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EU Tech Procurement: Assessing Strategic Dependency on US Hyperscalers

EU Procurement Policies Must Account for Strategic Dependencies, Says Linux Foundation Europe Director Brussels is being urged to consider the broader strategic implications of its IT procurement decisions, particularly concerning reliance on non-European technology providers. Mirko Boehm, Senior…

EU Tech Procurement: Assessing Strategic Dependency on US Hyperscalers

EU Procurement Policies Must Account for Strategic Dependencies, Says Linux Foundation Europe Director

Brussels is being urged to consider the broader strategic implications of its IT procurement decisions, particularly concerning reliance on non-European technology providers. Mirko Boehm, Senior Director of Community Development at Linux Foundation Europe, argues that current procurement processes fail to adequately assess the long-term consequences for European digital sovereignty, industrial policy, and skills development.

The Hidden Costs of Hyperscaler Contracts

Boehm contends that awarding contracts to large, primarily US-based hyperscalers isn’t simply an IT decision. He emphasizes that these choices have far-reaching effects on Europe’s technological independence and economic future. “If a ministry in one of the member states signs a contract with a hyperscaler, that’s not just an IT decision, it’s an industrial policy decision, a skills development decision, a technology transfer decision, and a digital sovereignty decision,” Boehm stated.

Currently, these broader implications are not factored into procurement evaluations. Boehm highlights that every euro invested in public sector procurement has a multiplier effect on the economy, a benefit Europe is missing out on by predominantly sourcing technology from outside the continent.

The Cyber Resilience Act and Digital Sovereignty

Boehm has likewise spoken extensively on the potential impact of the EU Cyber Resilience Act (CRA) on the open-source ecosystem. In September 2023, he questioned whether the CRA would genuinely help the European ICT sector compete, noting concerns about its potentially damaging effects on open source development.

Boehm’s Background and Role at Linux Foundation Europe

Mirko Boehm brings a diverse background to his role at Linux Foundation Europe, with experience as an entrepreneur, corporate manager, software developer, and former German Air Force officer. He joined the Linux Foundation Europe after a three-year period as an engineering manager in the automotive software sector, returning to his passion for open-source community building. He began contributing to open source in 1997, playing a key role in its evolution from a niche movement to a major force in innovation. He also holds a PhD in Innovation Economics and is a visiting lecturer at the Technical University of Berlin.

Implications for Future Policy

Boehm’s call for a more holistic approach to IT procurement suggests a need for policy changes that prioritize European technological capabilities and reduce strategic dependencies. This includes requiring assessments of strategic dependencies in major IT procurements, ensuring that the full economic and strategic costs are considered when awarding contracts.

About the author: Anika Shah - Technology

MSc in Computer Science, senior reporter. Anika focuses on AI ethics, cybersecurity, and emerging hardware—frequently moderating panels at CES and Web Summit. “Anika Shah decodes tech breakthroughs and startup disruption shaping tomorrow’s digital landscape.”