Digital trade, cloud risks, and strategic diversification

U.S.–EU tariff tensions hit IT services. How should European companies adapt?

Author

Giulia Romani
July 27, 2025

If you’ve been with us for a while, you probably remember Una Spremuta dal Web. That version of the newsletter took a pause to reflect a deeper transformation: the evolution from SED Web to Babini Mazzari.

Above trends, beyond insights is not just a rebrand. It’s a shift in perspective: less noise, more signal.

We’ll also show up more often - not monthly, but when it matters.

Transatlantic Tech tensions: digital tariffs reshape the playing field

As trade negotiations between the EU and the United States intensify, a new front is opening: not on steel or agriculture, but on digital services.

With U.S. tariffs looming over key European exports, Brussels is weighing retaliatory options that directly target American digital platforms and IT providers.

The European Commission is considering tools such as the Anti-Coercion Instrument (ACI) to restrict market access, licensing, or procurement participation by large U.S. tech firms.

This strategic redirection signals a profound shift: the digital economy is no longer treated as neutral ground, but as a lever of geopolitical influence. For European enterprises, this translates into both threat and opportunity. IT services, cloud providers, and digital platforms may face higher compliance costs and operational friction across borders, but local alternatives could gain relevance and resilience.

Forward-thinking CIOs and CFOs should treat these developments not as noise, but as signals. Diversifying suppliers, preparing governance buffers, and investing in Europe-centric partnerships may prove vital. In a landscape where digital flows meet political walls, strategic alignment is no longer optional: it’s infrastructure.

TREND TRACKER

Platform diversification: from Cloud strategy to supply chain thinking

In the face of regulatory uncertainty, digital sovereignty demands and tariff risks, European businesses are moving away from hyperscaler dependency.

Platform diversification is gaining traction as a C-level strategic imperative, combining U.S.-based providers with EU-native solutions to build resilience, ensure compliance, and hedge geopolitical exposure. The model extends beyond cloud computing into productivity platforms, cybersecurity, CRM and AI-as-a-Service.

Instead of vendor consolidation, the trend favours hybrid architectures, parallel supplier tracks and flexible procurement frameworks. From finance to manufacturing, this strategic shift also aligns with ESG and data localization goals.

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QUICK INSIGHT

Cloud vendor diversification: a pre-migration checklist

As more firms embrace multi-cloud strategies, vendor diversification is also about risk management and governance. Here’s a streamlined checklist to ensure your diversification strategy is effective, compliant, and future-proof:

  • Map existing dependencies
    Identify critical workloads tied to a single provider—by region, availability zone, or API lock-in.

  • Evaluate sovereign cloud alternatives
    Shortlist EU-compliant providers for workloads requiring local jurisdiction or data residency.

  • Standardize observability and backup layers
    Use cross-platform tools to unify logs, alerts, and rollback procedures regardless of cloud source.

  • Pre-negotiate SLAs and exit clauses
    Build leverage into contracts now—especially with US providers—should trade or compliance risks escalate.

  • Test workload portability quarterly
    Simulate workload migration across vendors to validate abstraction layers and avoid vendor deadlocks.

In a fragmented world, strategic diversification is less about spreading risk and more about staying in control.

WHO IS BABINI MAZZARI

Our Value Proposition

Babini Mazzari is the strategic IT partner for European companies looking to navigate digital transformation in a structured, pragmatic, and sustainable way.
We don’t just deliver technical solutions - we work as an extension of your internal team, helping you integrate systems, optimize processes, and lead change with clarity and competence.

Our approach is built on listening, transparency, and a strong results-driven culture. Whether you're scaling, modernizing, or rethinking your operating model, we support every client with the right tools, clear methodology, and long-term vision.
Above Technology. Beyond Solutions.