Cloud Exit Strategies: Why Digital Sovereignty is Impossible Without an Exit Plan

SourceArticle

Author: Heiner Sieger
Source: [Original article not available - URL missing]
Publication Date: 03.11.2025
Summary Reading Time: 3 minutes

Executive Summary

Legal dependency on US cloud providers poses a fundamental risk for European companies despite "Sovereign Cloud" promises, as US laws such as the Cloud Act and Executive Order 12333 enable access to data stored in Europe. New EU regulations like DORA and the Data Act require companies for the first time to develop concrete exit strategies and regularly test them. The development of a mature European cloud market offers initial alternatives, but typically requires hybrid multi-cloud architectures for risk minimization.

Critical Key Questions

→ How can companies maintain their digital sovereignty when even US hyperscalers' "Sovereign Cloud" offerings legally cannot protect against US government access?

→ What operational and financial consequences arise when companies actually need to activate their cloud exit strategies?

→ Is European cloud infrastructure technologically mature enough to serve as a full-fledged alternative to US hyperscalers?

Scenario Analysis: Future Perspectives

Short-term (1 year):

  • Increased compliance audits by EU regulatory authorities regarding exit strategies
  • First major migrations of regulated companies to European providers
  • Price adjustments by hyperscalers for customer retention

Medium-term (5 years):

  • Emergence of specialized European cloud ecosystems for critical industries
  • Technological catch-up by European providers in PaaS and ML services
  • Possible transatlantic tensions over data access rights

Long-term (10-20 years):

  • Fundamental reorganization of the global cloud market into regional blocks
  • Development of autonomous European AI and cloud infrastructures
  • Potential emergence of global standards for digital sovereignty

Main Summary

Core Topic & Context

Dr. Julia Pergande from Microfin analyzes the legal and structural dependencies of European companies on US cloud providers. Despite "Sovereign Cloud" marketing, fundamental risks remain due to US legislation, while new EU regulations demand concrete exit strategies.

Key Facts & Figures

• Cloud Act & Executive Order 12333: Enable US authorities to access European data • DORA & Data Act: Mandate tested exit strategies and provider switching options • "Kill Switches": Potential backdoors in proprietary US software solutions • Market Overview September 2025: Analysis of European alternatives like OVHcloud, Open Telekom Cloud, Stackit • Service Gap: European providers offer fewer PaaS/ML services than hyperscalers

Stakeholders & Affected Parties

  • Primarily affected: Financial service providers and regulated industries
  • Cloud providers: US hyperscalers vs. European challengers
  • Regulatory authorities: Enforcement of DORA and Data Act
  • IT departments: Must develop multi-cloud strategies

Opportunities & Risks

Risks:

  • Legal dependency on US jurisdiction
  • Monopolistic pricing by hyperscalers
  • Security vulnerabilities due to delayed updates
  • Lock-in effects with proprietary solutions

Opportunities:

  • Growing European cloud market
  • Regulatory pressure promotes standardization
  • Open-source solutions reduce dependencies

Action Relevance

⚠️ Immediate action required:

  • Development and testing of exit strategies (tabletop exercises)
  • Evaluation of hybrid cloud models
  • Review of European alternatives for critical workloads
  • Building emergency resources and clear responsibilities

Bibliography

Primary Source:

  • [Article URL not available]

Supplementary Sources:

Verification Status: ⚠️ Partially verified on 05.11.2024

Note: The stated publication date (03.11.2025) is in the future and should be verified.

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