Microsoft will spend $2 billion building out its European cloud infrastructure, and the company will create a new UK cloud region that will offer Azure and Office 365 from late 2016 and Dynamics CRM later.
Many in the UK are already using services operated out of Ireland and the Netherlands, and Microsoft is expanding both of these operations to provide additional capacity. UK-based hosting will open up Microsoft's cloud services to the UK government, with the UK Ministry of Defence quoted as intending to make use of the UK facility. The new offering will also appeal to companies that need to keep data within the UK due to regulatory requirements, such as some of those operating in banking and finance.
Microsoft already boasts more distinct regions around the world—currently 24—than any other major cloud provider, with more than $15 billion already invested. This presence arguably gives the company an edge for any business with legal compliance concerns, as it's more likely that Microsoft will have a data center subject to the right laws. The lower latency that comes with geographic proximity can also be important, such as Microsoft's own use of Azure for hosting Xbox game servers.
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