European Distrust of US Data Security Creates Market for Local Cloud Service
A recent survey indicated that 70 percent of Europeans have concerns about their online data and how well companies secure it and now two Swedish companies, Severalnines and City Network, have begun promoting their newly merged service as "a safe haven from the reaches of the U.S. Patriot Act." Under the U.S. Patriot Act, data from European users of U.S.-based cloud services can secretly be seized by U.S. law enforcement agencies.
"We believe that a service owned and operated locally in the E.U., and fully compliant with E.U. data protection laws, will be very attractive for European companies. U.S. companies with European operations will also benefit from the lower latency of a locally hosted solution," said City Network chairman Johan Christenson.
This gap in the market is also being exploited by other firms such as DNS Europe, Colt and MESH. The latter strongly promotes its location in Germany and "data separation in strict compliance with German data protection laws."…


