Half of Europe’s Midmarket isn’t cloud ready

Across Europe’s industrial midmarket, one truth is becoming impossible to ignore: half of firms still aren’t ready for the cloud.

Forterro’s latest research shows that while 39% of businesses already use Cloud ERP, a further 31% are still on hybrid systems and 28% remain tied to on-premise setups. In other words, for every manufacturer that’s moved to the cloud, there’s another still wrestling with outdated servers, manual processes and limited visibility.

That’s not just a technical gap, it’s a competitive one. 57% of decision-makers now believe that businesses resisting the switch to cloud will struggle to retain market share.

The message is clear: the midmarket knows what needs to change. The question is, what’s holding it back?

Why progress has stalled

The research paints a picture of firms that see the value of cloud, but can’t always unlock it. The three most common barriers were:

• Lack of budget (32%) – Cloud migration often competes with other investment priorities, especially in unpredictable markets.
• Concerns about data security (31%) – For some, moving from an on-premise “if it’s under our roof, it’s safe” mindset takes time.
• Lack of senior management interest (30%) – Change fatigue and risk aversion still slow progress.

These aren’t signs of indifference; they’re signs of midmarket reality. Many firms are managing complex operations on lean teams and older systems that are hard to unpick. But the longer they wait, the more expensive it becomes - not only in efficiency, but in talent, compliance and customer confidence.

The real cost of standing still

When teams spend their time patching legacy systems, they lose time for innovation. Data silos widen, integrations break and employees find workarounds that introduce new risks.

Forterro’s data reveals that over 60% of businesses rated their digital transformation progress as only “adequate” or “poor.” The cloud gap is a big reason why.

Without cloud-based ERP, midmarket manufacturers struggle to access real-time data, automate reporting or experiment with tools like AI and predictive maintenance. Nearly half (49%) of firms say that their lack of cloud adoption means they aren’t seeing the benefits of these emerging technologies.

Put simply: you can’t run a modern factory on yesterday’s infrastructure.

What early movers are doing differently

The most successful midmarket businesses share a common approach, they treat cloud as an operational strategy, not an IT project. They move gradually, starting where the payoff is clear:

• E-invoicing and document management to improve compliance and speed.
• Advanced Planning and Scheduling (APS) to manage resources and demand fluctuations.
• AI-enabled analytics to turn production data into insight.

They also involve their teams early. Change resistance drops when employees see how cloud tools remove daily frustrations, not add new ones.

The results speak for themselves: firms report stronger performance, easier backups, and greater resilience during supply chain disruptions. One in four respondents specifically cited “greater business continuity” as a key benefit of cloud ERP.

2026 is coming fast

With the EU Digital Product Passport (DPP) initiative set to come into force in 2026, cloud readiness will soon be a compliance issue as well as a competitive one. Managing product data across lifecycles will be nearly impossible with disconnected systems.

The midmarket can’t wait for the perfect moment to modernise, it’s about starting with manageable steps, choosing a partner that understands the industrial environment, and building momentum.

As Forterro’s Vice President of Cloud Transformation, Thomas Knorr puts it:

“For any business, cloud is the key to unlocking innovation and the potential of advanced tech. For the industrial midmarket, cloud is moving from nice-to-have to a business fundamental.”

Closing the readiness gap

The midmarket doesn’t need to sprint, but it does need to start. Every process moved to the cloud is one more step toward agility, resilience, and competitive advantage.

The opportunity is there, 52% of respondents said cloud remains an untapped asset in their business. That’s not a failure statistic; it’s a starting line.