Taking Control of the Cloud: German Businesses Shift Strategy Amid US Politics
- Cloud strategy reevaluation by German businesses due to U.S. policy changes
Going digital is the new norm, but with great power comes great responsibility. German companies, according to the digital industry association Bitkom, are taking a closer look at their cloud strategies, particularly due to recent developments in the United States. This has caused doubt in the reliability of major cloud providers like Microsoft, Amazon AWS, and Google.
A representative survey by Bitkom found that half (50 percent) of German firms utilizing cloud computing are reevaluating their cloud strategy due to the policies of the Trump administration. The survey, conducted between mid-March and mid-May 2021, questioned 604 companies employing 20 or more individuals, on behalf of Bitkom.
The cloud makes it possible to access an array of computer services like storage, software, or processing power via the internet without having to own or operate the essential hardware or software. Instead, providers offer these services in vast data centers, accessible and payable as needed.
Take the Plunge or Stay Afloat?
Nearly two-thirds (62 percent) of German companies surveyed by Bitkom would fail to function without cloud services. Simultaneously, 78 percent believe Germany is overly reliant on US cloud providers, and 82 percent seek more large-scale German or European cloud providers capable of competing with global leaders.
Bitkom President Ralf Wintergerst emphasized that Germany must break free from one-sided dependencies, including digital infrastructure. "This will be a crucial task for the new federal government," said Wintergerst. He proposed combining certain features of international providers with a "Made in Germany" security layer.
According to the Bitkom survey, almost all German companies are now using or considering cloud services. Currently, 9 out of 10 companies (90 percent) use cloud applications, up from 81 percent a year ago. An additional 10 percent are planning or discussing cloud usage.
The Road to the Cloud is Paved with Gold
Today, 47 percent of all IT applications in the German economy are hosted on the cloud, up from 38 percent a year ago. This figure is expected to reach 58 percent by 2030. Meanwhile, 10 percent of companies use less than 10 percent of their IT applications from the cloud, but this number will not apply to any company by 2026.
Bitkom, Germany, USA, US Politics, Berlin, Microsoft, Google, Donald Trump, and Computer
In the quest for digital sovereignty, German companies are increasingly moving away from US-based cloud providers and embracing homegrown and European solutions. This shift is a response to concerns about data protection, regulatory compliance (e.g., GDPR), and the desire to maintain control over data and IT infrastructure. The rising popularity of open-source solutions and European alternatives, such as NextCloud Workspace in partnership with Ionos, reflects this shift.
Germany's emphasis on digital sovereignty ensures that its companies not only rely less on US-based providers like Microsoft, Google, and Amazon AWS but also benefit from greater data protection, regulatory compliance, and control. As the demand for digital independence grows, new European offerings are set to challenge the market dominance of global leaders and provide an alternative for businesses seeking to take back control.
- As a result of concerns about data protection, regulatory compliance, and the need to maintain control over data and IT infrastructure, German companies are moving towards European solutions like NextCloud Workspace in partnership with Ionos, shifting away from US-based providers such as Microsoft, Google, and Amazon AWS.
- The growing interest in digital sovereignty among German businesses has been influenced by the desire to reduce dependency on US-based cloud providers, with 82 percent of companies surveyed by Bitkom seeking more large-scale German or European cloud providers capable of competing with global leaders.
