European SMEs seek greater control, clarity over data hosting

Research by team.blue indicates that European small and medium-sized enterprises (SMEs) are increasingly seeking clarity and control over their data hosting arrangements.

The company's report, "Data Hosting in Europe: Insights & Shift," surveyed 2,000 SMEs across several European countries, examining their attitudes towards data storage, sovereignty, and the underlying factors influencing their technology decisions.

Confusion over data location

The report found that 57% of respondents were unaware if their cloud provider guarantees data storage within EU borders. Despite this uncertainty, more than half (51%) observed rising stakeholder interest or concern regarding data location. Surveyed stakeholders highlighted customers and company directors as the most concerned groups.

The location of data storage has become a significant trust issue for businesses and their clients. The study revealed heightened anxiety over non-European data hosting, with 72% of SMEs expressing particular concern about their data being stored in the United States. This anxiety has caused almost a quarter (21%) of respondents to consider switching data hosting providers for geopolitical and economic reasons.

Provider preferences and infrastructure gaps

Among those surveyed, 32.1% currently store their data with team.blue, while 13.2% use Google Cloud, and 13% use Microsoft Azure. However, a notable proportion of SMEs still operate outside large provider ecosystems. Thirteen percent manage their own data solutions, and 6% either lack clarity as to where their data is stored or have no access to dedicated storage solutions.

The data tells a clear story: European businesses - and their customers - are increasingly concerned about where their data resides. This isn't just a technical issue anymore; it's a matter of trust, and long-term resilience. What stands out most is that customers are the driving force behind this sentiment, placing pressure on businesses to act responsibly, particularly in light of geopolitical and economic dynamics.

But there is a path forward. By strengthening digital sovereignty, European businesses can achieve both greater security and a competitive edge in today's complex data landscape.

These comments from Kwaku Yeboah-Antwi, Chief AI and Data Officer at team.blue, reflect the report's emphasis on digital resilience and the emerging impact of external factors on IT strategy.

Shift towards European data sovereignty

The findings come amid increasing calls from businesses and regulators for greater control over the data value chain. The report affirms that regulatory compliance and data sovereignty have become central considerations for European SMEs, overtaking traditional priorities such as performance and price when selecting a provider.

European businesses are placing growing importance on where their data lives - and who they trust with it. It's no longer just about performance or price; it's about control, compliance and confidence.

We see huge value in giving businesses a digital home where all their core services work together seamlessly and believe that Europe's digital future will be built on ecosystems, like ours, as we support businesses to grow without compromise.

Claudio Corbetta, CEO at team.blue, highlighted how integrated digital ecosystems are becoming more valued as SMEs seek to simplify their operations and ensure consistency across interconnected productivity, security, and eCommerce services.

Stakeholder scrutiny influencing decisions

According to survey data, while a proportion of SMEs remain unsure of their data's physical location, stakeholder attention continues to increase. The report identifies customers as a main driver of growing scrutiny, with companies reporting more queries and demands for clarity regarding storage practices.

The results suggest that compliance with European regulations and the concept of digital sovereignty are expected to further influence strategic technology choices among SMEs. Respondents underlined that external political factors and customer concerns now play a much greater role in shaping IT policy and procurement than in prior years.

The survey's methodology covered businesses across the United Kingdom, Ireland, Belgium, and the Netherlands, gathering a broad view of current attitudes and practices within the SME segment. The data underscores an ongoing shift by European SMEs towards more transparent, resilient, and sovereignty-focused digital infrastructure.