In the IT industry in 2023, no other topic dominated the debate to the same degree as generative artificial intelligence, or GenAI for short. The hype around OpenAI, Gemini, Aleph Alpha and Mistral not only demonstrated what large language models are now capable of achieving, but also revealed just how easy it is to access them – and how simple they can be used via APIs. However, there is still a relatively long way to go from the basic AI models to specific business applications that can help companies improve their processes and increase their productivity.

However, such applications will emerge in large numbers in the coming years. Market experts concur on this aspect. As an association, we are actively supporting this process and promoting the development of AI solutions to the best of our ability. Our focus is on infrastructures and platforms as well as data ecosystems and the legal framework. For example, we conceived the “AI in Practice” initiative based on experiences from successful projects such as “Service-Meister” and “Car Repair 4.0”. This “AI in Practice” initiative, which was launched at the beginning of 2024, focuses primarily on manageable concepts for SMEs.

EuroCloud

Last year, at EuroCloud Deutschland (our subsidiary organisation), we also defined artificial intelligence as one of the major focal topics alongside cybersecurity. Despite all of the buzz around GenAI, we must not lose sight of one factor: it is the cloud that has enabled AI to establish itself in the global market and will continue to do so. AI models are trained via the cloud and, through providers, are made accessible to a vast number of users. In addition, AI applications are being developed in the cloud and offered as SaaS applications – whether on the platform of a hyperscaler or a regional provider. On the other hand, AI, especially GenAI, will significantly drive cloud usage in the coming years.

For the development and operation of AI applications, distinctive cloud capabilities are therefore required. In this respect, the members of the EuroCloud Native (ECN) initiative are exceptionally well positioned. A key objective of our initiative is to help these pioneers, who are often still small, to gain more visibility in the market. Interestingly, most of the new members who joined ECN in 2023 are Alliance Partners. The fact that system integrators, traditional service providers, solution providers and infrastructure manufacturers are increasingly seeking dialogue and collaboration with cloud native specialists is a clear indication of the high demand for specific cloud expertise in the market. We at EuroCloud are working intensively on this development and will continue to actively promote the networking of different types of members in 2024.

German companies clearly no longer view cloud technologies merely as tools with which they can optimise their IT operations and reduce costs, but see them increasingly as enablers for digital business models. This is also indicated by the results of our “ECN Pulse Check” study, which we applied for the third time in 2023. In reflecting the growing importance of cloud computing for the digitalisation of business and the public sector, in 2023 we strengthened our team at EuroCloud Deutschland. Dr. Nils Kaufmann, who co-founded and developed the ECN initiative, was appointed to the EuroCloud Deutschland Board in August 2023. In November, we were also able to recruit Michael Hase, previously chief reporter at the trade magazine IT-Business, as Senior Project Manager at EuroCloud Deutschland.

DE-CIX

In order for organisations of all types and sizes to provide scalable and secure digital services for their employees and customers, they are more dependent than ever on high-performance, low-latency interconnectivity solutions. The growth of DE-CIX, the world’s leading operator of Internet Exchanges (IXs), demonstrates just how much this demand is growing. In 2023, data exchange over its more than 50 Internet Exchanges increased significantly. Global data traffic accumulated to almost 60 Exabytes over the course of the year, representing an increase of 23 per cent. During peak times, more than 16 Terabits per second (Tbit/s) flowed through DE-CIX Frankfurt, Europe’s largest Internet Exchange. The connected customer capacity grew by 14 per cent to more than 140 Tbit/s.

In 2023, DE-CIX expanded its global presence by 14 metro markets to over 50 locations spanning North America, Africa, Europe, the Middle East and Asia. For the first time in 2023, three “Cloud Exchanges” were established in Tokyo, Osaka and Seattle, complementing the business model. This was the IX operator’s response to growing demand. The number of cloud connections increased by 50 per cent in comparison to the previous year. By the end of the financial year, customers had booked almost 4 TBit/s of capacity to exchange data with their respective clouds.

In 2023, the demand for cloud exchange services in Germany also increased by 50 per cent. Overall, approximately 1,800 networks with more than 86 TBit/s customer capacity are connected to DE-CIX in Germany. The ecosystem is spread across six Internet Exchanges in Frankfurt, Hamburg, Munich, Dusseldorf, Leipzig and the Ruhr region. In the year under review, the operator further expanded this infrastructure and prepared for the launch of a seventh Internet Exchange in Hannover. HAN-CIX, powered by DE-CIX, which is located in the data centre of eco member GRASS-MERKUR, was officially opened in April 2024.

Felix Höger
eco Board Member for Online Services/Cloud Computing