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Regional Clouds Are the Answer


Having local infrastructure designed with local innovators’ needs in mind can result in healthy technology ecosystems in many places around the world. Some can become so lively that they attract talent from the rest of the world, becoming new brain circulation centers.
be moved to the cloud. Additionally, there is an even larger portion of existing OT/ICT (operations technology/information and control technology) that has not moved to the cloud. Finally, we expect to see an approximate doubling of IT and OT/ICT with the rollout of edge computing. Ultimately, there is plenty of room for both the international hyperscalers and the regional clouds.

International enterprises may find international hyperscalers better suited to their needs. Additionally, the hyperscalers will compete for business with the regional clouds.  This competition will result in lower pricing from the regional clouds and better services well-suited to regional needs from the hyperscalers. Some users may combine aspects of both. Opportunity and benefits will be available to all.

Other regions

Each region will want local autonomy for its telcos, other critical infrastructures, and government users. To this base will be added unique regional concerns. Taken together, these needs will shape the structure of each regional cloud.

In the US, the Department of Defense (DoD) created an RFP (request for proposal) for public cloud services. The RFP was sent only to the three US headquartered hyperscaler cloud providers. It resulted in a multibillion-dollar contract with one of these US providers. The author was told by one of the government staff leading the effort that, for security reasons, although operated by the hyperscaler, it is on segregated resources. That is, it is essentially a private cloud dedicated to the US DoD operated by a global hyperscaler.

Another effort to create a national cloud is underway in the US. It is focused on supporting research and technology development in artificial intelligence (AI). This is driven by a concern about a potential ‘arms race’ between the US and China around AI. There are key members of the US Congress in this effort, which started at Stanford University seeking to build an AI innovation ecosystem.

AT&T and Verizon have been divesting themselves of the web properties they acquired. This mirrors the argument going on inside the European telcos. In that, it is also a response to perceived failures by the telcos to achieve success in the cloud.

Other regions share some of these same concerns, while adding some that are unique to their situations. For example, everyone is worried about cybersecurity, but some parts of the world (for example, Australia) have a particular sensitivity in this area. Parts of sub-Saharan Africa and South America have concerns about cost and access, particularly access in underserved areas. Muslim regions have specific cultural and legal concerns.

The challenges confronting people trying to develop solutions to local problems in sub-Saharan Africa are quite different to those in Silicon Valley. Many universities around the world have good tech programs, but there are no leading-edge tech jobs in the area. Graduates leave to find work, spurring “brain drain” as they head to what are often called “brain circulation centers” like Silicon Valley. 

Having local infrastructure designed with local innovators’ needs in mind can result in healthy technology ecosystems in many places around the world. Some can become so lively that they attract talent from the rest of the world, becoming new brain circulation centers.

From a global perspective, diversity is important. Having many groups working on solving problems from many different directions provides the world with the greatest probability of finding optimal solutions to critical things we all face.

The time is now

The time is now for Europe as the global leader in regional clouds to make the investments needed to focus on key decisions around innovation ecosystems. It is these innovation ecosystems that will lead to successful regional clouds. The emergence of edge computing and 5G make this time critical—and there is no time to waste.



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