At EvoSwitch were seeing that global hosting providers and corporate customers are increasingly looking to meet the demands of now truly global businesses by providing an efficient, local infrastructure. Europe remains a huge market for businesses growing internationally and for traditional services, but especially those that have an integrally online element.
Cloud-based computing, a major driver for colocation and remote hosting, is top of the in-tray for many CIOs. In response, we are seeing that many organizations that serve end users across multiple regions are asking themselves if they should move or colocate their servers. Theres no denying that there are a variety of factors that heavily influence this decision – such as space, availability, cost, accessibility, and legislation and regulation – making it quite a complex business.
Today, there is most certainly a renewed sense of optimism towards the still struggling economy, highlighted by strong flotation prices quoted by the likes of Yandex and Linkedin. As a result, we are seeing internet-based business gaining serious momentum, not only fuelling the growth of our own customers, but influencing the approach of increasing numbers of US hosting providers to move here to Amsterdam. This is due to businesses looking to localize expansion into Europe through hosted data alongside new branches and operations.
So European datacenters are proving successful with a variety of clients, seeing datacenter vacancy levels fall sharply, most notably in Amsterdam. But why should US providers select Amsterdam over London? While London has a much larger market than Amsterdam, with almost four times the stock and availability, over the past two years Amsterdam has outpaced London, with the highest level of take-up across all European Tier 1 markets. Amsterdam also benefits from greater access to physical space compared to London, and is closest to AMS-IX, the fastest internet exchange in Europe, only second globally to DE-CIX. We enjoy a great relationship with AMS-IX which is experiencing high growth parallel to EvoSwitch.
Other factors that favor Amsterdam look at increasing legislation and taxes in the UK, such as the Carbon Reduction Commitment (CRC), which in London especially, is placing increasing price pressures on datacenter providers. Changes to CRC, in combination with the already high cost of electricity in the UK, really hinders the competitiveness of UK providers as cost-conscious companies look for datacenters with lower overheads.
The case for European datacenters is a strong one, and concludes a positive tactical approach for businesses looking to successfully enter the European market. Hosting providers too often focus on physical boundaries, preferring datacenters that are close to business hubs such as London. However, with fewer overheads and access to the worlds second fasted exchange, Amsterdam presents global hosting providers with the key to an all-round, cost-efficient gateway into Europe.