VirtoSoftware Apps Stay Unaffected by SharePoint Add-ins Retirement Learn More about SharePoint add-ins retirement and Virto apps→
Book a Demo
Trust Security Center Trust & Security Center Virto One Virto On-Premises Productivity Kit Prices How to Purchase

Home> Blog> IT Sovereignty in 2026: Why On-Premise SharePoint Beats Cloud During Geopolitical Crises

IT Sovereignty in 2026: Why On-Premise SharePoint Beats Cloud During Geopolitical Crises

Sergi Sinyugin by Sergi Sinyugin Published: Mar 6, 2026 Latest update: Mar 6, 2026
Reading Time: 3 mins
News

AWS Outages from Iranian Drone Strikes: A Wake-Up Call for IT Dependence

In early March 2026, AWS confirmed drone strikes directly hit two data centers in the UAE and damaged one in Bahrain amid escalating Iran-U.S. tensions in the Gulf region. These attacks caused widespread outages, elevated error rates, and degraded availability for AWS services across the Middle East, forcing customers to reroute traffic and back up data urgently.

While cloud providers promise scalability, events like these expose a harsh reality: external infrastructure can fail unpredictably due to geopolitical conflicts, leaving businesses offline. Your on-premise servers in the office? They hum along perfectly, powered by local generators if needed, providing true IT sovereignty and zero dependence on third-party regions vulnerable to attacks.

Regulatory Pressures: Industries That Can't Afford Cloud Risks

Stringent data governance norms are pushing more companies toward on-premise setups. In 2025, the on-premise segment dominates the global IT infrastructure market with a 58.7% share, driven by sectors bound to keep sensitive data internally. Healthcare, financial services, defense, government, and energy lead this trend due to compliance like GDPR, HIPAA, and PCI-DSS, which demand full control over data location and access.

Critical sectors amplify the need:

  • Pharma and healthcare: Protect patient data and IP from leaks or seizures.
  • Logistics/transport: Secure supply chain data alongside physical goods, especially in unstable regions.
  • Resources/energy: Ensure operational continuity for infrastructure like grids or pipelines.
  • Defense/government: Sovereignty is non-negotiable for national security workloads.

98% of businesses still run on-premise servers, even as cloud hype grows, because refresh cycles and reliability concerns keep hardware investments alive. Investments in on-prem won't decline—unpredictable times make autonomy essential, beyond just data leaks we've seen recently.

Hybrid Reality: On-Premise Powers What Cloud Can't Touch

Most enterprises (87%) now use hybrid models, keeping mission-critical workloads on-premise for performance, security, and compliance. Think databases, ERP/CRM, legacy apps, user authentication (Active Directory), and document management—perfect for SharePoint on-prem where customization and control matter.

Workload / OperationKept On-Premise (Typical)Moved to Cloud (Typical)Main Reasoning
Document management (DMS, intranet content)YesSometimes (for collaboration)Sensitive internal docs, IP, and records need tight control, compliance, and low-latency access.
Databases (ERP, CRM, LOB apps)YesPartially (reporting/BI)Core transactional systems stay close to the business; analytics often offloaded to cloud.
User management (AD/LDAP, identity)YesIntegrated (Azure AD, etc.)Central identity store kept on-prem, federated to cloud services when needed.
Password operations / SSO / PAMYesSometimes (cloud IdP)High‑risk credentials and privileged access are usually controlled locally for sovereignty.
Business‑critical workflows (approvals, finance, HR)Yes (for core flows)Yes (for light/aux flows)Regulated, latency‑sensitive workflows stay on‑prem; less critical flows use cloud automation.
Email & calendarsRarelyCommonlyCollaboration, mobility, and lower admin overhead make cloud a natural fit.
Kanban boards / task trackingRarelyCommonlyMost teams use SaaS tools; on‑prem only where strict data residency/customization is needed.
Dev/Test environmentsSometimesCommonlyCloud elasticity is ideal for short‑lived, bursty environments.
Backup & archivingYes (primary or copy)Yes (off‑site copy)Often a hybrid: local backups for fast restore plus cloud for off‑site resilience.

In Eastern Europe, amid shelling risks, a mid-sized SharePoint on-prem server rack might need just 5-10 liters of diesel daily for UPS/generator backup during outages, far cheaper and more reliable than cloud downtime costs. (Rough estimate based on typical 5-10kW server loads at 0.25-0.3 L/kWh efficiency.)​

Virto ONE: The Ultimate Hybrid SharePoint Toolkit for On-Premise Resilience

While pondering a shift to your own servers in this global chaos, equip SharePoint with Virto On-Premises Productivity Kit—the all-in-one license for calendars, kanban boards, workflows, and more. Our Ultimate Hybrid Toolkit is developing now, but if you want it ASAP—contact sales directly for early access.

Check out Virto ONE bundles today and future-proof your infrastructure.

Sergi Sinyugin
Sergi Sinyugin

Related Content