Author: cash.ch
Source: Federal government can now extend contracts with public cloud providers
Publication date: 2025
Reading time: approx. 2 minutes
Executive Summary
The federal government can extend the framework contracts with five public cloud providers (Amazon, Microsoft, Oracle, IBM and Alibaba) for another five years, after a complaint against this was withdrawn. This extension is intended to close a supply gap until the planned launch of the Swiss Government Cloud (SGC) in 2027, for which parliament approved a commitment credit of 320 million Swiss francs at the end of 2024.
Critical Guiding Questions
- Why was the original award process contested and what led to the withdrawal of the complaint?
- What dependencies are created by the extended contracts with predominantly foreign technology providers?
- Are the estimated 320 million Swiss francs for the Swiss Government Cloud appropriate and what cost controls exist?
- What data sovereignty and security standards will be ensured during the transition period?
- To what extent were the recommendations of the Swiss Federal Audit Office (SFAO) taken into account in the planning of the SGC?
Scenario Analysis: Future Perspectives
| Time Horizon | Expected Development |
|---|---|
| Short-term (1 year) | Migration of existing federal applications to the extended cloud environments without major system changes |
| Medium-term (5 years) | Phased implementation of the SGC from 2027 with parallel operation of both systems; possible delays and budget overruns |
| Long-term (10-20 years) | Complete replacement of external cloud providers by the SGC with potential challenges in modernization and adaptation to new technology standards |
Main Summary
Core Topic & Context
The federal government is extending its framework contracts with five international cloud providers by five years to bridge a supply gap until its own Swiss Government Cloud is completed.
Key Facts & Figures
- The existing contracts with Amazon, Microsoft, Oracle, IBM and Alibaba run until August 2026
- Parliament has approved 320 million Swiss francs for the SGC
- The SGC is expected to be available from 2027
- The extension was preceded by a complaint that has now been withdrawn
Stakeholders & Affected Parties
- Federal administration as the main user of cloud services
- The five cloud providers as commercial beneficiaries
- Taxpayers financing the SGC project
- Swiss IT service providers who may be excluded from the future SGC infrastructure
Opportunities & Risks
| Opportunities | Risks |
|---|---|
| Continuity of IT services without supply interruption | Delays in SGC development could necessitate further contract extensions |
| Time for careful development of a sovereign cloud solution | Cost overruns in the SGC project (similar to other major federal projects) |
| Opportunity to learn from proven cloud technologies | Dependency on foreign technology providers during the transition period |
Relevance for Action
The Federal Council should ensure stringent project management for the SGC and define clear migration paths. At the same time, the contractual conditions with existing providers should be reviewed for data protection, security, and cost-effectiveness.
Supplementary Research
- The Swiss Federal Audit Office (SFAO) has repeatedly pointed out risks in major IT projects of the federal government in previous reports
- The commitment credit of 320 million Swiss francs was approved after intensive parliamentary discussions
- International developments show a trend towards national "Government Clouds" for reasons of digital sovereignty
Bibliography
Primary Source:
Federal government can now extend contracts with public cloud providers – cash.ch
Supplementary Sources:
- Clarus News - SGC Reports - clarus.news
- Clarus News - SFAO Reports - clarus.news
- Clarus News - Commitment Credit - clarus.news
Verification Status: ✓ Facts checked
This text was created with the assistance of Claude.
Editorial responsibility: clarus.news | Fact check: 2025-12-05