Monday, March 4, 2024

The EU has invested 1.2 billion euros to balance the competition with the United States in Cloud computing

The European Union has taken an important step in reducing the gap in the Cloud computing market, which is currently dominated by the United States. Brussels has approved a state aid plan called IPCEI Next Generation Cloud Infrastructure and Services (IPCEI CIS), which allocates public financing of 1.2 billion euros. This fund, supported by seven EU member states including France, Germany, Hungary, Italy, the Netherlands, Poland and Spain, will be supplemented by an additional investment of $1.4 billion from private players.

The main objective of this project is to promote new projects led by 19 companies from the participating member states. Didier Reynders, EU Commissioner for Justice and Competition, said that this project is expected to create approximately 1,000 direct and indirect jobs in its first stages. The focus of IPCEI is to develop software for a hybrid multi-vendor architecture, which seeks to offer interoperable services.

Selected companies

Notable companies that are part of IPCEI include Telefónica España, Telecom Italia, SAP, Orange, Deutsche Telekom and Atos. In addition, another ninety companies from other states will participate in the project, expanding the total number of participating countries to a dozen.

On a technical level, the EU seeks to reduce the need to send large volumes of data to centralized servers, thus improving the performance of services for users. This strategy aims to strengthen the competitive possibilities of EU companies in the field of cloud computing.

Cloud computing services play an increasingly important role in today’s interconnected environment. From Spotify music streaming to Cloud gaming, these services are directly or indirectly present in various parts of our digital lives.

One of the key advantages offered by Cloud computing is the ability to contract easily scalable services, reducing the need to build local infrastructure. This EU initiative seeks to exploit these advantages, promoting autonomy and competitiveness in the field of technology and information. With this investment, the EU seeks to get closer to the dominance established by other technological powers, such as the United States, in the global Cloud computing market.

World Nation News Desk
World Nation News Desk
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