Anyone who blindly entrusts their IT to the big tech giants risks losing control over important company data.
In this article, learn how to avoid dependencies and protect your business in the long term through digital sovereignty.
Table of Contents
Digital sovereignty ensures full control over one’s own IT infrastructure—through open source and local data storage, among other means—and protects against dependence on tech giants.
Why is digital sovereignty important?
Imagine you’ve been using a popular CRM system from a major international provider for your new customer business for years.
This allows you to manage all customer contacts, sales opportunities, and internal processes. One morning, you realize that the provider
- has restricted access to certain regions due to a political decision.
- is changing its terms and conditions due to an internal policy change and is now having your data processed by third parties, which means you are now in violation of the General Data Protection Regulation.
- the export function no longer works.
- raised prices exorbitantly.
- is no longer available – just like Crowdstrike in 2024.
Suddenly, the heart of your IT infrastructure has become a “black box”—something you’ve been paying for for years and now have no control over.
On paper, your data belongs to you, but in practice, you no longer have access to it. This is exactly where the concept of digital sovereignty comes in.
This is what digital sovereignty is all about:
Digital sovereignty is about
- to retain control over their own data and IT systems.
- not just to be users of an infrastructure over which we have no control.
- to be able to switch providers easily if they no longer meet your needs.
- not to become dependent on a handful of large tech giants.
- that you decide what happens to your data, who processes it, and which provider you work with.
The Fine Print: The EULA Trap
Have you ever actually read an End User License Agreement (EULA) all the way through? If not, you’re in good company—and that’s exactly what the big tech giants are counting on.
These license agreements are deliberately written in impenetrable legal jargon that gives even experts a headache. They are extremely long and worded in a complicated manner to trick users into accepting them without reading them.
Behind these walls of text often lies a systematic restriction of your digital autonomy. Since providers can assume that hardly anyone understands or reads the terms and conditions, they grant themselves considerable leeway in them:
- Unilateral changes to services: Providers reserve the right to modify the software’s functionality at any time or to remove key features without replacement (e.g., the removal of export functions), and you have no right to object.
- Data Use for AI Training: Many modern EULAs allow providers to automatically use the data you enter and the content you create to train their own algorithms or advertising systems.
- Exclusion of interoperability: Clauses may prohibit linking the software with third-party programs. This forces you into a closed ecosystem (vendor lock-in).
- Unannounced account suspension: The EULA often allows providers to immediately suspend access in the event of “violations” of vaguely worded rules of conduct. Since the software is usually only rented (SaaS) and not purchased, you immediately lose access to your work environment.
- Jurisdiction abroad: By designating a jurisdiction outside the EU (e.g., the U.S.), it becomes nearly impossible for small businesses to enforce their rights to their own data, both financially and legally.
- Limited ownership rights: Many contracts explicitly state that you do not own the software, but are merely purchasing a temporary license. This means that if the provider discontinues the service (see the Microsoft DRM example), you have no right to a working offline copy.
The Microsoft DRM Music Scandal
The 2008 Microsoft DRM scandal—often referred to as the“MSN Music debacle”—is a prime example of the risks associated with a lack of digital sovereignty.
After Microsoft decided to shut down its MSN Music Store, the company announced that it would take the license servers for DRM-protected songs offline.
For customers, this meant that after switching computers or reinstalling their operating system, they could no longer authorize their legally purchased tracks, effectively rendering the music worthless.
Here's how helloly helps you take control of your digital life
helloly sees itself not just as a web hosting provider, but as a partner for your digital freedom. We believe that sovereignty starts with infrastructure:
- Data Location: Austria: Our data centers are located in Vienna. This means that your data is subject exclusively to local law and the highest European security standards. No “Cloud Act” allows foreign authorities to access your servers.
- Open Standards: We consistently rely on open-source solutions. Our web servers run on Linux and the Apache web server. Our infrastructure is generally based on open source, which allows us to avoid the dreaded vendor lock-in and remain independent at all times.
- Transparency & Control: Our customers always retain full control over their website and their data. They can switch providers at any time. Our customers stay with us because they are satisfied with our service. This is also confirmed by our ratings on Trusted Shops and Google.
- Headquarters in Austria: Because our headquarters are located in Austria, we are subject to the General Data Protection Regulation (GDPR) and are required to comply with NIS-2. This ensures adherence to the highest data protection standards.
- Open-Source Software: With helloly web hosting, you get access to a wide range of open-source software that you can install on your server with a single click.
- Real service, real people: At helloly, your point of contact is a real person, not an AI. Our staff speak German, English, and Slovak.
Checklist: Are you digitally confident?
Use these 6 points to assess your level of digital independence:
- Data location: Do I know exactly which country my data is physically stored in?
- Exit Strategy: Can I migrate my data and applications to another provider within a few days?
- Open standards: Does my software use formats that can be read by other programs (.csv, .sql, .pdf instead of cryptic formats)?
- Legal Compliance: Have I entered into GDPR-compliant data processing agreements (DPAs) with all of my service providers?
- Software alternatives: Do I opt for open-source solutions whenever possible?
- Dependency Check: Would my business be unable to operate if a provider were to suspend my account or go offline/become unavailable?
Conclusion
Digital sovereignty is not a one-time project, but a conscious choice to embrace freedom.
With the right partner by your side, getting there is easier than you think. When it comes to web hosting, helloly is your partner for digital independence.
Bonus: European alternatives to popular services
On the website European Alternatives you’ll find European alternatives to popular services.
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