As a Microsoft licensing specialist, we have seen many companies fully migrate to Office 365 and Azure in recent years due to their flexibility, scalability, and cutting-edge technologies. Despite these advantages, recent developments such as political tensions and frequent price increases by Microsoft have raised concerns about complete reliance on US cloud providers. In this post, we discuss the risks of complete reliance and why a hybrid cloud strategy can be a wise choice.
Microsoft and political risks
Microsoft, as a US provider, is subject to legislation such as the US CLOUD Act. This means that data in Azure and Office 365 can be accessed by US authorities, even when this data is physically located outside the US. This can lead to conflicts with European privacy regulations such as the GDPR and creates uncertainty for companies that are sensitive to data privacy. In addition, geopolitical tensions and changing legislation can bring additional risks in the future.
Price increases by Microsoft
Recent price increases across Microsoft’s portfolio, including Azure and Office 365, have left organizations facing higher costs and less predictable budgets. As a result, businesses that rely solely on Microsoft are experiencing less control and limited room for negotiation. A hybrid strategy can help mitigate these risks by reducing vendor dependency and spreading costs.
Why a hybrid Microsoft environment may be a better option
A hybrid solution – where sensitive or mission-critical data is stored locally or with European cloud providers, while less sensitive systems remain in Azure or Office 365 – offers an effective strategy. It allows organisations to still benefit from Microsoft’s innovative technologies and licensing, while significantly reducing risks around privacy, political uncertainty and price volatility.
Benefits of a hybrid approach:
- Better control over sensitive data: Data can remain local or within the EU, helping with GDPR compliance.
- Cost control: Reducing dependency on Microsoft means better negotiating power and more stable costs.
- Flexibility and risk spreading: Using multiple suppliers limits the impact of geopolitical and economic developments.
Concrete steps towards a hybrid cloud strategy
For example, consider storing sensitive customer data or financial information locally or with European cloud providers, while continuing to use Microsoft technologies for less sensitive applications. Well-known European alternatives include OVHcloud, Deutsche Telekom or KPN, which offer reliable cloud services within the EU. By implementing a sound hybrid strategy, you can retain the benefits of Microsoft while increasing control over privacy and costs.
Closing note
Given current political and financial developments, complete reliance on Microsoft’s US cloud environment is no longer without risks. A hybrid approach, effectively combining Microsoft technologies with local or European alternatives, can be a wise choice. This provides companies with the necessary flexibility, cost control and regulatory compliance that are essential for healthy business operations.
Need independent advice?
Are you considering a hybrid cloud strategy or do you want to know which licensing solution suits your organization best? Contact BeSharp Experts for a free and independent licensing advice. We help you with a strategy that offers the best balance between costs, compliance and flexibility. Contact us today for a free consultation!