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Cloud


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EU Cloud

Latest on GAIA-X Project: Will It Really Best AWS, Azure, Google?

  • Written by Kelly Teal
  • June 22, 2020
Even if the initiative can’t overcome the giants, channel partners still have plenty of opportunity.

With the nonprofit GAIA-X Foundation now established, the organizations participating in the European cloud computing project expect to have a variety of use cases ready by the end of the year. So far, more than 40 have been submitted and presented, The GAIA-X project notes on its website. But around the industry, there’s wariness. Some onlookers – cloud analysts and hands-on experts alike – seem to view GAIA-X with skepticism.

“The leading cloud providers have already moved quickly to build up this market,” Gartner analyst Rene Buest told Reuters.

Cloud Security Alliance's Paul Simmonds

Cloud Security Alliance’s Paul Simmonds

Paul Simmonds, board member for the Cloud Security Alliance’s U.K. chapter, made a similar observation in an online forum.

“The ‘big’ three have already got the corporates sewn up, with prices, marketing, etc.,” he wrote. “All are non-EU.”

Plus, he said, most corporations need a global platform because they operate around the world. Thus, “it’s not just EU regulations they need to conform to.”

But for Yann Lechelle, CEO of Paris-headquartered Scaleway, which sells through the channel, the point may not be large-scale attrition from AWS, Azure and Google — at least, not at first.

Scaleway's Yann Lechelle

Scaleway’s Yann Lechelle

“It is … not unimaginable to think European cloud players are capable of supplying at least a third of European demand. It doesn’t have to be binary,” Lechelle wrote in a June 4 blog. Let’s start by improving the ratio; then we can think about sovereignty. If we are ambitious, there is also no reason why we should not strive to meet a third of demand in America, Africa and Asia.”

To be sure, the GAIA-X project likely will face initial headwinds. Right now, AWS leads among cloud providers in Europe, according to Synergy Research Group. AWS also is the top company in all of the major individual country markets, the analyst firm found. Microsoft ranks second, with Google Cloud coming in third. IBM stands out at fourth in Europe, following by the likes of Salesforce, Rackspace and Oracle. The largest markets by country are the U.K., Germany, France and the Netherlands. France and Germany are key GAIA-X project players. All in all, these numbers mean GAIA-X has its work cut out for it.

“There is no shortage of companies fighting for a share of the market, but across the region as a whole, the top six cloud providers control three quarters of the market — and their share has been increasing,” John Dinsdale, chief analyst and research director at Synergy Research Group, recently said. “Given the importance of scale, global presence and deep pockets, it will be difficult for any of the smaller cloud providers to change that picture.”

GAIX-X Project and the Channel Opportunity

Regardless of whether companies adopt GAIA-X en masse, partners will have a unique public cloud option for clients. That could prove fortuitous as organizations keep supporting remote work because of the ongoing coronavirus pandemic.

“With the COVID crisis, companies massively shifted to teleworking,” French Economy Minister Bruno Le Maire said earlier this month during a video news conference, according to AP. “This makes the need for [a] secure and European cloud solution all the more urgent.”

Keep up with the latest developments in how the channel is supporting partners and customers during the COVID-19 crisis.

Other possibilities await highly invested cloud partners such as managed service providers, system integrators and VARs. GAIA-X says such subject-matter experts can expect to benefit “from market transparency, broad access to alternative offers and the resulting opportunities,” as the foundation writes in its FAQs.

Elie Girard, CEO of Atos, a multinational IT services and consulting firm that relies on partners, similarly predicts “the creation of value-added ecosystems.”

What is the GAIA-X Project?

GAIA-X officially launched early this month. The project itself has been under discussion and in creation mode since 2019. The initiative seeks to …

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Tags: Cloud Service Providers MSPs Cloud EMEA Open Source Specialty Practices Technologies

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