The CEO of SAP, Europe's most valuable company, believes it is pointless for Europe to build its own data centers to compete with the large American cloud
“next level” of what? Having your data mined and the plug pulled by a geopolitical rival?
It is much cheaper in the long run to host within the EU even if the economics of scale only go 20% instead of 25%. Although this ignores, how a lot of companies are looking to move back out of “the cloud” because their fees there are absurdly high.
There is no magical advantage to going with the hyperscalers and there is also no “winner takes it all”. As we saw with multiple Microsoft outages in the past year, being locked into one vendor makes you incredibly vulnerable.
Whatever is the next step, some things need scale.
Google has their own AI chip. I think there are also specialized storage chips. Gates has a company for new nuclear reactors.
But that’s the next step. First somebody has to catch up and establish cloud services in an environment that is as skeptical as the comments in this thread, with less money to burn and a smaller pool of developers.
The magical advantage of hyperscaler is not price but that new business ideas can be tried much faster with no need for hardware investments. They can keep running when a moment of social media attention brings a huge amount of new customers. An outage doesn’t matter if everybody else is also down.
Of course the hyperscaler knows which apps are cash cows, as does the Android team, as do the credit card companies.
Europe is not prepared for that future. As the CEO says, we can do what is left, supply chain optimizations, unless there is a fundamental change.
“next level” of what? Having your data mined and the plug pulled by a geopolitical rival?
It is much cheaper in the long run to host within the EU even if the economics of scale only go 20% instead of 25%. Although this ignores, how a lot of companies are looking to move back out of “the cloud” because their fees there are absurdly high.
There is no magical advantage to going with the hyperscalers and there is also no “winner takes it all”. As we saw with multiple Microsoft outages in the past year, being locked into one vendor makes you incredibly vulnerable.
Whatever is the next step, some things need scale. Google has their own AI chip. I think there are also specialized storage chips. Gates has a company for new nuclear reactors.
But that’s the next step. First somebody has to catch up and establish cloud services in an environment that is as skeptical as the comments in this thread, with less money to burn and a smaller pool of developers.
The magical advantage of hyperscaler is not price but that new business ideas can be tried much faster with no need for hardware investments. They can keep running when a moment of social media attention brings a huge amount of new customers. An outage doesn’t matter if everybody else is also down.
Of course the hyperscaler knows which apps are cash cows, as does the Android team, as do the credit card companies. Europe is not prepared for that future. As the CEO says, we can do what is left, supply chain optimizations, unless there is a fundamental change.