US software dominance persists over German firms in pursuit of digital autonomy
A new study by Myra Security, titled "The State of Digital Sovereignty 2025," reveals that German companies, particularly those in the banking sector, are actively pursuing digital sovereignty by investing in European-controlled infrastructure and technology platforms. This shift aims to reduce dependence on US providers while complying with EU regulations.
The financial sector is facing a significant challenge as growing geopolitical tensions and potential extraterritorial data access rights necessitate a critical examination of supply chains and increased investment in sovereign infrastructure. According to the report, less than a quarter of German companies currently use European cloud services, with more than 40% heavily relying on non-European providers.
However, the study indicates a positive trend, with about two-thirds of respondents stating they would switch to European products if they are comparable in performance and security to non-European offerings. In the field of artificial intelligence, about one in twenty companies is aware of European AI offerings, and only about ten percent use them. Yet, about a third of companies plan to switch to European software solutions in the next two years.
Claudia Plattner, President of the Federal Office for Information Security (BSI), emphasizes that digital sovereignty means having decision-making options. She notes that many institutions in the banking sector have revised their cloud strategies and invested in resilience and data sovereignty, but the path to digital independence remains long.
The report suggests several key practical approaches for German companies to achieve digital sovereignty. These include building and strengthening European cloud environments, developing or partnering with European technology firms, implementing compliance-first AI and data governance frameworks, investing in core platform technology and interoperability standards, encouraging European collaboration and infrastructure development, and utilizing central bank digital currency infrastructure.
Dennis-Kenji Kipker, scientific director of the Cyberintelligence Institute (CII), stresses the importance of these measures. He notes that regulatory pressure alone is not sufficient for achieving digital sovereignty; economically competitive European alternatives, increased awareness, and a shift in perception are required. For 62.5% of respondents, guaranteed data storage within the EU is a decisive argument for using European software.
Myra Security's study is available for free download, and they also offer the Myra "Sovereignty Check" for checking hosting for critical dependencies. As the importance of digital sovereignty grows, German companies are taking steps to ensure their economic and IT independence, making Europe less vulnerable politically, economically, and technologically. The mantra of the current decade is "Regional instead of Global," and the banking sector is at the forefront of this shift.
- Other industries, besides banking, should also reconsider their reliance on US providers and embrace digital sovereignty, as per the findings in the report, with investments in European-controlled infrastructure and technology platforms being a crucial step.
- The push towards digital sovereignty doesn't solely rely on regulatory pressure; economically competitive European alternatives, increased awareness, and a shift in perception are equally important factors contributing to its success, according to Dennis-Kenji Kipker of the Cyberintelligence Institute (CII).
- The shift towards digital sovereignty extends beyond finance and technology, with politics and general-news outlets also monitoring the progress closely, as the implications of maintaining economic and IT independence on a regional scale can significantly impact national security and international relations.
