A brand new report has raised questions concerning the European Union’s (EU) insistence that cloud service suppliers ought to have their head workplace and international HQ registered within the EU, and that they need to retailer and course of knowledge in one of many 27 member states.

The Cloud Service Scheme (EUCS) by the European Union Company for Cybersecurity (ENISA) would, in idea, eradicate many well-liked international firms’ operations throughout the EU, together with Amazon, Google, and Microsoft.

In addition to casual concern, the European Centre for Worldwide Political Financial system (ECIPE) has issued a report that particulars rising considerations concerning the prompt transfer.

US cloud suppliers within the EU

ECIPE director Matthias Bauer informed Reuters (opens in new tab): “I believe the political intention is to squeeze out overseas suppliers however it’s going to after all have additionally ramifications for EU companies which might be kind of counting on cloud computing providers”.

A number of research, together with many centered on EMEA and the EU, have highlighted rising enterprise curiosity within the cloud, with many organizations pledging to commit additional spend as they improve their cloud footprint within the coming years.

Bauer informed Reuters that the transfer was politically motivated, and that member states ought to converse up and name for the European Fee to desert the plans.

To this point, not one of the US-based firms talked about above have publicly commented on the matter, nevertheless any development with the prompt motion will undoubtedly trigger an uproar amongst cloud computing firms with results felt far wider.

At the moment, Amazon Internet Providers accounts for round one-third of the cloud market, with Microsoft and Google coming in second and third place respectively. 

This isn’t the primary technological battle between the EU and the US, with EU lawmakers lately advising towards signing a data-transfer pact with the US amid considerations that American legal guidelines didn’t match these of the EU, resembling GDPR.

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