In our investigations on EU cloud providers, Open Telekom Cloud, STACKIT, and OVHcloud emerge as key players, offering a lot of services as you may have sought in hyperscales. But how do they stack up, and why might you choose one of these European champions over the others, or even in a multi-cloud strategy alongside the global leaders?

People who know a bit about EU cloud providers might wonder why we do not mention Scaleway. Scaleway is EU-based too, and offers a lot of the services that Open Telekom Cloud and the other providers have. But, according to the EU alternatives for cloud providers, in wording that they defined, it uses US-based services for their Representation (i.e. website material) and Management of Core Service (i.e. their management consoles). For this reason we decided to rule them out as a pure EU-based player in this context.

It's important to first acknowledge the overall picture. AWS, Azure, and GCP still hold the lion's share of the global cloud market. They offer an unparalleled breadth of services, global reach, and a mature ecosystem of tools and integrations. European providers are working hard to catch up in terms of sheer service breadth and global scale, but they often excel in specific niches and, crucially, on the promise of data sovereignty.

Practically speaking, if you need a complete set of services, including Identity & Access management (IAM) and collaboration services, the providers we discuss here will not suffice. IAM services are present in providers that offer OpenStack fully, but it will not integrate into the platform without additional efforts as Microsoft Entra ID would.

Collaboration services are a whole different matter, we concentrate on the core services needed for application development and runtime. But on this subject a lot is happening too. In the Netherlands different universities are working together to see if they can standardize on NextCloud software for collaboration. Seventy researchers across five Dutch universities (TU Delft, University of Amsterdam, Erasmus University Rotterdam, Utrecht University, and Tilburg University) will collaborate using NextCloud.

The dominant player world-wide in collaboration services is of course Microsoft. Their Office, Power and Azure platforms can be a one-stop solution for everything you might need for automation purposes in general.

But enough of that, the core motivation for choosing a European cloud provider was described in more detail in a previous post, Rethinking your cloud strategy: Exploring European alternatives to US big tech. 

Now, let's dive into Open Telekom Cloud, STACKIT, and OVHcloud.

Who they are: A public cloud offering by Deutsche Telekom's T-Systems, Open Telekom Cloud (OTC) is a significant player in the German and broader European market. It's built on OpenStack, an open-source cloud operating system.

How they stack up:

• Strengths: OTC is often praised for its strong focus on enterprise-grade solutions, high security standards, and robust compliance (including BSI C5 certification). Their German roots and direct affiliation with Deutsche Telekom inspire confidence for many businesses seeking maximum data sovereignty and reliability. They also support GenAI projects and promote an open-source approach, fostering interoperability.
• Against Hyperscalers: While not matching the sheer number of services, OTC provides a comprehensive suite of IaaS/PaaS offerings, aiming for a "hyperscaler alternative" positioning, particularly for sensitive workloads where data residency is paramount. Their support for multi-cloud architectures is nice but goes against the idea of more sovereignty.
• Against other EU providers: Its enterprise focus and strong backing from a major telecom make it a serious contender for large organizations with strict compliance requirements.

You would choose Open Telekom Cloud if:

• Data sovereignty and strict compliance (e.g., BSI C5) are non-negotiable.
• You are a German enterprise or operate heavily within Germany and value the local support and trusted brand.
• You appreciate an OpenStack-based, open-source approach to avoid vendor lock-in.

Who they are: STACKIT is the cloud provider of the Schwarz Group (known for Lidl and Kaufland supermarkets), offering a range of cloud services with a strong emphasis on European data protection and digital sovereignty. This provider is therefore often named ‘Lidl cloud'.

How they stack up:

• Strengths: STACKIT heavily emphasizes GDPR compliance and high European security standards. They offer managed services like databases, message queues, and object storage, akin to hyperscalers, but within a sovereign EU framework. Their focus is on providing a comprehensive business cloud for European companies.
• Against Hyperscalers: Like other EU providers, STACKIT may not offer the same breadth of specialized services (e.g., serverless functions, advanced AI/ML) as AWS, Azure, or GCP. However, for core infrastructure and managed services where data residency is key, they are a strong alternative.
• Against other EU providers: STACKIT differentiates itself through its direct link to a major European retail group, implying a deep understanding of enterprise needs and a commitment to long-term stability and sovereignty.

You would choose STACKIT if:

• Your primary concern is stringent European data protection and GDPR compliance.
• You need a business-focused cloud with managed services that keep your data firmly within the EU.
• You appreciate a provider with strong backing from a large, established European enterprise.
• Your tech stack can leverage their existing service offerings without requiring the full spectrum of hyperscaler-specific tools.

Who they are: OVHcloud is a global cloud provider with deep European roots, known for its focus on bare metal, open standards, and transparent pricing. They offer a wide range of IaaS, PaaS, and web hosting solutions.

How they stack up:

• Strengths: OVHcloud stands out for its strong commitment to open-source technologies, reversibility (making it easier to migrate data), and a firm stance on data sovereignty. They offer a variety of services, including object storage, Kubernetes, and AI solutions. Their transparent pricing model makes it easy to calculate total costs.
• Against Hyperscalers: While OVHcloud has a comprehensive offering, it might not have the same depth in highly specialized services or the global reach of AWS, Azure, or GCP. However, for those prioritizing cost-effectiveness, data ownership, and a strong European legal framework, OVHcloud is a strong alternative.
• Against other EU providers: OVHcloud's in-house hardware production, widespread European data centers, and a clear commitment to an "open cloud" model often give them an edge in terms of cost control and independence. They are one of the largest European cloud providers by scale.

You would choose OVHcloud if:

• You prioritize transparent pricing and cost predictability.
• You value a provider with a strong commitment to open-source principles and data reversibility.
• You require a broad range of core cloud services (IaaS, PaaS) with a solid focus on data sovereignty.
• You are looking for a European alternative that scales well and has a global footprint with significant European presence.

To be clear, Xomnia is in no way affiliated with the above-mentioned cloud providers. Based on our research we simply saw that these stood out for their completeness of services. Are they THE EU-based top players? Hard to say from what we know now. Admittedly, we looked at their service offerings, but other aspects are also important: support, price and availability.

All three have comprehensive pricing guides or even calculators. At this point in time we have not tested their support offerings yet. Looking purely at availability they offer about the same range of uptime, 99,5%-99,9% (details differ per service), with fee-based compensation if these service levels are not met.

Good support is worth a lot, even if it comes at higher prices. It is OK if you are compensated for sub par service levels, but it is a whole different story if you need to architect your solutions far more redundant and resilient than desirable just to account for service outages and poor support.

More on these subjects in the following article. We will be making actual price comparisons and work deployment details for a sample project we selected as a reference.