IBM and Microsoft Develop Cloud Data Centers to Tap New European Markets
Recently, both IBM and Microsoft developed cloud data centers in Europe. Both companies added a European country to the list of markets in which users can store their data.
Microsoft formed a partnership with T-Systems, the subsidiary of Deutsche Telekom. This partnership allowed Microsoft to develop a cloud region in Germany. This cloud region is served from data centers in Frankfurt and Magdeburg. Microsoft granted T-Systems complete control of customers’ data stored in the cloud region in order to prevent legal issues with law enforcement officials in the United States over having access to customer data that is stored overseas.
IBM developed a data center in the country of Norway. This data center was IBM’s 48th worldwide and its first in the Nordics. In 2013, IBM acquired SoftLayer and set aside $1.2 billion for the development of a global cloud data center. Since 2014, IBM has expanded its physical infrastructure aggressively to support the growing demand for cloud services.
Microsoft and IBM aren’t the leaders in the cloud services market when it comes to revenue. However, both companies have more data centers than any other competitors, including Amazon Web Services.
Recently, the competition within the cloud services market has become incredibly tense. This is especially true when it comes to the enterprise cloud services market. IBM and Microsoft are competing against AWS, the leader in the market. Both companies are also competing against Google, which made the decision to invest more resources into finding enterprise cloud customers recently. Oracle, which recently announced a push to become more dominant in the enterprise cloud services market, is another competitor for IBM and Microsoft. In this announcement, Oracle also launched bare-metal cloud services, which is what previously set IBM apart from Google, Microsoft, Amazon, and other major technology companies.
IBM established its new cloud data center in Fetsund, which is just outside of Oslo. The technology company stated that it would continue to develop cloud data centers in the Nordic region and improve its ability to store data belonging to the local people there. Data sovereignty is also very relevant to Microsoft’s recent announcement, as Germany has some of the most strict rules for data sovereignty in the world.