The rise of European cloud alternatives and its impact on APAC

by Lionel Legros, General Manager of APAC, OVHcloud

Today, digital transformation is a rapidly evolving concept that requires businesses to move away from ineffective workflows, embrace modern mindsets, and adopt new business models. It also calls for the ability to manage increasingly complex IT environments while faced with tight IT budgets, talent shortage, and fast-changing market demands.

Given the vital role that cloud-computing plays in today’s business environment, businesses across the world are constantly looking to optimise their cloud strategy to achieve maximum impact.

This strong demand for cloud services have resulted in the American-Chinese cloud duopoly that we see today with businesses in APAC forced to operate under the US or Chinese regulations on data storage and protection.

Emerging from the home of GDPR, European cloud alternatives are slowly gaining momentum globally because of the values the region is built on. As an attractive alternative to the American-Chinese duopoly, these are three ways APAC will benefit from European cloud alternatives.

A more reversible & open cloud

The cloud industry drives a pace of innovation and industrialisation as never before in history, helping any industry to commoditise their IT services.

As expected, cloud computing is poised for dramatic growth and the Asia Pacific cloud market is projected to grow 117% from USD$133 billion to $288 billion in the years between 2019 and 2024. In order to ensure steady growth for businesses in the region, it is important to keep the cloud open.

European cloud providers recognise the importance of building a strong ecosystem of players that share the same values and respect for data, reversibility, openness and transparency to support the industry.

An open and truly reversible cloud grants businesses the freedom to choose a way of managing their data that best suits their business challenges, with the option to switch from one cloud provider to another and avoid lock-in for cloud businesses.

This is essential in keeping up with the rapid growth of APAC as businesses look to expand their presence across the region.

Increased focus on security and data privacy

As we shift into a new norm of remote working, teaching and healthcare, data privacy and security will be some of the most important and undoubtedly, among the top concerns for businesses.

The increased complexity of the IT environment could result in poor configuration management and provide a wider potential attack surface for hackers.


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As a result, businesses are more vulnerable to insider threats and there is a strong need for security expertise to safeguard digital identity and protect against fraudulent transfers.

Equipped with the latest technology, European cloud servers enable businesses to aggregate the network interfaces of each server to increase its availability, while isolating it from the public network and possible threats.

With baremetal servers capable of integrating and providing APIs with Confidential Computing built-in, businesses will be able to run software programmes that require end-to-end security – in turn improving the data encryption of entire systems.

In time to come, companies will increasingly host their data, algorithms, services and infrastructure with cloud providers, raising the question of who owns and manages the data, trade secrets, and competitive advantages.

To provide businesses peace of mind, cloud providers must simply be transparent. The European model offer this by giving businesses the ability to control where their data is stored and how it is being used while being completely transparent about operating cost.

Lastly, the European cloud alternatives are aligned with Europe’s GDPR requirements, arguably the strongest data protection rules in the world now. Being able to meet the most complex of regulations, the European model will be able to help businesses navigate the compliance requirements unique to each country in APAC.

An acceleration to a multi-cloud strategy

With the ability to offer businesses the best solutions from the entire cloud offering and all of them operating independently, the multi-cloud strategy is rapidly gaining popularity and is set to become the default in the APAC region.

According to IAA, over 65% of enterprises in Asia Pacific (excluding Japan) are expected to use multiple cloud services and platforms by 2021.

Besides ensuring optimum business performance, better cost savings and lowered risk of DDos attacks, multi-cloud also offers businesses an additional buffer from business fluctuations by decreasing their reliance on any single provider.

With work-from-home set to be the norm for the near future, businesses will have the option of ensuring employees have access to data points that are closest to them – contributing to an optimum work-from-home experience.

Although multi-cloud strategy has the ability to cater to businesses which have widely diverse use cases across their various departments, businesses will need to be wise in selecting the perfect foundation to create the ideal multi-cloud architecture.

To achieve that, it is vital for businesses to work with their cloud service providers on the best solutions tailored for specific business needs.

Onwards to a region powered by a more open and secure multi-cloud

In order for APAC to fully reach its potential, there is a strong need for businesses to explore the cloud alternatives out there, relook at their cloud strategy and constantly optimise the way the cloud works for them.

In time to come, it is highly likely that we will no longer need to include the word cloud, having it become the de facto technology powering our society the same way we know internet refers to broadband connection, and not dial-up.

When that happens, we will witness a digital society that is open, reversible and secure that is powered by multiple clouds.

Compared to the other regions, APAC is in pole position to achieve that reality first due to its rapid digitalisation rate that is driven by a strong appetite for technology.

Through European cloud alternatives, APAC businesses will be taking the first step into that future – giving them the foundations to innovate for freedom and achieve success in a digital economy.

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