Overall, the US has been ahead of the EU in terms of cloud computing. For example, a 2014 report found that all but three of the 20 top enterprise cloud computing services in the world were US-based; another analysis of the worldwide IaaS market found that all but two of the 15 vendors analysed were US companies. Economies of scale that derive from serving large numbers of organisations mean that a competitive advantage accrues to early entrants into the marketplace. European cloud providers tend to operate in niche markets, although a few European companies such as SAP, a prominent German software firm specialising in business and Enterprise Resource Planning (ERP) software, compete with the largest players.
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