The Cloud moves to Switzerland

The Greater Zurich Area will be home to cloud data from Microsoft and Google beginning in 2019, a sign of Zurich’s importance as an economic region and data location. While globalization holds out the promise of maximum flexibility, proximity and security are key to data and applications.

 IT infrastructure is becoming a decisive factor in choice of location. According to Canalys market researchers, global sales of public clouds grew by nearly 50 per cent in the first quarter of 2018 compared to the previous year. In the meantime, the role of corporate data centres is steadily declining.

Moving data and applications to the public cloud promises innovative services, cost savings, scalability and flexibility. And Switzerland as a data location is preparing for this development. Microsoft and Google, two of the world's largest cloud infrastructure providers, will soon host their cloud services directly in Switzerland. As a result, local capacity is being expanded several times over.

The cloud as an engine of globalization

Microsoft started things off in March when it announced that it would use data centres in the Zurich and Geneva regions for its cloud services beginning in 2019. Google followed suit in May with its announcement that it will have a cloud platform region in Zurich ready for launch by early 2019.

For Microsoft spokesperson Tobias Steger, this development is central to the globally networked economy here: "In the past, the Gotthard tunnel connected companies in Switzerland with the rest of the world. Today, a modern cloud infrastructure allows you to participate internationally and take advantages of opportunities, both in the best possible way."

When data is located in Switzerland it is treated according to Swiss law, which - in the field of data protection - is relatively strict in comparison to other countries. 

Proximity becomes a competitive advantage

When it comes especially to sensitive data from companies in the areas of finance and health or non-governmental organizations, Switzerland as a data location is above par, says Steger. International companies headquartered in Switzerland want their data close to home and in a safe place. These sectors are not only strongly represented in the greater Zurich Area - there is also an especially high number of international corporate headquarters here.

One aspect in particular should not be underestimated: Speed through proximity. Google top manager Urs Hölzle has promised that expanding infrastructure in Switzerland will reduce delays in cloud-based activities. More efficient connections thanks to shorter distances have long been a competitive advantage. Just think of high-frequency trading in the financial sector.

Innovative services for new innovations

You could say that the more important a location, the more urgent it is to have the best possible cloud infrastructure. But this doesn't apply to established companies alone; public cloud services are especially popular among new, agile companies due in part to their need for flexible capacities. As Tobias Steger adds: "The cloud makes innovative services for the entire data bandwidth available to large and small companies alike."

They keyword here is the smart cloud, which integrates elements of artificial intelligence and enables learning dialogue systems on websites. This is an advantage for the buzzing IT scene in the Zurich economic area, whose representatives are developing new applications precisely on this basis.