- Software ownership shifted from perpetual licenses to SaaS, reducing local IT needs but increasing dependency on providers.
- Most SaaS providers now rely on US hyperscalers (Amazon, Microsoft, Google) for advanced services, creating deep lock-in.
- European hardware providers exist but lack the advanced cloud services offered by US hyperscalers.
- The norm is to develop software that only runs on US clouds, making alternative approaches seem infeasible.
- Education systems and startup vouchers reinforce reliance on US cloud technologies.
- Two change paths: 1) Develop SaaS providers that can host on non-US clouds, 2) Build European cloud providers mimicking US capabilities to enable government migration.
- Deeply integrated systems like MS-365 require years to migrate, making change difficult for some organizations.