As a longstanding Microsoft Business Applications partner, we at AlfaPeople are pleased to see Microsoft again taking a bold and transparent step to support the needs and rights of European companies. With the launch of a new set of European Cloud Commitments and a significant investment in regional data infrastructure, Microsoft is reinforcing its trust-based approach to digital transformation and addressing one of the most pressing concerns among our customers: data sovereignty and regulatory certainty.

Responding to a shifting global landscape

Recent years have brought increasing uncertainty regarding data handling and protection, particularly for companies operating in or working with partners from the United States and countries with diverging privacy frameworks. From GDPR compliance to cross-border data transfer concerns, European businesses are rightfully asking more challenging questions about where their data resides, who has access to it, and how their digital infrastructure aligns with local and EU-level regulations.

We, as implementation partners of Microsoft Dynamics 365 and the Power Platform, frequently encounter this growing scrutiny. Whether a retail organization is rolling out CRM capabilities across multiple markets or a manufacturing company is deploying Microsoft Dynamics 365 Finance and Operations to streamline its supply chain, one recurring theme persists in every boardroom conversation: Can we trust that our data is secure, sovereign, and in compliance with European laws?

Microsoft´s answer is local, transparent and comitted – Microsoft Cloud Commitments

The announcement published by Microsoft on April 30, 2025, outlines a significant expansion of its European data center footprint and introduces a framework of five European Cloud Principles. These principles are designed to give European public and private sector customers greater control and clarity over how their data is handled:

Local data residency: European customers can now choose to have their data stored and processed exclusively within the EU, thanks to the expansion of Microsoft’s local cloud infrastructure in over 20 countries.

Transparency: Microsoft commits to providing transparent, regular reporting on how data is managed and protected, as well as how the company responds to government data requests.

Security: All European Microsoft data centers meet or exceed rigorous European security and compliance standards.

Support for European industry and policy: Microsoft pledges to align its services with EU regulations and actively engage with policymakers, regulators, and industry stakeholders.

Sovereign technology choices: Customers will be freer to select from a broader range of technology options that meet their operational and compliance needs.

What does this mean to our customers?

From our perspective, these commitments are not just strategic moves by a global tech leader; they represent a tangible answer to our many weekly conversations with European decision-makers. For our customers, especially those in regulated industries like finance, healthcare, and the public sector, this clarity provides reassurance that choosing Microsoft Business Applications is a technologically sound and compliance-aligned decision.

It’s also worth noting that Microsoft’s commitment goes beyond infrastructure. With programs like the EU Data Boundary for the Microsoft Cloud already in place and now strengthened by this new set of principles, businesses can move forward with their digital transformation strategies without compromising compliance or governance.

AlfaPeople´s role is to help you navigate the journey

As your implementation and advisory partner, we at AlfaPeople are committed to helping you leverage these developments. Whether you plan to roll out Microsoft Dynamics 365 Business Central, migrate legacy systems to the cloud, or build low-code business apps on Power Platform, we will ensure that your solution is designed, implemented, and governed with full awareness of the new European digital landscape.

We also understand that regulatory compliance is not a one-time checkbox, but a continuous process. That’s why we work closely with our customers to stay current on Microsoft’s evolving commitments, advise on best practices for secure deployment, and support their teams in aligning internal governance structures with European requirements.

A stronger digital Europe

Microsoft’s announcement (Microsoft Cloud Commitments) is a milestone for the company, and every organization relies on its platforms to drive growth, innovation, and operational resilience. We welcome these new digital commitments and see them clearly demonstrating Microsoft’s dedication to building a trusted, secure, and resilient digital future for Europe.

At AlfaPeople, we are proud to accompany our customers on this journey, and now that path has just become more secure.

If you have any questions, please feel free to contact your local AlfaPeople contact or send us a message via our website.