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Microsoft Announces New Data Center in Finland
He who has the best data center wins.
While this might be a simplification, the data centers at Amazon and Google (News - Alert) certainly have helped the two companies with their business dominance. The data center also plays a crucial role in cloud services, the likes of which are becoming increasingly important both for consumer and business markets.
This new data center in Finland will help Microsoft expand its Internet infrastructure to support the growth of its two cloud crown jewels, its Azure cloud services and it Xbox Live gaming service.
The investment also is part of Microsoft’s increasing emphasis on international infrastructure expansion. Microsoft also has plans to construct data centers in Singapore and Australia, boosting its Asia-Pacific presence.
In Australia, it is building data centers in New South Wales and Victoria. The new centers will take advantage of geo-redundant configuration, which will make it easier for customers to back up their data within Australia and meet the rules for “data sovereignty” in disaster recovery.
Singapore, always a savvy state, has positioned itself as the primary data hub for Asia Pacific going forward. All major providers have data centers there or are eyeing the region.
Office365 and Azure are Microsoft’s major plays going forward in the region. Major analyst firms predict explosive growth in the region for cloud services over the next few years, and Microsoft is also betting on the region.
The Singapore data center is expected to be online as early as next year.
The company’s primary European data center hub, located in Dublin, Ireland, also has grown over time.
Microsoft is not the only company that has invested recently in Nordic data centers. Google already has a huge data center in Mamina, Finland, taking over what used to be a former paper mill. Facebook (News - Alert) also just opened a server farm in Lulea, Sweden.
The Finish data center news was part of Microsoft’s much larger announcement about the acquisition of Nokia’s (News - Alert) devices business. Microsoft will pay $7 billion to acquire Nokia’s devices business, ensuring that Microsoft’s mobile play stays competitive. Nokia played such an important role in the Microsoft mobile strategy, the company needed to buy the business to make sure it didn’t lose control.
The acquisition also stokes widespread speculation that Nokia executive Steven Elop might take over as Microsoft CEO after Steve Ballmer (News - Alert) steps down. Ballmer recently announced his retirement, and Elop is a former Microsoft employee.
Edited by Rachel Ramsey
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