Why On-Premise and Local Data Hosting Are Back on the Strategic Agenda.

For years, public cloud adoption felt inevitable. Scale, speed, and convenience pushed organisations toward large global providers, often without questioning where data physically lived or which laws applied to it.

That assumption is now being seriously challenged.

Across Europe, companies are re-examining their infrastructure choices and asking a more fundamental question: who really controls our data? The result is a growing interest in on-premise deployments, local hosting, and hybrid architectures that restore visibility and sovereignty.

This shift is not ideological. It is practical.

Europe Reaches a Turning Point on Data Sovereignty

Multiple industry surveys point to the same conclusion: Europe is entering a decisive phase in its relationship with cloud infrastructure.

“Europe is reaching a tipping point in cloud sovereignty. 72% of European businesses now prioritise data control, while more than 70% still rely on US-based cloud providers.” March 2025 – TechRadar.

This contradiction explains the current momentum. Organisations recognise the importance of sovereignty, yet remain operationally dependent on infrastructures governed by foreign legislation.

As regulatory pressure increases and geopolitical uncertainty persists, that gap is becoming harder to justify.

Why Companies Are Reconsidering the Cloud-Only Model

The renewed interest in local and on-premise hosting is driven by a combination of factors that go well beyond cost.

First, legal clarity. Many organisations struggle to clearly determine which jurisdiction applies to their data when using global hyperscalers. Extraterritorial laws, opaque subcontracting chains, and limited auditability introduce risks that are increasingly unacceptable during compliance reviews.

Second, control and transparency. Cloud platforms optimise for scale, not for bespoke governance. For regulated industries, public administrations, or enterprises handling sensitive financial or transactional data, generic security models are often insufficient.

Third, trust. Customers, auditors, and partners are asking sharper questions about data location, access rights, and long-term guarantees. In many cases, “it’s in the cloud” is no longer an adequate answer.

This is reflected in how European decision-makers describe their priorities:

“Data sovereignty is no longer a future concern. It is becoming a present-day operational requirement for European businesses.” European Cloud & Infrastructure Survey, 2025

On-Premise Is Not a Step Backwards

On-premise infrastructure is often misunderstood as legacy or inflexible. In reality, modern on-premise deployments are very different from the monolithic systems of the past.

Today’s on-premise and local environments can be:

• Fully virtualised and contained,

• Integrated with cloud services where appropriate,

• Operated within local or private European data centers,

• Designed for high availability and scalability.

  
  

The key difference is ownership. The organisation decides where data resides, who can access it, and under which legal framework it operates.

For many companies, this is not about rejecting the cloud entirely, but about choosing the right model for the right data.

The Rise of Hybrid and “Choice-Driven” Architectures

Rather than a binary choice between cloud and on-premise, the dominant trend is now hybridisation.

Critical or regulated data remains local or on-premise. Less sensitive workloads can still benefit from public cloud elasticity. What matters is the ability to decide, and to change that decision over time.

Flexibility has become a strategic asset.

Why PeppolEDGE Supports On-Premise Deployments

This is precisely the philosophy behind PeppolEDGE.

PeppolEDGE was designed with the understanding that there is no single “correct” infrastructure model for electronic invoicing and compliance-driven data exchange. Different organisations face different regulatory, legal, and operational constraints.

By offering cloud, hybrid, and fully on-premise deployment options, PeppolEDGE allows organisations to:

• Retain full control over their invoicing data and transaction flows,

• Align their infrastructure with local and sector-specific regulations,

• Avoid unnecessary exposure to foreign jurisdictions,

• Integrate Peppol connectivity without reshaping their entire IT strategy.

  
  

This flexibility is not an afterthought. It is a deliberate architectural choice that acknowledges the growing importance of data sovereignty across Europe and beyond.

Local Data Is Becoming a Strategic Decision

The renewed focus on on-premise and local hosting is not a rejection of innovation. It is a sign of maturity.

As digital regulation tightens and accountability increases, organisations are moving away from one-size-fits-all infrastructure decisions. They are choosing architectures that match their risk profile, governance obligations, and long-term strategy.

Local, on-premise, and hybrid models are no longer exceptions. They are becoming part of a rational, sovereign approach to data.

And for many European organisations, that choice is no longer optional, it is inevitable.