Digital sovereignty as the key to the future viability of German companies

A recent study sheds light on German companies' path to digital sovereignty. Despite a high level of dependence on non-European cloud services, there is a strong desire for autonomy. How do companies navigate this complex issue?

The importance of digital sovereignty

Digital sovereignty is becoming increasingly important for companies in Germany. A comprehensive study by Techconsult, supported by Ionos, sheds light on the current status, challenges and measures required to achieve digital independence. The study, for which 226 decision-makers from the IT sector of German companies with at least 50 employees were surveyed, provides insightful findings.

Digital sovereignty encompasses a company's ability to make autonomous decisions about its own digital resources, data and technologies. 79% of respondents emphasize that self-determined action and control over data flows and access are central to their business activities. However, according to the study, there is a significant dependency on non-EU cloud service providers, with over 50 percent of companies stating that they have strong ties to non-European providers in areas such as IaaS, SaaS, PaaS and DaaS.

On the road to sovereignty

One of the core problems is dependence on global service providers. Over 78% of companies with a strong dependency are striving to reduce it. As reasons for the existing dependency, 43 percent of respondents cite cost advantages and a third the lack of alternatives in Europe. The study also shows that compliance with data privacy and data security as well as the lack of IT specialists are among the biggest challenges.

Companies are already taking a variety of measures: 84% emphasize the importance of contractual regulations on data locations and security measures, and 82% are focusing on reducing proprietary hardware. Interestingly, a large proportion of companies are also in favor of using European cloud services in order to reduce dependence on third countries.

The role of cloud providers and political framework conditions

Expectations of cloud service providers are high: 82% of companies demand transparency regarding access rights and clear access and rights control. At the same time, companies see a need for political and social involvement in order to strengthen digital sovereignty. Almost half of those surveyed would like to see measures to strengthen cyber resilience and promote digital education.

The study underlines that digital sovereignty is not a distant ideal for German companies, but an immediate necessity. The complex challenge requires a concerted effort from all stakeholders - from the companies themselves to cloud providers, politics and society. Despite the recognizable progress, there is still much to be done to achieve comprehensive digital independence and security and thus secure the competitiveness and future viability of German companies in a globally networked world.

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