Daily Management Review

Microsoft will use its UK Data Centers to Offer a Wide Range of Cloud Services


Microsoft will use its UK Data Centers to Offer a Wide Range of Cloud Services
The enhanced demand for data localization is spreading across Europe and around the world and this has promoted Microsoft Corp to introduce a complete set of cloud services from data centers in Britain.
Britain is the US tech giant’s second biggest market for cloud-based software after the United States.
Operations over the Internet now be possible to be run by a range of British customers from the legal, banking, public and utility sectors due to the new offering. Te industries have been reluctant to get into the bandwagon of online operations due to regulatory and data security reasons.
"We want to make sure that as many customers as possible have access to the cloud," said Nicola Hodson, general manager of marketing and operations for Microsoft UK.
After the former U.S. National Security Administration contractor Edward Snowden disclosed mass government surveillance and stoking public concern over data privacy, security and national sovereignty, local storage of data has grown more desirable as U.S. technology companies have become dominant.
Questions about the status of data stored and processed in the UK have been raised more recently after Britain's vote to leave the European Union.
European data centers based in Dublin, Amsterdam or other locations were formed the basis of Microsoft customers using cloud software previously. Microsoft operates more than 100 data centers globally.
Microsoft said that due to cost savings and data security, an early customer of Microsoft's cloud office apps and infrastructure would be the UK Ministry of Defence, which has around 250,000 users and spends more than $3 billion per year on technical infrastructure.
Capita Plc, Britain’s largest business process outsourcing, which serves a mix of clients in central and local government and the private sector, South London and Maudsley NHS Foundation Trust, the country's largest mental health agency and automaker Aston Martin would be among the other initial UK cloud customers.
Amazon.com pioneered cloud services a decade ago and is the number one provider of cloud computing services. Microsoft is the world's No. 2 cloud software supplier after Amazon.com. Google, IBM, Oracle and many others are the competitors of both the companies.
Azure, Microsoft’s cloud-based software infrastructure platform and Office 365, a suite of cloud applications that replaces Microsoft’s classic Office software would be hosted at the UK-based cloud of Microsoft. In the first half of 2017, its marketing applications and its Dynamics CRM Online suite of cloud sales are being planned ot be added by Microsoft.

With a compound annual growth rate of 22 percent between 2015 and the end of the decade, global spending on public cloud platforms, business services and applications will reach $236 billion by 2020, estimates Forrester Research.
Thousands of UK cloud customers ranging from retailer Marks and Spencer Group Plc to Virgin Atlantic airlines are already counted by Microsoft. Hosting data locally or elsewhere on the Microsoft network would be an option that would be given to the customers.

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