- Published in | Channel Observer | Connect Professional | CRN |
Data sovereignty: current market assessment of IT service providers, system houses & service providers
International cloud providers are viewed critically, but remain in high demand.
COMPRiS MARKET INSIGHTS regularly shed light on the market situation and trends in the channel. The current focus: How does the industry currently view the topic of data sovereignty? The channel management experts at COMPRiS asked almost 300 IT service providers, system integrators, system houses and service providers (DACH region). Managing directors, sales managers and other managers responsible for vendor selection and purchasing/portfolio at IT service providers and system houses were surveyed from August to October 2025.
How do you view the topic of "data sovereignty" and "international cloud providers"?
59% of respondents are increasingly critical or cautious about the issue of data sovereignty with international cloud providers (such as AWS, Azure, Google Cloud) and primarily see data protection risks and the danger of loss of control. Only 12% rate the sovereignty of their data with international hyperscalers as predominantly unproblematic or completely trustworthy.
This opinion is in the context of current German and European political developments that aim to strengthen digital and data-based sovereignty: regulatory measures, such as the Data Act, which came into force in 2024, harmonize requirements for data access and use across the EU and are intended to strengthen individual control and create uniform standards.

Is your customers' demand for European/German/local cloud providers increasing or decreasing?
38% of IT service providers perceive increasing customer demand for European, German or local cloud providers. 35 % express unchanged demand and 14 % a perceptible decline in demand for local providers.

Is the demand / use of overseas / hyperscalers increasing? hyperscalers (e.g. AWS, Microsoft Azure, Google Cloud) increasing or decreasing?
35% of partners see the demand/use of overseas/hyperscalershyperscalers as unchanged, 34 % perceive a decrease, but on the other hand 20 % also perceive an increase in demand.

How do you use this development for yourself as an IT service provider?
The responses are varied: 21% of partners are expanding their consulting and migration services for compliance and GDPR. 18% choose a multi-cloud strategy that enables the flexible use of the advantages of both worlds (local and global) while taking regulatory requirements into account.
Around 15% of IT service providers rely on their own hosting and/or managed services offerings, while a further 14% rely on partnerships with hyperscalers.
15% of partners do not yet have a clear strategy or did not respond to the survey.

OUR CONCLUSION
The topic data sovereignty is becoming increasingly the center of attentionwhich also affects IT-service providers and system houses.
Although IT service providers are predominantly critical of the services of international cloud providers when it comes to data sovereignty or are cautious in their assessment, the solutions are currently in equal or strong demand.
However, an increase in interest in local providers is definitely noticeable. At the same time, it is clear that the so-called hyperscalers are also reacting to the issue and investing significantly through data centers in Europe and Germany.
There are still companies that rely on international hyperscalers, e.g. Kärcher. Other companies, so-called public customers such as government authorities, public clients, etc., take a more differentiated view of the issue, if only for data protection reasons.

The topic of data sovereignty offers a great opportunity for IT service providers and system houses. Customers are paying extremely close attention to the topic. As consultants and trusted advisors, they support their customers in this development and can provide individual advice and offer the right solution.
GERALD HOLLER - Managing Director COMPRiS GMBH
There are still companies that rely on international hyperscalers, such as Kärcher. Other companies, so-called public customers such as government authorities, public sector clients, etc., take a more differentiated view of the issue for data protection reasons alone.
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OUTLOOK
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