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Euro firms must ditch Uncle Sam's clouds and go EU-native(theregister.com)
134 points by jamesblonde 2 hours ago | 74 comments
202508042147 9 minutes ago | parent | next [-]

Last week I migrated our db away from AWS RDS to a European cloud provider. Everything runs fine and we also have it cheaper!

One of our domains is due for renewal in a couple of months. I'm setting up the transfer to a EU registrar for it next week.

This all takes time and it's not the most important thing for the bottom line, but on the long run I'm sure I'll look back and say it was a great investment.

niemandhier a few seconds ago | parent | prev | next [-]

Foremost medium sized business or government agencies, the main reason for cloud providers is that you don’t need the in-house skill.

You can replicate most of their offerings for that target group with open source stuff easy enough, but you will need people to maintain that and those are more expensive.

kioku 20 minutes ago | parent | prev | next [-]

> This isn't just compliance theater; it's a straight‑up national economic security play.

The woes of LLM contrasts…

In all seriousness, the points made ring true not only for European companies and should make everyone consider the implications of the current situation, as dreary as they are.

adrianN an hour ago | parent | prev | next [-]

I kind of share the opinion of the FSF Europe that it is less important where software comes from compared to whether it’s libre, but for cloud hardware I really hope that we manage to create competitive European offerings. Maybe we’re lucky and this European initiative will produce more than five Fraunhofer institutes and a gift to SAP.

bambax 10 minutes ago | parent | next [-]

We already have excellent cloud providers in Europe. But most importantly, most businesses using the cloud would be better off with simple on-prem solutions. So much cheaper to operate and control.

jeffrallen a minute ago | parent [-]

[delayed]

tirant 32 minutes ago | parent | prev | next [-]

I would say there’s even less chance nowadays to generate a fully private set of European alternatives to American cloud offerings.

Europes bureaucratization and the growth of the size of states has increased the last 10 years. I have less and less hope that we’re able to set the right free market conditions for real competition to happen.

That doesn’t mean that won’t be alternatives to American offerings, but most probably will come from somewhere else (Singapore, China, Taiwan…)

azan_ a few seconds ago | parent | next [-]

Ok, but it's not like nothing was done after Draghi report - EU formed at least 5 committees and commissioned multiple think-tanks to develop reports about possible development of the pathway to the programme that will work on bureaucracy and overregulation.

embedding-shape 29 minutes ago | parent | prev [-]

> set the right free market conditions for real competition to happen

Just as a curiosity, what exactly are those "right free market conditions" and where have those been successfully implemented before? Because I think most of us (Europeans) are desperately trying to avoid replicating the American experiment, so if that's the "right free market conditions" I think we're trying to avoid those on purpose.

But maybe you're thinking of some other place, then I'm eager ears to hear what worked elsewhere :)

ada0000 20 minutes ago | parent | next [-]

If the size of state and bureaucratisation are the main issues, one wonders how China got so far :-)

stefanfisk 8 minutes ago | parent [-]

In what sense is china bureaucratic when it comes to business?

hartator 6 minutes ago | parent | prev [-]

Contradictory regulations is one of the symptoms of overregulation.

I.e., complying to GDPR means you can’t comply to cybersecurity laws.

US has less of those.

nubinetwork 41 minutes ago | parent | prev | next [-]

I thought I heard that hetzner was pretty cheap, haven't looked myself though...

adrianN 33 minutes ago | parent [-]

Price is probably not the only factor in competitiveness.

moffkalast 15 minutes ago | parent | prev [-]

Without a viable MS Office/Google Docs alternative it's all rather performative. If those get blocked the entire bureaucratic machine stops dead. Hell block just excel and entire countries might actually collapse.

Zardoz84 12 minutes ago | parent [-]

Fucking Libre Office!

hunglee2 a minute ago | parent | prev | next [-]

The time for Great Firewall of Europe was 2005, when Friendster, Skype, Xing were still a thing. Probably too late now but effort still needs to be made. One upside of a sovereign European Internet is an ecosystem which may sustain thousands of well paying jobs

antirez 3 minutes ago | parent | prev | next [-]

To really understand how complicated is this matter, put into the mix that before AI in Europe there was no shortage of knowledge to have all our cloud services (to the point that a decent part of key infrastructure software is developed in Europe or mainly by Europeans), social networks, ..., but yet it was never strongly wanted. To reach this point, something is really odd with the current US-EU tensions.

abc123abc123 34 minutes ago | parent | prev | next [-]

This already happened. Hetzner, OVH, and countless other local cloud companies exist. It is only the path of least resistancd and market inertia, that stops companies from switching.

I run on Hetzner and am saving big bucks compared to the ridiculously high priced AWS.

atmosx 26 minutes ago | parent [-]

Comparing EU cloud providers to AWS is like comparing a 1963 Zastava to 2025 high end BYD because both of them are cars and can drive from point A to point B.

RobotToaster 20 minutes ago | parent | next [-]

The Zastava doesn't have a bunch of superfluous computers that track you, is easy to service, and reliable?

niemandhier 5 minutes ago | parent | prev | next [-]

But that is what people actually want.

I want a 1985 Mercedes that is build like a tank and outlives me.

pjerem 10 minutes ago | parent | prev [-]

Except 95% of companies have no need of ultra scalable super cloud.

If you are a very big SaaS company that is not Google or Apple, you are probably serving hundreds of thousands, maybe millions of unique users. AWS may be convenient, but you don't /need/ it, you can build an infrastructure that will handle such workload with any of the big european providers.

You'll just lose in comfort what you'll gain in data sovereignty and infrastructure costs.

I worked for a 7M€ MRR company that had maybe a million of users who used the software every day. The thing ran on a dozen of OVH servers, including multi-site redundancy.

llmthrow0827 2 minutes ago | parent | prev | next [-]

EU countries are just vassal states of the USA in practice, anyway. If Uncle Sam wants that data, he's getting it, either by asking politely or by taking it. And the EU countries can't and won't retaliate.

202508042147 16 minutes ago | parent | prev | next [-]

As a European, I am glad that this is finally discussed in the open! I have made multiple comments in the last weeks that one of the most important things, for me, is an alternative to the Visa/Mastercard duopoly. And yes, I can use an app to pay, but whenever I rent a car or purchase something online, I still use one of these two American companies. Why isn't the European Commission mandating these app payments in different EU countries to connect with each other? Wouldn't that go faster than the digital euro, that is set to come no earlier than 2029?

bluecalm a few seconds ago | parent [-]

>>As a European, I am glad that this is finally discussed in the open! I have made multiple comments in the last weeks that one of the most important things, for me, is an alternative to the Visa/Mastercard duopoly.

The main reason we don't have an alternative to Visa/Mastercard duopoly is protectionism of EU countries. There are local alternatives that do pretty well (BLIK in Poland, Revolut Pay in countries where it's popular) but entering more markets is like pulling teeth because EU throws regulatory obstacles at every step.

>> Why isn't the European Commission mandating these app payments in different EU countries to connect with each other? Wouldn't that go faster than the digital euro, that is set to come no earlier than 2029?

It would but then their non-local alternative could win which they really don't want to happen.

nullsanity 28 minutes ago | parent | prev | next [-]

I think reductionist opinions about the "Free market" and price competition being the only factor are naive. Culture and trust are major components of a project, and cultural sensibilities and development culture can be a part of procurement decisions.

I worked for a company that chose Tresorit over any other option because it gave them Data Sovereignty, E2E encryption, and most important, it was not American.

There is intrinsic value in being "Not made in America" and data sovereignty is a major issue for a lot of organizations. Just as an American company would be concerned about storing their data in China, the rest of the world is/should be concerned about storing their data in the US.

mytailorisrich 4 minutes ago | parent [-]

We are a little misled, on purpose, with the term "sovereignty", though. For instance, if you are a French entity then sovereignty means your data stay in France. Moving things to de facto EU control is the opposite of sovereignty.

ArtTimeInvestor 18 minutes ago | parent | prev | next [-]

Can Europe build AI datacenters though?

Europe has no wafer production and no companies that produce GPUs.

That means it is dependent on Taiwan for wafers and the USA for GPU design.

Then there is the question wether there is a will to invest. Gemini gives me this list of publicly traded companies in the US and what they invested in AI infrastructure in 2025:

    Amazon: $100B
    Alphabet: $90B
    Microsoft: $80B
    Meta: $70B
    Tesla: $20B
For Europe, I get this list:

    Deutsche Telekom: $1B
enoeht a minute ago | parent [-]

ASML & IMEC are European.

alansaber 2 minutes ago | parent | prev | next [-]

can't wait for my european incorporated company to run on my european cloud servers so I can run my european language models (which will run inference on european english)

barnacs 25 minutes ago | parent | prev | next [-]

As if the surveillance and regulation by the unelected EU bureaucrats was any better for the European citizens...

ndr42 9 minutes ago | parent | next [-]

Even if you are right and everything is the same regarding surveillance and regulation: there are other important aspects that make the move to move european data out of the US worthwhile.

preisschild 7 minutes ago | parent | prev [-]

"Unelected EU bureucrats"

Clearly shows you have absolutely zero idea about what you are talking about and just take your talking points from people like Elon Musk

blell 3 minutes ago | parent [-]

Educate us, tell us when did we vote for the commission and the likes of von der Leyen. (If your answer is "you didn't vote for it, but you voted for someone who voted for someone who voted for it in a secret ballot" I am going to chuckle)

debugnik 21 minutes ago | parent | prev | next [-]

> 61 percent of European CIOs and tech leaders say they want to increase their use of local cloud providers.

Oof, the company I work for is proudly telling us we've just migrated from a local provider to Azure, and partnered with Google for "digital sovereignty" solutions. Glad to know that's not the trend everywhere.

BSDobelix 6 minutes ago | parent | prev | next [-]

It's called the Cloud Act. If your business wants to keep its production secrets and personal data safe, think again. This has nothing to do with Trump.

Don't fall for the trick of using an AWS EU sovereignty cloud. Amazon is US-based and falls under the Cloud Act. Don't be tricked.

willtemperley 42 minutes ago | parent | prev | next [-]

This poses a fundamental problem for many SaaS providers. How can you guarantee client data aren't sent across the pond when all the app state is held server-side?

The answer is obvious with native apps, where it's standard practice to provide server endpoint details, so client-verified data locality is simple.

I don't really know how this is practically possible in SaaS web apps.

andersa an hour ago | parent | prev | next [-]

This will happen automatically once an EU native cloud exists with comparable pricing. Get on it. No one will pay 10x to store data in Europe.

tariky 40 minutes ago | parent | next [-]

France cloud provider scalaway has great prices. In some services they are cheaper then AWS. So I think that devs just need to research a bit more.

Also Hetzner (germany) is super cheap when compared with US hosting providers.

Epa095 30 minutes ago | parent | prev | next [-]

'Nobody ever got fired for choosing IBM (now Microsoft)' has been an important factor around my neck of the woods. A cheaper European alternative would never even make it to the comparison. That is changing now though.

jillesvangurp 10 minutes ago | parent | prev | next [-]

But those do exist and they are generally a lot cheaper; not more expensive.

BTW. it's all hosted in the EU if you use it in the EU. Amazon, Google and Azure have data centers all over Europe and using those is not optional for EU based companies. If that wasn't the case, they'd have no business here. Companies legally have to host in the EU and do business with US cloud providers through EU based subsidiaries (mostly based in Ireland. There's a bit of a murky situation with what level of access US intelligence agencies have exactly to all the data or who copies what where and when. But generally, data isn't supposed to leave the continent unless that's needed/required.

I work in Germany. We currently use Google Cloud. It's cheap and convenient enough. Our spend is only 300 euros/month or so. I could replace it. One of our customers insisted on Telekom Cloud; so we support that as well. I've used Hetzner in the past. There are a few other providers. It's not that big of a deal. But it's not a big/urgent issue for us.

However, Vms, object storage, elastic load balancers, managed databases, etc. are all commodities at this point. You don't need to pay AWS 2-3x for that. They aren't magically any better. They certainly aren't any faster. AWS squeezes hard on those VCPUs.

And there's a lot of exotic stuff that some people use. AWS is offering lots of that. But most of those things are a combination of a bit niche and very pricey and more aimed at enterprises than startups. When it comes to GPU hosting, AI stuff, etc. the premium options that Amazon offers really add up really quickly. I'm sure it's fantastic. But many people I talk to in Europe use alternative/cheaper solutions.

For bread and butter hosting, AWS is just expensive and overrated. Big companies don't seem to care much and are sensitive to big brands and the warm fuzzy feeling they get from expensive consultants telling them what to do. And AWS is very good at vendor locking. That's also why IBM still exists and why companies like Oracle still do a brisk business separating rich clueless enterprises from their cash. Vendor lockin is all they have left at this point But those are at this point the idiot option. AWS is increasingly like that. The times are gone that they are a sane solution for startups. Ten years ago they'd lure you in with "free" hosting for a year and then you'd be hooked for the life time of the startup. But it's not that obvious anymore that is a good choice for cash strapped startups.

Btw. Hetzner now operates in the US. It's a pretty good deal there as well. It's not like you have to give your money to Amazon.

zppln 42 minutes ago | parent | prev | next [-]

What is the cost of storing data in Europe today?

blackbear_ 37 minutes ago | parent | prev | next [-]

Luckily our friends overseas have shown us the way of dealing with uncompetitive local industries: tariffs.

pjmlp 27 minutes ago | parent | prev | next [-]

They certainly will if regulations are part of it.

US has their tariffs and last stage capitalism, we have our government enforcement laws.

simianparrot an hour ago | parent | prev [-]

Bingo. And for that to happen the EU must be a competitive market. And that doesn’t happen by strangling innovation with a thousand regulations passed down from Brussels by unelected bureaucrats.

throwaway09809 33 minutes ago | parent [-]

Your HN handle is a good fit for your comment

carlosjobim 16 minutes ago | parent | prev | next [-]

I see this differently.

For European citizens and companies the safest option will always be to have their data in the USA or anywhere where European rulers cannot touch it.

The same for Americans, their data should be safest far away from their government.

iLoveOncall 41 minutes ago | parent | prev | next [-]

Europe will never have competitive offerings until they pay their employees the equivalent of what FAANGs pay.

If you work for GCP or AWS in Europe, you'll easily get twice as much income as if you do the exact same job for Hetzner or OVH.

You can't build equivalents to GCP and AWS without paying the same. I work for a FAANG right now in Europe and I wouldn't consider even a single second any European cloud provider as potential employers.

lnsru 5 minutes ago | parent | next [-]

I upvoted you. That’s absolutely true for other roles as well. Like hardware design engineers. At US company in Germany one gets real salary. At German big company one will make 2/3 of that salary. People are not stupid, why choose fraction of the salary when one can take it all. There are outliers, but majority will want to work for more than less money.

embedding-shape 27 minutes ago | parent | prev [-]

> Europe will never have competitive offerings until they pay their employees the equivalent of what FAANGs pay.

Stop focusing on the absolute number of "$/year", and things will make more sense. Seemingly you'll be able to live a more lavish life in Spain given 1/4 of the salary compared to FAANG, yet your life is better and you can afford more.

Higher salaries aren't always better, especially when you're almost willfully ignoring more important things like purchasing power and quality of life.

bell-cot an hour ago | parent | prev | next [-]

Yes, nice, true.

But sadly, it feels like pigs will be singing Handel's Messiah before Europe's leaders get off their fat asses and actually do anything about their problems.

abc123abc123 32 minutes ago | parent [-]

Why should they do something about it? They are not IT people. If you want to switch, do it today. Plenty of options exist.

If you designed yourself into a corner by utilizing function as a service to program agains ta proprietary API, then you can just as well start from scratch or quit and join a company that knows how to avoid lock-in.

bell-cot 11 minutes ago | parent [-]

> The are not IT people.

They are not farmers - but it's their job to make sure that their countries have secure supplies of safe food, long-term.

They are not electricians - but it's their job to make sure that their countries have...

They are not soldiers - but it's their job to make sure...

The are not ...

...

(Yes, I suspect that we have rather different concepts of the role of gov't, and the responsibilities of gov't leaders.)

sunshine-o 19 minutes ago | parent | prev | next [-]

If Europe wants to reach digital independence it really has to look at thew big picture.

1. European banks mostly sell debt and Nasdaq/Magnificent 7 stocks to their clients. This is what EU citizen invest in.

2. Data centers run on semiconductors made in Asia and cheap energy. Software is almost "the easy part".

3. The whole migration to "the Cloud" (aka MS/AWS/Google), CAPEX to OPEX transition during the ZIRP era was a scam sold by the same ruling class that now tell you need to revert to the previous model.

4. Human capital has to be considered. Having big consulting shops making banks on exploiting foreigners is not a sustainable path to build digital independence (see the content of the recent trade deal with India).

alecco 29 minutes ago | parent | prev | next [-]

Sadly the EU leadership is a bunch of professional bureaucrats living in a comfy bubble completely disconnected with the people or reality.

xoac 25 minutes ago | parent [-]

As opposed to.. the harsh realities of the Bay Area tech scene?

jgbuddy an hour ago | parent | prev [-]

Thus is probably more about the EU having access to eu data than not having the US have access to EU data. Also it’s not like it’s impossible to encrypt things when you store them? This article is more political than logical or technical, it’s unfortunate that government control / intervention in the free market to this degree can be spun into something positive.

adrianN an hour ago | parent | next [-]

„Cloud“ ist a lot more than blob storage where encryption can help. As soon as you use a service that sees plain text (eg a database saas) encryption doesn’t save you from the service provider (and by extension foreign government). But as the article points out, data exfiltration is one problem, the other, imo bigger, problem is dependence on a foreign nation for critical infrastructure. The US government can decide to shut down almost all European IT and there is nothing Europe can do about it right now.

tonfa 44 minutes ago | parent | prev | next [-]

> Thus is probably more about the EU having access to eu data than not having the US have access to EU data

It's more about not being subjected to the whims of the US. High dependency on US vendors means high leverage for the US administration (export control, sanction, etc.).

Findecanor 38 minutes ago | parent | prev | next [-]

It is also about not having the US government cutting people off from their data on a whim, such as happened to the International Criminal Court.

jraph an hour ago | parent | prev | next [-]

> Also it’s not like it’s impossible to encrypt things when you store them?

Apart from Signal, do you know of an actual US service where things are E2E encrypted, including metadata, that also allows several people working on the same thing at the same time?

> not having the US have access to EU data

It is a great deal about not having US access EU data.

It is also about the US not having the power to cut the EU from essential services.

> This article is more political than logical or technical

Of course this is 100% a political matter (rather than technical). This is not a bad thing. Technical stuff doesn't live in a politic-free vacuum.

> it’s unfortunate that government control / intervention in the free market to this degree can be spun into something positive.

And this stance too.

reorder9695 an hour ago | parent | prev | next [-]

I wonder if someone could make a foss frontend for Google Drive/Dropbox/<insert product here> that transparently encrypts files on your device before uploading them, that would certainly make me worry less about those services.

l1am0 26 minutes ago | parent | next [-]

https://github.com/cryptomator/cryptomator

10729287 25 minutes ago | parent | prev | next [-]

Isn’t what Cryptomator stand for ? Am I missing something here ?

fsflover an hour ago | parent | prev [-]

How about the metadata?

embedding-shape an hour ago | parent | prev | next [-]

> unfortunate that government control / intervention in the free market to this degree can be spun into something positive

I don't think most Europeans want a laissez faire-style "anything goes" market, we want corporations and people to have responsibility for what they do and the effect they have. With a little bit of nuance, some government control and intervention is needed in a healthy society, because we don't want to end up in the same situation the US currently finds itself in.

jeppester 32 minutes ago | parent | prev | next [-]

> Thus is probably more about the EU having access to eu data than not having the US have access to EU data.

The EU governments do not have free access to data in a non-transparent way. That's the main difference between EU and American laws.

> Also it’s not like it’s impossible to encrypt things when you store them?

The GDPR lets you store any data in a third country, so long as it's impossible for that country to decrypt the data. E.g. it has to be encrypted before it's transferred.

It just severely limits what you can build, to a degree where it's probably easier to just use a cloud that can be trusted to follow the GDPR.

KaiserPro an hour ago | parent | prev | next [-]

Its past political.

I work in energy now, and we host stuff in AWS. So far so normal.

However, with the tubthumping about invading greenland, We see that america is willing to evaporate any system that gets in the way of the sun king's world view. Sure, he says now that "we were never going to invade" but given the way you've all just given up your 1st, 4th, 10th and now 2nd amendment, we're not really that sure.

This means that when the next recession happens and the EU is busy competing, he'll ask "hey we subsidies the EU by getting them to pay for AWS, why don't we turn it off?" I mean that sounds far fetched, but so did unrelated personally controlled federal militia roving around states disappearing US citizens without trial.

tldr: you're damn right its about politics. He threatened to invade an ally, we aint hanging around to find out whats next.

KaiserPro 44 minutes ago | parent [-]

Also to your point: "can't we just encrypt it?"

Its someone else's computer. The TPM is controlled by someone else. You can't really process on a machine that has a compromised urandom/TPM

Also the bigger issue is having all your access revoked over night. Thats the bigger fear.

komali2 14 minutes ago | parent | next [-]

> You can't really process on a machine that has a compromised urandom/TPM

Naive question: does zero knowledge proof solutions help with this?

XorNot 28 minutes ago | parent | prev [-]

Exactly - it's about availability. If someone with remote access could knock out your business operations, how long would it take to adapt? How much economic cost could that incur, perhaps at a critical time?

yobbo 27 minutes ago | parent | prev | next [-]

They mean google docs/gmail or office365.

mytailorisrich 42 minutes ago | parent | prev [-]

IMHO, this is the EU using current events to push for more power and control for itself over member states in many areas, including new areas like defence. Apparently member states and people are fine with that or even driving it... Turkeys voting for Christmas comes to mind.