CLOUD Act and aggressive foreign policy of the USA: Many Swiss companies are hesitant to migrate their data and systems to a Cloud provided by the American Cloud provider Microsoft Azure. Xelon offers a Swiss Cloud with maximum data protection standards, and in this blog post, Xelon CEO Michael Dudli explains why more and more Swiss companies are opting for a locally hosted Cloud solution.
When it comes to IT infrastructures, the question for most companies today is no longer whether to move to the Cloud. The Cloud has already become a staple for forward-thinking businesses and has been a central part of IT strategies in recent years. With a Cloud solution, companies can work more efficiently and effectively, allocate resources as needed, and focus more on their core business.
Are you planning to migrate your data and systems to the Cloud? Book a free consultation with our Cloud Architects here.
However, choosing the right Cloud provider is a crucial step for IT service providers, internal IT departments, or software companies. Factors such as budget, regulatory requirements, and technical expertise significantly influence which Cloud provider best suits a company and its IT team.
The CLOUD Act makes U.S. cloud providers less appealing.
Many Swiss companies are now viewing American Cloud providers like Microsoft Azure with skepticism. A significant factor in this skepticism is the CLOUD Act (Clarifying Lawful Overseas Use of Data Act), enacted in the U.S. in 2018. The CLOUD Act requires U.S. companies to provide data to U.S. authorities even if the data is stored outside the United States. Even if an American Cloud provider operates data centers in Europe, like Microsoft Azure, they can still be compelled to release this data.
Additionally, the policies of U.S. President Donald Trump have been heavily focused on U.S. interests, leaving little room for trustworthy international cooperation. This has led companies in Switzerland and across Europe to question whether a Cloud provider from a country with an unpredictable foreign and economic policy is reliable in the long term. Trust in the political stability and reliability of the U.S. as a technology partner has significantly diminished.
From its Swiss headquarters, Xelon can offer a highly secure Cloud solution.
In the EU and Switzerland, even before Trump's second term, there has been a growing desire for greater digital sovereignty. A Swiss Cloud can meet this need for increased control over data, IT infrastructures, and technological standards. Trump's nationalist policies have further accelerated this development by raising awareness of the risks associated with one-sided dependencies.
As a result, hyperscalers originating from the USA have become less attractive to Swiss companies. "In Switzerland, Xelon offers a locally hosted alternative to global providers like Microsoft Azure," explains Michael Dudli, CEO of Xelon and Swiss Cloud pioneer.
Below is a direct comparison between Xelon and Azure regarding pricing, support, data sovereignty, user-friendliness, and the increasingly important hybrid Cloud strategy for 2025.
A Quick Comparison of Cloud Providers: Xelon vs. Microsoft Azure
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Xelon (Swiss Cloud) |
Microsoft Azure (global Cloud) |
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Price Transparency |
Predictable and easily understandable pricing without hidden costs (e.g., no extra charge for standard network traffic or basic support) |
Complex usage-based pricing with many additional costs for data traffic, support, and extra services |
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Support Experience |
Local Swiss support available in German or English, accessible via phone or email, with personalized assistance. |
Global support model, basic support usually self-service; personal support incurs additional costs. |
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Data Sovereignty
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Data remains exclusively in Swiss data centers, governed by Swiss law – no CLOUD Act risks. |
Data can be hosted in Switzerland but is subject to U.S. law (CLOUD Act). |
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User-Friendliness |
Intuitive platform (Xelon HQ), quick setup, no prior knowledge required |
Over 200 services, complex management, often requires specialized knowledge |
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Hybrid Cloud Strategy |
Enables local hybrid solutions without the need for own data centers – easily combinable with other Clouds |
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Learn more about the Swiss Cloud alternative to Microsoft Azure in a consultation.
How do companies find the right Cloud provider?
The best Cloud provider for a company largely depends on its specific needs, values, priorities, and resources. Those who prioritize transparent pricing, personal support, and full data sovereignty will find Xelon a reliable solution: Data is guaranteed to remain in Switzerland, support is local and easily accessible, and managing the Cloud environment is so straightforward that no extensive prior knowledge is required. Additionally, Xelon offers flexible hybrid models without vendor lock-in.
On the other hand, Microsoft Azure impresses with a wide range of globally available services, seamless integration with existing Microsoft products like Office 365, and high scalability that meets the demands of international corporations. Azure can fully leverage its strengths, especially in complex enterprise setups.
"In the end, it's a strategic decision: local control over data and systems in the Cloud and simplicity, or global reach and maximum scalability?" summarizes Xelon CEO Michael Dudli. However, for many Swiss companies, a combination also makes sense: Xelon for business-critical systems in Switzerland, Azure for selected global use cases, the Cloud pioneer further explains.
Work with our Cloud Architects to discover which Cloud scenario fits your company.
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Xelon AG Poststrasse 15, 6300 Zug Switzerland
