It is no secret that Canada is the newest hot spot for U.S.-based cloud providers. As enterprises and government departments migrate workloads to the cloud, they look to acquire cost-effective scalability to help improve service delivery. To meet this growing demand, some continue to invest in their own infrastructure and fiber routes – requiring exceptionally large budgets to do so. However, what are the options available for cloud providers that want to chart a competitive path, without incurring massive capital expenditures?
In this blog, we look at how BCE Global, is the provider of choice for cloud companies interested in leveraging the low-cost resources, such as power and skilled talent, to help maximize their opportunities in Canada.
The economic benefits of entering the Canadian market
A growing number of Canadian businesses and government departments are looking for the unique scalability, privacy and security of hybrid and private cloud solutions that the public cloud giants cannot offer. Cloud providers looking to satisfy this need can benefit from some of the lowest power utility rates in North America as well as a high share of renewable energy. Canadian metropolitan areas also enjoy lower commercial real estate and talent costs than many of their U.S. counterparts. These benefits combined with Canada’s highly skilled workforce and availability of tax incentives, offers U.S. cloud providers’ strong motivation to setup operations in markets with cloud-neutral data centers – areas like Montreal, Toronto, Winnipeg and Vancouver.
The cost of rent and wages at a 500-person tech firm in top Canadian tech markets (Montreal, Ottawa, Toronto and Vancouver) are 48 to 54% less expensive than the San Francisco Bay Area, where those costs are approximately $62 million a year.
While affordable land, power and talent are significant factors in making the Canadian market so attractive, ultimately, cloud provider performance depends heavily on network capabilities. In fact, Frost & Sullivan’s Global Cloud Survey reports that 80% of IT decision makers reported compliance, application availability, and security as top considerations when choosing a cloud provider . For cloud providers looking to grow their share of the Canadian market, collaborating with the right network service provider is crucial.
Canadian enterprises and government customers have unique privacy requirements that the public cloud giants often cannot satisfy. Cloud providers would have to create their own private fiber optic networks in Canada to ensure the required high security. But very few cloud provider have the resources to incur the massive capital expenditures required to do so, and why would one, when a cost effective, ready made alternative is available?.
Because depending on basic IP transit services and the public Internet is simply not enough, U.S. cloud providers looking to serve Canadian end-users must factor in compliance with various laws and regulations as they continue to evolve – all the way from those implemented at the government level to those mandated by specific customers themselves. All this means that U.S. based providers need a carrier/network solutions provider with deep-seated expertise in the Canadian system to help keep them on point in meeting their obligations to government and business customers.
Enable your growth with BCE Global
BCE Global, offers the high-performance network connectivity needed with Bell’s extensive Canadian network and Points of Presence (PoP) throughout the U.S. to help create the dedicated pathways needed into Canada. By leveraging BCE Global’s dense network assets, companies can realize the benefits of operating a proprietary content distribution network (CDN) without the burden of heavy capital expenditures.
With access to the largest communications company in Canada, BCE Global’s fiber network spans over 165,000 miles and is more than just diverse – it is triverse. That means three routes running from coast-to-coast, two of which remain 100% within Canada to help cloud providers meet their customers’ data security requirements. This high level of redundancy can give U.S. cloud providers the peace of mind to know that no matter what happens on one route, two alternates are available to support mission-critical operations. Additional resiliency is achieved in metros across the country as well with triverse regional rings. For a more complete view of BCE Global’s extensive reach throughout Canada and into the U.S., view BCE Global’s network coverage map.
BCE Global’s network includes interconnection points and other critical infrastructure in multiple data centers across Canada and the U.S., which gives the local, direct access needed to enter the Canadian market and connect with your desired end-users. From data, broadband, IP and voice services, BCE Global has a broad portfolio of products to help your business. With in-depth market knowledge, BCE Global can create solutions specifically designed for you.
So, if high-quality service, performance and availability matter to you, BCE Global has you covered.
Connect with us today.
1 2020 Scoring Tech Talent, CBRE
2 2019 Frost & Sullivan Global Cloud Survey, Frost & Sullivan