With more people working from home, the demand for cloud services has grown. Microsoft is planning to open its first data center in New Zealand to answer this demand amid the pandemic caused by the novel coronavirus.
According to Techcrunch's latest report, cloud computing is one area within Microsoft that is currently thriving. They have therefore made the decision to open a new data center in New Zealand once it receives approval from the Overseas Investment Office.
In a previous Techcrunch report, they stated that cloud infrastructure revenue has also soared during the pandemic. Companies had already begun a steady march to the cloud even before the impact of the novel coronavirus. This fact was shared by Andy Jassy, CEO of Amazon Web Services, during his keynote address at Re-Invent 2019 late last year.
The recent quarter's earnings of the main companies in the market showed that economic fallout and the pandemic had done little to hamper their revenue--and it might also be contributing to its growth. In the first quarter of 2020, $29 billion of cloud revenue of the infrastructure market was reported.
John Dinsdale of Synergy, who has been watching the market for a long time, believed that the pandemic had been modestly contributing to the revenue growth. Although he clarified that the market might not get out unscathed from the pandemic, he concluded that the companies' shift operations from offices might be one of the reasons why the demand increased in the first quarter.
"For sure, the pandemic is causing some issues for cloud providers, but in uncertain times, the public cloud is providing flexibility and a safe haven for enterprises that are struggling to maintain normal operations," said Dinsdale in a statement.
First data center of Microsoft in New Zealand will open as Cloud usage grows: Azure and Aws revenue rate rose to $60 billion
According to Techcrunch, the company considers the project a weapon against the backdrop of accelerating digital transformation currently happening as the pandemic forces companies to move to the cloud.
"This significant investment in New Zealand's digital infrastructure is a testament to the remarkable spirit of New Zealand's innovation and reflects how we're pushing the boundaries of what is possible as a nation," said Vanessa Sorenson, general manager at Microsoft New Zealand.
CEO Satya Nadella reiterated that the project should help the companies in New Zealand during this transformation. "Now more than ever, we're seeing the power of digital transformation, and today we're announcing a new datacenter region in New Zealand to help every organization in the country build their own digital capability."
Aside from simply building a data center, Microsoft ia also planning to make the project part of a broader investment in the country, including reducing the environmental footprint of the data center and skills training. Once the data center opens, the company will boast 60 regions allowing it to cover 140 countries across the world.
