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A systemic view of the European software landscape.
There is a persistent narrative in Europe: the USA stands for platform capitalism and data concentration, while Europe stands for openness, fairness and digital sovereignty. This sounds politically plausible – but falls short.
Because in the software world, it is not which values are formulated, but which systems actually have an impact. Software does not arise from ideology. Software follows systems.
As a Swiss IT boutique that works at the interface of regulation, banking processes and technology on a daily basis, we experience this area of tension at close quarters.
Intent vs. incentives: the real difference
The key difference between Europe and the USA lies not in talent or technical expertise – but in system logic.
Europe defines goals: Data protection, digital sovereignty, openness. These goals are secured through regulation. The GDPR and AI Act are an expression of precisely this thinking.
The USA is taking a different approach. Platforms, cloud infrastructures, developer ecosystems and frameworks are being built there. These systems create incentives that make certain behavior more likely.
A simple example: developers do not use Kubernetes because it is politically desirable, but because it is operationally efficient. Companies do not rely on cloud platforms out of conviction, but because it makes economic sense.
Europe is intent-driven. The USA is incentive-driven.
And in the software world, incentives beat intent.
Open source is not a counter-model but an amplifier
In Europe, open source is often seen as an alternative to the platform economy. In reality, it is closely interwoven with it.
Linux forms the basis of almost all cloud infrastructures today. The biggest contributors to critical open source projects such as Kubernetes, PyTorch or TensorFlow? Large US technology companies. These technologies are open – but they emerge and scale within platform ecosystems.
Open source is not an antithesis to the US system. It is an integral part of it.
Even Linus Torvalds, who founded Linux in Europe, first made his global impact in the USA – not out of political motivation, but because the system conditions were right there: interesting work, immediate impact, suitable infrastructure.
Gaia-X: When goals do not become systems
With Gaia-X, Europe has attempted to build its own cloud infrastructure with a focus on data sovereignty and interoperability. Despite ambitious goals, the project has not yet established itself as a serious alternative to hyperscalers.
While Gaia-X is characterized by political coordination and consensus processes, large cloud providers dominate through clear product strategies, massive investments and rapid iteration.
Europe builds concepts. The USA builds systems.
The structural problem: strong in development, weak in scaling
Europe has excellent research facilities, highly qualified developers and innovative companies. The problem lies not in the beginning, but in the transition to scaling.
Capital is available, but often risk-averse. Markets are large, but fragmented in terms of regulation. Innovation is encouraged, but scaling is rarely consistently supported. This pattern can be seen everywhere – from battery technology to AI start-ups.
Europe is strong in the creation of ideas. The USA is stronger in scaling them.
What this means for us
At ONLU, we operate in precisely this area of tension every day. Our clients – Swiss banks – operate in one of the most heavily regulated environments in Europe. At the same time, their systems have to function, scale and have an impact.
Our approach with CIB Flow and process automation shows that the two go together: European values such as data protection, compliance and transparency – embedded in systems that actually work operationally. Not a concept paper, but running workflows. Not a declaration of intent, but measurable results.
The central challenge for Europe is not to formulate better values. It is to develop systems in which these values become effective.
In concrete terms, this means
- Consider incentives more than intentions
- Understanding scaling as part of innovation, not as an afterthought
- Clearly bundle responsibilities instead of dissolving them in consensus rounds
- Anchoring platform thinking more firmly
Conclusion
The discussion about software dominance is often a political one. In practice, it is a systemic issue.
As long as Europe argues primarily about goals and values, it will lag behind systems that generate impact.
The future does not belong to better ideas. It belongs to the systems that give ideas impact.
This is exactly what we work on – every day, for our customers.
ONLU AG – Process automation, cloud solutions and AI for the Swiss financial sector.
