Sovereign cloud and on-premises for sustainable tech independence

On-premise solutions

Europe's technological dependence on American solutions is no longer simply a subject for debate: it represents a major economic and strategic challenge. With 264 billion euros spent annually by European companies on services American cloud software, and in an increasingly unstable geopolitical context, the on-premise solutions and European alternatives become key strategic options for SMEs who want to regain control of their digital infrastructure.

Technological dependence: a growing economic and geopolitical risk

264 billion in cloud-software dependency

According to a recent study by Cigref and Asterès, companies in the European Union spend around 264 billion euros a year into cloud and US software. This astronomical sum, comparable to Europe's energy bill, represents almost 1.5 % of the EU's GDP. For businesses, this translates into average expenditure of 2.2 % of sales dedicated to cloud services, including 83 % benefit American players.

This technological dependence is not just a question of figures. It manifests itself daily in the choices companies are forced to make: adopting AWS, Azure or Google Cloud by default, almost compulsory use of American SaaS solutions, and increasing difficulty in negotiating fair prices. Price rises regularly reach 10 to 20 % per year, There is no real possibility of changing supplier because of the lock-in effect.

Geopolitical risks in an unstable world

The current international context dramatically amplifies the risks associated with this dependence. Trade tensions between the United States and Europe, tariff threats, and the potential use of technology as a geopolitical lever are creating an unprecedented situation. What would happen if the United States decided to restrict access to cloud services in order to put pressure on Europe?

Beyond the political risks, the digital sovereignty asks some essential questions: RGPD compliance, These include the protection of sensitive data, continuity of service in the event of a crisis, and control over innovation. For a Belgian or European SME, entrusting its entire infrastructure to non-European players is tantamount to delegating part of its corporate sovereignty.

On-premise solutions: regaining control of your data and infrastructure

What exactly is an on-premise solution?

A on-premise solution (literally “on-premise”) refers to an IT system hosted and managed directly on your company's physical servers, either on your own premises or in a datacentre that you control. Unlike public cloud where your data and applications reside on third-party servers (AWS, Azure, Google Cloud), the’on-premise hosting gives you total control.

This approach applies to your entire technology stack: management systems (ERP, CRM), databases, business applications, collaboration tools and even artificial intelligence solutions. With on-premise solutions, You have physical control over where your data resides, who has access to it and how it is secured.

Concrete benefits for European SMEs

For a Belgian or European SME, migrating to on-premise solutions or sovereign cloud offers a number of strategic advantages:

Total data control Your critical information - customer data, intellectual property, financial information - remains under your direct control. No risk of access by foreign authorities via legislation such as the American Cloud Act.

Predictable costs No more unilateral rate increases of 10 to 20 % per year. L’on-premise infrastructure implies a higher initial investment, but predictable and controlled operating costs over the long term.

Optimised performance For mission-critical applications requiring minimal latency or high throughput, the’local accommodation offers performance that is often superior to that of the public cloud, particularly for processing massive data or AI.

Enhanced compliance : Certain sectors (health, finance, defence) impose strict constraints on the location of data. The on-premise solutions facilitate compliance with the RGPD and sector-specific regulations.

Building digital sovereignty

The European alternative: building digital sovereignty

European cloud ecosystem: the players you need to know

If the’on-premise hosting is not suitable for all applications.’european cloud ecosystem offers credible alternatives. OVHcloud (France), Scaleway (France), IONOS (Germany) and Hetzner (Germany) offer RGPD-compliant cloud services with European data centres and European governance.

These European cloud providers are now offering services comparable to those of the American giants: infrastructure as a service (IaaS), platform as a service (PaaS) and managed solutions. The Gaia-X initiative aims to structure a European sovereign cloud interoperable, guaranteeing data portability and avoiding the extraterritoriality of the law.

For SMEs, these alternatives allow them to benefit from the flexibility of the cloud while drastically reducing the cost of ownership. technological dependence in the United States. Rates are often more competitive, and the geographical proximity of data centres improves performance.

European software and open source: regaining control of applications

In addition to infrastructure, the European software constitute a rich and mature ecosystem. Nextcloud (Germany) for collaboration, Odoo (Belgium) for ERP, OnlyOffice (Latvia) for office automation and GitLab (Netherlands) for development are all effective alternatives to American solutions.

L’open source is playing a key role in this process of regaining digital sovereignty. Solutions such as PostgreSQL, Linux, Kubernetes, or open source AI models (Mistral AI in France) allow companies to free themselves from proprietary licences while benefiting from active communities and total code transparency.

For an SME, adopting European software and open source not only reduces dependency, but also reduces licensing costs and improves the ability to customise tools to specific business needs.

Transition strategy: from the American cloud to technological sovereignty

Stage 1: Technology dependency audit

Before any migration, carry out a dependency audit complete. Identify all your current cloud and SaaS solutions, quantify data flows abroad, assess the real costs (licences, bandwidth, storage), and classify your applications by criticality.

This audit often reveals surprises: an increase in the number of subscriptions SaaS under-utilised, critical data hosted without any real control, hidden costs of migration between services. For an SME spending 2.2 % of its turnover on cloud software, the exercise frequently identifies 20 to 30 % of potential savings.

Stage 2: Gradual migration to on-premise or the European cloud

Migration should never be abrupt. Adopt a phased approach: start with non-critical applications, test performance and reliability, train your teams, then gradually migrate critical systems.

Choose a hybrid cloud strategy Some applications will remain in the public cloud (development, testing), while others will migrate to the public cloud. European cloud (production, customer data), and the most sensitive systems are switched to on-premise. This approach minimises risks while progressively reducing the technological dependence.

Stage 3: Governance and continuous optimisation

Once the migration has been completed, introduce strict governance of technology choices. Define clear criteria giving priority to European solutions and on-premise when relevant. Train your teams on these new platforms.

Regularly measure key indicators: total cost of ownership (TCO), performance, availability and security. The aim is not to ban all American technology on principle, but to make informed choices that reduce your exposure to geopolitical and economic risks.

European Cloud

Iterates, your partner for digital sovereignty

At Iterates, we support Belgian and European SMEs in their transition to the digital economy. technological sovereignty. Our expertise covers dependency audits, the design of architectures hybrid cloud combining on-premise and European cloud, and the development of’customised applications based on open, European technologies.

We don't propose generic solutions: each company has its own specific constraints in terms of performance, compliance and budget. Our approach is to analyse your current situation, identify the levers for reducing dependency, and design a pragmatic and progressive roadmap.

From the’on-premise hosting for your most sensitive data to the choice of suppliers European clouds for your business applications, including the integration of open source software, We turn technological complexity into a tangible strategic advantage.

Ready to regain control of your digital infrastructure?

La technological dependence to American solutions represents an economic risk of 264 billion euros for Europe, and a growing geopolitical risk for every company. Visit on-premise solutions, the European cloud, and sovereign software offer credible, effective and economically viable alternatives.

With the right strategy and the right support, your SME can drastically reduce its dependency, control its technology costs and build a resilient infrastructure in the face of geopolitical uncertainties. Visit digital sovereignty is no longer an option: it is a strategic imperative for European businesses that want to remain masters of their digital destiny.

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Author
Picture of Rodolphe Balay
Rodolphe Balay
Rodolphe Balay is co-founder of iterates, a web agency specialising in the development of web and mobile applications. He works with businesses and start-ups to create customised, easy-to-use digital solutions tailored to their needs.

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