Can AWS’s New Region Revitalise Germany’s Economy?

Pontus Noren 23rd October 2014

Germany is going through some tough times as the economy shrank by 0.2% in the second quarter this year. A country that is powered by its exports also saw these fall by 6% in the month of August. Can the launch of AWS’s new region in Germany help revitalise the economy?

Supporting this statement, a recent report by the IDC states that removing barriers to cloud adoption could increase Europe’s GDP growth by nearly €1 trillion. Furthermore, a report commissioned by the EU shows yearly spending on public cloud services could increase from €35.2 to €77 billion in the next five years. A new AWS region should be a catalyst of cloud adoption enabling more businesses to fully benefit from the world’s most advanced and adopted public cloud platform.

Let’s examine the impact on businesses in Germany and the surrounding regions. It’s good news for organisations with global footprints as they can be better served by AWS’s global infrastructure which is now available in more locations thus reducing technical constraints such as latency.  As Germany has one of world’s strictest data privacy legislation, we’ve seen many of our multinational clients lag behind and even exclude the adoption of public cloud within their German subsidiaries. This puts them at a significant disadvantage against the rest of the world.  With German legal requirements for data to be within the EU, the AWS German data centre will remove data locality concerns that plague many CIOs whose preference is to keep their data within German borders.

Important to economic growth are startups and small businesses. The UK economy, one of the strongest in the EU has largely been driven by new startups and enterprising small businesses. Similarly in France, we see a new wave of innovative companies like Bla Bla Car, a mobile app for car sharing capitalising on a trend of collaborative consumption. Following the establishment of an AWS region in Germany, we should see a wealth of new innovative German companies driving economic growth.

With entry into this region, AWS further demonstrates its commitment to German enterprises whilst “flexing its muscles” of scale and reach thus exposing its competition as laggards. There’s no doubt this will result in a frenzy of “piggybacking” by the likes of Microsoft et al. Time will tell to see who the real winners and losers will be as the transition to cloud completes over the next 3-7 years.

Get in touch if you want to know more about the new AWS German region.