mentalgear
9 hours ago
Why would ANY global business still rely on U.S. Tech? The U.S. government, through their executive orders and dissolving of the separations of powers, has demonstrated its ability to unilaterally disrupt or shut down private technology services at will. How can any business justify depending on U.S.-based tech infrastructure when its access could vanish overnight on a political whim by an unstable president?
If there is no rule of law, capital, talent and trust are flowing out of that country - for good reason.
stackedinserter
a few seconds ago
For the same reason why you choose "Made in China" over something that's made in your country. Often times it's the best (or even the only) tech for the best price.
mrtksn
7 hours ago
> Why would ANY global business still rely on U.S. Tech?
Because it's pretty refined since it was funded with resources so great that it was intended to serve global level audience?
I don't believe that EU will have comparable quality "tech" without restricting US market access in EU. Unfortunately, refined high quality software requires considerable resources and no one will invest those considerable resources when the US companies can just offer better software at lower price thanks to their lead and deep pockets until the EU companies go out of business. Sure, EU doesn't need to discover everything again but they will need to pay top talent world class money for years until their products become refined.
embedding-shape
7 hours ago
> I don't believe that EU will have comparable quality "tech" without restricting US market access in EU.
> Sure, EU doesn't need to discover everything again but they will need to pay top talent world class money for years until their products become refined.
Just like the US didn't need to rediscover the inventions of cars, submarines, the web, the printed press and more to be able to build better iterations on those, wouldn't the exact same apply the other way?
It feels like whatever you're saying today could be said the other way in the past, so why does it really matter?
The fact on the ground is that people don't trust the US overall as much, even less the leadership of the US, so whatever dependency has been built up over the years, has to be fixed, no matter if the "local" technology is shittier at the moment.
I'm sure Americans felt the same about printing presses back in the day, where some things you just have to be able to do without needing the permission of others far away.
mrtksn
6 hours ago
When you do something in a mature industry, you skip quite a lot of losing bets that those involved in maturing it couldn't.
That's why Google, Samsung and others were able to create smartphones comparable to iPhone without having a Steve Jobs and a Johny Ive right after Apple made one.
Once you know the way forward, the rest is an engineering task and it's matter of working towards it. Very low risk compared to the initial work done by the pioneers.
IndySun
6 hours ago
Apple did exactly what you're accusing others of, re 'smart phones', skipping lost bets and combining existing technologies, that did exist in smartphone form pre iphone.
Lots of real time material evidence exists.
mrtksn
6 hours ago
Sure, that's called progress. Apple skipped Motorola, Nokia, Ericsson and Samsung Skipped Motorola, Nokia, Ericsson and Apple. The next entrants skip Motorola, Nokia, Ericsson, Apple, Samsung.
You get the point. When you are getting into an established industry see what works, skip investing billions in directions that go nowhere.
defrost
5 hours ago
This sounds like good advice for EU tech companies stepping up to deliver to customers that want to avoid dependance upon existing US companies (and their associated demonstrably capricious government).
jaredklewis
4 hours ago
> Just like the US didn't need to rediscover the inventions of cars, submarines, the web, the printed press and more to be able to build better iterations on those, wouldn't the exact same apply the other way?
Running a software business in Europe is not against the laws of physics or anything, but it is also worth considering why Europe doesn’t already have a thriving software sector. The US shooting itself in the foot might help a little, but there are still lots of internal barriers, like those outlined in the Draghi report.
embedding-shape
3 hours ago
> but it is also worth considering why Europe doesn’t already have a thriving software sector
Why is that your impression of the software sector in Europe? Just because there isn't a "Eat the whole world Google/Amazon/Microsoft" company that ends up in American business-news, doesn't mean the it isn't one of the most well-paid and comfortable sectors in the continent, just like everywhere else, compared to other sectors.
I think as a whole it seems like Europe in general and particularly the EU has a lot more focuses than just "Tech Innovation", although it's still one part needing improvement. Even the report you referenced mentions the energy sector as a top priority, and slow steps are taken to upgrade infrastructure at all sorts of levels and sectors.
Software is but one part of life, but of course many of us here get lost in focusing a lot on software itself, I'm guilty of it myself too.
jaredklewis
3 hours ago
I'm not making any normative judgements, just descriptive ones. Maybe the way Europe is right now is perfect, far be it from me to say otherwise, I don't even live there.
But in the context of "digital sovereignty," it seems to me that so many giant pillars of tech (desktop OSes, mobile OSes, cloud platforms, enterprise crap like Salesforce, and so on) are managed by American firms. So if Europe wanted to take all of those things in house, that would require a significant expansion of the European software sector. And that wouldn't be super straightforward due to the many obstacles to things like venture capital funding outlined in the Draghi report.
Now I'm more than a little skeptical of the whole "digital sovereignty" concept. There's a reason every country doesn't it make it's own airplanes, cars, wine, espresso machines, and medical devices; those reasons apply more or less equally to software development. The cost of “sovereignty” is very, very high. But, if we do buy into the idea that countries need to diversify away from American software, I think that necessarily entails a large increase in the software sector of places like Europe.
jfengel
7 hours ago
Governments can nudge. If they swear off American tech, they will be using something else, and have influence on how that goes. They can put money into getting what they want, and open sourcing it.
The more they invest, the more corporations will be able to switch.
kosinus
7 hours ago
What is cutting off the ICC if not restricting. I think that was a pretty blatant move, and is a large part of the chain reaction we're seeing now.
kakacik
7 hours ago
Who cares about fine details of quality if you are at permanent risk of on/off, and a very real one.
Not every company needs, wants or has room to become google scale. Stability long term is something we hold dearly in Europe, not everybody runs in 10 seconds attention span.
mrtksn
7 hours ago
> Who cares about fine details of quality
People who actually work with that to achieve things that may be just as important care a lot.
hdgvhicv
6 hours ago
Can’t achieve things when the Us government decides to cut you off on a whim.
kakacik
7 hours ago
OK sure, some people care if you really need to play with the words. But only absolute fool would ignore those massive risks.
We have fools in many places, but not that much and that bad. Look at defense - every single country in Europe is ramping defense budget big time, most of those money goes to European companies. Doesn't matter much how good US tech currently is, if it has electronics that can be tweaked or switched off remotely its a massive risk. F16 case was really enough for whole world to wake up and reevaluate.
Why should any other industry including what we discuss react differently? Private companies can risk as much as they want, its up to governments to sweeten the deal for local stuff or let it be, sure there market forces can play as hard as wanted.
SpicyLemonZest
6 hours ago
Acknowledging a risk doesn't always mean eliminating it. We've seen a lot of this dynamic in the rare earths space recently - for most countries, the known and widely discussed risks of depending on China for critical military inputs haven't been worth the cost of establishing domestic production.
nxor
6 hours ago
bbb b b but Spotify is European :)
mrtksn
6 hours ago
A lot of AAA+ games are European, Linux is European and a lot of other software and services are European, a lot of industrial software is European. The platforms are not European, that's what's lacking.
It's not matter of talent, its matter of investing a few tens billions into it and its not going to happen if US companies can just undercut and wait it out.
nxor
6 hours ago
I did realize that, and agree.
But isn't it a matter of talent? While Americans obsess over tech and high paying jobs, Europeans seem to emphasize other subjects, not to mention have a lot more vacation days. What is to be made of that?
mrtksn
6 hours ago
Nope, it's not. Some of the big names in the current AI boom are also European but they go do it in USA because the money is in USA and they can just access the EU markets from there.
I don't know if you are familiar with coding or engineering but it's nor really a kind of a profession where you work all the time and the more hours you put in it the output increases linearly.
It's not like Europeans couldn't code Facebook because they were taking too many vacations, unlike Russians and Chinese that did. It's that Chinese and Russian markets had restriction and local clones or alternatives were able to flourish but EU had completely open market for US "tech".
Cut off Meta, double the vacations in EU and in a year there will be European social media. As it was demonstrated by Elon Musk, you don't need that many people to work in those "tech" companies anyway.
graemep
8 hours ago
They do though, and they are happy to.
A very small number of government agencies in a few countries have moved away from reliance on the US, but very few businesses have. We still have governments and businesses encouraging the use of US tech by, for example, encouraging use of mobile apps. AWS, Azure and Google dominate cloud services in most of the world. Microsoft dominates the desktop. Businesses and individuals are increasingly reliant on cloud apps that are mostly American.
Here in the UK my daughter's school (a large sixth for college) relies in MS cloud versions of Office and on Teams, you need (at least in my area) to use an mobile app, or a web app hosted on AWS to make an appointment with a GP (and if you are prescribed medication the pharmacy are informed via an API running in AWS). Most SMEs that do run anything of their own use AWS. One of the biggest banks (Lloyds) had issues during the recent AWS outage, and I know they are not the only one to use AWS.
A lot of European governments are pushing ID and age verification mobile apps.
In general a lot of governments are regulating in ways that favour the incumbents.
isodev
7 hours ago
I think it’s important to focus on the momentum. It’s not easy to redesign and re-engineer systems that have taken years and decades to develop and span many layers of integrations. There is also the issue of retraining as everyone is happily used to whatever system they currently have. It’s unfortunate the US decided to go back in time rather than look to the future but eventually, very few (if any) services would rely on US corps.
lazide
8 hours ago
Not to mention 95% of all mobile app installs are through App stores controlled by 2 US companies.
AlecSchueler
7 hours ago
But to change these things within the past 7 or 8 months would have been impossible. I get what you guys are saying but there's so much of this stuff that is very entrenched and there's decades of inertia to push against, it can't just happen overnight. The story isn't that no one uses American services anymore, it's that fewer and fewer of us feel comfortable doing so and are open to or actively seeking alternatives in a way we never expected to be.
nxor
6 hours ago
Trump, of course, is an unstable person, but why does everyone see the other side as any different? To many of us, they are sides of the same coin - and this, by the way, is more or less reflected in the similar lifestyles they lead. Elite politicians attend elite schools, democrat republican or otherwise. So it puzzles me that only now it's common to be skeptical of the US. Better now than never I guess, but I don't think it's true that Trump is somehow worse than his predecessor. The predecessors are just outwardly nicer. Nice vs kind, etc.
lazide
7 hours ago
Okay? How does that change anything?
baxtr
8 hours ago
Believe it or not, it’s partly because of regulation.
If you’re on Azure for example as a bank you know that most of the (eg DORA) requirements are met, because regulators have directly talked to Microsoft.
There are high compliance and migration cost for switching with no immediate gain for the business.
Permit
8 hours ago
> capital, talent and trust are flowing out of that country
Is there non-anecdotal evidence of this that you can share with us?
My understanding is that people make this claim but I haven't seen evidence of it beyond one-off articles about individual professors leaving the country.
lispisok
7 hours ago
There is none. Despite the less stable environment if you are Talent by far the best place to be is the US. If you are an ambitious entrepreneur by far the best place to be is the US.
withinboredom
6 hours ago
After I moved out of the US, I got emails all the time about moving to the EU; until I deleted my blog post about it.
The expat facebook groups have exploded if you’re looking for 'evidence'.
poisonborz
6 hours ago
I wish, but for a corporation morale grounds are not enough, and the facts speak for the contrary. Even with all the insanity, the US would not touch something as insanely profitable as this, and the government is very protective of the top tech firms. Also on the technical level, EU companies are simply not in the same ballpark.
jimbob45
8 hours ago
It’s Europe. They couldn’t even drop Russian oil imports despite them being an existential threat. They’re doing this because anti-US moves are trendy right now and that’s it.
cassepipe
7 hours ago
Some of us in Europe are ready to drop Russian oil imports whatever the cost. It's just russian backed populists are ready to rile the crowds for any price increase whatsoever and governments have to tread lightly all the time in order not to let power go to all those far right parties who would just buy the cheapest oil coming from anywhere as long as it allows them to remain in power.
bad_haircut72
6 hours ago
when the momentum really gets going expect similar agitators rallying against reductions of US influence
jack_tripper
6 hours ago
>Some of us in Europe are ready to drop Russian oil imports whatever the cost.
Translation: "Some of us in Europe are ready to drop drop bread in favor of eating cake, whatever the cost."
Easy for you to write cheques that others have to cash. Be careful with such suicidal empathy, as that has second order effects that back-fire in spectacular fashion. That's why you're supposed to put your own oxygen mask on before helping others.
>It's just russian backed populists are ready to rile the crowds for any price increase whatsoever..
TIL that if you aren't gonna sacrifice yourself for Ukraine and prioritize your family's survival, wanting to have a job, a roof over your head and food on the table, somehow makes you a "Russian populist" now. Interesting logic.
You'd think much differently if you or your family would face unemployment, homelessness or malnourishment due to the economic damages caused by a surge in energy costs across the board. Half my immediate friend circle have lost their jobs in the last ~2 years due to the economic situation, my grandma can't afford her bills from her pension without financial support from us, while access public services like healthcare and childcare has only gotten worse, despite us paying more for everything. Not exactly the environment people feel like gutting themselves even further for a foreign country, whichever that may be.
rwyinuse
6 hours ago
Building an energy system dependent on Russian gas is, and always was an idiotic thing to do. I live in Finland, and our energy costs are pretty back to more or less what they used ot be, even though we live next to Russia.
I don't know where you're from, but at least Germany's problems run way deeper than their idiotic energy policies. Lack of investment in infrastructure, lack of innovation and all that. Even with cheap energy there's no way German car makers would compete, when Chinese make better EV's for less money. Laziness and lack of innovation is the problem, just like in European IT sector, which just buys everything from America.
Also, let's not forget the huge impact Covid spending had on inflation, and in turn interest rates & people's purchasing power. Ukraine war and sanctions against Russia are completely insignificant compared to that blunder. We're living the recession that was supposed to happen in 2020.
nutjob2
7 hours ago
Surprisingly, when you depend on Russia oil and gas for your refineries and industry for decades, you can't always turn it off instantly, it sometimes takes many years due to infrastructure and for come countries, pro-Putin politics.
Being anti US isn't 'trendy', it is a response to the US being anti-EU at the moment, and justifiably being seen as unreliable, mercurial and even dangerous.
danaris
8 hours ago
> Why would ANY global business still rely on U.S. Tech?
First and foremost, because it takes time to switch.
Secondly, because there are a lot of things that just don't have realistic alternatives.
For a large agency, especially one that has statutory or regulatory requirements on how they decide on and deploy hardware and software, even if they can legally choose to switch to open-source options, if they made that decision the day after the election last year, it might have been too late to get major proposals in for the 2025 fiscal year, so they'd have to wait until 2026 to do more than start planning. (This is, fairly obviously, a near-worst-case scenario; other agencies will have much more freedom to change as they please.)
Even if they're less encumbered, the more users you have within an organization, the longer it takes to execute a migration like this, and it can be really really hard to operate for any length of time with a partial migration completed, especially for the support team. I could easily believe that some such migrations are already in the planning stage, but will take months to actually happen.
And finally, because This Is How We've Always Done It is a very, very powerful force. For some organizations, unfortunately, it will take some kind of catastrophic event to realize that they really shouldn't be relying on a foreign and possibly hostile power for all their major enterprise IT vendors.
graemep
8 hours ago
I have also met the attitude that using hyperscalers is the right way to do it, and running anything of your own that you could outsource to them is weird and unprofessional.
mentalgear
8 hours ago
Time well invested. If you are a publicly-traded company, the executive level is financially irresponsible to the stakeholders if they leave the company's data at perpetual risk of just vanishing.
drstewart
8 hours ago
EU is the entity with fascist Hungary and Slovakia having veto powers, isn't it? The one where "free" countries like Denmark push for encryption backdoors?
I think I'll avoid them - for good reason
kergonath
7 hours ago
> The one where "free" countries like Denmark push for encryption backdoors?
In a free political system, anybody is able to push any agenda. What matters is what gets adopted. I agree that the EU is not perfect, but you cannot just take a government’s pet project and claim that it is a failure of the political system.
lm28469
5 hours ago
Lmao, westoids having hard takes on Slovakia after reading headlines on reddit is the funniest thing ever, if only you knew how wrong you are
Quick example, people who stop at headlines keep talking about Fico yapping about stopping aids to Ukraine, yet they give more as a percentage of their gdp than Germany, France, the UK, &c. Fico's a piece of shit but don't stop at what he says, half of his bs doesn't make it further than headlines in western medias
patrickmcnamara
8 hours ago
How can Hungary or Slovakia do the same? Literally, how could they? What mechanism exists?
mentalgear
8 hours ago
While there are fascist leaders in those countries (especially Trump modelled is remodelling of the country after Orban's autocratic and corrupt Hungary), those are just 2 of 27 - so far far from the majority.
And many decisions in the EU do not allow for their veto votes anyhow - Orban's Hungary has been withhold now for years Billions of EU investments because of how the countries institutions were hollowed out by him.
drstewart
8 hours ago
What do you call a table of 27 with 2 Nazis at it? 27 Nazis.
darccio
8 hours ago
That's an unfair characterisation of EU. Hungary and Slovakia didn't join under their current fascist governments. They weren't fascist when they joined in 2004.
Kicking them out isn't easy unless there is unanimity. Unfortunately EU requires this kind of quorum for the big decisions, which is kind of a safeguard to precisely avoid going full fascist for the whole EU due to a minority of countries.
lm28469
5 hours ago
> They weren't fascist when they joined in 2004.
And they still aren't by any definition of the word fascism
It's 2025 we should invent new terms for new things, not everything bad is "nazi" or "fascist"
cassepipe
8 hours ago
I call it a table of 27 with two Nazis
How do you call a Parliament with two communist representatives, a communist regime ?
anon291
8 hours ago
27 out of 27 agree that end to end encryption and free speech are dangerous... So spare us all the pearl clutching
anon291
8 hours ago
Literally no other country or market with the perhaps exception of China has anything close to its own tech stack. Europe literally had Linus Torvalds and couldn't keep him. He now lives in Portland, 3 hours from where windows is made and 10 hours away from OS X. Literally the entire tech industry is the west coast of the United States.
The disparity in capability is orders of magnitude. Europe is basically hopeless at this point
linguae
8 hours ago
I won’t go that far…yes, the West Coast of the US is dominant, but it’s not “literally the entire tech industry” or even figuratively. We’d have a hard time buying new hardware without Chinese and Taiwanese companies. South Korea is a powerhouse in consumer tech; think Samsung and LG. Japan doesn’t have the dominance in tech it once did, but Japan is still a major player with many large tech companies like Fujitsu, Hitachi, Sony, NEC, and many more. Plus, if “tech” isn’t limited to software, then there are plenty of players worldwide in biotechnology and automobiles.
And let’s not count out Europe. I’m actually typing this in a BMW dealership’s waiting room in the Bay Area as I get my brake pads updated. BMW definitely qualifies as technology, even if it’s not a software company.
deaux
7 hours ago
No Korean government services rely on US hyperscalers (which is the subject of this post). I'm 99% sure the same goes for financial institutions. Those are the key infra and they're sovereign. A lot of big companies do have some things on US hyperscalers, but even that is a relatively small percentage. Overwhelmingly things are on prem.
And now someone will link "but there was just a fire that resulted in many online gov services being down for weeks!!!". Yes. And having that happen once in a decade, after which measures will be taken so that from now on it happens once in 3 decades, is absolutely 100x preferable to depending on US hyperscalers like EU governments do. As we just saw, it's not like AWS and Azure don't go down.
Sure, they don't have their own OS. But even much of China still runs on Windows. China might manage to get entirely rid of it at some point but not yet.
Doesn't Intel depend on ASML when their chip machines break? I don't think there exists a single country in the world that can currently produce a significant amount of full-stack, modern compute. If there is one, it's definitely China rather than the US.
Barrin92
7 hours ago
>Europe literally had Linus Torvalds and couldn't keep him
The great thing about Linux is we don't need to care where Linus lives. We obviously have — in principle — the tech, the workforce and the money to build an alternative tech stack. Most of it is open source at this point.
It's just political will. If we had the commitment and sense of urgency to unwind from America we could. Just like in military affairs we don't do it because we have a mental blockade to break with the existing global order.
exasperaited
8 hours ago
> The disparity in capability is orders of magnitude.
But then again it's increasingly being made by Indian migrants, right?
How far away the critical state is, who knows. Could it be in this presidential term? Would it happen within ten years of the coming imperial takeover of the presidency? Perhaps.
But when the valley loses its dominance it will likely happen pretty quickly: huge numbers of the people who make it happen will go home, go back to their home states, or just go to live somewhere cheaper. The US is not educating people fast enough or deeply enough to replace them, and there's no sign that AI really can replace the ones that matter.
Just because nobody can see exactly when this will happen doesn't mean you don't start planning for it to happen. Because it will happen, and when it happens it will happen fast.
The US tech industry is still built on the idea that the USA is a comfortable, friendly, open liberal democracy. And that is over. I mean, on a basic level any individual H1B placement in the future exists at the whim of the executive. Who do you have to donate to, to keep it? And any skilled migrant who might come over, work the hell out of a job that is beneath their level of education in the quick-e-mart and then start something of their own is not going to come.
Europe has its own problems with pasty-faced, bad-haired weaselly proto-fascists, but it's still fighting.