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Big Tech's Grip Tightens on Europe
4 May
Summary
- US tech firms control over 70% of European cloud market.
- Forced upgrades increase costs and dependency.
- Europe seeks control over critical IT infrastructure.
A significant portion of Europe's critical IT infrastructure is now dependent on a few US technology vendors, including Amazon, Microsoft, and Google, who collectively dominate over 70 percent of the cloud computing market. This dependency means these vendors dictate system changes, costs, and operational outcomes.
Organizations face rising costs and pressure to upgrade or migrate to the cloud, often at the vendor's schedule. This practice is seen not as progress but as a form of coercion and lock-in, making it difficult and expensive for European entities to switch providers.
The concentration of power with these US firms poses a risk, as a failure in one part of their integrated ecosystems can impact downstream operations. This has led many European boards to question their reliance on these vendors and to seek greater control over their own systems and data sovereignty.
