Microsoft has announced plans to invest $2bn on building the infrastructure across Europe to support nationally-based data centres supporting national cloud services. It means that commercial cloud services can be run from the UK and other major European countries, allaying some data sovereignty and Safe Harbour fears.
From late 2016 Microsoft Azure and Office 365 will be generally available from local UK-based data centres, CEO Satya Nadella said at an event in London. A locally supported service for Microsoft Dynamics CRM Online will follow in 2017. Microsoft will also offer Azure ExpressRoute to provide customers with the option of a private connection to the cloud.
The new local Microsoft cloud regions are designed to ally fears over data residency for customers in the UK. Once the infrastructure is in place Microsoft will be able to replicate data within the UK for backup and recovery.
Services delivered from these UK data centres will not only improve sovereignty and cut latency but create new opportunities for Microsoft UK’s 25,000 channel partners, said Michel Van der Bel, the general manager of Microsoft UK. The UK is a global leader in using cloud-based systems with an adoption rate of 84% claimed Van der Bel.
“Our commitment to run our cloud services from local data centres will help meet demand from those who want their cloud systems based in the UK,” said Van der Bel. Customers and partners who can innovate will grow with the power of the cloud, he said, and now they can meet the strict regulations of the banking, financial services and public sectors.
Microsoft also announced completion of the latest phase of data centre facility expansion in Ireland and the Netherlands, which serve as cloud computing hubs for European customers.
One channel partner said the local data centres for local people plan is an overdue step in the right direction.
“This is great news for the UK and the technology sector as a whole,” said Avanade UK’s General Manager Julian Tomison, “questions around data residency aren’t new, but at least now we have a new solution.”
It’s good for the channel and the cloud industry said Tomison. “The investment validates the sector and will have a positive impact on the cloud industry as collectively customers will feel they have more control. Having data centres in the UK helps us stay competitive when prices and services are becoming uniform. I predict more investments like this as legislation like last month’s Safe Harbour ruling shape the legal situation here.”