Unleashing Data Freedom: German Companies Turn Away from US Cloud Services
Companies in Germany reassess cloud strategy due to US government policies.
In a shift fueled by geopolitical concerns, many German businesses are questioning their alliance with US cloud giants like Microsoft, Amazon AWS, and Google. A survey by Bitkom, Germany's digital industry association, suggests that half of companies utilizing cloud computing are reconsidering their strategies due to the Trump administration's policies.
The study, conducted between mid-March and mid-May 2021, surveyed 604 companies, each with 20 or more employees. The survey reveals that a staggering 78% of German firms believe their nation is overly dependent on US providers, with 82% advocating for the emergence of robust German or European competitors to challenge the international market titans.
Cloud computing allows businesses to access on-demand services such as storage, software, and processing power without the need for in-house hardware or software. Services are provided by large data centers and paid per usage cycle.
Cloud services are indispensable to the majority of German businesses, with 62% admitting that they would grind to a halt without access. Inadequate cloud services could potentially cripple operations, prompting enterprises to seek alternatives that guarantee data sovereignty and security.
Bitkom President Ralf Wintergerst emphasized the need for Germany to wean itself off monopolistic single dependencies, including digital infrastructure. He proposed a collaboration between international providers' features and a "Made in Germany" security layer, ensuring increased control and safeguards.
The study reveals that virtually all German companies are now using or are considering cloud services. Currently, 90% of firms already employ cloud applications, marking an increase from 81% the previous year. Another 10% are contemplating or discussing potential cloud service adoption.
Cloud usage is on the rise in the German economy, with 47% of IT applications currently operated from the cloud, compared to 38% a year ago. By 2030, it's predicted that this proportion will skyrocket to 58%. By 2026, it's unlikely that any company will utilize less than 10% of their IT applications from the cloud.
As geopolitical tensions escalate, European companies are increasingly exploring alternatives to US cloud dominance. Efforts to diversify include investment in local cloud infrastructure, regulatory support, and technological innovation. Players such as AWS, Google Cloud, and Microsoft are also evolving their services to align with European regulations and customer needs.
- As geopolitical tensions rise, the finance industry is closely monitoring the shift in German companies moving away from US cloud services like Microsoft, Amazon AWS, and Google, as this trend might impact the dominance of US providers in the data-and-cloud-computing technology sector.
- In light of the growing push for German and European competitors in the data-and-cloud-computing technology industry, companies are reassessing their strategies, recognizing that cloud services are indispensable to their operations and seeking alternatives that ensure data sovereignty and security.
