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Technology: Fear of “digital blackmail”: European cloud providers benefit from the Trump effect

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TL;DR

  • European cloud providers are seeing increased demand amid fears related to digital blackmail.
  • Uncertainty stemming from Donald Trump’s administration heightens concerns over reliance on US-based cloud services.
  • Many European companies are shifting towards local providers to enhance digital sovereignty.
  • The situation prompts discussions around alternative software solutions and investment in European technology infrastructure.

The rise of digital blackmail and the uncertainties woven into the fabric of international relations underscore a significant shift in the European technology landscape. As European cloud providers begin to identify new opportunities, the so-called “Trump effect” catalyzes businesses to consider local alternatives to American service giants.

Rising Demand for European Cloud Services

Amid increasing threats of digital coercion, European cloud service providers like OVH, Ionos, and the Schwarz Group are reporting a marked uptick in demand. This surge occurs against a backdrop of trepidation regarding the reliability of U.S.-based cloud services, especially with the unpredictable nature of policies under former President Donald Trump posing concerns for European enterprises.

“Is there any reliability left in cloud services from the USA?” questioned industry experts, reflecting the growing anxiety among European business leaders.

Concerns Over Digital Blackmail

The fear of digital blackmail is not unfounded. The rise of potential measures such as tariffs juxtaposed against a backdrop of strained trade relations has pushed European companies to search for more secure and stable options. The European market is leaning towards a more robust digital ecosystem where sovereignty over data is paramount, pointing to a demand for more localized cloud services.

Calls for Technological Sovereignty

Prof. Harald Wehnes, a specialist in information technology, emphasizes the urgency of pursuing digital sovereignty, stating, “Sovereignty has never been more important than today.” This necessity arises from concerns regarding the grip that major U.S. tech corporations like Microsoft, Amazon, and Google hold over the European market. Such dependence can lead to significant vulnerabilities, especially when services from these companies can be abruptly restricted.

“Every user should be aware of the implications of relying on these services,” Wehnes stated in a recent discussion.

Investments in Local Infrastructure

The current climate is prompting significant investments in European cloud infrastructure, with some estimates suggesting that over €300 billion may be needed to develop competitive platforms and services by 2035. This investment would ensure that Europe can establish a self-reliant tech ecosystem capable of competing with the likes of Silicon Valley.

Additionally, there are growing calls for the European Union to consider imposing tariffs on non-European software and services. This measure aims to fund the development of open-source alternatives, thus fostering a more resilient and diverse technological landscape.

Conclusion: A Shift Towards Independence

The tectonic shifts in the global technology landscape—exacerbated by fears of digital blackmail and geopolitical tensions stemming from the previous U.S. administration—are galvanizing European cloud providers and necessitating a reevaluation of software dependencies. The call for sustainability in technology and the pursuit of local solutions appear to be the new norm, signaling a movement towards a more independent and secure European digital future.

References

This article was written with the help of AI.

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