“Those mon­sters we some­times call In­ter­net com­pa­nies will suck the brains out of in­no­va­tion”

Stress­ing Ger­man­ness to re­as­sure clients about se­cu­rity “If a cus­tomer wants data never to leave Bavaria, then it won’t”

Bloomberg Businessweek (Asia) - - CONTENTS -

When auto parts sup­plier Robert Bosch be­gan of­fer­ing data stor­age and soft­ware ser­vices to in­dus­trial cus­tomers this year, it re­al­ized that, in ad­di­tion to its knowl­edge of ma­chines and pro­duc­tion, it had an­other ad­van­tage over tech gi­ants such as Mi­crosoft and Google: its na­tion­al­ity. “We made a con­scious de­ci­sion to lo­cate the Bosch cloud in Ger­many,” says Ste­fan Ass­mann, head of its Con­nected In­dus­try pro­gram. “It gives us a com­pet­i­tive edge. Many com­pa­nies and con­sumers have se­cu­rity con­cerns.”

As Ger­man man­agers be­gin to un­der­stand the im­por­tance of cloud ser­vices, the likes of Bosch, en­gi­neer­ing ti­tan Siemens, cloud-in­fra­struc­ture provider Profit­Bricks, and Deutsche Telekom’s T-Sys­tems unit are find­ing that Europe’s strict data-se­cu­rity and pri­vacy laws pro­vide a ma­jor sell­ing point. On its web­site, Profit­Bricks touts what it calls “100 per­cent Ger­man data pro­tec­tion,” un­der­neath the black, red, and gold col­ors of the Ger­man flag. “Hav­ing a Ger­man cloud helps tremen­dously,” says Markus Schaf­frin, an IT se­cu­rity ex­pert at Eco, a lob­by­ing group for In­ter­net com­pa­nies. “Ger­many has some of the most strin­gent data-pro­tec­tion laws, and cloud­ser­vice providers with do­mes­tic data cen­ters are of course high­light­ing that.”

The com­pa­nies known as

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