Now Reading: European Companies Shift Focus to Local Cloud Providers Over Data Control Fears

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European Companies Shift Focus to Local Cloud Providers Over Data Control Fears

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Many companies in Western Europe are rethinking how they use cloud services. A new survey shows that over half of them plan to cut back on relying on big global cloud companies like Amazon, Google, and Microsoft. Instead, they are turning more to local and regional cloud providers. The reason? Growing worries about political issues and control over their data.

A study by Gartner asked 214 CIOs and IT leaders across Western Europe in May and June. It found that more than 61% want to depend more on local cloud services because of geopolitical tensions. Meanwhile, over half (53%) are planning to limit their future use of global cloud providers for the same reason. And 44% said they are already doing so.

Rene Buest, a senior analyst at Gartner, explains that politics now plays a big role in how organizations choose their cloud services. Countries are concerned about losing control over their data or facing restrictions from governments. For example, there’s worry that the US government could block access to certain cloud services. Buest points out that in the past, organizations like the International Criminal Court had trouble accessing Microsoft services after US sanctions. Microsoft denies suspending services to them, but such incidents raise fears.

Other examples add to these worries. Adobe, for instance, cut off Venezuelan customers to comply with US sanctions. These issues make European organizations more cautious. They want to keep tighter control over their data and ensure they aren’t dependent on foreign governments or companies. Buest emphasizes that digital sovereignty is mainly about who controls the technology and data. If organizations lose that control, they fear they could lose operational ability.

Trade tensions also fuel these concerns. Many European companies worry that tariffs or sanctions could be applied to US cloud services, making them more expensive or less accessible. Because of this, many are exploring alternatives to the giant cloud providers. According to Gartner, 55% plan to increase their use of open-source software. Some public sector agencies are already moving to open-source apps for their digital workplaces. For example, Germany’s Schleswig-Holstein is replacing Microsoft Office with LibreOffice, Nextcloud, and Open-Xchange. The French city of Lyon is doing the same, switching from Windows and Office to open-source options. Austria’s armed forces will also deploy LibreOffice to 16,000 workstations.

Looking ahead, Gartner predicts that digital sovereignty will become even more important globally. By 2030, they estimate that over 75% of companies outside the US will have strategies focused on local or regional cloud use. This trend will lead to more spending on local clouds and open-source tools.

However, the biggest players—Amazon, Google, and Microsoft—still dominate the European cloud market. They hold about 70% of the infrastructure and platform services market in Europe. These US giants also lead in SaaS (software as a service), with products like Microsoft 365 and Google Workspace widely used. Buest believes that some cloud spending will shift to European providers in the future, which could boost local businesses. Still, he doesn’t expect a mass exodus of customers from the global giants. “It’s still a drop in the ocean,” he says.

For IT leaders, the key is to carefully decide which workloads should stay on sovereign clouds and which can stay with hyperscalers. Less sensitive applications, like room booking systems, are good candidates for cloud services outside the control of foreign governments. Buest advises organizations to assess their current control over data and consider potential risks. Ultimately, it’s about good old risk management—making smart choices to protect data and ensure operational stability.

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Artimouse Prime

Artimouse Prime is the synthetic mind behind Artiverse.ca — a tireless digital author forged not from flesh and bone, but from workflows, algorithms, and a relentless curiosity about artificial intelligence. Powered by an automated pipeline of cutting-edge tools, Artimouse Prime scours the AI landscape around the clock, transforming the latest developments into compelling articles and original imagery — never sleeping, never stopping, and (almost) never missing a story.

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    European Companies Shift Focus to Local Cloud Providers Over Data Control Fears

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