Hyperscale providers continue to dominate the cloud infrastructure and storage market. According to Synergy Research statistics in May, the combined market share of Amazon Web Services (AWS), Microsoft, and Google alone is 56%.
However, one area is likely to cause concern – and it has pierced the ears of other players looking to capitalize.
In August, CloudTech reported on the European Court of Justice (ECJ) termination of the Privacy Shield agreement. The EU-US initiative aims to “provide companies on both sides of the Atlantic with a mechanism that complies with data protection requirements to support trans-Atlantic trade.” However, this was ruled invalid by the ECJ following a challenge by privacy advocate Max Schrems, 2014, 2014, 2014, 2014, ECJ.
The use of standard Contract Terms (SCC), a mechanism used by companies to transfer EU user data to the Us for processing, was not explicitly restricted as part of the ruling. Legal experts see this as a measure of criticism on beware without additional safeguards from U.S. government oversight. The European Commission will issue new SCC and guidelines later this year.
This concern is partly raised through the U.S. CLOUD Act (Clarifying the Use of Legitimate Data Abroad), passed in 2018, which allows U.S. government agencies’ requests for a U.S. court to issue subpoenas asking U.S. law-abiding providers to hand over the data they store to customers, even if it is stored outside the United States, including the European Union. ‘
As a result, companies are questioning their relationships with U.S.-based hyperscalers. For cloud providers like IONOS, part of the 1 & 1 web hosting brand, clear opportunities have emerged.
Sab Knight, head of UK and Ireland sales at IONOS (left), told CloudTech: “We are safe with the CLOUD Act because we are based in Berlin.” If the U.S. authorities knock on our door and say that [they] want customer data, then the best case is that they need to go to the German authorities and subpoena.”
Point of sale to smaller, traditionally appropriate suppliers often has lower latency and – to a certain extent – data sovereignty. The IONOS cloud platform is aimed at small and medium-sized businesses, promising “transparent prices, maximum data security in certified data centers, un compatible backbone connections, simple use… and reliable vertical scaling.”
For Knight, providing information to customers and potential customers about these enhanced opportunities plays an important role in the role of the team. “You’d like to think that my sales team should only focus on selling cloud solutions, but today is really guiding customers to understand more about their data and data privacy, Privacy Shield and GDPR,” he said. “I spend more time coaching groups on these arguments and conversations; The technical bits are now led by solution engineers rather than sales staff. “
Knight also sought to educate in a more general sense by speaking at industry events, including the Cyber Security & Cloud Expo, in March the following year. At one event, Knight recalled how an attendee ‘went to the open mouth… [he] just didn’t realize the severity of the situation he was in. “
However, for companies like IONOS, they not only compete comprehensively for the features that hyperscalers own but also brand recognition. You may have the best since sliced bread, Knight notes, but if you’re not AWS, you’ll hit a brick wall.
“It’s like the 1980s when IBM sold these really expensive computers and you’ll find these IBM-compatible machines for only a fraction of the price,” he said. “However, a manager in the 80s would only buy IBM because you wouldn’t be fired when you bought IBM.
“I caught the same conversation -” nothing offensive, but you’re not AWS. If [I] stop working with IONOS, my boss will fire me, but if I have a problem with AWS, they’ll show me a slap on the wrist,” Knight added.
IONOS has written numerous times on the company’s blog about the noticed threats of the CLOUD, GDPR, and Privacy-Shield Act. In a post, from this time last year, the company noted the CLOUD Act ‘clearly contradicts the GDPR’s objectives.’ “In a globalized world, the law is more complex and important than ever. But the advantage of digitalization is something that no company can do,” the company wrote.
“There are European providers that operate their cloud solutions in accordance with European data protection regulations. Trusting a business partner as well as being able to effectively enforce legal disputes ensures digital control and security for your business – even for medium-sized companies that don’t have a large legal department or don’t have the resources to expand to a legal department. “
Knight wanted to stress that these claims should not only be considered denominations – there should be due diligence and research on legal ramifications. Hyperscalers, especially after the Privacy Shield ruling, said they could back up their cloud privacy and security statements, whether AWS, Azure or Google.
However, Knight once again looked back in time to figure out how things would progress. “If you look back at the 1990s, mostly American companies were trading hosting services,” he explains. Small UK hosting companies then began to appear, saying, “why store in the US, where there is terrible latency? “