Blog

by Resourcing People

Over the course of the pandemic, the Cloud-Native market (along with many other software services) witnessed a massive boom - and especially in Germany. Where before the cloud market was experiencing steady growth, the promises of automated delivery, workload independence, standards-based services, business flexibility, and zero downtime encouraged business owners to take risks and jump on the rising trend. 

In fact, a newly released 2021 survey produced by ISG Pulse Check and Euro Cloud-Native Deutschland found that 22% of companies use Cloud-Native applications, 23% had concrete launch plans, and 27% were planning to “get started” in the next 12 months. 

From one standpoint, the Cloud-Native market is hot for investment and primed for growth, however, multiple experts have reported on one huge red flag: the lack of skilled labour currently available in the German industry, with over 2,559 cloud-related jobs available in Berlin alone (Source: LinkedIn). Solving the shortage of experienced, qualified candidates is a key contributor to securing the future of Cloud-Native growth, with staff issues slowing business potential.

On the other hand, if you are any of the following:

Cloud Infrastructure Consultant
Cloud Data Platform Engineer
Cloud Security Architect or
Cloud Programme Delivery Leader

You’ll likely be facing exciting career prospects with lots of potential for expanding your experience and working with international companies. Yet, for employers who are desperately trying to fill gaps, the slim number of available applicants is far from good news. Any industry struggling for labour is bound to grind to a halt, and the future of the Cloud-Native Market is not looking good.

 

The Consequences of Labour Shortages

For a cloud engineer heading into an interview, know this: your bargaining power is incredibly high. This might seem like an exciting prospective, but it isn’t for the future of Cloud-Native overall. Why?

1. Labour Shortages Cause Inflation

Over time, higher wage offerings feed inflation - pushing cost prices up for Cloud-Native services, making the market less attractive for investors, customers, and other stakeholders alike. 

 

2. Labour Solutions Are High Cost

Additionally, when any technology market is facing a labour shortage, employers are forced to hire unsuitable candidates, who are either prone to make costly mistakes or need extensive, lengthy training right from onboarding. 

 

3. Unsuitable Labour Reduces Market Quality

68% of employers facing labour shortages are forced to either:

A. Drop clients (which reduces competitiveness and sales revenue) or
B. Increase overtime for current employees (damaging average productivity levels and risking low employee wellbeing)

 

4. Labour Shortage Can Cause Business Closure

Some Cloud-Native service providers who are unable to recruit will find they have to adapt their business or expect forced closure. 

 

The Solution to Labour Shortages in the Cloud-Native Market

In order for the Cloud-Native market to survive long-run, labour availability has to rapidly meet demand. Businesses would be well advised to offer graduate schemes, sponsorships, subsidiaries, and cost-covered training courses to interested parties. Similarly, visiting schools and encouraging tech students at college/sixth-form level to go into Cloud-Native related courses of study would help boost the market for years to come. 

 

Hiring in a Competitive Labour Industry

Hiring managers looking to fill skill gaps within technology workplaces can strongly expect a high level of competition, but should by no means negotiate on candidate quality. Stronger screening processes, improving employer branding, and maximizing benefits are solid methods to drawing attention from current Cloud-Native engineers. Businesses forecasting growth should anticipate a lengthy search and start recruiting earlier than standard average onboarding times. 
 

Further Issues Facing the Cloud-Native Market in Germany

With the labour shortage acting as an “impending doom” for many Cloud-Native reliant businesses, it can be easy to forget the other problems facing the market. While less prominent (and less reported in technology media sources), the industry needs to make some massive changes in order to sustain survivability, let alone growth. 

Issue 1: Poorly Advanced Infrastructure

One issue holding back the continued progression of Cloud-Native offerings is current existing infrastructure in the target market’s offices - hint: it’s outdated Windows computers, and struggling software systems.  

 

Solution: Investing in Infrastructure

Cloud-Native companies should be proactive, rather than reactive by investing in education for business owners about upgrading their office technology access - for security as well as speed. Additionally, Cloud-Native companies with large spending power can distribute resources to help improve general infrastructure in Governmental and Charitable organizations - allowing more people to have access to Cloud-Native applications. 

Issue 2: Lack of Publicity

Since its emergence in the market in 2015, companies such as Linux Foundation have been reporting on the benefits. However, while “cloud services” is rapidly becoming a household term, many people (and business owners) are unaware of the benefits of Cloud-Native.

Solution: Improved Marketing

As any marketer will tell you, the secret to selling is problem-solving. One current issue facing our digital landscape is an arising concern around cyber security. Continued enforcement and new updates in Data Protection rules and regulations will require business owners to take action and protect customers confidential information. Cloud-Native’s promise for high levels of security is the main selling point for SMEs in adopting this new and emerging technology. 

Issue 3: Low Education

Alongside low publicity, comes low education. Even if people have heard the term, Cloud-Native services can be confusing to understand for many business owners. 

Solution: Redesigned Content Strategy

While tech articles heavily cover the benefits of Cloud-Native applications for organizations, content strategies should be refined to write for the audience that relies on new information: customers in the “gathering information” stage of the buyers journey. If we want to eradicate distrust and uncertainty, experts need to rework communication tactics to build a better base understanding for our target.  
 

Forecasts for the Cloud-Native Industry in Germany

Despite current market instability, the future of the Cloud-Native industry in Germany is looking bright. The IT market in Germany is expected to grow by $16.21 billion from 2021 to 2025 alone, with a 3% CAGR each forecast period. Thankfully, tech businesses have long shown resilience to change and industry hits (such as COVID-19) - and it seems that the Cloud-Native market can still be an attractive choice for many employees. Free open-source access to training courses provided by Linux has dismantled a huge barrier to entry, and the only commitments required to learn new Cloud-Native skills is time, enthusiasm, and impressive cognitive ability. 
 

If you are someone who likes a challenge, or a trained Cloud-Native specialist looking for a move - Resourcing People can help. We can connect you with new opportunities in forward-thinking companies ready to adopt new cloud infrastructure.

Similarly, if you’re a German business looking to fill an IT cloud computing skill gap - get in touch with us today. Our wide-ranging network can help you attract qualified talent and compete against the thousands of businesses looking for Cloud-Native engineers. We are driven by tech, powered by the people.