Shifting Cloud Landscape in Germany
Cloud strategy under review among German businesses due to US policy changes
German businesses are expressing concerns about over-reliance on foreign cloud services, particularly American giants like Microsoft, Amazon AWS, and Google. These anxieties have been fueled by recent developments in the US, leading to doubts regarding the trustworthiness of these prominent providers [2][5].
A representative survey by Bitkom, a digital industry association, discovered that half of German companies using cloud computing are reevaluating their cloud strategies owing to US government policies under President Donald Trump. The study, conducted among 604 companies with 20 or more employees, highlighted the growing apprehension about foreign dependence [1].
Cloud computing allows users to access services such as storage, software, or processing power via the internet without the need for owning or operating the necessary hardware or software. Instead, providers offer these services in extensive data centers, which users can conveniently access and pay for as required [1].
Overwhelming Dependency
Alarmingly, nearly two-thirds of German companies would struggle to operate without cloud services, according to the Bitkom survey. Meanwhile, 78% recognize Germany as overly reliant on US cloud providers, and 82% advocate for robust German or European cloud providers capable of competing on a global scale [2].
Ralf Wintergerst, Bitkom's President, emphasized the importance of Germany's independence from single-sided dependencies, including digital infrastructure. He suggested that Germany could incorporate certain attributes of international providers while implementing a "Made in Germany" security layer. The new federal government will likely prioritize this task [2].
Notably, almost all German companies are using or considering cloud services. Currently, 90% employ cloud applications, a significant increase from last year's 81%. The remaining 10% are contemplating or discussing potential cloud usage [1].
Cloud Adoption Surge
Presently, 47% of all IT applications in the German economy are run from the cloud, a considerable leap from last year's 38%. By 2030, this percentage is projected to reach 58%. By then, not a single company will be utilizing less than 10% of their IT applications from the cloud [1].
Gaining Trust Through Local Solutions
Recently, concerns about data sovereignty, privacy, and dependency risks have led German companies to reconsider their trust in US-based cloud providers. Public anxiety has brought about the emergence of sovereign cloud initiatives and enhanced local governance, reflecting a clear preference for cloud services managed within Europe [2][3][5].
As a response to these demands, AWS has announced plans to launch an European Sovereign Cloud (ESC) region in Brandenburg, Germany. By end of 2025, this region will be built, operated, and controlled exclusively in Europe, ensuring strong legal protection and sovereignty assurances [3][4][5]. Moreover, Microsoft and Google have introduced additional privacy safeguards and sovereign cloud options, targeting EU customers [5].
The significance of local or EU-based cloud providers is increasingly recognized, as they offer stronger legal certainty, data sovereignty, and cultural alignment with German and European standards [2][5]. In the end, the cloud landscape in Germany is evolving to cater to growing concerns about data security and geopolitical uncertainties.
In the evolving cloud landscape of Germany, there's a growing recognition of the importance of local or European cloud providers, as they offer stronger legal certainty, data sovereignty, and cultural alignment with German and European standards, given concerns about data security and geopolitical uncertainties. This shift towards local solutions is exemplified by AWS's plan to launch an European Sovereign Cloud (ESC) region in Brandenburg, Germany, which will ensure strong legal protection and sovereignty assurances by the end of 2025. This development solidifies the role of data-and-cloud-computing technology in addressing the concerns of German businesses over reliance on foreign cloud services.
