4/7: The Dilemmata: Why Sovereignty Gets Difficult

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20.08.2026
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3 min read
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So far, we have looked at the technology. Now look at sovereignty from the perspective of those actually using it: consumers, SMEs, large enterprises, and public organizations. Their missions differ, but all operate with budgets, existing technology landscapes, finite expertise, and competing demands for their resources. Cloud ahead starts from exactly this reality: different actors make rational technology choices under very different constraints.

Looking at these choices in practice, three recurring patterns emerge.

The Risk Dilemma: Risks May Move Against Each Other

Reducing one sovereignty risk can increase another. For an SME, moving email, collaboration, security, or infrastructure to a specialized SaaS or cloud provider can reduce cyber vulnerability and operational disruption because the provider has expertise and scale the SME cannot reproduce. But the same decision can increase vendor lock in, loss of expertise, or kill switch exposure. Conversely, self operating open source can reduce vendor dependency while increasing cyber and operational risks when internal expertise is insufficient.

The Mitigation Dilemma: Sovereignty Competes for Resources

Mitigation takes resources that could be used elsewhere. Avoiding a specialized provider may require an organization to build and operate the missing capabilities itself, including the people, integration, infrastructure, and ongoing operations behind them. The economic impact therefore includes not only direct costs, but also opportunity costs and potentially lost technological capabilities.

Even highly capable technology companies eventually make this calculation. Netflix moved to AWS because its own data centers could not scale fast enough, while DeepL recently added AWS to support global scale, performance, and faster innovation.

The Moving Baseline: Technology Changes the Equation

Technology does not just create new sovereignty risks. It continuously reshuffles existing ones. Anthropics new model Mythos 5 illustrates both directions: more capable AI can discover and exploit software vulnerabilities at unprecedented scale, increasing cyber risk, while the same progress makes software easier to understand and rebuild, potentially weakening vendor lock in that previously seemed permanent.

Platform shifts often change the equation even more fundamentally. Microsoft dominated the PC era, but that dominance did not carry over into mobile, where Android and iOS became the dominant platforms. The dependencies remained, but the gravity of it reduced significantly as technology around them moved on.

Patterns, Not Laws

These dilemmas describe patterns, not unavoidable laws as especially technically mature organizations can often improve risk, cost, and capability simultaneously. 37signals, for example, reduced its external cloud dependency while simultaneously lowering infrastructure costs, estimating savings of around $10 million over five years. Amazon eliminated its dependency on Oracle across its proprietary consumer systems, migrating roughly 7,500 databases while reporting lower costs, less administrative overhead, and better performance. Apple similarly replaced Intel processors in the Mac with its own silicon, gaining greater control over a critical technology layer while pursuing higher performance and tighter integration across its products.

But these capabilities are unevenly distributed. A mature engineering organization can turn dependencies into design choices. A consumer, a typical SME, or a resource constrained public institution often cannot.

The Micro-Macro Trap

And this creates a problem beyond the individual organization. What seems rational at the micro level becomes problematic when millions of actors make the same rational choice.

A European company may rationally choose AWS, Microsoft, Google or Salesforce because the alternative costs more, provides fewer capabilities, or requires expertise it does not have. But when thousands of organizations make similar decisions, Europe collectively builds large parts of its digital economy on technologies controlled elsewhere. Individually rational decisions can create collectively undesirable dependencies.

Simply asking organizations to choose European or more sovereign alternatives reverses the problem rather than solving it. If doing so means higher costs, weaker capabilities, or expensive migrations, individual organizations bear the costs of achieving a strategic benefit that largely accrues to Europe as a whole.

This is the Micro Macro Trap: microeconomic optimization can create macroeconomic dependency, while reducing that dependency can require choices that are irrational at the micro level. A viable approach to sovereignty therefore has to work with economic incentives rather than against them.

So how can different actors find the right balance between sovereignty, cost, and capability? See the next chapter.

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...the blog posts and background information may be used according to the license terms, including for commercial purposes. They are available as open files under ‘Downloads’.

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