That perception was borne out by panelists and attendees at last weeks Structure:Europe event and other reports that show cloud adoption growing despite PRISM-generated concerns over data privacy, which have yet to be sorted out. Last week, Viviane Reding, VP of the European Commission and the EUs Commissioner for Justice, called for a single data privacy law to cover the entire European Union. Currently, some European countries Germany and Switzerland, for example have more iron-clad data sovereignty rules than others. According to a statement outlining the proposal , the proposed regulation is: [T]he Unions response to fear of surveillance. By adopting the Data Protection Regulation, the Union will equip it itself with a set of rules fit for the 21st century. Rules that will empower the very people whose data fuels the digital economy. Rules that will ensure the digital economys growth can be sustained. The value of E.U. citizens data in aggregate was 315 billion ($426 billion) in 2011 and could hit the I 1 trillion ($1.35 billion) annually in 2020, provided that trust issues that have arisen can be addressed, according to the European Union. A whopping 92 percent of Europeans worry about mobile apps collecting their data without their consent and 89 percent say they want to know when the data on their smartphone is being shared with third parties. If you think cloud tech sales are healthy now, just wait The market for foundational cloud technologies from basic virtualization to top-of-the-stack security will be booming over the next few years, according to new research from the 451 groups Market Monitor service (password required) but Louis Columbus has a good summary here on Forbes.com. The total market for cloud enabling technologies or CETwill grow at a brisk 21 percent compound annual growth rate of 21 percent to 22.6 billion in 2016 from $10.6B in 2012. All of our Structure:Europe cloud coverage is here and check out last weeks Structure Show featuring New Relic founder Lew Sweet Lew Cirnes tips for startups.
Federal Reserve defied investor expectations on Wednesday by not starting to wind down its massive monetary stimulus, saying it would wait for more evidence of solid economic growth. The delay propelled the U.S. stock market to five-year highs, driving down bond yields. Investors immediately returned to higher-yielding emerging markets, which have been boosted by cheap money flows from the U.S. stimulus. Vujcic – who holds the monetary reins in the EU’s newest member – said the Fed’s planned tapering was driven by gradual normalization in the United States, but also in other major economies. “Overall normalization is likely to reverse the ‘safe haven’ effect, which depressed returns on government bonds of the highest rated sovereigns, while the impact on other bonds should be moderate”. A turning point in the current trend of loose policy was “not around the corner”, he said, addressing the monetary policy outlook, and major central banks were likely to continue with forward guidance policies. Exchange rate swings of major currencies caused by the ECB and FED policy shifts were not a major concern for large and relatively close monetary areas, he said. Many smaller countries – as varied as Switzerland and Croatia – with explicit rate targeting were more vulnerable because, “though for different reasons, excessive exchange rate volatility is clearly damaging for accomplishing the central bank’s mandate and for the wider economy.” LAGGARDS Croatia and Slovenia, once the most prosperous economies in the former eastern bloc before Socialist Yugoslavia fell apart, were still stuck in recession, Vujcic said, adding they should “continue structural reforms, embark on more bold government expenditure cuts and boost foreign direct investments.” Croatia’s economy was driven for years by state investments and personal consumption, both financed by foreign loans. Slovenia, which is struggling to avoid a bailout, has seen a serious deterioration of its mostly state-owned banking sector, now choked by at least 7.5 billion euros ($10 billion) of bad loans. Despite recent steps to improve the business environment, much more was needed in Croatia to ignite growth after five years of recession, including a growth model based on exports and investments, Vujcic said. “The government has identified and addressed some of the key issues, but bold reforms are still needed, especially in improving the public sector efficiency and lowering barriers to investments,” Vujcic said. Croatia, which has lost more than 10 percent of its national output since 2008, is likely to be placed in the Excessive Deficit Procedure (EDP) soon, an EU mechanism designed to make sure the budget gap returns below three percent of gross domestic product (GDP) and public debt below 60 percent of GDP. “We believe that shortly after next month’s Eurostat report Croatia will enter the EDP.