Welcome to the Cloud Wars Minute — your daily cloud news and commentary show. Each episode provides insights and perspectives around the “reimagination machine” that is the cloud.
In today’s Cloud Wars Minute, I spotlight SAP CEO Christian Klein’s compelling argument that Europe should focus on leveraging AI and existing hyperscaler partnerships instead of spending trillions trying to build its own cloud infrastructure.
Highlights
00:32 — Not only has CEO Christian Klein of SAP led the company to unprecedented heights in the software business and created a great future for the company, but he’s also become a statesman on the global stage, certainly within Europe. He has stepped into this role of making a larger presence and impact outside of his company — indeed, on the whole continent of Europe.
01:41 — So, where the statesman issue arose was at an investor’s conference recently. Klein was asked a question around data sovereignty, data privacy, and data residency. Some government and business leaders in Europe have been saying, “We need in Europe to have our own hyperscaler companies.” The four big ones (Microsoft, Google, Amazon, and Oracle) are all based in the U.S.
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02:25 — Klein said, “Look, I get the issues around AI and data privacy, residency, and sovereignty — I get all that — but that’s not going to be solved by building your own hyperscaler companies in Europe.” He added, “We should focus on making the best use of AI, rather than trying to get into the infrastructure business and build AI tools and data centers.” I think it’s very wise on his part.
03:38 — These U.S. hyperscalers are spending upwards of $100 billion a year on capital expenditures. $100 billion for AWS, $80 billion for Microsoft, $75 billion for Google Cloud, and about $25 billion for Oracle. This could mount into the trillions if Europe were to start from scratch. It just doesn’t seem to make sense.
04:39 — Part of Klein’s point is this: It’s a buyer’s market. You’ve got those four enormous companies competing incredibly aggressively for customers’ business. Christian Klein’s not only led his company to prominence in Europe among businesses, but he’s also taking on a role in helping ensure that this part of the global economy stays on the right track.
