The Hotel California Problem in Enterprise IT

The Hotel California Problem in Enterprise IT

You can check into a sovereign cloud any time you like. Chris Obdam on why you often can't check out, and what actually fixes that.

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Chris Obdam

5 minutes

Interview at the BNR Radio show about Sovereignty

Watch the full interview here.

I recently sat down with BNR's Baanbrekende Businessmodellen (Translated Groundbreaking Business Models) for a wide-ranging conversation on where enterprise software is headed. The interview above is in Dutch, so if you don't speak the language, or just want the argument in writing, here's the full story.

Ask me today what Betty Blocks sells, and I'll give you one word. Sovereignty.

That wasn't always the answer. For most of the last decade it was speed. Then a war started in Europe nobody expected, a new US administration landed, and European boardrooms that used to nod along to American cloud pitches started asking sharper questions. IT still hasn't caught up.

100% digital sovereignty is a myth. Marketing departments sell it. Compliance teams chase it. Chasing it blindly is driving European enterprises into a corner.

If your "sovereign EU cloud" runs on chips manufactured almost entirely by one company in Taiwan (TSMC alone produces roughly 90% of the world's most advanced chips), designed in California, and executed through a proprietary runtime owned by a global tech giant, how sovereign are you really? Not in the way the brochure implies.

True sovereignty was never about isolation, about building digital walls around Europe. It's about optionality. It's about the right to exit.

The Hotel California problem

I didn't coin this phrase for this piece. I've used it for years to describe what low-code became: you can check in any time you like, but you can never really check out. You gave up the freedom to leave in exchange for speed.

The same deal plays out at the cloud layer. European companies are pouring millions into "sovereign enclaves" hosted inside American hyperscaler infrastructure: AWS European Sovereign Cloud, Microsoft Cloud for Sovereignty, Google's local partnerships. Between 2017 and 2020, the combined market share of Europe's own cloud providers collapsed from 26% to 10%, and the trend only accelerated.

But data sovereignty means nothing if your application logic is trapped inside a proprietary platform's ecosystem. Same hotel, different lobby.

GDPR Article 48 only recognizes a foreign court order backed by a treaty like an MLAT. The US CLOUD Act ignores that, giving American authorities the power to compel a US headquartered company to hand over data regardless of where it sits, or how European the local subsidiary looks on paper. A "sovereign enclave" staffed entirely by EU citizens still answers to a parent company incorporated across the Atlantic.

This is not paranoia. 61% of Western European CIOs told Gartner last November they are now shifting workloads to local providers, for openly geopolitical reasons. 85% of German companies say their own country is too dependent on US providers. And when Broadcom bought VMware and rewrote its pricing overnight, Tottenham Hotspur cut its virtualization bill by more than 85% by leaving. If a football club can feel that price shock, so can your business.

Practical sovereignty: Own the execution layer

So redefine the term. Stop treating sovereignty as a legalistic checkbox you show an auditor once a year. Treat it as a tactical advantage: control over the execution layer.

True independence isn't about where your servers sit. It's about who owns the code your business runs on, for the life of the application, not just the day it ships. Roughly twenty percent of an app's lifetime budget goes into building it. The other eighty percent goes into maintaining it, for years after launch. Optimize for the twenty and ignore the eighty, and you've optimized for the wrong decade.

That starts at the front end: compile and export your UI into an open, standard framework like React instead of a vendor's proprietary component library. It goes deeper at the back end: compile core business logic into WebAssembly, which runs natively wherever you point it, without a proprietary platform holding it hostage.

It extends to the model layer too, model agnostic, free to run a European or open-weight model instead of marrying one vendor's. And it extends to deployment: hybrid where that makes sense, on premise for sensitive operations, bursting into a global hyperscaler for compute no European provider can match yet, without rewriting a line.

That's what owning your own front door looks like, and it's the whole idea behind Betty Blocks Open: export every application as production-ready React and WebAssembly, then run it on premise, in a private cloud, or hybrid, on your terms. It's also why we rebuilt our pricing model around the same principle: no more paying the same fee for the four years you're running an application as the year you built it. Removing that lock-in was the point.

The Sovereign Maturity Checklist

Before your next platform decision, ask three questions.

If your vendor went bankrupt tomorrow, or tripled its prices overnight, could you export your application code and run it immediately on your own servers?

Is your business logic tied to a proprietary runtime, or does it compile to open standards?

Can you move your stack between on premise, hybrid, and public cloud without a rewrite?

If you hesitated on any of those, you don't have sovereignty. You have a very well marketed dependency.

The future belongs to the unlocked

As I say in the conversation above, not every customer has caught up yet. Some are already rebuilding around it. Others are still walking it past an IT manager chasing whatever tool looks shiniest this quarter. A year ago I wasn't sure how many people would care. Now it comes up in almost every conversation.

I started in this industry as a programmer in a corner, about as far from geopolitics as a job could get. Now those models, and the chips underneath them, are the daily conversation. Nobody planned that.

Europe doesn't need a digital iron curtain. What Europe needs is a tech stack built on transparency and portability: code you can read, logic you can move, a runtime that answers to you, not to whichever government has jurisdiction over your vendor's headquarters this year.

The truly sovereign enterprise of tomorrow will not be the one that built the tallest walls. It will be the one holding the keys to its own front door.

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Generate apps from a prompt. Govern, integrate, and own them like an enterprise platform. That's the whole point.

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AI speed. Enterprise Trust.

Generate apps from a prompt. Govern, integrate, and own them like an enterprise platform. That's the whole point.

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Get in touch

AI speed. Enterprise Trust.

Generate apps from a prompt. Govern, integrate, and own them like an enterprise platform. That's the whole point.