Story image

What will the Trump presidency mean for public cloud computing?

10 Nov 16

The three leading global public cloud providers are all US-owned companies – Amazon Web Services, Microsoft and IBM SoftLayer.

What impact will an “America first” US president have on this market?

Ovum analyst Roy Illsley explores what a Trump presidency will mean for public cloud computing.

According to Ovum’s ICT Enterprise Insights 2016/17 – Global: IoT and Cloud, in Asia, the market for public cloud is expanding, with 70% of respondents reported that they will be using public cloud by 2018.

This compares with just over 50% in North America, which is a much bigger and more mature cloud market.

If global public cloud adoption slows and regional cloud adoption increases due to protectionism, OpenStack could be the winner, Illsley says.

“AWS, IBM, and Microsoft Azure are the three leading global public cloud providers, and they have built a presence in many different countries and regions,” he says.

“However, the expansion has been primarily driven out of US-based data centers or those in selected locations such as Singapore, Hong Kong, and EMEA.

“The rhetoric coming from President-elect Trump is that it will be an America-first approach to trade and business,” says Illsley.

“While this appears to be aimed at the manufacturing sector, cloud computing could become caught up in a global retrenchment to a nationalistic approach to business by other countries in response,” he explains.

From a cloud computing perspective, this response would not be difficult to act upon as data protection and privacy laws could be used to force in-country data residency, Illsley says.

“The impact on the global public cloud providers would be that while in western economies their growth may be relatively unaffected, in the emerging economies, where they do not have a direct presence, tier-2 service providers using OpenStack to offer public in-country cloud services could expand and challenge their position,” he explains.

Illsley says the market for public cloud is now maturing rapidly, and technologies such as OpenStack have gained significant interest in China, India, and Asia in general.

“The open movement is seen as more transparent and enables different companies and countries to adopt a cloud platform that they can trust because they have contributed to its development,” he says.

“In a world where the US is seen as being protectionist, the open movement could represent a shift in how cloud computing evolves.”

Data centre cybersecurity actions that most people overlook
Schneider’s Steven Carlini discusses ways to improve data centre cybersecurity that most people don’t think of until it’s too late.
Alibaba Cloud showcases commitment to Hong Kong
The company’s service capability in Hong Kong has doubled since it established its first data centre in the city in 2014.
5 tips to reduce data centre transceiver costs
Keysight Technologies' Nicole Faubert shares her advice on how organisations can significantly reduce test time and cost of next-generation transceivers.
The new world of edge data centre management
Schneider Electric’s Kim Povlsen debates whether the data centre as we know it today will soon cease to exist.
Can it be trusted? Huawei’s founder speaks out
Ren Zhengfei spoke candidly in a recent media roundtable about security, 5G, his daughter’s detainment, the USA, and the West’s perception of Huawei.
SUSE partners with Intel and SAP to accelerate IT transformation
SUSE announced support for Intel Optane DC persistent memory with SAP HANA.
Inspur uses L11 rack level integration to deploy 10,000 nodes in 8 hours
Inspur recently delivered a shipment of rack scale servers of more than 10,000 nodes to the Baidu Beijing Shunyi data center within 8 hours.
How HCI helps enterprises stay on top of data regulations
Increasing data protection requirements will supposedly drive the demand for Hyper-Converged Infrastructure solutions across the globe.