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The public cloud giants pocketed record revenues in 2020 as global lockdowns sent cloud consumption into overdrive. While Amazon, Microsoft and Google cashed in billions, the lower tiers of Europe’s IT service providers struggled to capitalise on an unprecedented opportunity to halt the hyperscaler march to cloud dominance, new research has revealed.
With around 90% of companies now ‘in the cloud’, the industry has become a driving force behind global technology infrastructure and service delivery. While this has offered major benefits to the entire European economy, the market dominance of US-based hyperscale cloud providers has raised concerns among EU leaders.
Between them, AWS, Microsoft Azure and Google Cloud account for over 53% of worldwide cloud infrastructure spend, according to Canalys. European cloud hosting providers, in contrast, lag significantly behind, even in their domestic markets. As Synergy Research Groups puts it, “Behind the top two the battle is being played out between Google, IBM, other smaller global cloud providers and some major local telcos and IT service providers.”
With the cloud industry establishing itself as a key movement in the provision of IT infrastructure around the world, the emergence of US dominant global hyperscale providers has placed many European government organisations in an increasingly difficult position.
The issue is one of independence, or more precisely, the enormous reliance that organisations based in Europe have on the market-leading, largely US-based cloud providers, who must enforce US-based regulations and practices that aren’t suitable for European citizens and company data.
Digital Realty has announced the acquisition of Amsterdam-based colocation and interconnection provider Interxion in an all-stock deal worth $8.4bn.
The acquisition surpasses Digital Realty’s $7.6 billion purchase of DuPont Fabros Technology as the largest acquisition in the history of the data centre industry and puts an end to recent speculation over the future of Interxion, rumoured to be mulling takeover bids from several investment firms.