requirements are changing buying behavior, especially in regulated environments.

Key drivers and obstacles

German companies invest primarily to improve operations, enable innovation, and raise workforce productivity, with hybrid work now being a structural requirement. At the same time, regulatory pressure, stronger risk mitigation, and growing sovereignty expectations increasingly influence procurement and architecture decisions in the software & cloud platforms market in Germany.

Obstacles include postponed nonessential projects, higher governance workload from security and regulations, and the practical complexity of migrating mission-critical estates, especially where data residency, cost control, and vendor lock-in concerns remain.

Market themes and recommendations

The report distinguishes between hosted and modernized deployments on cloud infrastructure and native SaaS adoption, noting that SaaS grows the fastest in domains such as CRM and HCM, while core ERP and supply chain remain cautious in large enterprises. It also explains why AI, including generative AI and AI agents, and green software engineering are rising priorities, alongside NIS2 and DORA-driven cyber resilience programs.

 

 

Recommended advisory:

PAC Leadership Session – Cybersecurity Compliance

PAC Leadership Session – AI in Business Transformation