19. Who Controls? Thoughts on Cloud Sovereignty
The agreements on data sharing between the EU and the US have been problematic from the start, due to irreconcilable difference in privacy principles. From Safe Harbor to Privacy Shield(s), each time it was clear that any agreement would be challenged. In the meantime, the world moved on regardless.
The debate flares up now, again, because of the fast-changing relationship between the US and Europe, following the first months of a chaotic Trump presidency that is re-defining global alliances. But a lot of the discussion is emotional and imprecise. I am as concerned about security and privacy for private citizens as the next one. But that shouldn't jump to wild claims that the US government can just get at anyone's data or cut them off.
Not All Cloud is the Same
When we're talking about American cloud services, are we talking Google Search and Gmail , Office 365, Facebook, WhatsApp, or Twitter/X? Or are we talking about cloud infrastructure and services like AWS, Azure, Google Cloud? In the first, you don't pay, have no control, and trade your privacy for convenience. In the latter, you orchestrate all your compute, network and storage services, and have access to encryption services of varying strengths. Services like AWS Nitro are specifically designed to guarantee AWS administrators can't access their customers' workloads, and Sovereign Cloud offerings take this further and further.
The debate of privacy of citizens – that is, move to Signal or Fediverse services – is not the same as the debate of European corporate and governmental use of American cloud infrastructure providers. The arguments against Google's and Meta's dominance in retail internet service and advertisement are not new, or suddenly more problematic with the change in US Administrations. Similarly, cloud infrastructure services are not suddenly at greater risk.
Residence or Remote Control?
We talk about EU-only access and data residency, but we forget what is really important about that. If Microsoft can access a server in Europe from America, what use is EU data residency? With strong encryption, the physical location of data on disk doesn't really matter. If the American provider doesn't have access to the key, the European data owner still controls the data.
Meanwhile, the physical equipment and data centers are still in Europe, operated be local residents and subject to local jurisdictions. When Russian sanctions came in, many global technology companies retreated under realistic threat of their facilities being nationalized or “sold” to a local operator. That is an extreme example, but EU governments are not powerless.
The moment the legal status of American cloud infrastructure providers becomes a real problem, immediately you see the foundation of AWS, Europe, Azure Europe and Google Cloud Europe as independent, European corporations.
Can Open Source Save Europe?
Maybe. But not on its own. The top 7 (or 6, if you count Github as Microsoft) corporate contributors are American tech corporations until you get to SAP, and open source software is used equally on both sides of the Atlantic for cloud services.
Does the open source have to be European for independence? Who cares where it comes from? Fork open source projects you rely on, if necessary. Cloud services based on open source are not inherently more secure, private and independent. They still need to be operated by someone. And often the American cloud providers rent from local data center operators.
Lack of Capital, Fragmented Market
The problem of Europe and cloud independence is the lack of capital. While there are 4-5 American global cloud infrastructure providers, there isn't a single one that can claim that from Europe. The market is fragmented with national and regional providers.
Initiatives like IPCEI CIS are interesting, but would still create an odd cloud where services would be provided by a wide variety of different supplier, greater complexity, and lower economies of scale. It's a noble pursuit, but a political one.
Technological Interdependence
We focus on European dependence on America... but we fail to do the same in reverse. There is more competition in cloud infrastructure and services than there is in semiconductor design (Arm Holdings, UK) and photolithography (ASML, NL) or the business application software that runs the global economy and government services (SAP, D).
Serious Times
That is not to say there isn't a problem. We live in strange times, and will have to rethink our threat models. But for the debate to be productive, we need to be nuanced what the real problems are. And not let ourselves be ruled by broad strokes and emotions.
cloud security posts without corporate approval @jaythvv@infosec.exchange