Category Archives: Europe

acquisition, Datacentre, Equinix, Europe, News & Analysis, Telecity

Equinix cleared to buy Telecity but must sell London, Amsterdam and Frankfurt facilities

datacentreThe European Commission has approved the proposed acquisition of data centre operator Telecity by rival Equinix. However, to assuage anti competition concerns, Equinix had to agree to sell off a number of data centres in Amsterdam, London and Frankfurt.

BCN reported in May that Equinix and TelecityGroup agreed to the $2.35bn takeover in which US-based Equinx would buy all issued Telecity shares. The acquisition gives Equinix a stronger presence in the UK and would extend its footprint into new locations with identified cloud and interconnection needs including Dublin, Helsinki, Istanbul, Milan, Stockholm and Warsaw. Equinix provides colocation services in 33 metropolitan areas worldwide. Telecity operates data centres in 12 metropolitan areas in the European Economic Area (EEA) and Turkey.

However, the activities of Equinix and Telecity overlap in the four EEA metro areas of Amsterdam, Frankfurt, London and Paris.

In a statement issued by the EC Commissioner in charge of competition policy Margrethe Vestager said the growing economic importance of cloud services makes it crucial to maintain competition between data centres. However the deal does not necessarily stifle competition, Vestager said. “The Commission is satisfied that the commitments offered by Equinix will ensure that companies continue to have a choice for hosting their data at competitive prices,” said Vestager.

The Commission has concerns that the concentration of data centres controlled by one vendor could lead to higher prices of colocation services in the Amsterdam, London and Frankfurt metropolitan areas. The remaining competitors in these areas are unlikely to be able to match the competitive pressure currently exercised by Telecity, it had concluded, and new players would have faced significant difficulties to enter the market due to the high investment and deployment times needed.

To address the Commission’s concerns, Equinix submitted commitments, offering to divest a number of data centres in Amsterdam, London and Frankfurt.

Europe, News & Analysis, Policy and Regulation, Safe Harbour

EC calls for Safer Harbour agreement – issues new guidance

The European Commission has issued new guidance to companies on transatlantic data transfers and has called for a rapid creation of a new framework.

In October BCN reported how a ruling on the case of Schrems vs Data Protection Commissioner) rendered the US-EU Safe Harbour Agreement invalid as it was revealed that EU citizen’s data was being accessed by the US National Security Agency (NSA).

The Commission said it has stepped up talks with US authorities on a new framework and issued guidance to help companies comply with the ruling and work with alternative transfer tools.

“We need an agreement with our US partners in the next three months,” said EV VP Andrus Ansip, who is responsible for the Digital Single Market. “The Commission has been asked to take swift action: this is what we are doing. Today we provide clear guidelines and we commit to a clear timeframe to conclude current negotiations.”

“Citizens need robust safeguards of their fundamental rights and businesses need clarity in the transition period,” said Commissioner Vera Jourová, adding that 4,000 companies currently rely on the transatlantic data pact.

The EC guidelines advised on how data transfers can continue to be pursued by businesses in the interim period. It covers issues such as contractual solutions and contractual rules, binding Corporate Rules for intra-group transfers, derogations and the conclusion or performance of a contract. The guideline document, which is 7,981 words long, runs to 16 pages of challenging reading and is open to interpretation.

“As confirmed by the Article 29 Working Party, alternative tools authorising data flows can

still be used by companies for lawful data transfers to third countries like the United States,” concludes the guidance document. “However, the Commission considers that a renewed and sound framework for transfers of personal data to the United States remains a key priority.”

Enforcement against non-compliance with the Safe Harbour court ruling come into place at the end of January 2016.

Datacentre, Europe, Hosting, News & Analysis, OVH, Public Cloud

OVH promises undeniable public cloud service in the UK

cloud exchangeEuropean hosting giant OVH has launched a public cloud service in the UK with customisable security as protection against cyber attacks becomes a major selling point alongside open systems mobility.

The service is aimed at developers, system administrators and DevOps, and promises triple data replication, hosting in European data centres and a ‘five nines’ service level agreement (SLA). The OVH Public Cloud is based on OpenStack which, says OVH, will make integrating applications, migrating to the Cloud and moving between cloud providers easier for system builders who want to keep their options open. For this reason, it will also monthly and hourly payment mechanisms so clients aren’t forced to over commit resources. Those that can make monthly payments will get a 50% discount however.

The two main offerings will be Public Cloud Instances and Public Cloud Storage.

Public Cloud Instances provides a choice between two types of virtual machines. RAM instances (starting at £25 a month) are designed for memory-hungry apps such as software as a service (SaaS), multimedia creation and managing large databases. Cloud CPU instances, at £21/month, are designed for managing processing-heavy tasks such as data analytics, computer simulations and managing peak server loads.

The Public Cloud Storage service offers high-availability object storage, to save software developers from the complications involved in setting up network file system or file transfer protocols. Classic and high-speed storage options are also available.

All the Public Cloud packages have automatic, unlimited distributed denial of service (DDoS) protection against all types and lengths of attacks, with detection and auto-mitigation and a back up service of triple data replication. All services will have access to OVH’s global fibre optic network OVH Net.

“We want UK businesses to adopt the cloud with confidence,” said Hiren Parekh, director of sales and marketing at OVH UK. “Our aim is to give users the freedom and flexibility they need as their businesses evolve.”

CRM, Europe, Funding, investment, News & Analysis, Salesforce, startups

Salesforce offers $100m VC opportunity to European cloud startups

Salesforce WearSalesforce Ventures has allocated $100 million to invest in European startups as the investment arm of the cloud giant aims to capitalise on a potential $33.3 billion market. Any European cloud start up that impresses the venture capitalists could typically expect backing of between $1 million and $5 million, according to the fund’s development head.

As the investment arm of cloud-based CRM giant Salesforce it has already invested £500 million in 150 cloud and enterprise startups since 2009. However the majority of these have been US based and only 17 European cloud start up firms have been funded. However, researcher IDC predicts that the European cloud sector will grow 12 as fast as any other sector of the IT industry. As Europe catches up with the US, by 2019 its cloud market could be worth a collective $33.3 billion, it said.

As the global shift to the cloud generates demand for exciting new social, mobile and data science technologies it is creating an opportunity that should not be missed, said Salesforce EVP of corporate development John Somorjai. The European investment business will link back to Salesforce Ventures’ operations in the US run by Somorjai. London based Alex Kayyal will head the Salesforce Ventures’ efforts in Europe.

“There is so much incredible innovation happening in Europe today and we want to empower the next generation of enterprise cloud startups in the region,” said Somorjai, “Our $100 million commitment strengthens our mission to help startups grow and give back to their communities.”

However, he admitted that the competition has already started with five investments already earmarked to take a chunk of the budget.

European cloud start ups that have previously won funding from Salesforce Ventures include CartoDB, CloudSense, Cloud9 IDE, NewVoiceMedia, Qubit, Universal Avenue and YOUR SL. It’s not just about the money, according to Ruben Daniels, co-founder of Cloud9 IDE. “It’s the network and introductions, mentorship and framework that help,” said Daniels.

Salesforce Ventures’ global expertise was as important as its funding, according to CartoDB founder Javier de la Torre. “It helps us more effectively bring our data visualization tools to individual and business users around the world,” said de la Torre.

Data, Europe, Facebook, News & Analysis, Policy and Regulation, Safe Harbour

Cloud industry shaken by European Safe Harbour ruling

Europe US court of justiceThe Court of Justice of the European Union has ruled the Safe Harbour agreement between Europe and the US, which provides blanket permission for data transfer between the two, is invalid.

Companies looking to move data from Europe to the US will now need to negotiate specific rules of engagement with each country, which is likely to have a significant impact on all businesses, but especially those heavily reliant on the cloud.

The ruling came about after Austrian privacy campaigner Max Schrems asked to find out what data Facebook was passing on to US intelligence agencies in the wake of the Snowden revelations. When his request was declined on the grounds that the safe harbour agreement guaranteed his protection he contested the decision and it was referred to the Court of Justice.

This decision had been anticipated, and on top of any legal contingencies already made large players such as Facebook, Google and Amazon are offered some protection by the fact that they have datacentres within Europe. However the legal and logistical strain will be felt by all, especially smaller companies that rely on US-based cloud players.

“The ability to transfer data easily and securely between Europe and the US is critical for businesses in our modern data-driven digital economy,” said Matthew Fell, CBI Director for Competitive Markets. “Businesses will want to see clarity on the immediate implications of the ECJ’s decision, together with fast action from the Commission to agree a new framework. Getting this right will be important to the future of Europe’s digital agenda, as well as doing business with our largest trading partner.”

“The ruling invalidating Safe Harbour is seismic,” said Andy Hardy, EMEA MD at Code42, which recently secured $85 million in Series B funding. “This decision will affect big businesses as well as small ones. But it need not be the end of business as we know it, in terms of data handling. What businesses need to do now is safeguard data. They need to find solutions that keep their, and their customer’s, data private – even when backed up into public cloud.”

“Symantec respects the decision of the EU Court of Justice,” said Ilias Chantzos, Senior Director of Government Affairs EMEA at Symantec. “However, we encourage further discussion in order to create a strengthened agreement with the safeguards expected by the EU Court of Justice. We believe that the recent ruling will create considerable disruption and uncertainty for those companies that have relied solely on Safe Harbour as a means of transferring data to the United States.”

“The issues are highly complex, and there are real tensions between the need for international trade, and ensuring European citizen data is treated safely and in accordance with data protection law,” said Nicky Stewart, commercial director of Skyscape Cloud Services. “We would urge potential cloud consumers not to use this ruling as a reason not to adopt cloud. There are very many European cloud providers which operate solely within the bounds of the European Union, or even within a single jurisdiction within Europe, therefore the complex challenges of the Safe Harbor agreement simply don’t apply.”

These were just some of the views offered to BCN as soon as the ruling was announced and the public hand-wringing is likely to continue for some time. From a business cloud perspective one man’s problem is another’s opportunity and companies will be queuing up to offer localised cloud services, encryption solutions, etc. In announcing a couple of new European datacentres today Netsuite was already making reference to the ruling. This seems like a positive step for privacy but only time will tell what it means for the cloud industry.

Cloud Services, Enterprise IT, Europe, HP, News & Analysis

HP launches cloud service catalogue for European Union

HPHP has launched a new ‘one stop’ cloud shop for Europe. The announcement was made by HP Helion VP Xavier Poisson to a gathering of HP’s Cloud28+ partner community in Brussels.

A new catalogue – also called Cloud28+ – will be a centralised cloud services portal for all the systems created by the 110 official members of the community that create or use cloud services in Europe.

HP claims it has made it easier for enterprises to identify and implement the cloud services they need, while complying with local regulations. In addition, the EuroCloud Star Audit (ECSA) program will, it claims, save members from the expense of performing their own individual audits. The rationale is to create a high level of transparency and guidance for customers and service providers, Poisson told delegates.

Lack of knowledge, security concerns and legal uncertainty are the biggest barriers to cloud adoption in Europe, according to a Eurostat survey, quoted by HP. The study, conducted by the EU’s statistical office, asked staff at 151,000 EU companies about their aspirations for using cloud services and their reservations over purchasing processes.

In response, HP has designed an easy and transparent system for matching cloud services to both functional and non-functional criteria, such as security or data privacy regulations, according to Poisson. The system is also designed to provide a need to know briefing on legal and compliance variations across Europe. The Cloud28+ catalogue is to be hosted and secured in Europe.

It’s time for a common framework of quality, costs and security, said Poisson. “This is already creating new opportunities for cloud service providers, greater choice for enterprises, and better access for developers and will play an integral role accelerating organizations’ transformation to hybrid infrastructure.”

cloud adoption, Europe, News & Analysis, Research, UK

Mounting frustration with cloud technology is stifling adoption – research

An influential group of senior business executives is being disillusioned by experiences with cloud hosted applications, according to new research. The proportions, though relatively low, are growing as cloud disenchantment threatens to set in.

The revelations come from research by cloud service provider Stratogen. Its main finding was that the expense, the lack of both applications and support and the downtime involved are all disappointing the company decision makers who backed cloud computing in their companies.

If news of the disenchantment spreads among the business community, the bad feedback could nip cloud growth in the bud, according to Karl Robinson, chief commercial officer at StratoGen. “The research highlights a major problem for cloud technology,” said Robinson, “It is clear UK businesses today have a distinct lack of confidence in the cloud’s ability to deliver the benefits it is capable of.”

The study, conducted independently by Arlington Research, involved a survey of 1000 senior business executives. Around three quarters (74 per cent) of the survey group reported day to day frustrations with using cloud hosted applications.

The main complaint for 20 per cent of the study group was the high cost of their cloud applications. Another minority (17 per cent) complained about the lack of available cloud applications. The lack of IT support was mentioned by 16 per cent of the survey and one tenth of those surveyed were not happy with the amount of downtime.

As a result, a minority of the survey group (17 per cent of the business leaders quizzed) are concerned that their cloud systems are preventing their company from growing. Around the same proportion (14 per cent) are worried that downtime is affecting employee productivity and creating a loss of company earnings.

Though these are complaints from a small minority, the survey figures seem to indicate that their influence is disproportionally high, since 33 per cent of the business leaders say they are now ready to remove their business off the cloud completely. A further 31 per cent are also considering a cloud exodus.

“The perceived high cost of cloud hosting is a direct result of the unexpected metered costs businesses are all too often hit with,” said Robinson, “migration challenges and the time invested in integrating cloud technology with legacy applications can further increase the cost of cloud computing.”

cloud transition, Enterprise IT, Europe, News & Analysis, study, UK

Cloud strategy still tentative for many UK corporations – study

IT managers and CIOs should not feel they’ve missed the boat as the majority of enterprises have only just started their cloud journey, according to a new enterprise study.

If a study of 200 senior IT managers in large public and private sector organisations is an accurate reflection of the nation’s IT, only 3 per cent of enterprises have arrived at their final cloud destination. Not far from half (41 per cent) of IT managers surveyed were categorised as ‘still taking their first tentative steps towards cloud’ by the survey conductor Vanson Bourne. The study, run on behalf of UK cloud services provider Redcentric, also identified another significantly large group (32 per cent) that said they’re only half way to their cloud destination.

The study also identified the five types of personality trait that emerge among IT managers and CIOs as the pressure to adopt cloud technology builds. Five genres of manager were identified – in ascending order of caution – as Experimenters, Evolutionaries, Accelerators, Progressives and Cautionaries.

The relative proportions of these self-identified personality types did not always match the spread of cloud installations, however. Four per cent of cloud managers identified themselves as ‘risk-taking experimenters’ who were ‘willing to accept the ups and downs of moving to the cloud and not entirely sure the direction they will take’. This roughly equated to the proportion of managers (3%) who were satisfied they had completed their cloud journey.

Equal numbers of IT mangers and CIOs saw themselves as Accelerators (16%) who want to move to the cloud as fast as possible and Progressives (16%) who want to use cloud to make bold business changes. Taken together, these categories indicate that 32 per cent of the study group are frustrated in their ambitions for the cloud. This matched exactly the number (32 per cent) of companies that have yet to reach the half way point of their cloud migration.

The majority of the study group (50 per cent) identified themselves as Evolutionary and stated that they take a steady approach where cloud is a natural progression for the business.

There is a significant group of Cautionaries (15 per cent) who are most cynical about cloud overall. However, only 3 per cent of the group have not embarked on cloud projects, which indicates that 12 per cent of IT managers and CIOs have embarked on a cloud migration without having any faith in the technology.

“We wanted to help UK organisations understand where they are and where their journey is likely to take them next,” said Redcentric sales director Andy Mills, “The findings show there is huge untapped potential still to explore.”

Adam Marshall, BCC, British Chambers of Commerce, Enterprise IT, Europe, News & Analysis

UK SME cloud adoption swells on flexible working growth

UK SMEs are turning to the cloud to support their flexible working needs

UK SMEs are turning to the cloud to support their flexible working needs

UK SMEs are upping their use of cloud services in a bid to cater to more flexible working practices, recently released research from the BT Business and the British Chambers of Commerce (BCC) suggests.

According to a survey of over 300 decision makers working in small and medium-sized business in the UK, nine out of ten (91 per cent) of companies have at least one member of staff working from home, and a fifth of businesses (19 per cent) said more than half of their workforce working away from their main office location.

The BCC said the results are directly linked to growing cloud service use. About 69 per cent of businesses use cloud-based applications, and more than half (53 per cent) saying that they are critical to effective remote working.

As one might have guessed, internet connectivity was also rated quite highly on the list of core elements required to effectively facilitate flexible working (63 per cent), and smartphones are seen as the technology that has made the biggest difference to businesses in the last 12 months (according to 68 per cent of respondents).

“It is vital to ensure that UK businesses have access to world-class digital infrastructure if they are to maintain their competitiveness in a global marketplace,” said Adam Marshall, executive director of policy and external affairs, BCC.

“Cloud and mobile technologies are becoming increasingly important as firms expand into new markets and explore new ways of working – especially overseas. It is encouraging to see that so many British firms are adapting their working practices to take advantage of these developments,” he added.

Legislation that came into effect last summer means employees in the UK with over 26 weeks service are eligible to request flexible working hours, allowing more employees to set up home offices and work remotely. Research from the Office for National Statistics found that in the first three months of 2014, 4.2 million staff across the country worked from home, equating to 13.9 per cent of the workforce, a figure that is only set to grow since the law’s passing.

Cisco, Europe, Internet of Things, IoT, News & Analysis, Robert Vassoyan

Cisco bolsters IoT partnerships with French startups

Cisco is beefing up its IoT strategy and targeting French startups to do it

Cisco is beefing up its IoT strategy and targeting French startups to do it

Cisco is making good on a promise made in February to team up with the French government on a $100m initiative to help fund local Internet of Things (IoT) startups, partner with local businesses and cultivate IoT-specific skills.

Among the company’s initiatives include a competition to develop enterprise-focused IoT services and apps that foster social and environmental innovation, and a partnership with the NUMA Sprint accelerator programme which will see the company support up to 22 IoT startups incubated in the programme.

Cisco also said it’s partnering with Actility, a provider of IoT and machine-to-machine services for energy management, to improve connectivity between low-power sensors using LoRaWAN, and investing in Parisian startup 6Wind, a software firm developing software-defined networking and network function virtualisation solutions.

“Innovation is in the DNA of Cisco. France has almost limitless potential and our mission is to support innovation across our entire ecosystem,” Robert Vassoyan, chief executive of Cisco France. “These first initiatives demonstrate our active cooperation with innovative companies to aid them in their development, and show that we are committed to continuing our efforts in this area to drive growth, competitivity and employment of our country.”

Cisco has stepped up its IoT strategy as of late, most recently buying connected things tracker and network security specialist OpenDNS for $635m.