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  1. #1
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    [EN] European colo grew by 20 percent in the past year

    With four leading markets boasting a combined 1GW of colo capacity

    Tanwen Dawn-Hiscox
    23 August 2017

    The European colo market is as vivacious as ever, according to CBRE, whose latest analysis has found that the continent’s four major data center hubs have increased their supply of wholesale data center space by 20 percent year-on-year.

    It is expected that Frankfurt, London, Amsterdam and Paris will see another 120MW of colocation capacity added in the next six months - that’s 12 percent of what they currently offer.

    So far, 2017 has seen the highest colocation take-up rates on record.

    The FLAP markets

    London now has 74MW of extra power, thanks to the 10MW expansion of Gyron’s Hemel Hempstead facility, and is expected to gain another 8.7MW of capacity with the launch of the Kao Data campus before the end of the year.

    Frankfurt saw a slow start to the year, but companies such as Colt, Digital Realty, e-shelter, Equinix, Interxion, Zenium, and new wholesale provider Maincubes are all currently in the process of building new facilities, so it is expected (and hoped) that confidence will grow as a result, and colo sales will increase.

    Amsterdam also took off to a slow start, but Digital Realty’s massive 12MW facility in Hoofddorp, near Schipol Airport, bought its capacity back up to rival other major European locations. Equinix, Maincubes and datacenter.com are expected to bring more facilities online before the end of the year.

    Paris emerged last of the four major hubs, having seen 5.9MW of new supply in H1 2017, and only 5.3MW of take-up. However, an increase in demand could emerge with the country’s high cloud adoption rates.

    Record sales

    Colo sales totaled 58MW in H1, with an additional 57MW expected in H2.

    Once again, London took the lead, securing deals for 15MW of power capacity in Q2, followed by Amsterdam which sold 10MW, and Frankfurt and Paris, each selling a total of 6MW in H1.

    The top three providers in each location were found to account for two-thirds of all take-up.

    “Confidence in the European colocation sector is higher than ever and Q2 delivered another blockbuster performance. The cloud companies that are driving recent growth in Europe show no signs of decelerating in their procurement of colocation space and developers are responding in-kind with an unprecedented level of build activity,” said Mitul Patel, Head of EMEA data center research at CBRE.

    “The continued increase in our use of IT and reliance on the digital world, and thus the increased need for processing power, has led to record-breaking levels of new supply and take-up since 2016. In context, in the six quarters prior to 2016 we saw 90MW of new supply and 91MW of take-up. In the 6 quarters since, we have seen 204MW of new supply and 212MW of new take-up.”

    http://www.datacenterdynamics.com/co...44.fullarticle

  2. #2
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    Europe’s Hottest Emerging Data Center Market

    Yevgeniy Sverdlik
    August 23, 2017

    Typically, when talking about the internet’s geography, people in various corners of the industry that collectively builds out the global network see any particular region around the world through a prism whose sides are the region’s few key cities where most networks converge and interconnect. New York and Ashburn in the Eastern US; Miami and Dallas in the American South; Singapore, Hong Kong, and Tokyo in Asia – those are all metros where for a number of reasons many network operators have chosen to link their networks, forming interconnection hubs that grow more attractive to their peers and other players in the ecosystem as more of them join. It’s a snowball effect.

    In Europe, the hubs have traditionally been Frankfurt, London, Amsterdam, and Paris, or FLAP; and for decades this quartet has been sufficient to serve Europe and whatever non-European markets companies in Europe have wanted to reach. But today’s explosion of demand for digital content in Africa, Middle East, and Asia means European interconnection hubs now play a much bigger role. That change has created an opening for a new hub to emerge, and the fastest-emerging one today is Marseille. The big port city in the south of France that’s fought long and hard to shed its reputation as a criminal hot spot and build its image as a welcoming tourist destination on the Mediterranean has a huge geographic advantage over the other European hubs for companies that want to deliver digital services in the high-growth markets outside of Europe.

    Submarine cable consortia – the telco cartels that control most intercontinental bandwidth – have known this for many years; cables that land in Marseille take advantage of the straight shot across the Mediterranean to multiple North African countries, but also east, via Alexandria, through the Suez Canal, along the Gulf of Suez, and across the Indian Ocean to Mumbai. Responding to the new demand, two new cables recently came online, laid roughly along the same route but reaching further into Asia, all the way to Singapore, Viet Nam, and Hong Kong. In addition to the biggest hubs, cables stretching from Marseille land along the way in places like Catania, Istanbul, Tripoli, Haifa, Djibouti City, Doha, Karachi, Penang, you get the idea.



    Today, most of the demand is driven by digital content. An office worker on a bus to work in Karachi expects to watch a soccer game on their phone the same way a college student in New York expects to watch a Kanye West video while sitting on a lawn in Central Park.

    The demand is so urgent that Interxion, one of Europe’s largest data center providers, had to scramble to build a facility to house a network point of presence (POP) in Marseille for one of the two new cables. Operators of the AAE-1 cable wanted two POPs in the city immediately, but Interxion only had one. It had recently secured two large buildings in Marseille-Fos Port (the city’s main port) for expansion, but hadn’t yet started construction. The solution was to deploy pre-fabricated data center modules by Schneider Electric inside one of the buildings (an old port warehouse) and just enough cooling and backup power infrastructure outside to support the second POP, all within two months.


    The data center module housing the AAE-1 POP inside Interxion’s otherwise empty warehouse in Marseille-Fos Port, June 2017 (Photo: Yevgeniy Sverdlik)

    First Mover

    Amsterdam-based Interxion is enjoying a first-mover advantage in Marseille. Its investment in 2014 to acquire a data center there from the French telco SFR is expected to pay dividends for years to come, painting the way to solidification of the company’s grip on the market that’s become more important than it’s ever been as a strategic interconnection point for connectivity between Europe, Africa, Middle East, and Asia. The data center, called MRS 1, was already an aggregation point for eight cables that landed in Marseille and elsewhere on the Côte d’Azur at the time, but the two new ones — AAE-1 (landing in Marseille) and SeaMeWe-5 (landing in nearby Toulon) — would be game-changers. Not only would they bring more bandwidth, they would dramatically shrink network latency on the route.

    Now that the cables are live, roundtrip latency between Marseille and Singapore, for example, has gone from north of 200 milliseconds to about 130 milliseconds, according to Fabrice Coquio, Interxion France president. The effect of that latency drop on the market is what Interxion bet on when it bought MRS 1. “When you’ve got not only the pipe growing but also the latency dropping, then some applications – particularly from the cloud sector, digital media sector – can require to be positioned in a very specific data center, so that they can benefit from that latency effect and the capacity effect,” he said in an interview with Data Center Knowledge.


    Interxion France president Fabrice Coquio displays trays of network cross-connects at MRS 1 (Photo: Yevgeniy Sverdlik)

    In other words, if you control a data center that provides access to low-latency transcontinental networks, you have an asset where cloud and content giants simply have to be. “Overnight almost, because of these two cables, Marseille moved from a telecom-transit city to a content city,” Coquio said.

    Quickly growing demand in markets south and east of Europe combined with access to so many cables that connect Europe to those markets make Marseille a sought-after gateway and Interxion a gatekeeper. There was no other carrier-neutral data center provider in the city when the SFR facility changed hands, and whatever player may want to enter the market now will almost certainly have to go through Interxion to get to the networks.

    “First-mover advantage is very big in the colocation industry, especially when you’re talking about a secondary market like Marseille,” Jonathan Hjembo, senior analyst at the telecommunications market research firm TeleGeography, said. “The ball is rolling in their (Interxion’s) favor. They have the ecosystem that everyone needs to interconnect with right now.”

    Fastest-Growing Pipes

    In recent years, bandwidth demand in North Africa, Middle East, and Asia (let’s call them NAMEA) has grown faster than in any other market. As a result, Marseille has become the fastest-growing market in Europe in terms of international network bandwidth, Hjembo said in an interview with Data Center Knowledge. “Marseille is there to serve those markets,” he said.

    Most traffic to and from the FLAP metros goes through Marseille to reach NAMEA countries, and since 2013, international bandwidth in the French city has grown at a compound annual rate of 60 percent by TeleGeography’s estimate. That’s total bandwidth on international cables that land in the city. “None of the other big hubs are close to that,” Hjembo said. “You combine demand from three separate sub-regions converging on one point in Europe, [and] that certainly explains a lot of the demand there.”

    There are a couple of alternative locations for linking Europe to NAMEA, but neither has seen the kind of growth Marseille has. Trying to hedge its bets across the region, the internet exchange DE-CIX, for example, deployed exchange points in Istanbul and Palermo (in addition to Marseille). It’s been trying to get Istanbul to grow “for ages” but with little success, Njembo said, due in large part to Turkey’s political instability. Palermo doesn’t necessarily lose to Marseille in terms of location, and many submarine cables land there, but Sicily’s capital just hasn’t seen the kind of growth Marseille has, with international internet bandwidth in Palermo barely placing it on the list of top 25 hubs in Europe.

    (continua)

  3. #3
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    The Edge Effect

    Not only does a hyperscaler want a network POP in Europe that’s the shortest possible distance from Singapore, it now also wants to store tons of content near that POP. To ensure the best possible user experience for people in NAMEA, content and cloud providers try to cache data as close to the top metros they’re targeting as possible, Njembo said. These companies wanting to store content closer to the edges of their networks (a network edge is simply where your network ends, handing off traffic to another network that takes it to its final destination) potentially translates into big, lucrative data center leases in Marseille for Interxion.

    Adding content to the mix of clients means you’re no longer just selling one rack to carrier A or two racks to carrier B, Coquio said. “When you’ve got the big guys like Amazon, Microsoft, and Google, then you’re talking megawatts of IT.” MRS 1, where half of the building’s capacity is still occupied by SFR (now as a tenant), and the other half is almost fully occupied by Interxion’s various colocation customers (including all the cloud and content giants), will not absorb the demand Interxion expects to come down the pipeline, which is why the company recently acquired two massive buildings on the coast.

    While Interxion’s business in Marseille has revolved around MRS 1 – and the amount of networks interconnecting there will in all likelihood ensure that continues to be the case – a future facility in the works about 3 kilometers away, in Marseille-Fos Port, will surely be worthy of crown-jewel status within its portfolio.

    The company is converting a submarine bunker built by the Germans during World War II into a data center. The two-story concrete structure was designed to hold 20 U-boats. The Germans never got to finish and use what they expected would become their main submarine base on the Mediterranean (perhaps for the same reason so many submarine cables land in the area); German forces in Marseille capitulated in August 1944 after a period of heavy bombardment by the Americans and an Allied invasion from the shore, but they managed to build a fortress in the port.


    Northeastern wall of the submarine bunker, June 2017 (Photo: Yevgeniy Sverdlik)

    Germans developed (and perfected) U-boat bunkers during the First World War to protect their subs from aerial bombs. Over the course of the war, as bombs grew larger, bunker designs got increasingly more robust. They already had some advanced designs when WWII started, but as the war progressed, and as Allies’ bombs grew bigger, the concrete bunker roofs got thicker. The U-boat garage in Marseille, whose roof is nearly 6 meters thick, is one of the later designs, created after numerous 12,000-pound Tallboy and 22,000-pound Grand Slam bunker-buster bombs dropped by the Allies successfully penetrated some of the earlier shelters, according to U-Boat Aces, a site specializing in German U-boat history. If you’re not sure a 6-meter-thick slab of reinforced concrete can withstand a 22,000-pound bomb, consider that this was not your typical reinforcement. Because there was no steel available at the end of the war, the builders would simply disassemble a nearby railroad and use the rails for bunker construction, Coquio said.


    Inside the former submarine base, June 2017 (Photo: Yevgeniy Sverdlik)



    Inside the bunker, June 2017 (Photo: Yevgeniy Sverdlik)


    MRS 3, the name of the server farm that will occupy the structure, will have about 80,000 square feet of data center space. Together with MRS 2, a data center Interxion is developing in a 1950s warehouse across the street (the one where Schneider built the urgently needed cable POP), the site will have 80MW of power capacity total, with the company expecting to spend €180 million to develop it. That 80MW will be delivered over two 40MW feeds for redundancy, according to a company presentation.

    Interxion is working with an architect to preserve the historic building’s original structure, while adding modern elements, such as a garden and a bar, both on the roof, with spectacular views of the city and the Mediterranean to entertain clients. There will also be offices on the roof, covered by a futuristically-shaped structure that makes the building look like a cross between a submarine and a spaceship.

    An open-air space stretches along the main structure, walled off from the outside. The company plans to keep it as a courtyard, featuring a vertical garden on the inner side of the wall built to protect the garage from attack from the sea.

    MRS 2 and 3 will be linked to MRS 1 by Interxion’s own fiber network, creating the campus effect, where companies that keep their servers in Marseille-Fos Port can easily interconnect with any of the 100 or so networks at MRS 1.

    The campus will be close to if not on par in strategic importance with the company’s data centers in FLAP markets and make Interxion part of any conversation about US and European companies delivering digital services to countries in North Africa, Middle East, and Asia, or vice versa. “It’s now quicker to reach Tunis, Egypt, or Morocco than even reaching Paris,” Coquio said. “This is unique. It’s a pure geographical advantage.”

    The campus will also give France an outsize presence on the internet’s map. Other Western European countries each have only one major data center and network hub (London in the UK, Frankfurt in Germany, Madrid in Spain), while France will have two, Coquio said. “Now there’s going to be a major combination between Paris and Marseille.”

    But as much as Coquio hopes to disrupt the acronym that neatly forms the familiar word FLAP by inserting an “M” (as in FLAMP), Marseille is not likely to become as big a data center market as the FLAP cities are. It’s hot today because of the demand for international connectivity, but it doesn’t have the level of enterprise presence that makes London and Paris such big data center markets. Cloud and content are huge data center users, but so are banks, insurance companies, manufacturers, and governments.

    Hjembo sees Marseille becoming a similar market to Stockholm, which only has enough room for two or three major players. Marseille is hot today, and there’s probably room for another big player there besides Interxion, he said, but at some point the growth will wane and stabilize.


    http://www.datacenterknowledge.com/a...center-market/

  4. #4
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    Angola Cables launches France-IX Marseille remote peering service

    Rob Powell: Angola Cables has been busy over the last few years with the South Atlantic Cable System and its involvement with the upcoming Monet cable as well, but this deployment is more about its connectivity to the east.

    Jason Mcgee-Abe
    23 August 2017

    Angola Cables has joined the peering community at France-IX Marseille will significantly boosting connectivity there and to peering members at its own IXP, Angonix, in the Angolan capital Luanda.

    This new remote peering service significantly boosts connectivity between international carrier networks, CDNs, social networks, cloud and IT service providers with local Angolan and other African ISPs peering at Angonix.

    It will also reduce latency and costs for global and national carrier networks, CDNs, social networks and cloud and IT service providers looking to establish themselves in sub-Saharan Africa to gain access to local markets; and reduce international IP-transit costs for local ISPs and network operators as well as increase their access to French language content and services.

    “Peering at France-IX Marseille and offering a remote peering service is part of the ongoing development of our network to ensure that our customers and partners have access to the latest communication technology and retain us as their ideal partner for international connectivity and high quality internet services,” said Darwin Costa, product manager at Angola Cables.

    “Since joining the France-IX Marseille peering community in May of 2017, we have seen a more than threefold increase in traffic. We anticipate gaining new remote peering customers from across Africa and also from South America, once the South Atlantic Cable System is complete.”

    Angola Cables is a partner in the development of data centres in Luanda and Fortaleza, Brazil, in the building of the South Atlantic Cable System (SACS) subsea cable, which is the first in the Southern Hemisphere to directly connect Brazil to Africa. Work on the first phase of the 6,500km cable has begun and when it is completed it will connect to Angola Cable’s European system and then later to the Middle and Far East, strengthening Angola Cables’ position as a worldwide interconnection provider.

    Delphine Masciopinto, chief commercial officer at France-IX, added: "In addition to being one of our newest peers in the African continent, we are thrilled to develop our partnership with Angola Cables further through our shared common goal of enhancing the overall quality of the internet.

    “Angola Cables interconnects global networks, network operators and content providers to keep local traffic local, and offer international content providers and networks a basis for peering on the African continent. Through its latest investments and developments in international, national and local infrastructures, in addition to its connectivity at France-IX Marseille, Angola Cables is developing a connectivity ring that connects the African, American and European continents, making it an attractive proposition for any company wanting low latency and high quality internet connectivity.”

    http://www.capacitymedia.com/Article...eering-service

  5. #5
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    UK assures on ‘close’ EU data protection laws after Brexit

    Mehreen Khan
    2017-08-24

    Britain is pushing to closely mirror the EU’s data protection laws after Brexit, in a bid to ensure the free flow of data across borders which is vital in underpinning the digital economy.

    In the last of its major policy papers before resuming Brexit talks next week, the government called for an “early” agreement to keep information flowing and assure legal certainty for businesses.

    The UK’s data economy is worth a potential £240bn according to the Confederation for British Industry, while three-quarters of all the UK’s cross-border data flows are with other EU countries.

    “Our goal is to combine strong privacy rules with a relationship that allows flexibility, to give consumers and businesses certainty in their use of data,” said Matthew Hancock, the UK’s digital minister.

    Today’s paper is the latest set out by the government on everything ranging from its post-Brexit customs arrangements to trade dispute resolution before UK negotiators head to Brussels for the next round of exit negotiations on Monday.

    Noting the UK will be fully compliant with EU data protection laws at the point of its departure in 2019, the government called for an early agreement from Brussels that would recognise Britain’s legal framework and open the way for a transition.

    “Early certainty around how we can extend current provisions, alongside an agreed negotiating timeline for longer-term arrangements, will assuage business concerns on both sides and should be possible given the current alignment of our data protection frameworks”, said the paper.

    It also held out the possibility of striking a deal where personal data flows between the EU and non-EU countries are protected to the same degree as currently granted by European law.

    The EU has 12 of these “adequacy arrangements” with third countries such as Argentina, Israel, Switzerland and New Zealand.

    Antony Walker, deputy chief executive of technology industry group TechUK, urged against imposing greater legal costs on businesses after Brexit.

    Speaking to BBC radio on Thursday, Mr Walker said he would like to see the UK strike an adequacy agreement but warned negotiating such a deal would likely be beyond the less than two-year time frame left for the UK to agree a Brexit deal.

    Mr Walker said:

    We are starting from the same starting point which is we both have the same legal framework. But doing this takes time. The fastest [adequacy agreement] was 18 months. This can’t be done within the Article 50 process.

    All EU member states, including the UK, will be forced to comply with the bloc’s new data protection framework – known as the General Data Protection Regulation (GDPR) – due to come into force from May 2018. Britain is expected to leave the EU by March 2019.

    The government said “UK businesses and public authorities may still be required to meet GDPR standards” if they are offering goods and services which involve personal data to countries in the European Economic Area (EEA).

    The paper also holds out the possibility of Britain’s Information Commissioner remaining “fully involved in future EU regulatory dialogue” after Brexit.

    https://www.ft.com/content/afff45a0-...a-79c3f61e6d2c

  6. #6
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    UK seeks early deal with EU on post-Brexit data sharing

    Regulation of online data is an increasing international flashpoint as technology companies and national security agencies both come under fire for infringing personal privacy.

    Dan Roberts
    24 August 2017


    The government is seeking to negotiate a deal over data sharing with Europe in which there are no substantial regulatory changes as a result of Brexit.

    The ambitious strategy emerged on Thursday in the last of a series of summer policy papers published by the Department for Exiting the European Union ahead of the next round of talks in Brussels on Monday.

    In it, the government argues that its “unique” status as a leading player in the world of electronic commerce means that it should be able to demand special treatment from the EU when agreeing future standards.

    Regulation of online data is an increasing international flashpoint as technology companies and national security agencies both come under fire for infringing personal privacy. Since the Edward Snowden revelations and other high-profile privacy challenges against companies such as Google, it has been a particular source of tension between the EU and US.

    But the UK paper argues that Britain should in future be exempt from usual European adequacy tests that are applied to third-party countries seeking to handle the data of EU citizens and instead enter into a more permanent harmonisation agreement to provide stability for companies.

    “The government believes it would be in the interest of both the UK and EU to agree early in the process to mutually recognise each other’s data protection frameworks as a basis for the continued free flows of data between the EU and the UK from the point of exit until such time as new and more permanent arrangements come into force,” said the policy paper.

    The government refuses to say how it would seek to maintain this mutual recognition once the rapidly-evolving standards start to diverge but says it would like to have a shared policy process in place in which both sides would have to agree to future changes.

    Such a concession is likely to be fiercely resisted by Brussels negotiators who see such moves as an attempt to limit their own autonomy to set EU rules, but the principle could serve as a clue to the UK approach in other areas of business regulation, such as financial services, where the City also hopes for some form of a lasting mutual recognition deal.

    The government refused to speculate on Thursday about how such an arrangement with the EU might cope with the challenge of diverging standards with the US, where much of the industry is based.

    It did acknowledge however that current EU/US regulatory harmonisation was much more limited and was a source of potential future UK advantage if it could pursue separate deals at the same time.

    https://www.theguardian.com/technolo...t-data-sharing

  7. #7
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    America is far more important to British tech than the EU

    Victor Basta
    2017-08-25

    The European Investment Fund (EIF) the EU agency that backs many first time European venture funds, found itself centre stage again last week as the latest ‘casualty’ of Brexit uncertainty. “Europe halts funding for British tech firms” was the headline in The Times, echoing reporting by the FT earlier in the year and signalling the dent EIF withdrawal could make on UK tech funding.

    While EIF withdrawal will inevitably reduce funding for UK tech companies, the impact is likely far less than it first seems. The main reason is US investors have been quietly increasing their commitment to UK tech over the past 5-10 years, such that they now constitute the single biggest source of capital for UK tech, far more than for continental European companies.

    Welcome the greenback

    So far this year, US investors have participated in 30 per cent of UK funding rounds, but those rounds have accounted for an astonishing 80 per cent of total venture investment into British tech, according to data from Pitchbook. 2017 has been far from unique: over the past four years, 40-50 per cent of total UK tech round value featured US investors. While data on the actual sum put to work by US investors is unavailable, our experience in the market is that when American venture funds feature in funding rounds they are contributing a significant portion of the cash.

    Interestingly, US investors also participate in nearly all large ‘unicorn-making’ rounds in the UK. As the data shows, UK tech’s evolution is fundamentally underpinned by, and dependent on, US funds. Since EIF money only flows to European VCs, the EIF has no influence in this trend.

    Americans love Britain more than Europe (at least in tech)

    What’s more, the proportion of US involvement is far greater in the UK than elsewhere in Europe. While US investors participated in 30 per cent of UK rounds this year, according to Pitchbook, the equivalent number for continental Europe is around 20 per cent. Simply put, US investors have committed far more, and far more consistently, to UK tech than anywhere else in Europe — about 50 per cent more according to my calculations. Drill down further, and US investors also have an unusually strong taste for early stage British companies (the biggest at-risk group from the loss of EIF funding, in my view).

    This broad-based commitment, even to the smallest UK companies, is built over years of engagement, and is unlikely to be derailed anytime soon. It is an enduring counter-weight to the drying up of EIF funding.

    The special relationship in action perhaps, where and when most needed.

    EIF withdrawal will hurt in the morning, but there is a cure

    Despite all this, the EIF has had a big impact. In the absence of government action, the biggest losers from EIF withdrawal will likely be smaller first time funds and the earliest stage companies which rely on small amounts from these small funds to get going. The obvious cure, advocated by the British Venture Capital Association, is significant UK government backing to VC funds generally, and first timers specifically. This could pass through the British Business Bank or similar vehicle, but the sooner it is clarified the more confidence UK tech will have. Even if that doesn’t happen, US investor commitments will cushion any eventual blow.

    A note of caution

    All of the above misses one big point. Economic uncertainty is the ‘silent killer’ here. While we are seeing US involvement deepen, UK funding activity is simply down overall over the past two years according to Pitchbook, and shows no signs of rebounding. Since Brexit, with the exception of one very large round for Improbable ($500m commitment by SoftBank), UK funding has headed in only one direction.

    So let’s not worry about the EIF. A combination of inward investment and a government alternative can take care of that effectively, and rapidly. Two to five years of economic uncertainty may sound like an acceptably short period of time, and generally it would be. But in tech, two years is a lifetime of damage. There will be several billions of pounds of tech company value created or destroyed just in the next two years depending on the level of economic uncertainty in the UK. And that is a far, far higher price than anything EIF withdrawal would cost.

    https://ftalphaville.ft.com/2017/08/...h-than-the-eu/

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