A Swedish startup’s bid to build a green rival to AWS
sifted.eu
sifted.eu
> Studies by 451 Research have shown that AWS’ infrastructure is 3.6 times more energy efficient than the median of U.S. enterprise data centers surveyed and up to five times more energy efficient than the average in Europe. 451 Research also found that AWS can lower customers’ workload carbon footprints by nearly 80% compared to surveyed enterprise data centers, and up to 96% once AWS is powered with 100% renewable energy—a target we’re on path to meet by 2025.
[1] https://aws.amazon.com/energy/sustainability/
EDIT:
- GCP, 100% renewable by 2030 https://cloud.google.com/sustainability
- Azure, 100% renewable by 2025 https://azure.microsoft.com/en-us/explore/global-infrastructure/sustainability
- Oracle, 100% renewable in Europe already https://www.oracle.com/sustainability/green-cloud/Say a paper maker is about to cut down a forest in the US. It buys up the rights to do so for $1M. Then, instead, it sells $1M worth of carbon credits to Amazon (maybe for a premium) for its data center greenwashing and doesn't end up cutting the US forest.
But then, secretly, or through some shell company machinery, it buys a plot of land in the Amazon and cuts trees down anyway to match its demand. Even though US law makers evaluate the counterfactual of the paper maker cutting trees down in the US, the net amount of trees in the world goes down.
For example they buy a plot of land and then raze it, then they will plant 10k saplings and take that figure at face value even if most of those won't take and actually become trees.
Then they will estimate the CO2 captured by averaging it over the entire life of the tree (say 30 years) and count year 1 as if it captured 1/30 of the CO2 even though the carbon capture potential of tree is not constant throughout its life.
Beyond that they will double count the carbon credits of the plot of land by selling them twice.
Finally after all the above, they will sell the plots after ~5 years to buy some other plots and it will be razed anyway. No one actually checks that the carbon capture forest will be there in 10 years, let alone 30.
You can see more details on https://sustainability.aboutamazon.com/environment/renewable...
It's when there are mentions of "net zero" that carbon credits are purchased (which Amazon does too, but not for what we're talking about).
> The top 25 corporate solar users in 2022 include:
> Meta
> Amazon
> Apple
> Walmart
> Microsoft
https://www.seia.org/news/solarmeansbusiness2022
Just as one data point
https://www.theguardian.com/environment/2023/jan/18/greenwas...
https://earth.org/is-carbon-offset-a-form-of-greenwashing/
And there are plenty of dodgy players out there that large organizations use:
https://www.theguardian.com/environment/2023/jan/18/revealed...
And there are plenty of government programs that just don't work:
https://e360.yale.edu/features/phantom-forests-tree-planting...
I'm sitting here asking myself how much Amazon cares about that, but also wondering how the "unknown Swedish startup" will approach being green.
And OVH is a dumpster fire.
AWS now is basically "you don't know how to run a database, or a KV store, or a network, etc. so here it all is as an API with a markup." Some companies still have talent that knows how to run things efficiently and just need CPU, RAM, and storage.
The thing is that when you will need to leverage the other services of AWS, they will be there, while you will need to migrate if you're on one of those server providers.
I think, in practice, what folks are complaining about is that AWS has the worst UI known to man. In which case, you can use GCP for their nice UI and still get the benefits of a hyperscaler.
I don’t mean to say that the simpler services have no place in the market but it’s pretty narrow. The fact DO and Linode offer things like Kubernetes now is evidence of that.
That might suck, they leave their job, and you're stuck maintaining the monster.
When a developer starts whining they can't figure out how to use an IAM role, it usually means they want to run their entire application as a root user whose SSH key they have sitting in Dropbox.
Stay away from my software please.
AWS UI is filled with manual and tedious bullshit to do every day things. It really doesn't have to be this way, making things annoying to configure correctly leads to mistakes or lazy overly broad permissions.
If they weren't the first they wouldn't have made it.
Terraform isn't hard!
And in the world of AWS Terraform is still manual and tedious (compared to e.g. CDK).
So you would not trust most developers?
Even a lot of Sysadmins i.e. Devops find it confusing.
A lot of people just pretend it is fine by being ignorant and not learn any of it. They would follow 1-2 processes that works and never do anything else. You ask them why or how it works and you can't even get a real answer out of it.
Obviously not? Most developers are incompetent clowns. I don't feel this is controversial?
There are plenty of excellent, security conscience, etc developers who take a look at IAM or any of the other dozens of sticky AWS traps and run away screaming.
"AWS has the worst UI known to man, except for Azure and GCP".
It still amazes me that when you add members to AAD groups the interface pops up and tells you 'change may not be displayed yet'. It's like, YOU HAVE ONE JOB.
And this is mostly for security reasons: I'm not familiar with Azure but AWS and GCP setup is very complex and it's very easy to make a mistake that would impact the security of your infrastructure. Tier 2 providers like DO, Scaleway, Linode before Akamai, etc generally offer products whose setup you can fully understand and that helps a lot in giving you the confidence that you didn't mess up and shot yourself in the foot without knowing it.
I use AWS daily and have for the past 5 years, but despite all that I wheep
Yes, I'm speaking from experience.
Now compare the cost of it for a month/year compared to other providers
It’s literally in the name… web services.
To put it another way: a DC in a wooden shack connected to a low carbon grid (France) surely has bad security but a low environmental footprint too.
And this Swedish startup is?
(though some stuff in AWS is painful like IAM, etc so maybe it can be done better)
"Renewable" is a broad set of terms. Importantly from your first link on GCP it says:
> Google is carbon neutral for our operations today, but aiming higher: our goal is to run on carbon-free energy, 24/7, at all of our data centers by 2030.
Carbon-free, 24x7, is a stronger commitment than carbon-neutral which would include using renewable power offsets. Amazon's methodology is at https://sustainability.aboutamazon.com/renewable-energy-meth... which makes this clear as well.
https://www.electricitymaps.com/blog/announcing-our-partners...
https://blog.google/inside-google/infrastructure/data-center...
There's a big difference between "we bought solar elsewhere but still burn fossil fuels for our datacenters" and "we never use fossil fuels to power our data centers".
It's like when I see the sign "0% pollution" on EVs, it's so far from the reality, it's the same order of magnitude of (direct and indirect) pollution than a fossil fuel vehicle, and a few order of magnitude larger than a bicycle (which is not exactly 0 too, it contains plastics, and a little bit of maintainance)
"In an evaluation of some of the world’s largest greenhouse gas emitters, the investor engagement group Climate Action 100+ found no company has fully disclosed how it plans to reach net-zero."
"Some of the boldest pledges rely on carbon removal technologies that don’t even exist yet, or at least not at the scale required. Many more are heavily reliant on carbon offsets, which allow companies to invest in “nature-based” programs like tree planting or forest protection to counteract their own emissions. Offset projects, however, have been plagued by allegations of flawed accounting, greenwash and sometimes even of actively fueling climate change."
Source: https://www.theguardian.com/environment/2021/jul/26/climate-...
That is, they say they'll do something, but they don't even know how, or at least won't tell for some reason... meaning that there's no way to check if they're doing the necessary work or mostly fugding with the numbers (some high profile cases where companied just patently fabricated numbers regarding their progress have already been revealed in the news).
I believe there's zero indication that companies are serious... emissions in 2023 are set to be the highest ever recorded (and this is not because of higher emissions in developing countries, the developed world is still leading the shameless business-as-usual route)... that's in the middle of a global economical crisis... imagine if the economy had been doing really well!
Until actual emissions start to fall dramatically, don't believe in these companies empty promises.
The price of "green" tariffs in the UK skyrocketed identically to traditional tariffs, when energy prices doubled or tripled in the last few years.
I have ratty-ass computers running at home with weeks worth of uptime. More is not really needed, ironically my home stuff usually has much longer uptimes than the prod infrastructure that I work on, that has constant restarts due to upgrades, configuration, etc.
Quick googling says that AWS, Azure and GCP have 69% of the European cloud market. I wonder how big Europe is for their overall profits, and if this could potentially be a big problem for then in the future.
Expect GAaaS startups (grant applications as a service) to pop up left and right, offering extremely slick pitch decks, founders in well-fitting suits and ridiculous pie-in-the-sky business ideas.
It’s some version of ”build it and they will come”. Granting millions in free money to anyone who promises to create an EU alternative to AWS / Intel / Facebook gets you a lot of said promises.
The EU pledged €2bn so it's mostly government funding. Imagine burning €125m in public money every month.
It certainly doesn’t seem to be based on likelyhood of success.
The sad part is, without EU money, nothing in tech would happen in the EU. We have no VC investors willing to put their money in something as risky as tech when they can put their money in much safer places with surer returns like real estate which sacred in the EU compared to let's say the US.
The EU start-up I was working for was looking for VC investors and we found some German guy who was like "yeah I can invest 100k in your company" at which point our boss was like "bruh, that will barely cover scientist, dev wages and infra for 3-5 months". Then came and American guy with an initial investment of 2 million. Nuff said.
As you point out, the real issue appears to be a lack of VC risk appetite for investing in early-stage startups in the EU vs the US.
I'm sure everybody in the EU would like US level salaries, but most wouldn't move for the money alone
In all other countries you'll always be a foreigner (your kids will be local though).
I'm kidding about the "happily" of course.
Wait what? It's OVHcloud, not "Deutsche Telekom OVHcloud". There is no mention of any relationship between the two companies beside a common project named "Gaia-X" which is still in a very very early stage of planning.
This doesn't inspire confidence in the journalist.
Gaia-X is a european initiative and consortium to build some standardized cloud ecosystem. The goals are a bit hand wavy and since Google, Amazon, and Microsoft are actually part of the consortium, it's not really clear what the goals are at this point. I haven't heard much about this since it was announced a few years ago.
I've used AWS, Gcloud, Hetzner, Telekom Cloud, and a few other things. My view on this space is that it needs disruption. Amazon was disruptive when they launched in 2006. It was great and it enabled a lot of companies to stop worrying about maintaining infrastructure. That's 15 years ago. It's a commodity product at this point.
The problems I see:
- Companies overcharge for their services. AWS especially is very expensive to use. To the point that the monthly cost of some of their more expensive things about pays for the hardware they give you. Of course it delivers a lot of value. But it creates an opportunity for others to offer cheaper services.
- Most providers try to lock you into their platform with a combination of complexity and convenience. Once you are on a platform, switching it out for another becomes really expensive. Things like openstack exist of course but are a combination of complex and not that comprehensive.
- The services offered by these companies are very hard to use for what they do. You end up micro managing lots of bits and pieces and you need expensive devops people to do that for you. There are better ways to deploy software to server these days that feature higher levels of automation and convenience.
To disrupt the big providers, you'd need to be as good but an order of magnitude cheaper. Instead of focusing the commodity things that everybody has (buckets, vms, load balancers, etc.), the real value is in the more advanced stuff they offer. Things like Fargate or Google cloud run. Basically Kubernetes without all the moving parts to worry about. Don't offer database servers but scalable elastic data bases.
In short, that's where the money is and the reason Amazon is so ridiculously wealthy. They overcharge for this stuff and they don't get any real competition so they get away with it. If you think about it, a lot of this stuff is very resource efficient. So it should be cheaper than getting a lot of hardware that you then under utilize. Instead, it's more expensive. AWS pockets the difference.
That's what needs disrupting but it will be a race to the bottom once this starts happening. I think that's overdue though. So this Swedish company might be onto something.
> The lack of home-grown cloud providers in Europe
Not accurate. OVH (France), IONOS (Germany), Scaleway (Sweden) are few examples thar had been serving customers for years/decades.
On lower end there even more competitors like Servers.com and Hetzner.
The reason AWS is such prevalent is not lack of options. It is VCs pushing "free" credits on their portfolio companies till it became synonymous with cloud for some engineers and founders.
Most are already carbon neutral (nuclear) or renewable powered.
OVH even has patented highly efficient water cooling used on large scale.
Rather than announcing US cloud rivalry, we should make community aware of better, cheaper solution at "home".
"Amazon is the world’s largest corporate purchaser of renewable energy and is on a path to powering our operations with 100% renewable energy by 2025"
https://sustainability.aboutamazon.com/environment/renewable...
"The ecommerce giant recently backed out of a commitment to make 50% of its shipments net-zero carbon by 2030. Amazon said in a statement that it would roll this goal into a broader Climate Pledge to reach net-zero carbon across all its operations by 2040. That's a decade later than the 50% goal, which was called "Shipment Zero" at the time." [0]
[0] https://www.businessinsider.com/amazon-shipment-zero-gives-u...
Also worth noting that this is a target. And targets can always shift eg 2040, 2050, etc
Just make a green colored logo and website?
Some people give it lip service in America for political points but they don't understand it on a fundamental level - most of them would turn around and complain about why google street view doesn't work in Germany.
I say this as someone who has bounced around between both sides of the pond
Obviously, the government would love to just pilfer around in the computers of private citizens and businesses without "filling out forms", but that's not a good reason to give it to them.
They don’t get to ‘pilver around the computers of private citizens’ though. Only those citizens directly affected by an existing hack (I read it as being under control of the hacker).
If I had the choice between just a nefarious hacker, and both the nefarious hacker and the NL security services having access to my PC I’d choose the latter.
Meanwhile Denmark: “It’s time to fill out your yearly tax declaration! Actually, you don’t have to bother! We already pulled your data from EVERYWHERE…”.
Still you need to put in everything again, each year.
But all three major clouds offer several European data centers so it's really not such a big deal.
you either grow your own economy or become a vassal to someone else who does.
if europe keeps stagnating and america keeps posting 4% gdp growth, a day will come when the EU can pass as many laws as they like and it won't matter. it'll be like some shitpoor latin american country against united fruit.
The Chinese did it by just taking all the IP they could get as a requirement to sell in their nation
The Europeans did it by requiring companies to abide by their new law or pay out fines(basically a quasitax)
The capitalistic system is an addict to access to markets. Governments setup their various Guardrails to ensure that it can't entirely (i lack a nice word for this verb) their society and peoples.
the way things are going, there will eventually be an american company with a market cap greater than the GDP of France or Germany. at that point, they'll be making the real rules.
There's a lot of power in that.
USA GDP: $26.8 trillion
EU GDP: $17.1 trillion
There's a massive impoverished underclass in the US, who are not going to be able to drive much consumption.
GDP is an incredibly reductive measure.
This map speaks volumes: https://en.wikipedia.org/wiki/List_of_countries_by_income_eq...
This works only because EU is a relatively big and wealthy economy. If, say, Chile or Botswana tried to do the same, US companies would be like “lol, bye”. If, or when the Europe becomes just as poor as these relative to US, the incentive for US companies to stay in Europe and pay these ridiculous fines, will simply not be there, and so they will leave.
Thus, if Europe’s strategy is to impose more and more strict regulations and taxes on US companies, it must return to growing in wealth in power. Otherwise, this strategy will backfire: not only Europe will stay poor, but also the highly productive companies will exit it.
Have californians started thinking of Europe as poor?
[1]: https://ourworldindata.org/life-expectancy#differences-in-li...
and we can expect the new weight loss drugs to make a noticeable dent in that (at the cost of who-knows-what side effects, but they can't be as big a killer as obesity)
Isn't this FUD? US authorities can't subpoena data on a server in the EU even if it's owned by a US company
Given that Microsoft and google are struggling to match aws it seems we’re still decades away from someone truly being able to deliver the same features, scale, and reliability.
I'm sure this sounds great for the laymen and politicians, but does it really make sense technically?
This whole idea of moving compute around based on where the free power doesn't actually work. Power has grown as a fraction of data center cost over time, that's very very true, but saving 50% on power doesn't offset having a data center 90% idle.
You need pigeons!
They're addicted to that market and they(we?) need checks and balances to constrain that which we have wrought
Turns out its https://evroc.com
> Having just raised a €13m pre-seed round, evroc aims to raise €3bn within the next two years
I think it doesn’t pop out because it’s written without capital letters.
I use Hetzner over other providers because it’s dead simple to create and delete VMs and the prices are competitive … and yes it’s a European company.
The EU flag alone is not enough - Stable services, great UX and second to none support is the alternative that the market has been longing.
I think the previous administration spooked Europe and made it clear that the USA is an unreliable partner.
I just don't think most of these people grasp how complex it's going to be. None of the existing EU hosting providers have succeeded in providing even a small subset of the services AWS provides. You also just can start out with an S3, SQS and EC2 clone anymore, customers expect more features from day one.
Bootstrapping an new cloud provider is going to cost and insane amount of money and billions of Euros, all of which may be wasted if the EU and US can reach an agreement on data processing.
As an example, look at Google, they have the money, the people and the technology, and they are having a hard time competing with AWS and Azure.
Other than that, there is hetzner which I also use and is very good and probably the cheapest cloud provider out there. Then there is the french ovh.
There's almost no way to make a restaurant profitable as many restaurants are a labour of love, basically.
Using a cloud not owned by a US company is quite a big USP for many non US organisations. I can't name any big EU cloud providers, but I imagine that a large chunk of that 3 Billion will be spent on marketing so people will have heard of evroc in a few years.
That doesn't sound right. If the data center is located outside of the US, there should be absolutely no reason why US authorities could have access. In fact, US authorities should not even have access to the data within the US. Sure you might catch the odd bad guy but government creeps eroding everyone's trust is not a worthwhile tradeoff.
I'm deeply disappointed that the EU is afraid of doing real investments with realistic goals into information infrastructure while it happily throws away billions on the failing Ukraine war.
it has been a way to get startup entrepreneurs (founders) to absorb the negative cost of trying out new things; and whatever actually works well gets bought by an established winner.
what's fundamentally unproven about how to build data-centers? this seems to be about using a different sort of 'power supply' for the whole project
what is to stop AWS from being even more green even faster (by buying 'greener' power supplies?)
the only way this makes sense is if their real end-game is to get bought by some already established datacenter company.
then again, it's not 2018 anymore. The VC scheme is also changing a lot. they should find a way to chuck "AI" in their pitch to get startup money now
The EU passes laws which require data/compute/whatever to run in the EU. So a company springs up with a product for that.
What could that be? Its not easy but on the other hand you dont win the future by doing easy stuff.
- "need" to operate in China
- The Chinese government requires majority state ownership of enterprises
I don't think the conditions are the same in Europe, especially given the historical precedents of Safe Harbor/Privacy Shield/etc.
Basically some European company licenses the “AWS” stack and follows instructions to build and operate the data center.
Works in China, and even more so with the various government regions.
Europe is basically building the Great Firewall slowly and through committee, they’ll end up in the same spot.
Wouldn't count that as the route China did. China forces all companies to have local ownership. It has nothing to do with the data. At least it wasn't the intent.
They have actual local clouds that are popular from Alibaba, Tencent, JD and many other big names.
So software is where you can make the difference: http://host.rupy.se
No need for HTTPS.
Unfortunately Mattias, they don't care if they have the right or not. American citizens are routinely subject to surveillance, dragnet and otherwise. I'd be very surprised if any of your data centers stay out of view of our unconscionable surveillance apparatus.
In this world of capitalism, only the price matters. Pure green would be more expensive than the cheapest energy option at all times.
For context I've worked a decade in the public sector of Denmark, and while the GDPR didn't actually change much on the back-end because we already took privacy and data serious, many of the compliance contracts and standards that work with AWS and almost with Azure in GDPR contexts aren't viable in what is now considered national security. Today I work in an investment bank that builds green energy solutions around the globe, you would think that we wouldn't be too affected by these powers in the EU, but the financial sector (and the energy sector) are all considered on the same level as our public services. In the past year, I've had to write up a plan on how we can leave Azure in a couple of days, if the EU deems it necessary to demand that 50% of the European finance sector needs to move away from Azure as a single cloud solution because it's too risky to rely on a single vendor, especially one that is not an EU vendor. Easy enough for my team, we build software, it all runs in containers and it doesn't really care where it runs. Sure we'll have to replace Azure Functions with Express in our node functions, but we've build some automation to make it possible to do in a day to be in compliance. It's much harder to do with our document storage in SharePoint Online and all our federated security build into Azure Active Directory, and, well... Outlook or Windows. I'm not sure anyone has a plan on how to exit Outlook or Windows, but if the EU points at Microsoft and tells us that our number came up, we actually need to tell them how we plan to do it.
The cloud isn't Windows or Outlook though. It'll be hard for us to leave SharePoint Online (you could know this as OneDrive, but in enterprise it's all SharePoint Online), AAD and a lot of the more Operations sided stuff in regards to well running an IT department (I'm sorry, I don't know too much about all those Runbooks), but it also won't be hard for us the same way leaving Outlook or Windows would. But if someone comes a long with viable EU alternatives to Azure, then we're likely going to jump on them. Not because we dislike Azure, but because the bureaucratic measures which force us to maintain these "you need to get out in a day" plans is a lot of work. It also limits us in the services we want to buy, we were looking into the Azure managed Kubernetes product that I forgot the name of, but we decided it wouldn't be a good idea because of how much work it would add for us to plan for an exit that will likely never come. I'm sure that last part has a lot of you rolling eyes. It has us rolling eyes too, but it's the world we live in, and it's not going to change. With the war in the Ukraine, the troubles with China and the risk of America electing another EU-unfriendly president/government, it's likely only going to accelerate, and someone, maybe even this Swedish initiative, are going to be the company or organization, that eventually gets the EU cloud alternative right. I think it'll be more a matter of timing and luck, than being able to actually compete with AWS or Azure in terms of services though. I think it's unrealistic for someone to build an AWS, but it won't be unrealistic to build something that's enough AWS and convenient as legislation pushes harder and harder.
What I'm personally curious about is to see what they plan on doing with smartphones. In Denmark your iPhone is your payment tool, your drivers licence, your social security license, you passport, your national digital ID, your bank and so on, and I'm not sure how the EU plans on having an European smartphone to rival Apple or Google.