'We're Done With Teams': German State Ditches Microsoft in Bold Digital Sovereignty Move
Schleswig-Holstein, Germany's northernmost state, has made headlines by becoming the first German state to completely abandon Microsoft Office 365 and Teams, citing data privacy concerns and digital sovereignty issues. The move affects approximately 25,000 employees across state institutions and signals a growing European resistance to Big Tech dependency.
The Great Microsoft Exodus
In a decision that reverberates across European digital policy circles, Schleswig-Holstein announced it will migrate all state operations away from Microsoft's cloud-based productivity suite by 2026. The state's Digital Affairs Minister, Dirk Schrödter, didn't mince words: "We cannot accept that our sensitive government data flows through servers we cannot control, potentially subject to foreign surveillance laws."
This isn't merely a technical decision—it's a declaration of digital independence that other European regions are watching closely. The move comes after mounting concerns about Microsoft's compliance with the EU's General Data Protection Regulation (GDPR) and fears that U.S. surveillance laws could compromise European data sovereignty.
Privacy Concerns Drive Policy Change
The catalyst for this dramatic shift lies in Microsoft's data handling practices. Under the U.S. CLOUD Act, American companies can be compelled to provide access to data stored anywhere in the world, regardless of local privacy laws. For Schleswig-Holstein, this represented an unacceptable security risk.
"Every email, every document, every Teams call potentially creates a data trail that could be accessed by foreign intelligence services," explained Dr. Stefan Körner, the state's data protection officer. "We're not just protecting government communications—we're safeguarding citizen data that flows through our systems daily."
The state's audit revealed that Microsoft Teams alone generated over 24,000 data transfer incidents to U.S. servers monthly, each representing a potential privacy breach under strict German data protection standards.
The Alternative: LibreOffice and Open Source Solutions
Rather than switching to another proprietary platform, Schleswig-Holstein is embracing open-source alternatives. The migration plan centers on LibreOffice for document processing, Nextcloud for file sharing and collaboration, and Element (based on Matrix protocol) for secure messaging and video conferencing.
This open-source approach offers several advantages:
- Complete data sovereignty: All data remains on German-controlled servers
- Cost efficiency: Eliminating Microsoft's €2.4 million annual licensing fees
- Transparency: Open-source code can be audited for security vulnerabilities
- Customization: Solutions can be tailored to specific government needs
European Momentum Building
Schleswig-Holstein isn't alone in this digital rebellion. France has developed its own secure messaging platform, Tchap, for government communications. The Netherlands has implemented strict cloud sovereignty requirements for public sector data. Italy's Piedmont region has already begun transitioning to open-source alternatives.
The European Union's Digital Operational Resilience Act (DORA) and the proposed Data Act further emphasize the need for digital autonomy, particularly in critical infrastructure and public services.
Industry Implications and Microsoft's Response
Microsoft has responded by emphasizing its commitment to European data protection, announcing the EU Data Boundary initiative that promises to keep European customer data within European borders. However, critics argue this doesn't address the fundamental issue of U.S. legal jurisdiction over American companies.
The tech giant faces a challenging precedent. If Schleswig-Holstein's migration succeeds, it could trigger a domino effect across European public institutions. The state's decision has already prompted inquiries from other German states and European regions considering similar moves.
Implementation Challenges Ahead
The transition won't be without obstacles. Training 25,000 employees on new systems requires significant investment in change management. Ensuring seamless interoperability with partners still using Microsoft products presents technical challenges. The state estimates the migration will take three years and cost approximately €15 million—still less than continuing Microsoft licensing fees.
A Model for Digital Sovereignty
Schleswig-Holstein's bold move represents more than a software switch—it's a blueprint for digital sovereignty in an increasingly connected world. As governments worldwide grapple with data security, privacy rights, and technological dependence, this German state's experience will serve as a crucial test case.
The success or failure of this migration could influence digital policy across Europe and beyond, potentially reshaping how governments approach cloud computing and data sovereignty in the digital age. For now, Schleswig-Holstein stands as a pioneering example of putting privacy principles before convenience—a decision that may well define the future of government technology.