Cloud exit: when control is more important than scalability
Why Swiss banks need to rethink their cloud strategy
The regulatory landscape has changed fundamentally. Swiss banks are facing a challenge that goes far beyond technical issues: they must regain their digital sovereignty without losing their innovative capability. The cloud has long been a symbol of efficiency and innovation. But regulatory changes and geopolitical tensions are calling into question many strategies that have worked until now. Today, banks must not only act innovatively, but also with confidence – and that means being prepared for an exit.
June 2025, text Tanja Dujic 3 min.
The new reality of data dependency
A look at the real world illustrates the issue’s complexity: a Swiss financial services provider that operates its infrastructure with American cloud providers is automatically subject to the US Cloud Act. At the same time, the same company must comply with the GDPR provisions when doing business with European customers. This dual legal obligation is an example of why digital sovereignty has gone from a technical issue to a strategic one.
In addition, at the federal level, FINMA and the Swiss Bankers Association are now formulating requirements that call into question many existing cloud strategies. Banks must be able to fully recover their data from the cloud at all times and continue operations seamlessly. This requirement sounds self-evident – but in practice, it poses considerable challenges for many institutions.
Many banks have implemented various cloud services over the years without developing systematic exit strategies. When regulatory changes necessitate repatriation, this often means redeveloping systems from the ground up.
Cloud sovereignty as a competitive factor
For banks, cloud sovereignty means more than simply knowing where servers are located. It’s about having complete control over the entire digital value chain – from data processing to governance. This control is becoming the key differentiator in a market in which trust is reassuming its role as the most important currency.
Swiss banks have a historical reputation for trust, and they can further strengthen it with cloud sovereignty. Customers show a clear preference for financial service providers that are demonstrably in complete control of their data. This makes data sovereignty a tangible competitive advantage.
Cloud strategy with an exit plan? Get advice on our Cloud Blueprints now – independent, secure and future-oriented.
The process of well thought-out exit strategies
Successful cloud exit strategies begin long before the exit itself. They require an interdisciplinary understanding that takes into account technical, legal and business-critical dimensions in equal measure.
Organisational preparation
Effective exit teams bring together IT management, business owners, cloud architects, vendor management, legal and compliance around a common understanding. This collaboration is crucial because cloud exit is much more than just an IT project.
Inventory and dependency analysis
Most banks are surprised when they create a complete inventory of their cloud services for the first time. The dependencies that have developed over time often end up being more complex than originally thought. However, creating this transparency is the basic prerequisite for any realistic exit planning to take place.
Scenario planning
Banks need to consider both short-term (3–6 month) and medium-term (12–18 month) exit scenarios. Geopolitical tensions and regulatory changes can occur faster than planned.
Legal requirements
The contractual design of cloud services in particular often proves to be a critical success factor for exit strategies. Contracts concluded years ago under different circumstances often do not contain the clauses that would be necessary for a sovereign exit today.
Modern cloud contracts must include specific rules on data return, data deletion, audit rights and active support by the provider during the exit process. These details determine the practical implementation of data sovereignty.
Between innovation and control
The Swiss banking sector is facing a historic opportunity. While international competitors have to navigate complex regulatory tensions, Swiss institutions can use their geographical and legal position to achieve digital sovereignty.
The Swiss Confederation’s CHF 246 million investment in the Swiss Government Cloud underscores the political priority of data sovereignty. This initiative not only creates technical infrastructure – it also sets standards for the entire financial sector.
The combination of tried-and-tested Swiss resilience and modern cloud technology enables a new form of digital sovereignty that guarantees innovation and control in equal measure.
From dependency to autonomy
The transformation from cloud-dependent to sovereign architectures is an important turning point. Banks that set their course for cloud sovereignty today are positioning themselves for a future where control over data will be a decisive competitive factor.
The first steps begin with an honest assessment: Where is the data now? What dependencies exist? How can gradual repatriation take place? This analysis forms the basis for practical decisions on data sovereignty.
Cloud exit strategies and digital sovereignty require a new form of planning. They act as a link between technical expertise, regulatory understanding and business foresight. Swiss banks that tackle this challenge proactively can transform potential risks into sustainable competitive advantages.
The future belongs to those institutions that do a clever job of combining innovation with sovereignty – an approach that requires a systematic analysis of the current situation and a sophisticated sourcing strategy.