How Switzerland can move towards an independent digital future

To end its dependence on the global tech giants, Switzerland must reassess and strengthen its digital sovereignty – and join forces with the European Union, argues the Swiss association Digitale Gesellschaft (Digital Society).

Have you ever moved house? Moving IT infrastructure is far trickier than moving from one apartment to another. That’s because the world’s large, mostly non-European tech companies such as Microsoft, Amazon Web Services (AWS) and Google don’t just own the apartment, but they also own most of the furniture. But unlike furniture and apartments, software and hardware cannot simply be swapped. There are no shops that offer easy alternatives, and existing systems are deeply embedded in the digital places they occupy.

This dependence on global tech giants highlights a lack of digital sovereignty in Switzerland and all across Europe. When prices soar or services are discontinued, government and businesses alike can find themselves in a tight spot.

Finding alternatives is challenging. European, let alone Swiss, solutions are rare, and the few providers that exist often offer systems that are incompatible with existing infrastructure. Yet these alternatives are crucial to reduce dependence and curb the power of tech giants. It is also about safeguarding data sovereignty and protecting sensitive information from third-party influence or access. With American providers, this protection is not guaranteed. Under the Cloud Act, United States authorities have legal access to all data stored in the cloud, even if the data centres are physically located in Europe or Switzerland.

These dependencies pose risks, not only to Switzerland but to Europe as a whole. Europe’s economies are currently unable to act independently even if international tech companies put pressure on them. Their digital sovereignty is far from sufficient.

‘Digital policy is power politics’

Digital sovereignty means that societies have both the capacity and freedom to run and adapt their own digital infrastructure, even in times of geopolitical crisis. This is essential for political self-determination.

Switzerland must reassess its digital infrastructure, with a view to achieving digital sovereignty, and align procurement accordingly. In times of geopolitical upheaval, the law of the strongest prevails. It is not for nothing that the coalition agreement of Germany’s current government states: “Digital policy is power politics”.

A telling example of such dependence is the [Swiss] government’s pledge, made during tariff negotiations with the US, not to introduce digital taxes. The US government deliberately leveraged Switzerland’s dependence on Microsoft, Google, Amazon and others to influence political decision-making.

Another red flag emerged at the end of 2024, when the Swiss government paid roughly CHF150 million ($187 million) in Microsoft license fees without a public tender, simply because its dependence left Switzerland with no real alternative. Meanwhile, Apple is using its monopoly position to complicate digital payments for competitors such as the Swiss provider Twint.

The reasons for such dependence are complex. On the one hand, tech giants offer solutions that integrate smoothly into complex IT landscapes. On the other hand, they are often more cost-effective than locally developed or in-house systems while still providing comprehensive support and services.

And yet, this has created a one-sided dependence for Switzerland. A functioning society needs both a sovereign state and a strong economy. Each year, countries like Switzerland send vast amounts of money to the US for software licenses and cloud storage, mainly from Microsoft and Amazon. Estimates put the total in the double-digit billions, funds that could otherwise be invested in the local economy. Furthermore, tech giants’ monopolies hamper real competition and stifle innovation.

According to the Draghi reportExternal link, Europe imports 80% of its digital products and services, which means it is far from competitive in IT. The EU is slowly waking up to this reality. France and Germany are already investing in solutions. Switzerland is still watching.

Let’s design our infrastructure on our terms

The takeaway from these reflections is the need to promote a flexible and locally adaptable IT infrastructure. Since building entire systems exclusively in Switzerland is not realistic, it is crucial to team up with partners like the EU to cover the full IT landscape and its services. Software, in particular, can be easily developed openly and collaboratively. Open source-code promotes both innovation and security, which is a good alternative to the closed systems of today’s dominant providers. Swiss enterprises can tailor open-source software to their local needs and operate it independently, thereby boosting domestic expertise and driving innovation.

With few incentives for private companies to invest in the development of sovereign IT solutions, the government must step in. Targeted industrial policy has long been frowned upon in Switzerland, but now it’s time to embrace it. Only through strategic investments in independent, flexible solutions and the creation of effective incentive systems can Switzerland, together with Europe, secure digital sovereignty and the long-term stability of its economy.

Switzerland also needs skilled specialists to develop and operate such IT solutions. It’s up to the government and private companies to educate and connect this workforce.

The most urgent needs are obvious and include an independent cloud infrastructure for highly sensitive data, and, together with European partners, an alternative to Microsoft365 for office tasks (email, calendar, video calls, etc.).

It’s time to act

We know what it takes to find solutions and regulations that give us greater self-determination. That’s why Digitale GesellschaftExternal link is calling for:

• Risk identification and assessment: Switzerland needs to determine which IT infrastructure is crucial for the country’s survival and then develop a digital policy that ensures sovereign, self-determined operation, or at least restores legal control over it.

• Targeted support for technologies, products and companies that offer sovereign solutions as well as skilled professionals who make it possible.

• Strategic reorientation of public IT procurement: prioritisation of open, interchangeable software components as offered by open-source solutions, also on cantonal and municipal levels.

To prevent existing dependencies from taking hold, Switzerland must act now. Only by running and developing its own digital infrastructure independently in the long term can the country remain digitally competitive, secure and self-determined.

Edited by Benjamin von Wyl. Adapted from German by Billi Bierling/gw

The views expressed by the author do not necessarily reflect those of Swissinfo.