Hacker News new | ask | show | jobs
by fcantournet 2071 days ago
It's not a stupid question.

First of all, none of the GAFA were actually started as Cloud infrastructure providers. So the question is not why isn't Europe creating big Cloud Infrastructure companies, one could argue that the biggest "pure-player" in Cloud is OVH which is European.

If anything it's the (insanely lax and pro-monopoly) American regulatory environment that has the biggest impact on the creation of big Cloud providers outside of the U.S. The only country that manage tyo do that are China & Russia to a lesser extent because they have active protection against AWS/GCP/MS.

As to why Europe doesn't create big GAFA-like companies in other sectors, one reason is that the E.U is not a single market from the perspective of these companies. Yes the regulatory environment is stable & simple enough for companies to operate in all E.U countries, but that's not all that makes a market.

The fact that europeans speak 27 different languages for instance makes building a european sized company much harder than a U.S sized one, for roughly the same market in terms of $$$.

EDIT: I don't think creating GAFA-style companies is a goal any state should pursue. The U.S needs to get their head out of their ass and split AMZN & Google ASAP, & fix Facebook.

2 comments

It doesn't help that the best engineers work for GAFA because of big salaries. European companies pay smaller salaries compared to the US ones. A good engineer can double his salary by going to the US. Sure, he may see more social issues there because of no safety net, but maybe he doesn't care.
Less of a safety net is more accurate. Medicare, MediCal, Medicaid, Food Stamps, Social Security, public housing, welfare, etc. It’s the majority of US federal government spending.
Salaries are irrelevant since it's close to impossible for an European worker to move to the US, work visas are incredibly difficult to get and even if you manage to get one you don't have the same careers prospects as a native.

edited: reworded to "close to impossible"

> Salaries are irrelevant since it's not possible for an European worker to move to the US

I know plenty who did. You should rather say something like it's hard for the average European worker to move to the US.

Hard is an understatement. I had multiple friends who had offers from US companies on the table for $200k+. They all fell through because it was impossible to get a visa (however internships are easy with a J1).

The one who went the furthest worked remotely for a very well known company from France for 2 years. Even with the company sponsoring the visa, he had to wait more than 1 year to have a shot, the lottery only happening once a year. He didn't get selected and eventually the company gave up on having any hope to ever bring him.

??? This is false. Look at the top researchers in US companies and universities and a massive share is from Europe.
NeoFeznet asked:

> why is that? Is it the regulatory environment?

fcantournet:

> If anything it's the (insanely lax and pro-monopoly) American regulatory environment that has the biggest impact on the creation of big Cloud providers outside of the U.S.

I don't think you can say the problem there is America's lack of regulation preventing European cloud providers (which was what the question was about) from starting.

It seems like the problem there is one of the European regulations being too strict.

Stifling regulation is not a force of nature, it is a lever that can be adjusted.

I think he means there is little to no protectionism in Europe when it comes to software - so we get 'digitally colonised' by the USA.

Whereas China and Russia have stricter rules about what foreign corporations can do, so there that allows for the creation of homegrown solutions like Baidu - would Baidu exist today if Google was able to run their services without interference in China since the start?

That reasoning is one of the reasons EU is in its current state.

You will never get a Ronaldo/Jordan caliber player without exposing them to the best players from an early stage.

Protectionism works well until they face a real challenger and then wonder why their usual tactics and products all seem to fall short.