This week Hetzner Online announced they are investing in a Baltic Sea Cable to Finland. In the spring of 2016 Hetzner will begin operations on a 1,100 km long deep sea cable from Rostock to Helsinki. Hetzner promises fast and secure connectivity from its data centers to the Nordic Countries. This brings yet another global player into local Nordic markets this time with a slightly different approach from the global cloud players of AWS, Azure, Softlayer, and Google.
Speculation aside we can be sure that Hetzner upon landfall will be able to provide very competitive prices, with the added bonus of a total transmission capacity of 15 terabits per second. As we’ve covered here in depth during previous blog posts local hosting providers have been put under pressure to adapt the the every-growing presence of global providers in their own territory. With the addition of Hetzner, Finnish hosting providers will now physically have a global player with a link to their actual own backyard.
The Finnish government has further offered tax breaks in hopes of attracting data centers to the country, and so far three other global players have indeed announced plans to invest in data centers in Finland. Google, Microsoft, and the Russian Yandex all plan on taking advantage of the tax breaks. The slow economy amounting from factors such as the decline of Nokia and further European and Russian slowdown, have brought about these measures from the Government.
What exactly does all of this mean for local Finnish hosting providers? Four global players moving data centers or connections into the country will without a doubt provoke thought? Could this be the time to act, look to adapt to the new playing field to come in the next few years?
Do not be blindsided, do not react too late. Contact Pilvi and lets discuss the matter together, we look forward to heated constructive debates, and new partnerships through-out the Nordics.