Thoughts on Cloud vs. On-Premises

IT leaders must decide whether to rely on cloud services or maintain on-premises infrastructure. This decision often revolves around cost and scalability, but regulatory impact on privacy, security, and data sovereignty is critical.

Cloud providers like the ‘Magnificent 7’ offer scalability and convenience, but relying on them means giving up control, In the EU, GDPR and the AI Act set high standards for privacy and ethical AI use, positioning the EU as a leader, even if EU organizations rank 8th or lower on the ‘Magnificent’ scale 😉.

The writing on the wall suggests that the high volatility of future administrative directions could increase uncertainties on both sides of the Atlantic. This could heighten risks related to data privacy, surveillance, and sovereignty. In such an environment, relying entirely on cloud services could become a liability, making on-premises infrastructure an attractive option for companies needing to protect sensitive data and ensure full sovereignty over their operations.

Sovereignty and direct control will become especially important in the new era of AI, particularly given the inherent nature of using sensitive information in AI applications. Despite the buzz and hype, it is still underestimated by many what the impact of this technology will be on businesses, societies, and nearly every aspect of our lives.

TL;DR: Cloud services offer major benefits, but strong regulatory support for data privacy is crucial. The EU sets a high bar with GDPR and the AI Act. On-prem infrastructure remains a reliable choice you might want to prefer.