European Cloud Alternatives to U.S. Hyperscalers

In this article, you will learn

• which European alternatives to U.S. hyperscalers are available,
• what features and limitations these European cloud providers have and
• how the Open Telekom Cloud performed in comparison.

Published in May 2025, the independent iX report by Söldner IT compares the functionality of eight European cloud providers. For users, the report offers essential insights into how choosing an alternative provider can help strengthen digital sovereignty.

According to a Q2 2024 analysis by Synergy Research, AWS remains the global market leader, holding roughly one-third of the global Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) market. Microsoft Azure continues to grow, reaching nearly 25% market share in 2024, followed by Google Cloud at around 12%. That leaves approximately 30% of the global market to non-U.S. providers – a segment that continues to grow at an annual rate of about 20% (IaaS and PaaS). In Europe, the largest cloud markets are the United Kingdom and Germany.

Which cloud platforms are preferred by German companies? The Bitkom Cloud-Report 2025 highlights two top priorities among respondents: trust in IT security, data protection and compliance, and performance and reliability. These factors far outweigh other selection criteria. This comes as no surprise – users want a cloud they can depend on, one that ensures regulatory compliance and protects sensitive data.

At the same time, the report reveals a growing focus on digital sovereignty. According to the findings, 78% of German companies believe they are overly dependent on U.S. cloud providers, and 97% say that the country of origin influences their cloud selection—ideally favoring a German or European provider.

The reasons behind this preference are varied, but chief among them is the desire for greater control over cloud resources and assurance that IT operations are aligned with European regulations. Companies seek transparency and the confidence that internal data – especially when used to train or deploy artificial intelligence – is not leaked or misused. In today’s shifting geopolitical environment, sovereignty is no longer just a strategic advantage; it is becoming a business imperative. European-controlled clouds are better positioned to meet this demand.

One example of the changing transatlantic dynamic is the EU–U.S. Data Privacy Framework. Intended as a successor to the now-defunct Privacy Shield, the framework has come under increased scrutiny. In early 2025, the Trump administration dismissed three of the five members of the Privacy and Civil Liberties Oversight Board (PCLOB) – an independent oversight body within the U.S. executive branch. This board was a central factor in the EU Commission’s decision to grant the U.S. data protection adequacy. As trust in U.S. data safeguards wanes, the 30% of the cloud market held by non-hyperscalers is gaining greater relevance in discussions about sovereignty.

Which European providers can serve as credible alternatives to the major U.S. hyperscalers? Analysts from ISG, IDC, and Forrester have explored this question. In May 2025, iX – the magazine for professional IT – published a market report by Söldner Consult GmbH titled "Public Cloud from Europe", comparing European cloud offerings.

With decades of experience across various technology fields, Söldner Consult advises companies on cloud adoption and understands firsthand which criteria matter most to cloud users. For this report, Söldner IT identified eight significant European cloud providers and analyzed their offerings. “Despite the dominance of U.S. providers, several European vendors have managed to establish themselves, even though their market shares remain relatively small,” the authors note. The evaluated providers included one Swiss company (Exoscale), two French providers (OVHcloud, Scaleway), and five German vendors (Hetzner, IONOS, Open Telekom Cloud, plusserver, and STACKIT). The results are presented in a comparative table, offering cloud users a practical overview of viable European cloud solutions.

According to Söldner IT, companies need to define relevant evaluation criteria based on their specific use cases. “One of the most important factors is the range and depth of available cloud services and features,” the report states. Additional evaluation points include geographic availability, pricing models, management and automation tools, and security features.

Among all the providers assessed, the Open Telekom Cloud clearly stands out. It is the only European platform that fully meets all the technical requirements defined by the independent experts. Its broad functionality reflects years of accumulated development experience. “In nearly a decade of operation, we have continuously integrated feedback from our user community to create a cloud that meets all common requirements,” says Thomas Weber, VP of the Open Telekom Cloud. “This has been acknowledged in the study.”

The analysts also emphasize the platform’s expanding support for artificial intelligence: “Recently, the platform has focused on introducing AI Foundation Services, which allow customers to use a variety of large language models (LLMs), among other capabilities.”

From a practical perspective, the iX study confirms what leading analysts have already recognized from a strategic standpoint: the Open Telekom Cloud is one of the top European cloud offerings. It delivers not only sovereignty and security but also a comprehensive range of features that meet both the technical and operational demands of modern cloud usage.

Many of the evaluated providers are also featured in analyst reports. Scaleway is listed as a “Strong Performer” in the Forrester WAVE Public Cloud Platforms in Europe. OVHcloud and Open Telekom Cloud are identified as “Leaders.” In ISG’s Multi Public Cloud Services Lens (Hyperscaler Infrastructure and Platform Services), IONOS and Open Telekom Cloud are both rated as leading providers, while Exoscale, OVHcloud, plusserver, and STACKIT are classified as “Product Challengers.” Notably, the Open Telekom Cloud is the only provider ranked as a leader in both of these key industry reports.