180 million in EU sovereign cloud contracts just went to 4 European providers & AWS, Azure & Google Cloud were not among them…..
€180 million in EU sovereign cloud contracts just went to four European providers. AWS, Azure, and Google Cloud were not among them.
If you’re a PE or VC operating partner with European portfolio companies, the calculus on US ERP stacks is shifting.
Anna Heim’s reporting in TechCrunch lays out the pattern: France moving its Health Data Hub off Azure, German institutions evaluating LibreOffice, the CLOUD Act creating extraterritorial data exposure that EU clients can no longer ignore.
What this means for portfolio strategy:
For Dynamics 365 deployments in Europe, sovereign cloud certification is becoming a procurement requirement, not a nice-to-have. Scaleway, OVHcloud, and STACKIT are picking up workload that would have defaulted to Azure 24 months ago.
For NetSuite, the picture is different but related; Oracle’s footprint is smaller in EU public sector to begin with, but private sector buyers are starting to ask the same questions about data residency and US disclosure obligations.
For talent strategy: consultants and architects who can navigate sovereign-cloud Dynamics implementations and EU data residency requirements are a smaller pool than the broader Dynamics market. This is going to become a real premium moving forward in my opinion.
Obviously, this is not a reason to walk away from US ERP; but you do need to make sure your European operating model and your hiring plan account for where this is going.
Credit to Anna Heim and TechCrunch for the reporting.
If you’re a PE or VC operating partner with European portfolio companies, the calculus on US ERP stacks is shifting.
Anna Heim’s reporting in TechCrunch lays out the pattern: France moving its Health Data Hub off Azure, German institutions evaluating LibreOffice, the CLOUD Act creating extraterritorial data exposure that EU clients can no longer ignore.
What this means for portfolio strategy:
For Dynamics 365 deployments in Europe, sovereign cloud certification is becoming a procurement requirement, not a nice-to-have. Scaleway, OVHcloud, and STACKIT are picking up workload that would have defaulted to Azure 24 months ago.
For NetSuite, the picture is different but related; Oracle’s footprint is smaller in EU public sector to begin with, but private sector buyers are starting to ask the same questions about data residency and US disclosure obligations.
For talent strategy: consultants and architects who can navigate sovereign-cloud Dynamics implementations and EU data residency requirements are a smaller pool than the broader Dynamics market. This is going to become a real premium moving forward in my opinion.
Obviously, this is not a reason to walk away from US ERP; but you do need to make sure your European operating model and your hiring plan account for where this is going.
Credit to Anna Heim and TechCrunch for the reporting.
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