Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Time running out to get off Amazon's addictive cloud French minister warns

Published 10/15/2019, 12:13 PM
Updated 10/15/2019, 12:16 PM
Time running out to get off Amazon's addictive cloud French minister warns

By Mathieu Rosemain

PARIS (Reuters) - Amazon's (O:AMZN) cloud computing is like a "soft drug", a French minister said on Tuesday, warning that time was running out for Europe to wean itself off the U.S. company's services.

Amazon Web Services (AWS) has become the leading provider of data storage in just a few years, raising concerns in Europe that the group could let U.S. intelligence agencies access corporate data under the U.S CLOUD Act of 2018.

"AWS is a soft drug. The more you take it, the more you like it, so ... weaning yourself off it seems complicated to me," French junior economy minister Agnes Pannier-Runacher told Reuters, pointing out its global reach and affordable prices.

A spokeswoman for AWS had no immediate comment to make on the minister's comments when contacted by Reuters.

AWS says on its website that it is aware that its customers "care deeply about privacy and data security".

"We also implement responsible and sophisticated technical and physical controls that are designed to prevent unauthorized access to or disclosure of (customer's) content," AWS adds.

AWS is tapping into the fast-growing migration of data from in-house servers to external data centers and now controls a third of the global market, Synergy Research group says.

It is followed by Microsoft (O:MSFT) with 16% of the market and Alphabet's Google (O:GOOGL) with 7.8%.

SOVEREIGN CLOUD

Previous French government-supported attempts to build a so-called "sovereign" cloud to store the most sensitive data held by companies and states failed.

Pannier-Runacher, a former executive at auto equipment maker Faurecia (PA:EPED), said that Amazon's potential market dominance could eventually push it to increase its prices.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

And time is running out to come up with a proper alternative solution to safeguard companies' margins and Europe's control over its data, Pannier-Runacher said.

"What I'm telling my European friends is that if in 24 months' time we're not able find alternatives, there's real risk of a loss of sovereignty," she said.

"This is what I'm hearing from experts, including French people in Silicon Valley, who underline how worrisome this situation is."

Finance Minister Bruno Le Maire this year enlisted French tech companies Dassault Systemes (PA:DAST) and OVH to come up with plans to break the dominance of U.S. cloud computing.

Two consortia, one led by French telecoms group and former monopoly Orange (PA:ORAN), the other by rival SFR (AS:ATCA), tried to develop an alternative to U.S. services at a total investment cost of 450 million euros.

But they did not gain any significant ground and Orange's solution is poised to cease activity by the end of January 2020.

The migration of data shows no sign of abating, however, with worldwide spending on public cloud services and infrastructure forecast to more than double by 2023 to $500 billion, market research firm IDC says.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.