Europe’s cloud datacenter ambition ‘crazy’ says SAP CEO • The Register

The chief of Europe’s most valuable firm says there isn’t a level within the continent constructing datacenters to attempt to compete with US cloud hyperscalers which have already invested within the area.

A 12 months in the past [we] wouldn’t have considered these sort of geopolitical conflicts we’re having now

Talking at an funding convention final week, SAP CEO Christian Klein stated the enterprise utility firm had struck deals with French AI firm Mistral and enterprise providers firm Capgemini to assist buyer involved about information sovereignty in Europe, however noticed no level in replicating the trouble at cloud-infrastructure degree.

“A 12 months in the past [we] wouldn’t have considered these sort of geopolitical conflicts we’re having now,” he stated.

With AI and its information storage, SAP affords involved prospects “full sovereignty from the highest to the underside,” he stated.

Nonetheless, he warned about makes an attempt to duplicate the providers of the massive US cloud suppliers, which declare to supply information sovereignty in Europe. In current weeks, Microsoft, Google and most not too long ago AWS have all made related noises about being secure information havens for European prospects worried concerning the insurance policies and rhetoric popping out of the White Home.

“The one factor I might warning in opposition to in Europe is that this: the competitiveness of Europe’s automobile business or chemical business won’t be by constructing 20 totally different datacenters in France and take a look at[ing] to compete in opposition to the US hyperscalers. It is fully loopy, and that’s sovereignty fully completed within the flawed method. We’d like the most effective right here in Europe to use AI, to use clever software program to do be the most effective to provide significantly better, a lot quicker, higher vehicles, and be far more environment friendly operating our provide chains,” he stated.

Klein stated there was large stress on power costs in Europe, so building more datacenters was not a great resolution. SAP might give prospects totally different ranges of information safety and information sovereignty however was “tremendous agnostic on the infrastructure layer,” he instructed a convention hosted by funding financial institution BNP Paribas.

In opposition to a backdrop of more and more hostile US rhetoric in opposition to European politics and norms of governance, European leaders yesterday introduced an International Digital Strategy designed to assist the bloc deal with technological change at a time of worldwide political realignment.

Whereas US cloud hyperscalers AWS, Google, and Microsoft attempt to calm issues about information sovereignty, some European politicians stay involved concerning the US administration’s willingness to disregard court docket orders.

SAP just isn’t alone in questioning whether or not it’s sensible to hunt separation at cloud infrastructure degree. Experts told The Register last month that it was “in apply near unimaginable” for European organizations to duplicate the infrastructure established by the massive US cloud distributors in Europe.

SAP grew to become Europe’s highest valued firm in March, amassing a market capitalization of round $342.4 billion.