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EU Shoots For $11.7B 'Industrial Cloud' To Rival US (politico.eu) 77

The European Union aims to spend up to 10 billion euro ($11.7 million) over the next seven years to help build up a homegrown cloud computing sector that could rival foreign corporations such as Amazon, Google and Alibaba. From a report: Twenty-five EU countries signed a joint declaration last week pledging public money to power up the cloud sector and establishing the "European Alliance on Industrial Data and Cloud," a partnership geared toward facilitating such projects. The alliance -- whose funding is to be drawn from existing EU programs and hoped-for pledges from industry and national capitals -- will be launched by the end of the year. Cyprus and Denmark were the only EU member countries not to sign the declaration due to "technical reasons." The declaration "is a foundation stone for the establishment of European cloud technology, which will be very high performing," said Internal Market Commissioner Thierry Breton, following a meeting of European telecoms ministers organized by the German government, which currently holds the EU's rotating Council presidency. "Contrary to the prejudices, we are not late [on cloud development]. We are the first to get involved in the industrial cloud," he added.
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EU Shoots For $11.7B 'Industrial Cloud' To Rival US

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  • 10 billion € (Score:5, Informative)

    by daniel23 ( 605413 ) on Monday October 19, 2020 @03:15PM (#60626044)

    10 billion € are equal to 11.7 billion $, the summary is off by 3 orders of magnitude

    • by XXongo ( 3986865 )

      10 billion € are equal to 11.7 billion $, the summary is off by 3 orders of magnitude

      Maybe. A German "billion" translates to an English "trillion". https://german.yabla.com/lesso... [yabla.com]

      • by MrL0G1C ( 867445 )

        Except the summary says million so it's a typo and whilst here in the UK a billion used to mean a million million, we don't use it like that any more for obvious reasons, now in modern English articles we assume a billion to mean a thousand million. I've never seen the Euro billion be described as anything other than a thousand billion either.

      • Continental English is not a language, it is just an excuse not to learn one of the languages you've chosen to try to use.

    • Maybe just the post-Corona exchange rate... ;)

      Don't worry. We're on track to reversing it. :)

      -- The *cough* European *coughcough* Union *weeze*

  • by Vinegar Joe ( 998110 ) on Monday October 19, 2020 @03:19PM (#60626052)

    Good to the the Europeans building on the success of Quaero.

    • by Tablizer ( 95088 )

      These gov't sponsored programs to jump into already-established markets fail more often than not. Fostering education, research centers, and international standards tends to be more fruitful than outright make-a-company programs.

      China has been relatively successful at such partly because they have de-facto slaves. Their migrant worker class is essentially a second-level class. (Dictatorships can do that.) However, such doesn't work as well for service-centric businesses that need lots of cooperating special

  • by nevermindme ( 912672 ) on Monday October 19, 2020 @03:21PM (#60626060)
    The second quarter of 2020, AWS generated cloud computing and hosting revenues of almost 10.81 billion U.S. dollars.

    Thats 40 billion dollars per year in sales just for the primary US based player . Going to take 120 billion dollars in infrastructure at any cost efficiency to enter into the market at a scale rivaling AWS in 2021-2023.

    Airbus pre covid had sales of 70 billion with about 4 billion in government support from EU partners.
    • This is not really about entering the market. Itâ(TM)s about funnelling millions and billions into the companies the political class owns while spouting buzz words like âoecloudâ.
      • by rtb61 ( 674572 ) on Monday October 19, 2020 @08:22PM (#60626852) Homepage

        This is mainly about the EU no longer trusting the US or UK and building their own completely seperate and secured cloud, seperate from the US.

        They will of course be passing this all off to insiders to maximise kick backs and profits but that is not the actual goal.

        Cutting of USA control of EU data is, cutting of US social media is and cutting off USA DOMINANCE is. The insiders will profit, is simply par for the course amongst the corrupt establishment and it's many psychopaths.

        • Is it really about dominance, or is it just the same old spite / NIH that we've seen before? cf PAL.

  • by bmimatt ( 1021295 ) on Monday October 19, 2020 @03:26PM (#60626088)
    I guess it's time to buy Euro in bulk...
  • by Carrier Lifetime ( 6166666 ) on Monday October 19, 2020 @03:31PM (#60626110)

    Yet again European politicians show that they do no understand capitalism. In contrast, the Chinese politicians understand capitalism extremely well. The European politicians behave like feudal land lords, their Chinese counterparts behave like business people.

    • by XXongo ( 3986865 ) on Monday October 19, 2020 @03:52PM (#60626162) Homepage

      Yet again European politicians show that they do no understand capitalism.

      Not entirely clear. If the cloud is critical infrastructure, possibly it should be public.

      Maybe it's we who don't understand capitalism, and most particularly don't understand that there are some parts of infrastructure where capitalism isn't the right solution.

      • by edis ( 266347 )

        Not only can it be joint venture, and have initial capital, it can have revenue, that would not leave continent, which is quite strategic achievement, if successful. It's about the time for Europe to seriously reconsider digital future, and who, where are those super-sized giants of already questionable present.

        • by Cederic ( 9623 )

          The challenge is convincing Europeans to use the new European services and infrastructure instead of the existing services.

          Given the pace of innovation and how much of it is coming from America and China it's not even the cash that's an issue. There's an entire culture around risk taking that's missing.

          • by edis ( 266347 )

            Even if new infrastructure starts with serving institutions, this will be quite significant, as state institutions scope quite a share of overall society. With businesses having local resources offered, it would be about overall expense. Taking into account, as well, risks of lending your vital information to somebody overseas you have so much less of control over, say, just alone because of finding your state in competing camp, than that of service provider. Another thing - standards, APIs: if they keep do

            • by Cederic ( 9623 )

              if new infrastructure starts with serving institutions

              I'm a technology leader in a European institution. Do I use the expensive EU sponsored infrastructure that lacks many features my existing deployments already use or do I pay less to use a superior option that gives me new and better ways to delivering my services.

              risks of lending your vital information to somebody overseas

              I can host on Azure in Ireland, France or Germany. (Poland, Spain, Italy and Greece all on the way too).
              I can host on AWS in Ireland, Sweden, France, Germany or Italy. (Spain also coming soon).

              Then there are the smaller players like Google, Oracle

              • by edis ( 266347 )

                It would be fair enough, even if resources allocated are mostly geared towards converting technologies in foreign CONTROL into form and status, acceptable for Europe. It is hard do believe, how carelessly you overlook this CONTROL key in favor of where servers are physically kept. Would you care if data are relocated from one European country to another (or home to America and what-not), yet these, as countries, have very little to say or do about the life of the data on their physical ground, while CONTROL

                • by Cederic ( 9623 )

                  Oh, I see. You don't have experience in deploying secure cloud based systems.

                  I don't give control away. I don't need to. I'm legally obliged not to. I don't overlook the control aspect because retaining it is a given; it was never even in doubt.

    • Typical Ferengi-American.

      You don't understand: We do not WANT that capitalism.

      Gasp all you want. American cultural rule is over.
      You killed it by electing Annoying Orange Man, and the neocons before him, and going over the top and then some.

      • Lives rent-free in the space between your ears.

      • Re: (Score:1, Insightful)

        Wow, it's been a while since I've a seen a racist slur against Ferengi. Boy that takes me back.

        Americans don't want to be "cultural role", whatever that is. But the world just won't let us go. We pay for the defense of your countries and your social welfare states would collapse if you paid your fair share. I don't see it changing, as much as we'd like to bring it to a stop.

    • Both of them understand the same method: keep US companies out and favor your own domestic industries. Leo money circulating in your own economies instead of enriching rivals. When they do it it's OK - but the moment the US gets the kdea to do the same it's a war crime.
    • by nnull ( 1148259 )
      If Europeans really wanted cloud services, there would have been a big market for it with someone creating it there. There's no shortage of hosting providers in Europe with great deals, but I haven't met many Europeans who go, "Hey, it's time for you to start using cloud service".
    • by Sesostris III ( 730910 ) on Tuesday October 20, 2020 @01:21AM (#60627280)
      The Internal Market Commissioner, Thierry Breton [wikipedia.org], was the Chair and CEO of Atos [wikipedia.org] before being appointed a commissioner. Given that Atos grew to a 100,000+ employee IT company while he was in charge, I think we can assume that he knows something about (1) business (i.e. capitalism) and "Industrial Data and Cloud".

      Regarding China, I've heard it said that one reason they're doing so well is that a large proportion of the Chinese Leadership are Engineers (rather than, I suppose, Lawyers). I don't know if this is true, but it is interesting to note that Thierry Breton has a master's degree in Electrical Engineering and Computer Science.
      • by Cederic ( 9623 )

        I think we can assume that he knows something about (1) business (i.e. capitalism) and "Industrial Data and Cloud".

        Sorry, at Atos? He may know something about IT bodyshopping and being an outsourced integration partner but that's a very different market, skillset and approach to devising and implementing innovative solutions.

        Disclosure: I once interviewed at Sema. They wanted me to work on mainframes. It was a happy outcome; I got a job elsewhere instead.

        • If you were interviewed at Sema, that would've been well before 2004, when Atos Origin (as it was then) bought out most of the old Sema group part from Schlumberger. Schlumberger had bought out Sema in 2001 (and it became SchlumbergerSema), so you were possibly interviewed before then!

          As to markets, well as it says in the linked wikipedia article (to just grab one snippet); "In April 2018, Atos announces a global partnership with Google Cloud to help offer secure artificial intelligence systems.". This w
          • by Cederic ( 9623 )

            you were possibly interviewed before then

            I'm old.

            Disclosure, until I retired earlier this year, I worked for Atos.

            Maybe not as old as you.

            Atos announces a global partnership with Google Cloud to help offer secure artificial intelligence systems.". This was under Breton's leadership, so presumably they (and he) know a bit more than just body-shopping and outsourcing!

            My interpretation of that would be that Google provide the technology and innovation, Atos help clients understand how to use it and integrate it with their own systems.

            Most large technology purchases work like that. You buy from company A and work with company B as the SI.

            Also, in the context of the post I was replying to, it was about EU politicians (unlike their Chinese counterparts) not understanding capitalism, and also the Chinese politicians behaving like business people. Even if you don't think much of Atos as a company, it is a successful (and growing) business, and Thierry Breton, as its former Chair and CEO, would know about business.

            While I accept Breton's business credentials (and don't doubt for a moment that he's rather better at that than I am) I would hesitate to use him as an example of European politicians.

            Much of what the EU do

  • Does anyone have a clue why two member states is not taking part?
    • Italy, Denmark, Lithuania and Cyprus were all hoping for extra investments from Microsoft and Amazon. Italy and Lithuania were the first to cave after being promised some pork. Now Denmark and Cyprus stand by the sidelines, getting nothing, as an example to future eu member states who wonâ(TM)t toe the line.

  • Where does the EU get that kind of money to throw away? because there's no way that's sustainable.
    • by Cederic ( 9623 )

      Germany, France and VAT receipts mostly.

      Used to be the UK too. Happiness.

      Government spending on industry isn't necessarily a bad thing though - the US and UK both do it a lot too.

  • America is doing a great job of pushing out educated immigrants by ensuring long Green card lines and hurdles with H1. It would be no-brainer for other countries to take advantage of this.
    • by nomadic ( 141991 )

      The problem is as bad as US immigration has gotten, it's still better than most European countries that have way more protectionist barriers to immigration -- even skilled immigration -- than the US.

  • Will it be hosted in Google's or AWS' data center?
    • No, they're giving the money to the Chinese, who promise to deliver the exact technology agreed to. But the contract is in Chinese and just says they'll deliver some equipment.

  • Directly linked to the EU leadership/parties and indirectly to the militaries. I say ban them.

  • This has not really filtered through yet other than a bunch of privacy folk getting very excited.

    The Schrems 2 case stated that NSA surveillance of EU citizens data is unlawful under GDPR because it is excessive and does not allow for redress via the courts. The USA did set up an ombudsman for it but this is not considered appropriate. This decision was stated in relation to Facebook transferring data back to the US, but the principles would seem to apply to any other data that is potentially under NSA surveillance scope.

    Couple that with the US CLOUD act, which allow requesting information held by US cloud companies anywhere in the world.

    The Schrems case said it is invalidating Privacy shield, but not the SCCs. However as the SCCs cannot override US law then anyone in the EU relying on SCCs to use a US cloud provider is on very dodgy ground. All of the US cloud providers are currently doing that, because frankly they have no option other than to spin up a new non-US company to run the Euro hosting side of things.

    The big problem with all this, was that there's no realistic alternative in Europe unless all you want is basic server hosting....

  • Let's stipulate that government intervention to establish an EU cloud is a good thing. I don't know whether it is, but let's assume so. Is this the right way to do it?

    There are plenty of EU cloud providers already. They are much smaller than the US giants, meaning that their offerings are more expensive and probably offer less functionality. But: rather than subsidies, what about using the age-old power of government to charge import tariffs? Make the US offerings more expensive, and you will be giving EU b

  • From the article it really isn't clear if they're talking about a publicly or privately owned enterprise. It also seems they plan to spend a few billion on getting small businesses to move to the cloud.

    My concern then is that the EU itself will try to run it's own cloud provider, force everyone to use it, and then run it into the ground because it's simply not the sort of thing a government can do well. If instead they intend to help/encourage the formation of private domestic hosting companies, I thin

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