Webinar Recap: Future-Proof Web Hosting: Industry Trends & Actionable Strategies.

In our recent webinar event Future-Proof Web Hosting: Industry Trends & Actionable Strategies we dove deeper into the results of our Web Hosting Survey Report. Pawel Piwosz (Developer Advocate), Miguelangel Fernandez (Lead Product Manager), Samu Saarniluoto (Partner Manager), and Ville Vesilehto (Head of AI and Data), sat down together to share their takes on the trends shaping the web hosting industry in 2025 and beyond. 

The conversation highlighted a shift toward managed services, the growing importance of multi-cloud strategies, and the rising influence of security and sustainability.

Read the report →

The balancing act

One of the most significant findings is that while the “big three” global cloud providers dominate the market, European cloud providers are seeing steady growth. This trend is driven by a desire for better-managed services that offer a balance between cost, performance, and operational overhead. 

Managed services, such as Managed Kubernetes and Databases, are becoming more popular because they reduce the manual effort required for maintenance, backups, and security. Discussion also highlighted cost as a major concern for web hosting businesses, but it’s not the only one! Performance and uptime are equally critical, creating a challenging balancing act for providers. 

“People are always looking for great performance, wanting to offer their customers as great hosting as possible. They want the websites to load as fast as possible, they want that to be a differentiator for themselves. But also, they don’t want the cost to get out of hand, so yes, it’s a balancing act.” – Samu Saarniluoto

The rise of multi-cloud and data sovereignty

As seen from the report there is a strong trend toward multi-cloud strategies, with 50% of respondents using a combination of multiple cloud providers or a mix of cloud and on-premise solutions.

This trend is closely linked to the increasing adoption of containerization, with 58% of respondents stating it will influence their strategy for the future. Fernandez explained that this is because containers offer “that portability, that repeatability, that ability for you to be able to reproduce the same environment consistently across any, any infrastructure.”

Further driving this trend toward Europe cloud adoption is new regulation, specifically the upcoming EU Data Act which compels data operators to ensure third-party governments cannot unlawfully access customer data. This puts European companies in a difficult position when using US-based cloud providers, which are subject to the US Cloud Act, allowing the US government to access data wherever it resides.

As a result, European web hosting companies must now consider data sovereignty as a key factor alongside cost and performance. According to Fernandez, “It used to be based only on performance and cost, perhaps. Now, it’s also a compliance decision.”

Security, sustainability, and the future of AI

Security and compliance are more important than ever. An overwhelming percentage of survey respondents said compliance is very or extremely important, and with half planning to significantly increase their security investments. This could be seen as a direct response to a massive 358% increase in DDoS attacks. UpCloud’s panelists emphasized the need for providers to offer robust security measures, such as ISO 27001 certification and risk mitigation, to protect their customers.

The report also highlighted a growing awareness of sustainability, with 38% of respondents influenced by green energy initiatives. This is a significant increase from previous years and a positive sign for the industry with many European cloud providers, including UpCloud, using 100% renewable energy in data centers, making it a key differentiator.

Finally, the discussion turned to artificial intelligence (AI). While AI is still in its early stages for many in the industry, it’s already influencing decisions. Ville Vesilehto, UpCloud’s Head of AI and Data, explained that AI can be used for everything from internal productivity to enhancing customer services and content classification. However, he stressed the importance of keeping AI workloads and data close to home to ensure security and compliance, especially with new regulations like the EU AI Act on the horizon.

It’s clear to see that the web hosting landscape is dynamic. Success hinges on a thoughtful approach to managed services, strategic adoption of multi-cloud solutions, and a strong commitment to security, sustainability, and compliance. 

These factors, more than ever, are becoming central to business strategy and customer trust.

Read the report today! Or talk to our team on how your web-hosting business can get ahead with European Cloud.