But any shift toward local, sovereign cloud providers will necessarily be gradual, analysts, said as the Cloud and AI Development Act (CADA) proposals leave plenty of room for US providers to continue supplying cloud computing services to European public sector customers.
“The direction is right. The execution will be slow,” said Fernando Pereiro, senior director analyst at Gartner.
While the Commission has correctly identified areas where the EU is most dependent on foreign providers, delivering on its ambitions is another challenge, he said. Scaling alternatives to US suppliers “takes time, capital, and coordination at a level that is difficult to sustain in Europe.”
Dario Maisto, senior analyst at Forrester, played down the prospect of a major short-term shift towards European cloud providers as a result of the CADA proposals, even after recent interest in local European vendors for mission-critical workloads and highly sensitive data.
“I do not expect an immediate impact on the cloud infrastructure market,” Maisto said. “Full-blown migrations are costly and take several years. They are not going to happen in the near future.”
