From the Field: Are our customers rethinking their cloud strategy amid the current geopolitical climate?

Geopoilitics
Automation, Cloud, SaaS

By Daniel Campos

We asked our customers to share their views on whether recent geopolitical and economic factors (such as potential tariffs between the USA and EU) might influence their cloud strategy. Specifically, we wanted to know if they were considering EU-only cloud providers such as Hetzner or Combell instead of AWS.


The responses give us valuable insight into how our customers think about these risks and their future cloud strategies. Here’s a summary of what we heard:

The general sentiment: low concern

The majority of our customers are not concerned about potential geopolitical risks affecting AWS usage.

  • Many noted that AWS infrastructure in Europe already addresses data locality concerns.
  • PrismFP emphasized that they don’t expect AWS to raise prices due to tariffs, and even if tariffs were imposed, they would absorb the additional cost themselves.
  • Some see the topic as too speculative to act on today.
  • In the case of Joyn, they don’t foresee any problems because although AWS may be a US company, its infrastructure is hosted in Europe.

Customer-driven considerations

While most customers don’t see a risk, one customer mentioned losing a client for using AWS (BloomUp) and another noted that competitors promote EU-only hosting as a selling point (TicketMatic).

This shows that while our customers themselves may not feel pressured, they do recognize that market perception matters.

Costs as main driver?

NodalView emphasized that costs, not politics, are the bigger issue. They pointed out that services like S3 and EC2 are expensive compared to EU providers that offer similar functionality. For them, the possibility of exploring other providers would only make sense if the cost savings were significant and the migration manageable.

Openness to explore alternatives

If we were to explore EU-only providers, we do have customers willing to join us on that path (Techyard, BloomUp). However, their interest is conditional: migration would need to be straightforward, costs comparable to AWS and the provider would need to have a solid reputation.

Conclusion

Geopolitical risks are on our customers’ radar, but they are not shaping their cloud strategy today. Instead, factors like cost, service maturity and market perception seem to carry more weight in their decision-making.