How Enterprises Should Rethink Their Cloud Strategy Now: EU Data Act, US Services, and European Alternatives
In our first blog post, learn why reliance on American cloud services can become a risk for enterprise companies. We explore the potential termination of the EU Data Act, additional EU taxes on US services, and highlight European cloud alternatives already available today.
Why the topic of cloud strategy is so urgent right now
The evolving political dynamics between Europe and the US – particularly during and after the Trump administration – underscore the importance of an independent, future-proof cloud strategy. Recently, new, stricter regulations for international trade involving the US came into force, prompting the European Commission to announce initial responses and signal further measures.
Meanwhile, politicians and businesses are debating how to handle US-based IT providers – is a new digital tax on the horizon? According to NDR, concrete proposals are already being discussed at the EU level.
In this blog post, we explore the risks and opportunities of shifting your cloud infrastructure towards European solutions and what companies should consider right now.
EU Data Act, tax burdens and vendor lock-in
1. Termination of the EU Data Act
Companies heavily reliant on US cloud providers like AWS, Microsoft Azure, or Google Cloud could be impacted if the US withdraws from the EU Data Act or makes compliance more difficult. Handelsblatt reports on the threat and its potentially severe consequences. Legal uncertainty may result in both regulatory and financial risks if European citizens' data can no longer be securely and compliantly processed.
2. Additional Taxation on US Services
Given ongoing political debate, the EU may impose additional taxes on US IT services. The European Council provides a timeline of digital economy taxation plans. These measures could significantly increase operational costs or place a burden on IT budgets.
3. Vendor Lock-in and Limited Flexibility
Many enterprises have long relied on US-based high-end cloud infrastructures. This often leads to vendor lock-in, making transitions to alternative providers costly and complex. The IT Finanzmagazin warned CIOs as early as July 2022 about the dangers of single-cloud strategies. When political landscapes shift rapidly, a lack of flexibility can become a major business risk.
Why European Alternatives Are Gaining Momentum
● Data Sovereignty
European cloud providers such as StackIT (Germany), OVHcloud (France), Scaleway (France), IONOS (Germany), or Open Telekom Cloud (Germany) typically operate data centers within the EU. This avoids data transfers to jurisdictions outside Europe, where EU compliance laws may not apply or be enforced.
● Cost Transparency and Tax Benefits
If the EU implements revised digital taxes, US services could become significantly more expensive. Early adoption of EU providers can help stabilize budgeting and spending – even if European providers sometimes have slightly higher base costs.
● Flexibility and Multi-Cloud Strategy
Using an entirely European infrastructure is just one option. Many experts, including Golem, recommend a multi-cloud strategy: core data and applications stay in an EU cloud, while supplementary services remain on US platforms. This diversifies risk and ensures resilience. For example, the German Federal Government promotes an open-source-based infrastructure for government IT services and inter-agency collaboration.
First Steps in Risk Assessment
1. Inventory of Cloud Services
Create a detailed list of all current IaaS, PaaS, and SaaS services in use, including subservices like CDNs or databases. Only with full transparency can informed migration decisions be made.
2. Define Scenarios
Define how changes to the EU Data Act or new taxation measures would impact your organization. Include considerations like operational disruptions, legal uncertainty, or delayed product launches.
3. Evaluate Migration Costs
Assess the effort required for a transition. Consider technical complexity, necessary team training, and integration into existing processes as part of a full cost-benefit analysis.
Outlook: Why Proactive Planning Pays Off
Companies that proactively consider political developments between the EU and US can secure long-term stability. This includes evaluating European providers and developing a hybrid or multi-cloud strategy to reduce:
The risk of sudden legal uncertainty in data transfer
The likelihood of significant cost increases due to digital taxes
Dependency on individual cloud providers
Teaser for the Upcoming Blog Series
In the next entries of our blog series: "EU Data Act, Trump & Co.: What's Next for Enterprise Cloud Services?" you’ll get insights into:
Practical multi-cloud use cases with detailed cost comparisons
In-depth provider analyses – when are European offerings truly worth it?
Step-by-step guides for your own risk management
Tips for smooth migration and hidden cost traps
Stay tuned to best prepare your company for geopolitical uncertainty and unlock the full potential of a European cloud strategy.
The Advantage of a Smart Cloud Strategy
As political initiatives like the EU Data Act or a digital tax gain momentum, sustainable and flexible cloud architecture planning becomes essential. Multiple reports by Tagesschau, FAZ, and Heise suggest a shift in the transatlantic tech balance. Early adoption of European alternatives ensures independence, reduces geopolitical risk, and can even spark innovation. Our blog series will guide you step-by-step from US-only setups to a secure, flexible multi-cloud approach – ensuring long-term competitiveness. Do you have questions about your current cloud strategy or want to learn more about our assessment process? Get in touch for a no-obligation consultation or subscribe to our newsletter to stay informed about this blog series!