Cloud loans are the trap that traps French startups with a service provider

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American Cloud providers know how to attract French startups by offering them appropriate Cloud credits, that is, by allocating services that are freely accessible for a certain period of time. This facilitates their development, but in the long run young companies are locked into the supplier. It is no longer possible for them to change the technology and the prices are increasing.

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Cloud credits are at the center of the Scaleway and OVH debate

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This was denounced by two French Cloud providers, Scaleway and OVH, a subsidiary of Iliad and founded by Xavier Niel. Yann Lechelle, managing director of Scaleway, claims these Cloud credits have been cancelled. Caroline Comet-Fraigneau, OVHcloud’s Vice President for France, Benelux and Africa, calls for a fair framework at the European level. They spoke on the day of the Think Tech Summit organized by La Tribune on March 28.

“The real problems arise when there is lockdown through cloud loans that create negative prices and exit fees.

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Today we focused on the real challenges of multi-Cloud, the real challenges of reversibility. Says Yann Lechelle. ” Theoretically reversibility is good, but the real problems arise when there is lock-in through Cloud credits that generate negative prices and exit fees. [NDLR : frais de sortie] blocking data output from a specific actor indicates the leader. Yann Lechelle needs lobbying at European Commission level. ” This requires active lobbying, going to the European Commission to explain these mechanisms, and ultimately creating a real European competitive space that will allow for reversibility. He defines.

These Cloud credits are also offered by French service providers. ” We have to. Startups tell us I can’t start my project without cloud credits. How much are you giving me? Reacting to Yann Lechelle. A cloud loan can be from 6 months to 1 year, up to $100,000 or more, he says. But once a company commits to a Cloud for a few months, there is little chance of abandoning it as its software becomes captive. ” Frankly, when you start to develop an architecture in IT, when you are involved in a project, if you have used a service for 6 months or 1 year, it is too late. he analyzes. ” There is no reversibility from an architectural point of view, because the start gallops, it does not have time to go back. This kind of mechanism is somewhat akin to hard drugs. We can’t come back. And these Cloud credits must be negative, eventually cancelled. “He asks.

Startups are all in a race against time

At OVH, we confirm Scaleway’s analysis and a potential restriction on a supplier. ” We all have a support program for beginners. It would be nice if there was a framework for all this so it would be fair. Reflects Caroline Comet-Fraigneau of OVHCloud. ” I had the opportunity to meet with many startups. At first, they are aware of these reversibility issues but are in a race for time. manager commented. ” They tend to use a number of special features and tools offered by Gafam. And once they have developed their platform, it becomes extremely difficult for them to switch to another environment. he understands.

“Once they are locked down, prices go up and technology changes are extremely difficult”

It also calls for a regulatory framework to be enacted. ” Therefore, we must succeed in getting everyone up to speed on these reversibility issues so that the technologies are open and encourage the freedom to switch suppliers. A range of SaaS providers [NDLR : fournisseurs de logiciels accessibles depuis le Cloud] they realize that most of the value is taken by a number of cloud providers. And once they’re locked in, prices go up and technology changes are extremely difficult. ” says.

The Vice President highlights OVHCloud’s approach to using Open Source to promote reversibility. ” We support the fact of using as many Open Source type solutions as possible, we use OpenStack for our public Cloud or solutions that can later be migrated to other environments. We want startups to start with reliable and independent solutions she continues.

Three-quarters of new technologies in France are developed on AWS

According to Scaleway, which shows that 75% of French Tech technologies are located on AWS (Amazon Web Services), American suppliers are taking over most new software development. ” Our unicorns are developed at a low tier, the future of French technology, capturing most of the value in the long run, will directly feed the funds of players who already dominate. It is this phenomenon that needs to be reversed. How do we rebalance all this for more sovereignty, more value-added job creation locally, and more local control? Liberal protectionism should be applied in Europe as the United States did » Yann Lechelle of Scaleway concludes.

“JI wouldn’t go so far as to call Cloud Credits a hard drug. You must have a reason for this kind of thing

The clear positions of Scaleway and OVH go against Orange’s more blurred vision; this has the impression that he is trying to save the goat and cabbage as long as possible, namely, risks and opportunities. Can we qualify Cloud credits offered by hard pharma providers? “JI wouldn’t go that far. You must have a reason for this kind of thing Cédric Parent, vice president of Cloud operations at Orange Business Services, responds to Scaleway at the same roundtable.

The VP of Cloud at Orange Business Service considers the reversibility and removal of a vendor lock-in, a ‘vendor lock-up’, to be a practical challenge. ” We all agree that reversibility, avoiding vendor lock-in, is extremely important. In any case, it is at the heart of our strategy. it starts. ” There are technologies that allow you to do this, such as ‘containerization’ and all the technologies around Kubernetes, which are actually less simple than on paper. Our role is to help customers migrate from one technology to another for functional, legal, latency, security, negotiation or resiliency issues. he comes to the conclusion.

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Source From: Google News

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