The unexpected comeback: why on-premise service management solutions are having a moment

Discover why European organisations are rethinking cloud-first strategies and returning to on-premise ITSM solutions amid rising data sovereignty and security concerns.

While cloud adoption continues to surge globally (94% of large enterprises now have significant workloads in the cloud), a fascinating countertrend is emerging in mainland Europe that's reshaping how organisations think about IT Service Management (ITSM) and Enterprise Service Management (ESM) deployments.

Organisations are beginning to assess the long-held assumption that cloud is always the optimal choice, particularly for ITSM and ESM platforms. These systems are deeply embedded in the operational framework of most businesses, which raises concerns around data sovereignty and compliance, and as geopolitical risk intensifies, the appeal of on-premise deployments is being rediscovered as a safer move toward greater control.

The security reality check

While cloud platforms have revolutionised scalability and accessibility, recent geopolitical tensions have prompted a more cautious approach to data hosting. The Russia-Ukraine conflict has fundamentally changed the conversation around data sovereignty. Russian sabotage and subversion attacks against European targets nearly tripled between 2023 and 2024, forcing CIOs to reassess their deployment strategies for business-critical systems and re-evaluate the risks of hosting sensitive data in global cloud environments.

For ITSM and ESM platforms, which handle sensitive operational data, employee information, and critical business processes, this security imperative is driving renewed interest in on-premises deployments. The shift is not about rejecting cloud innovation, but about recognising security, sovereignty, and resilience must now be a part of the deployment conversation.

Why ITSM/ESM organisations are reconsidering on-premise:

• Data sovereignty: complete control over sensitive service desk data and employee information

• Compliance assurance: easier adherence to GDPR and emerging EU digital sovereignty regulations

• Operational resilience: protection against supply chain disruptions and geopolitical risks

• Security Control: full visibility and control over access, encryption, and data flows

The numbers don't lie

The EU has committed €1.3 billion in funding for cybersecurity and digital sovereignty initiatives through 2027, signalling that this isn't just a temporary concern, but a strategic imperative.

The hybrid reality

This doesn't mean cloud is dead. Smart organisations are adopting nuanced approaches:

• Hybrid deployments for different risk levels

• Sovereign cloud solutions within EU borders

• On-premise core with cloud extensions for non-sensitive functions

What this means for service management leaders

If you are a service management leader for a European organisation, it's time to evaluate whether your current deployment strategy aligns with evolving security requirements. The question isn't just "cloud or on-premise" anymore; it's "how do we balance innovation with sovereignty?"

Service Management providers of on-premise solutions are actively shifting you away and pushing you to their cloud solutions, and at a premium. Once there, limitations are swiftly placed on your usage and data limits for additional premiums, sometimes with additional costs that weren’t part of the original conversation.

In these difficult geopolitical times, deployment decisions must be driven by strategic foresight, not vendor pressure. IT leaders need to reclaim the ability to choose platforms that serve their long-term interests, not just their short-term convenience. So, the resurgence of on-premise isn’t a step backwards, but more a recalibration toward resilience and autonomy.

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