to add three European data centres




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4 March 2014 | 0 is planning to open three data centres in Europe, as well as create 500 additional jobs there after posting a 41% jump in European revenue during its fiscal 2014.

The company will open its first UK data centre in August and additional ones in France and Germany during 2015, according to an announcement. first announced plans for the UK centre in May 2013.

While lowering application latency is one common reason cloud software vendors expand data centre operations,’s planned investments in Europe could also serve to ease potential jitters being felt by European customers over storing their information in US locations following revelations of spying by the US National Security Agency (NSA).

A spokesperson denied this was a consideration in the company’s plans, saying the new data centres will be built “as a result of our tremendous growth and customer momentum” in Europe.

The additional centres will also give more infrastructure for load balancing and disaster recovery for its growing family of cloud software products.

“All major US cloud companies are adding European data centres and ones in [Asia-Pacific],” said analyst Ray Wang, chairman and founder of Constellation Research. “I think the impact of the NSA and Snowden has been a catalyst, as well as tightening data privacy laws.”

In August, the Information Technology and Innovation Foundation released a study that estimated the US cloud computing industry could lose up to $35 billion (€25.4 billion) over the following three years from fallout over the Snowden revelations.

But by building out a global data centre footprint and making sure current and prospective customers know about it, and other software-as-a-service vendors stand to sidestep that financial hit.



Chris Kanaracus, IDG News Service

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