Sovereignty isn’t a toggle feature

Sovereignty, locality, and “alternative cloud” strategies are often treated as simple settings in hyperscaler consoles. Pick a region, check a compliance box, and move on. IT consultancy Coinerella posted about replacing a typical US-centric startup baseline with a “Made in the EU” stack. They treat sovereignty as an architectural posture and an operating model that can save money. It still involves friction, compromise, and more responsibility than outsourcing to default ecosystems.

The Coinerella approach is to deliberately refuse to let the platform drift toward AWS and US-based hyperscalers, driven by practical considerations such as data residency, General Data Protection Regulation (GDPR) compliance, reducing concentration risk, and demonstrating the operational viability of European infrastructure. Leaders often talk about sovereignty until the first production incident, the first compliance review, or the first integration gap. Coinerella remains committed and is addressing the consequences.

A ‘made in the EU’ stack

Coinerella didn’t pursue sovereignty by inventing new patterns. They recreated a fairly standard modern platform using European providers and selectively self-hosted services. For core infrastructure, they moved primary compute and foundational services to Hetzner, including virtual machines, load balancing, and S3-compatible object storage. This is where the story gets interesting: The hyperscaler narrative suggests that leaving AWS is mostly about giving up features. Coinerella found something different, at least for the basics. Compared with what many teams experience on AWS, their new performance and capability were solid, and the cost profile was compelling.

When Hetzner didn’t provide a managed service they needed, they filled in the gaps with Scaleway. That included transactional email, a container registry, additional object storage, observability tools, and even domain registration. In many migrations, stitching together multiple providers is where complexity balloons; here, the company intentionally used that approach, choosing the best option available in the region rather than forcing a single vendor to do everything.

At the edge, they relied on Bunny.net for the content delivery network and related capabilities, including storage, DNS, image optimization, web application firewall, and DDoS protection. That choice is a reminder that edge services are not just an add-on; they are a major part of the platform’s reliability and security posture. Their blog suggests the experience felt approachable, coming from the more common Cloudflare-centric world, which is exactly what you want when you’re reducing risk in a migration.

Coinerella also addressed AI inference in a sovereignty-aware way by using European GPU capacity via Nebius rather than defaulting to US regions for inference calls. For identity, they used Hanko, a European authentication provider that supports modern authentication approaches like passkeys and handles common log-in expectations such as social log-ins.

Finally, and importantly, they self-hosted a meaningful set of internal services on Kubernetes, using Rancher as the management layer. They ran Gitea for source control, Plausible for analytics, Twenty for CRM, Infisical for secrets management, and Bugsink for error tracking. If you’ve ever advised an enterprise to self-host “just a few things,” you know what this really means: You’re accepting a different operational contract, where savings and control come with life-cycle ownership.

Surprises and extra hurdles

Coinerella’s post is most valuable where they write about difficulties in the “boring” services that often make or break developer productivity. Email was one of the major friction points. In the US ecosystem, transactional email options are plentiful, polished, and easy to integrate, with a deep bench of community guidance for deliverability and troubleshooting. Coinerella made it work with a European alternative, but the takeaway is clear: The long tail of integrations, templates, and community answers isn’t evenly distributed across regions. It’s not that the service can’t function; it’s that you may have to serve as your own integration team more often.

Source control was another challenge. Moving away from GitHub isn’t just about moving away from a Git remote; it’s about leaving an ecosystem: CI/CD defaults, actions, marketplace integrations, and the operational muscle memory of every developer who has internalized the GitHub way of doing things. Gitea can be a solid foundation, but it doesn’t automatically bring the full assembly line you get “for free” on the dominant platform.

There were also cost anomalies. The author notes that some top-level domains appeared to be significantly more expensive through European registrars—sometimes dramatically so—without a satisfactory explanation why. That’s not an architectural deal-breaker, but it’s exactly the kind of real-world detail that proves a point: These journeys aren’t clean-room exercises. You’ll encounter unexpected differences in market structure, and you’ll have to decide how much they matter.

Unavoidable dependencies

If you’re looking for a purity narrative that claims “we removed every US dependency,” this isn’t it. Coinerella acknowledged that some dependencies are structural. User acquisition may require Google’s advertising ecosystem, and mobile distribution routes may have to go through Apple’s developer program. Social log-ins often rely on Google and Apple infrastructure, and removing them can harm conversion rates. Even AI introduces pressure: If you want access to specific frontier models, you may be forced to use US-based APIs.

The smarter posture this blog implicitly recommends is to minimize what you can, isolate what you can’t, and be honest about the trade-offs. Sovereignty isn’t binary. It’s a spectrum of choices about where your core data and operational dependencies reside.

Moving to an alt cloud

Coinerella’s experience mirrors what many enterprises are learning as they move toward alt clouds, including sovereign clouds, private clouds, and other non-default platforms. The biggest lesson is that the economics of the move can be attractive precisely because you’re taking on more work. Lower infrastructure costs are real, but they come with increased integration responsibility, more platform engineering, and a higher need for operational maturity.

This is also where the “want versus need” conversation becomes unavoidable. Hyperscalers have trained teams to select managed services the way you pick items off a menu, often because it’s convenient, fast, and politically easy. Alt cloud strategies force prioritization. You may want the newest managed feature set, the deepest marketplace, and the broadest ecosystem, but you may not need them to meet your business outcomes. When you choose sovereignty or a private-cloud footing, you often end up selecting simpler technologies that meet requirements, even if they’re less glamorous or less feature-rich. This is not a retreat. It’s a form of architectural discipline.

However, none of this works without adding new practices. Finops becomes an engineering discipline that spans heterogeneous providers, self-hosted platforms, and capacity planning decisions you can no longer punt to a hyperscaler. Observability becomes a first-class design requirement because you’re building a platform that crosses boundaries and includes components you own end to end. You need consistent metrics, logs, traces, service-level objectives, and incident response procedures that work even when tools and APIs differ across providers. Because you’re doing more of the work, you need to be more explicit about patching, security, backups, recovery testing, and operational runbooks.

The point isn’t that this is too hard to do. The point is that it’s hard in predictable ways. Coinerella’s blog makes the case that the journey is worth the trouble, but it’s not easy—and that’s the framing enterprise leaders need. If you expect sovereignty to be a product feature, you’ll be disappointed. If you treat it as a strategic posture that comes with real engineering commitments, you can get the control, cost profile, and locality benefits you’re looking for without being surprised by the work required.

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