Key insights
- The post discusses a potential trend of EU companies moving away from US cloud infrastructure (AWS, Azure, GCP) due to data sovereignty concerns. While the impact is uncertain, increased competition from EU-based cloud providers like LIDL could negatively affect the long-term revenue growth of MSFT, AMZN, and GOOGL in the European market. The extent of this impact depends on the scale of the shift and the success of EU-governed cloud infrastructure initiatives.
I own these 3 and trying to see if it’s significant or not and I don’t think they provide any granular specific info about this. There’s a movement where a bunch of companies in the EU and UK are slowly moving off of US infra.
In the past there were a few instances recently where US cloud companies gave up data from EU clients in EU datacenter, likely this was the spark to move off US infra.
LIDL an EU supermarket chain was doing their own Infra and selling extra compute and now they do what AMZN is doing and EU companies are moving to their infra. This is funny because that’s how AMZN cloud started.
A retail business that started their computing business because Black Friday and big retail sales buying days would crash their systems so they start their own cloud computing. But have excess compute on other days and start selling it.
LIDL has started something similar a retail store not providing EU with cloud computing. It’s rough around the edges is what I hear but things change fast in this field.
I know AWS and GOOGL are building the own EU governed cloud infrastructure but