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SAP splashes €20B on Euro sovereign cloud push
- marenkay 1y ago1. I find it hard to call this a sovereign cloud. This is still Azure - albeit with the crown jewels cut out - in a different dress. Did they verify there is nothing inside that Azure stack enabling calls home? 2. SAP itself is not sovereign, they're a MS shop. 3. They are no fast movers, they move short-term through acquisitions only. 4. Change is not a thing you would associate with SAP 5. A company that bungles 200 million EUR for running smartphone app for handful of years is not gonna get far with 20 billion EUR. Sorry but the ones with the money in the bank are not the ones who will actually be concerned or capable of working towards sovereignty because its opposed to their income source.
- nottorp 1y agoI believe Europe needs affordable cloud too, not "enterprise" cloud.
- sauercrowd 1y agothere's a lot of affordable examples such as hetzner - what's missing?
- r_lee 1y agoproper IAM, networking, object store (maybe they have this now) etc..
- tcldr 1y agoHetzner's great, and I'm a customer, but we're missing lots of stuff there – and some of the stuff that is there isn't reliable. For example: * Object storage: lots of horror stories out there regarding flakey performance so hard to justify sticking mission critical stuff there. * Private networking: Again, too many anecdotes about loss of service. Lots of people just using the public IP6 interfaces to avoid their private networking entirely. And private networks are IP4 only. * Kubernetes CSI: I've had issues with this where a PV gets in some locked state and I can't remove from console. I'd love to see more competition here.
- adamcharnock 1y agoOur experience with Hetzner /Cloud/ is similarly shaky. But Hetzner dedicated servers all altogether a different story. We (lithus.eu) deal with their custom solutions team regularly and often provision private networks in the 10-100G range. On top of that we deploy MinIO and OpenEBS/Mayastor, and the whole thing just hums along very nicely indeed.
- Y-bar 1y agoThis is my daily AWS story, so I would probably feel right at home on Hetzner it seems!
- graemep 1y agoBranding. Businesses and governments are far more comfortable with the big names. Its not just cloud. There is a lot of reliance on mobile OSes too, also American (and anything that needs updates is effectively controlled by whoever supplies the updates). From past HN stories the EU is developing an age verification app that only works on Google attested Android or on iOS. The NHS relies on AWS. British courts use MS Teams for remote hearings. The majority of my clients (apart from some I guide elsewhere) use AWS - its the safe choice. AWS is the current "nobody ever got fired for buying X" supplier. Gmail holds the same position for email.
- preisschild 1y agoStuff like BYOIP because many of their IP ranges are blocked by lots of services, reliability issues, extremely aggressive abuse team that will threaten to block your account for a network misconfiguration, bad performance, ...
- theshrike79 1y agoPlex blocked Hetzner because people were reselling instances. And it also seems that themoviedb.org also has an IP ban on Hetzner, found this out last week trying to build a tool that would've needed it to enrich its data.
- preisschild 1y agoThe worst thing (at least for me) is that many Google Services block lots of Hetzner IPs. Even just running plain kubernetes is a problem, because the default Kubernetes container registry is hosted on Google Cloud Services...
- adamcharnock 1y agoInteresting. This is something I've yet to encounter, and we use Hetzner a lot for our clients (dedicated servers though, not cloud, so maybe that makes a difference).
- jpalomaki 1y agoFew cheaper ones that come into mind: OVH (France), Hetzer (Germany) and Contabo (Germany). At least the two first ones have data centers in few other countries as well.
- nottorp 1y agoYes, so SAP isn't doing much of a favor to Europe. More to their own pocket.
- tcldr 1y agoScaleway has a broad range of services, but their price competitiveness/reserved instance discount is a bit lacking.
- theshrike79 1y agoTheir "development" instances used to be the shit years and years ago. You could get one running on their own custom hardware for like 4€/month, enough for a bunch of small utilities. Tried to get one some time ago, but they've sold all of the capacity and it's not available. Need to check if that has changed.
- MrDresden 1y agoAWS was initially just for Amazon.com. Similar with Google's infrastructure. A big EU business moving to their own cloud infrastructure is a good thing, even though you and I can't immediately take advantage of it.
- gjvc 1y agoCivo (UK) might be of interest
- ta1243 1y agoWhen I think of affordable cloud, it's all european providers.
- xandrius 1y agoUpcloud (Finland) is great, I'd vouch for them. Supports lots of countries, affordable and the people there are super nice.
- ExoticPearTree 1y agoEurope needs something similar to what the big three hyper scalers offer so a migration of sorts can happen without too much hassle for companies who deem that data sovereignty is a live or die kind of situation. There are a lot of small providers here and there, but they can't offer the scale of even GCP (the smallest of the bunch).
- jpalomaki 1y agoThis is something we need. Europe relies way too much on US companies for hosting critical apps in cloud. In large cloud environments it's about who controls the data, not the physical location. Gigabytes of data can be transferred in seconds to other side of the world. With a flip of a switch it can be totally erased or made inaccessible even to people with physical access to the servers.
- ramon156 1y agoFor any dutch people, Bert Hubert has been VERY vocal on this for a while, but no one wants to listen
- ezst 1y ago> Europe relies way too much on US companies What annoys me to no end is the temporal amnesia there is to this. Sure, yeah, true, cloud providers are practically an American cartel at this point in time. But cloud itself is a fairly novel thing in most corporate histories: we used to run most things on premise with people on payroll, and that was a single digit years ago. Moving out of the cloud is as valid an option, if not a better one, than trying to come up with a competing cartel.
- 7952 1y agoAnd by just trying to reproduce something we are not offering any antidote to the issues incumbent with cloud systems. IMHO the best place to start is by offering something that can provide authentication/authorisation/ZeroTrust networking/API gateways. And ideally do it in a distributed way that can start without needing servers.
- nicholasbraker 1y agoIf you want to compete you must also invest in associated PaaS and SaaS-services supported by a development framework to code and integrate it all. As mentioned, getting an IaaS product is not a problem now, it's about getting the developers onboard.
- mr_toad 1y ago> getting an IaaS product is not a problem now Isn’t it? Iaas is a lot more than just VPS and a few PaaS offerings, you need object storage, a command line and more. Last I looked the European cloud vendors were very lacking.
- jumbois 1y agoSAP has the BTP and all their different products, so IaaS is very much the issue for them and I doubt they have solved it without the help of Microsoft.
- pyrale 1y ago> Its not just cloud. There is a lot of reliance on mobile OSes too > If you want to compete you must also invest in associated PaaS and SaaS-services supported by a development framework to code and integrate it all. People have got to start somewhere, and they can't really take shortcuts. Messages of the type "you need to build all the spectrum of services available on big US brands ovenight" aren't really useful.
- jll29 1y agoI agree. Better committing $20B now (by one player) than only talking about it and continuing to rely on others. And while the point about OSes is also well made, there is no reason to believe that this will not also happen, albeit at a slower pace and via community mechanism rather than SAP funding. I've seen many projects that go in that direction that have been launched. In a way, one has to 'thank' Trump for incentivising fixing something that should already be done right from the start, and which otherwise would have left undone for longer.
- ojosilva 1y agoI agree, this sounds like a PR piece to get SAP's cloud business, which has been drunkly taxing around the runway, to take off using "nationalistic" rhetoric, as if the UE were a nation of sorts. Right now cloud is just at the bottom of a huge equation... There's mobile, OS, apps and AI frontier models and chips to tackle to say the least. And all that with ferocious competition from US behemoths. I just don't see that happening. If a nationalistic US government were to chop off or heavily tariff the UE on digital goods and services exports, it would probably crash markets on both sides of the pond, I don't see that happening given the UE propensity to negotiate and bend over when push comes to shove.
- wg0 1y agoAbsolutely. One step at a time. It might seem very foolish at the moment but I see that RISC-V based mobile devices to become a reality some day with a Linux OS on top. Might sound absurd but tell someone on 1st January 2000 on Linux kernel mailing list that one day, half of the world population would be holding Linux operating system in their hands and here we are - excluding Apple, every single device is running a Linux kernel.
- acivitillo 1y agoIs 20b euro enough to be a real alternative? Just a question. The thing with managed services in customer infra is interesting… but I am afraid it is motivated by the fact that many customers are not interested in paying SAP Cloud over their currently working SAP on premise setup. Let’s also keep in mind this is the company that has rarely embraced open protocols, built lots of proprietary stuff (abap…) and rarely cares about good APIs. How they should build a proper PaaS, with what skills, culture, know how, should be the question.
- theshrike79 1y agoIt's the Excel thing. Excel has a ton of features. Everyone only uses 10% of them and complains that it'd be a lot simpler to use if the 90% went away. But everyone uses a different 10% of it =) The same is true with cloud offerings. There's no way to force full feature parity with AWS without a trillion euro investment. But can they find the 10% that is enough for the relevant users? The ones that can't for legal and privacy reasons have their data exist physically in the US or even within US companies.
- epolanski 1y agoThis excel-aws comparison is asinine. A better one would be Microsoft 365 and AWS. Sure migrating out of Excel might be difficult, but migrating out of PowerPoint, Teams or SharePoint? Not necessarily. In fact, migrating out of EC2 or S3 is almost trivial as most competitors even offer identical APIs. Also, any company that is so vendor locked is asking for trouble and huge bills.
- quectophoton 1y ago> Is 20b euro enough to be a real alternative? Since we're talking about Europe, my first instinct here is that I want to double-check what they mean by "billion"[1]. This article being in English makes me assume short scale, but SAP being German makes it possible (even if unlikely) that it could be a mistranslation that everyone else just copied. If only any of these articles could link to a source. But searching for literal quotes doesn't seem to return any authoritative source, or even any transcripts (if this was announced verbally). [1]: https://en.wikipedia.org/wiki/Long_and_short_scales#German-speaking https://en.wikipedia.org/wiki/Long_and_short_scales#German-s...
- jumbois 1y agoStackIT is Germanys best shot at a sovereign cloud currently. Basically a fork of OpenStack. I very much doubt SAP has the competence to replicate this. I'll also bet those unnamed open-source technologies are mostly sprinkled on top of proprietary Azure tech, like the rest of their infrastructure.
- yokaze 1y agoSAP also uses Openstack.
- jumbois 1y agoThere's probably few technologies SAP doesn't use. That's a long way off from all of these cloud offerings being based on OpenStack though. I doubt thats the case.
- _zoltan_ 1y agoI've been deep into the OpenStack ecosystem and community from around 2011 to 2022 and I have to tell you that besides the steep learning curve it's a great system. why you'd want to fork it it beyond me.
- deleted 1y ago[deleted]
- blablabla123 1y agoI heard in some lines of work at SAP people get paid to sit in lobbies the first half year
- redwood 1y ago20B over ten years compared to AWS alone putting >100B in capex this year alone
- xandrius 1y agoNever enough it seems.
- IsTom 1y agoSAP cloud sounds like the last thing you want to use if you value your sanity.
- tonyhart7 1y agoseems like they have new competition for worse interface provider
- mrtksn 1y agoHypothetically, if the AI is indeed able to improve efficiency Europe should be able to replicate the US IT efforts at the fraction of the original cost. Not only that but we already know what works, so no cost for the dead ends too. A bit like SpaceX doing rocketry with modern CAD and computing power. It’s much cheaper and faster iteration from what NASA had to deal with. The problem is, the European mindset towards software. Maybe Americans doing it in Europe can have much greater chance.
- tonyhart7 1y agoEuro cloud independent is good but SAP that want to build it??? idk about that, rather prefer OVH or Hetzner to take the helm
- cyberlimerence 1y agoRealistically all the European mini-clouds like OVH, Scaleway, Hetzner, etc should collaborate and field some pan-European offering, similar to the American/Chinese mega clouds. And EU Commission, or whatever, should invest in the name of strategic competition.
- mathverse 1y agoLol. They are not paneuropean companies. All of them have different nationalities and priorities. Europeans cant work together on mega projects due to their strong nationalism.
- cyberlimerence 1y agoI never said it would be easy, but if they really want it, it should be possible. Airbus, for example, is a pan-European entity, build up of French, German and Spanish companies which preceded it.
- FirmwareBurner 1y agoMaking planes and jet engines is way different than making software, that it's not even comparable. One is highly bureaucratic, highly regulated, credentialed with at least a M.Sc. required, top down management tied to politics, defense and academia and super slow moving needing a strong manufacturing base, while the other is fast moving, less rules based, flat hierarchy, no credential/degree required, and not tied to government policies, academia or manufacturing. Basically, one is "safety and national security first" the other is "move fast and break things and we'll worry about the rules we broke after we have a successful product". If your comparison were true then Europe would have nailed SW too not just planes. But they didn't. There's also the culture of failure around entrepreneurship where in the US that's considered a right of passage to try and fail at your own business, while in Europe it's shameful and can financially wreck you for life if your small company goes bankrupt. Then there's the WLB differences. By the time European companies get unblocked from some project manager's 2 month vacation and then from the tech lead's 5 month sick leave, the competing Americans have already launched 5 different software products and pivoted the company 3 times and found a market they can capture. Long blocks in the dev process when nobody answers emails for months because of vacations and sick lave can work in Aerospace industry where Airbus has a monopoly, or other such niche industries where EU "mittlesand" companies are the only players you can buy from, but doesn't work in creating SW companies that need to be fast to market otherwise someone else eats your lunch due to an even playing field and lack of regulations that act like a moat. Basically, you can't win a race against unscrupulous opponents who disregard regulations and prioritizes financial success at all costs when you prioritize WLB and following regulations. Straight up. The playing field is completely unbalanced here in favor of the US and China. That's why rich Europeans put their money in US SW companies instead of EU ones.
- mathverse 1y agoAs a european I dont believe in European anything. I worked for European scale-ups and they are all bunch of nationalists that primarily succeed in their primary country and then fail to expand in any other country because they meet the local alternative. The best market to expand besides your own Euro-country is the US but tthen when you enter that market you are too small of a fish to do anything. There is no such thing as european companies. It's german companies, french companies all mainly focused on their main markets.
- wg0 1y agoEvery company in Europe would have some origin story and some stronghold and that's nature. I see OVH being used in Germany despite Hetzner being in place and I am sure Hetzner is being used by French market as well.
- focusgroup0 1y agoGiven the degrowth / energy minimization policy in Germany and wider EU, how do they plan to bring online and operate new datacenters?
- poisonborz 1y ago"Just throw more money at the problem, bro" /every EU politician and CEO/
- donperignon 1y agoMoney down the drain…
- raffael_de 1y agoNot gonna work. Even if they spend a 100 billion Euro. SAP isn't just a set of products; it's a cult, a mindset. A very narrow-minded and hyper-bureaucratic mindset. SAP is organically and systemically incapable of producing something competitive to AWS or GCP or even Azure. Especially not if you take into consideration that Amazon and Google will continue to adapt and evolve as well. SAP is a cancerous technology step by step eating its host. It's like a tick that will draw blood from a company until it spawns more ticks continuing the cycle. It's the digital equivalent to syphilis or herpes - highly contagious and eventually infesting the brain of everybody working with it for too long. It turns erstwhile well-intentioned humans into SAP-minded caricatures of a software zombie.
- e1gen-v 1y agoABAP-itis