Reducing Cloud Dependency : Architectural Strategies and the Role of European Cloud Providers
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Global geopolitical developments have increased awareness of risks related to dependencies on non-European cloud providers in European organizations. While the overall use of cloud services has not fundamentally changed, US-based hyperscalers are no longer seen as unambiguous default options, and organizations have begun to assess their dependencies associated with them. This thesis examines the Bank of Finland’s Microsoft Azure dependencies and evaluates governance and architectural strategies for reducing them. The study analyzes the organization’s application architecture on Azure, identifies key dependencies across service layers, and assesses the feasibility of alternative options from selected European cloud providers. The research is based on mixed methods, combining quantitative Azure usage statistics with qualitative expert interviews and document reviews. Key insights indicate that Microsoft Azure is significantly more mature than any of the compared European cloud platforms. On the other hand, Azure’s strong ecosystem and extensive advanced managed services, if not carefully designed, may introduce significant vendor dependency. European cloud providers offer core capabilities at the infrastructure and platform levels, but generally lack the breadth and maturity of more advanced services. The study identifies loose coupling, adoption of open standards, and selective use of advanced managed services as key architectural strategies. In addition, the study finds that a higher level of service abstraction typically correlates with stronger vendor lock-in and a more difficult service migration. The thesis concludes these findings into twelve key insights supporting architectural cloud decisions.