Most CTOs I talk to have a rough idea of how dependent their company is on individual cloud providers.
That “rough idea” is exactly the problem.
This self-test walks you through four layers with concrete questions, so you and your team can assess your digital sovereignty in a structured way, instead of relying on gut feeling.
I run DECODE’s German office in Düsseldorf, and in client projects I regularly see how architecture decisions made five years ago turn into serious strategic risks today.
The test below is deliberately technical and practical. It’s not a compliance checklist, it’s a tool for the people who actually make architecture decisions.
Key takeaways
Digital sovereignty means your company can decide for itself which technology it uses, how it switches providers, and who has access to its data, instead of being locked into staying with a single provider.
The self-test covers four layers:
Infrastructure and operations (how easily could you move your workloads?)
Technology and stack (does your stack, including your SaaS tools, keep your options open?)
Data (do you know where your data lives, and who holds the keys?)
Governance (are you meeting your obligations, provably?)
Cloud use alone isn’t the problem: dependency only becomes a strategic risk once switching providers is no longer realistic, because too much proprietary technology is built in.
What digital sovereignty actually means for companies
Digital sovereignty means your company can decide for itself which technology it uses, how it switches providers, and who has access to its data, instead of being locked into staying with a single provider.
It’s about freedom of choice and the ability to act. Not giving up technology or cutting ties with US providers entirely.
The numbers show how closely this topic is now tied to day-to-day business. 90% of German companies now use cloud services, up from 81% a year earlier.
62% say they could no longer operate without cloud solutions. Sovereignty and cloud use aren’t mutually exclusive, but uncontrolled dependency and sovereignty are.
In practice, four layers determine how sovereign a company really is:
Infrastructure and operations: Where do your workloads run, who operates the data center, and how easily could you move them?
Technology and stack: Does your stack keep your options open, or lock you into one provider? This includes the SaaS tools your core processes depend on and whether your team could handle a switch.
Data: Do you know where your data lives, which laws apply to it, and who controls the encryption keys?
Governance: Can you demonstrably meet your obligations today, and is someone clearly responsible for sovereignty?
These are the same four layers we assess in every sovereignty check, and the self-test below covers each of them.
The self-test: four layers of digital sovereignty
The self-test takes you through one layer at a time, with five questions per layer. Ideally, work through it together with your architecture or infrastructure team.
Answer each question as things actually are today, not how you’d like them to be. “Not sure” counts as no: if you can’t answer a question today, that’s a gap in itself.
At the end, you’ll see your score for each layer and the warning signs that point to high dependency.
Your result
Score by layer
Warning signs
A quick orientation, not an audit. "Not sure" counts as no, because a question you can't answer today is a gap in itself. Your answers stay in your browser. The Cloud Analysis looks at all four layers in depth.
Answer each question with yes or no, as things are today. "Not sure" counts as no. Count your warning signs (the questions marked with a flag) to see where you stand.
1. Infrastructure and operations
Where your workloads run, who operates the data center, and who has physical and administrative access.
Could you move your most important services to different infrastructure within 30 days?
Is your main cloud provider EU-owned, with no parent company outside the EU?
Do you know who operates your data centers and who has administrative access to them?
Do you run, or have ready, a second provider for your critical workloads?
Have you tested your exit strategy, not just written it down?
2. Technology and stack
Which technologies keep your options open, and which lock you into one provider.
Are your applications containerized?
Is your stack built mainly on portable technology such as Kubernetes, PostgreSQL and Terraform?
Where you use provider-only services (DynamoDB, Cosmos DB, Cognito and similar), could you replace them with reasonable effort?
Does your engineering team have hands-on experience with more than one cloud provider?
Could you replace your business-critical SaaS tools within three months if you had to?
3. Data
Where your data is stored, which laws apply, who can access it, and who controls the encryption keys.
Do you know where each of your databases is physically stored?
Is your sensitive data encrypted with keys that only you control (BYOK or HYOK)?
Is your data classified by sensitivity and regulatory relevance?
Could you export all of your data within 72 hours if you needed to?
Have you checked which non-EU laws, such as the US CLOUD Act, could apply to your data?
4. Governance
Contracts, audit rights, accountability, and an exit plan that holds up.
Do your cloud contracts include audit rights?
Do you keep an up-to-date record of processing activities, as GDPR Article 30 requires?
Have you identified which regulations apply to you, such as DORA, NIS2 or the EU AI Act, and documented what they require?
Could you prove to a customer or auditor, on request, where their data is processed and who can access it?
Is someone in your company clearly responsible for digital sovereignty?
How to read your result
0 to 2 warning signs: well positioned.You know where your data lives, you've looked at alternatives, and you could act if you had to. Plan regular reviews, because the landscape keeps changing.
3 to 5 warning signs: medium risk.Some areas are a problem, but there's no systemic dependency. Prioritize the most critical gaps and build a concrete plan for the next twelve months.
6 or more warning signs: high risk.Your core processes are deeply tied to providers you don't control, and you have little room to move. No reason to panic, but a clear signal to start on an exit strategy now, not next year.
Why cloud dependency and vendor lock-in are strategic risks
Cloud dependency becomes a risk the moment you no longer have a real alternative, not simply because you use a provider.
The difference between “we use AWS” and “we’re stuck with AWS, because switching would take months and cost millions” determines whether you can still negotiate or whether you’re just paying.
At the same time, the European cloud market grew by roughly 24% in 2025, to more than €75 billion.
The market is growing fast, but the concentration around three hyperscalers hasn’t changed.
Geopolitical risk and regulatory uncertainty
Dependency on US technology in Germany rose noticeably in 2025, it didn’t fall.
96% of German companies can no longer operate without importing digital technologies from abroad, and 89% of those see themselves as dependent, 51% of them “strongly dependent.”
That figure stood at 41% as recently as January 2025.
Trust is falling at the same time: 67% of companies source digital technology and services frequently from the US, yet only 38% trust the US as a technology partner.
To me, that gap between usage and trust is the real signal that sovereignty is no longer a theoretical topic. It’s a question boards and supervisory boards are actually asking.
Regulations are changing too. The EU Data Act requires cloud providers to progressively reduce switching fees between providers and eliminate them entirely by January 2027. Switching rights have already been enforceable since September 2025.
On top of that, Germany’s NIS2 implementation law has been in force since December 2025, bringing roughly 29,500 companies under the supervision of the BSI (Federal Office for Information Security), with fines of up to €10 million or 2% of global annual turnover for non-compliance.
The hidden cost of vendor dependency
Vendor dependency rarely costs you where you’d expect. The obvious costs are license fees and cloud bills.
The hidden costs show up when a provider’s proprietary services get built so deeply into your architecture that switching means starting over.
I’ve seen this often in modernization projects: a system built pragmatically on a single hyperscaler service years ago can’t be migrated without huge expenses a decade later, even though the business has clearly outgrown that infrastructure.
Yesterday’s decision becomes today’s constraint. That’s exactly what this self-test is designed to surface.
First steps toward more digital sovereignty
The most important first step is not just answering the questions in this test, but mapping the gaps to specific systems and contracts.
A warning sign on question 5, for example, translates into a concrete task: document exit clauses for every hyperscaler contract, rather than treating “more sovereignty” as a vague goal.
From our work with clients modernizing legacy systems or rebuilding cloud architectures, a few patterns have proven especially effective:
Introduce a multi-cloud strategy gradually: Don’t distribute all workloads at once, start with your least critical systems and build experience.
Make proprietary dependencies visible: Take stock of which systems are built on provider-specific services instead of open standards.
Break down monoliths gradually: The strangler fig pattern lets you retire legacy systems piece by piece, without a risky big-bang rebuild.
Consider European cloud providers as an option: Not as a full replacement, but as part of a multi-cloud strategy, especially since 82% of companies wish for larger European hyperscalers.
These steps can’t be implemented in a weekend, but you can start on them right away.
In the end, the difference between a company with few warning signs and one with many usually comes down not to budget, but to how consistently architecture decisions have been made over the years.
Digital sovereignty self-test: FAQs
No.
Mid-sized companies are often more exposed, since they often lack a dedicated IT department managing a broad set of providers, and more often rely on a single platform.
Often yes, in the short term, because multi-cloud strategies and modular architectures take extra effort.
In the medium term, costs usually fall, because you regain negotiating leverage with providers and avoid hidden migration costs.
No. Sovereignty means freedom of choice.
Many digitally sovereign companies will still use US hyperscalers, but they’ve deliberately prepared alternatives and exit strategies should they become necessary.
Ready for a more independent architecture?
If you’ve just worked through this test and hesitated on several questions, you’re not alone.
Most of the companies we work with discover gaps in exactly these spots, gaps that built up over years and can’t be closed overnight.
At DECODE, we help companies build architectures that preserve freedom of choice instead of limiting it.
That ranges from multi-cloud architectures that avoid vendor lock-in from the start, to gradually retiring proprietary legacy systems without putting your ongoing business at risk.
Our team in Düsseldorf and Zagreb has the architecture and contract experience behind this self-test. We write the code and run the migration ourselves.
And if you want to explore how we can help you be more digitally sovereign, feel free to reach out.
Miki leads our German branch, DECODE Services GmbH. He was born in Croatia, grew up in Germany, and brings a unique blend of both cultures to his work. With 30+ years of experience in both hardware and software, Miki’s built everything from early Android apps to enterprise-grade IoT systems. He’s one of the original contributors to Android’s developer community and has spoken at - and helped organize - droidcon conferences across Europe.
These days, he’s deep into AI and IoT, working closely with industry leaders and helping them build innovative solutions. When he’s not working, you’ll probably find him hiking, mountain biking, or cooking a delicious meal with his family.
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