I’m not gonna say tough regulations have caused users in the Old continent to force local Cloud services, but Cloud users in the EU are using mostly local products, despite the fact that they’re somewhat more expensive than their US counterparts.
And yes, according to a new report by 451 Research, entitled Cloud Price Index, companies are doing so to comply with local regulations. The report says that EU Cloud solutions are between 7 per cent and 19 per cent more expensive, depending on the complexity of the application hosted. Premium goes even higher for databases, platforms and storage.
The number one cause is legislation: “Uncertainty about who has access and who has responsibility for data is confusing cloud buyers and service providers alike,” 451 Research says in a press release following the announcement.
Uncertainties around the Safe Harbour agreement, the Patriot Act and the new US-EU Privacy Shield agreement will continue to fuel local demand.
Europeans might find it difficult to use US-based Cloud services, but users from the Asia-Pacific and Latin America regions might benefit, as their local services are even more expensive. Comparable hosting in Asia Pacific costs, on average, 14 per cent to 38 per cent more than in the US. Prices in Latin America go up as much as 38 per cent, compared to the States.
“As European nations can place layers of regulation of top of agreements such as the EU-US Privacy Shield, we expect the latest agreement will do little to appease concerns, particularly in Germany,” said. Penny Jones, Senior Analyst for European Services.
“It won’t be clear what the European Court of Justice thinks about the legislation until they have reviewed a case or two. The courts may then say the US needs to do more to protect EU citizens’ data privacy.”