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Companies in Germany reassess cloud strategies due to U.S. policy concerns

Essential cloud services, predominantly from US-based providers, are indispensable for the majority of German companies, increasingly reliant on their operations.

Businesses across Germany heavily rely on cloud services, with a significant portion of these...
Businesses across Germany heavily rely on cloud services, with a significant portion of these services provided by American companies. This trend is on the rise.

Companies in Germany reassess cloud strategies due to U.S. policy concerns

🎭 Clouds, Germany, and Digital Sovereignty: Riding the Waves of Change 🎭

💣 In the Heart of Europe, Cloud Anxiety Rises 💣

Germany's digital landscape is weathering a storm of uncertainty, as concerns over excessive dependence on foreign cloud services—primarily American ones—have bubbled to the surface, according to Bitkom, the digital industry association. Major players like Microsoft, Amazon AWS, and Google found themselves under the microscope, leaving the industry questioning their reliability.

📊 Bitkom Sounding the Alarm 📊

A representative study by Bitkom near the start of the year found that a whopping 50% of German companies relying on cloud computing were compelled to reassess their strategy due to United States government policies under former President Trump's administration.

🔍 Peeling Back the Layers 🔍

Bitkom's comprehensive survey, conducted between March and May, polled 604 companies with 20 or more employees.

👀 Cloudy with a Chance of Struggle 👀

The data shows that nearly two-thirds (62%) of German companies wouldn't make it without cloud services. On the flip side, a staggering 78% believe Germany is too wrapped up in US cloud providers, and 82% are calling for the emergence of more robust, large-scale, European or German cloud providers that could compete with the heavyweights of the international market.

🗣 Hear, Hear, Ralf Wintergerst! 🗣

Ralf Wintergerst, the Bitkom President, didn't mince words. "Germany needs to shake off these one-sided dependencies, including those in the digital realm. This will be a tall order for the incoming federal government," he stated, championing a hybrid approach that would blend aspects from international providers with a distinctly German "security layer."

📈 The Rise of the Cloud 📈

In the fast-changing clouds of the digital world, nearly all German companies are now embracing the cloud. Currently, 90% are using cloud applications, a 9% increase over last year, while an additional 10% are planning to embrace the cloud. Cloud applications account for 47% of all IT applications in Germany, a number that's set to rise to 58% by 2030, eradicating the presence of those who use less than 10% of their IT applications from the cloud.

🌐 Clouds on the Horizon 🌐

As Germany and Europe push for digital sovereignty, initiatives like the Gaia-X initiative, AWS European Sovereign Cloud, and commitments from Microsoft aim to create, preserve, and protect local alternatives to the American giants. Tackling infrastructure and scalability challenges while ensuring compliance with EU regulations will be key as these efforts unfold.

Economic and social policy in Germany is growing increasingly focused on reducing dependence on foreign cloud services, particularly those of American providers, given the concerns over excessive reliance and the potential implications of United States government policies. To address this issue, data-and-cloud-computing technology plays a crucial role as industry leaders and policymakers strive to foster the growth of robust, large-scale, European or German cloud providers that can effectively compete with the international market heavyweights.

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