Many MSPs and software houses take it for granted that: If customer data remains in Europe, the topic of Digital Sovereignty is essentially resolved. In reality, in most cases, this is not the case.
The point is not only where the servers are physically located, but who controls the infrastructure, under what jurisdiction the provider operates and how access and ancillary services are managed. Aspects that, especially in the case of hyperscalers, are not always immediately visible or easy to verify.
The objective of this article is to analyze together where the main risks associated with non-EU data transfer arise and which criteria can help MSPs and software houses to orient themselves in choosing a truly sovereign cloud, in an informed and conscious way.
Why are MSP and Software House among the most exposed to data sovereignty risks?
MSP and software houses occupy a central position in the digital supply chain. They don't just use cloud infrastructure, but they design, manage and often host applications that process end customer data. This makes them not only users of cloud infrastructure, but An integral part of the supply chain.
Unlike other companies, in fact, they are companies that process data that does not belong directly to their company, which however remain under their responsibility even when the infrastructure is entrusted to third parties.

The problem isn't just 'where are the servers'
Data Residency and Infrastructure Control
When it comes to cloud and compliance, the focus is often on the location of data centers. It's an important requirement, but It alone does not guarantee the sovereignty of the data.
The difference emerges when analyzing the legal control of the infrastructure, the governance models and the ways in which data is managed throughout its life cycle. Two cloud environments may have servers in the same country, offering different 'levels of sovereignty. '
In addition to the physical position, in fact, they count:
- the jurisdiction to which the provider is subject;
- the infrastructure governance model;
- the rules governing access and data management.
It is on these aspects that the most significant differences often emerge.
Ancillary services and data management
Another element to consider concerns the Services That Accompany Applications: backup, monitoring, logging, data replication. These functions are essential to ensure continuity and reliability, but they may involve infrastructure components other than the main ones.
Without an overall view of the architecture, it becomes difficult to understand where the data is actually copied or analyzed over time.
Hyperscaler and Global Cloud: Where Risks Arise for Local MSPs and Software Houses
Hyperscalers offer power, scalability, and an ecosystem of services that is hard to match. We are not here to tell you otherwise. However, these advantages are based on operating models designed for a global market, which do not always align with the control and sovereignty needs required of European and Italian MSPs and software houses.
The topic, therefore, is no longer only the technological quality of the platforms, but the implicit compromise between global flexibility and local data governance.

Operating models and visibility
Global clouds are designed to operate on an international scale and offer a very large ecosystem of services. This approach guarantees flexibility, but it also involves highly centralized management models.
For MSPs and software houses, this may result in limited visibility on some key processes, such as access management or how to intervene in case of external requests.
Transfers that are not always explicit
The integration of advanced services may involve data processing that is not immediately apparent. This is not necessarily a critical issue, but an aspect that must be understood and evaluated in a conscious way.
How to verify where the data actually ends up?
Verifying the real destination of the data cannot be based only on generic statements or on the presence of data centers in Europe. A structured approach is needed that takes into account contractual, technical and organizational aspects.
For more clarity, it may help to start with some basic questions:
- Who legally controls the cloud provider?
- Where do data, backups and replicas reside?
- Who can access the data and under what conditions?
Clear, documented answers help build a stronger assessment.
Contracts also provide important guidance. In particular, it is useful to pay attention to:
- modified and uncommunicated policies;
- generic references to unexplained sub-suppliers.
These are not absolutely 'right or wrong' elements, but about aspects to know before making a choice.
Best Practices for Choosing a Sovereign Cloud for MSPs and Software Houses
The choice of a 'sovereign' cloud represents one of the possible options for those who want to maintain greater control over infrastructure and data. The distinctive element, as we have already said, is not only the location, but the Transparency on the Operating Model And the Possibility to avoid technological constraints Over time.
Approaches based on open and open-source technologies And on a Clear governance allow to MSPs and software houses to adapt their architectures to customer needs, without being tied to a single model or supplier.
And it is precisely for this reason that at CloudFire we promote an approach oriented to sharing information and supporting decisions, leaving partners the freedom to choose what is most suitable for their contexts.
Data sovereignty as a competitive advantage (not as a constraint)
Therefore, there is no cloud platform suitable for every scenario. Data sovereignty is not an objective to be rigidly pursued, but a useful criterion for making more informed decisions.
Have Greater awareness On how data is managed allows MSPs and software houses to design more solid services, consistent with customer expectations and ready to adapt to a constantly evolving regulatory and technological environment.
With this in mind, we believe that the sovereign cloud is not a universal answer, but an additional tool for building reliable and sustainable solutions over time.

