Cloud Switching Without Lock-in: Data Act 2026 for SMBs

For years, switching cloud providers was a nightmare for many companies: high exit fees, incompatible data formats and contracts that made changing providers practically impossible. With the EU Data Act, which has been binding since September 12, 2025, the European Union has declared war on this lock-in. 2026 is the first full year in which the new rules take hold - and it is worth it, especially for small and medium-sized businesses (SMBs), to actively use these rights.

The central message of the Data Act is: your data belongs to you, and you must be able to take it with you at any time. Chapter VI of the regulation obliges cloud providers to enable switching to another service provider or back to your own infrastructure without disproportionate hurdles. This article explains what that means in concrete terms for mid-sized companies in Leipzig.

What the EU Data Act has required since September 2025

Regulation (EU) 2023/2854 entered into force on January 11, 2024 and has applied since September 12, 2025. It covers all providers of data processing services - that is, IaaS, PaaS and SaaS - regardless of their size. Since then, providers have had to remove contractual and technical barriers that make switching difficult.

• A maximum notice period of two months for initiating a switch.
• A binding list of the transferable data and the formats used.
• Transparency about the jurisdiction under which the infrastructure is operated.
• Active support for the customer's exit strategy, for example by providing all relevant information.

This noticeably shifts the balance of power in favor of cloud customers. What used to be a matter of negotiation is now a legally guaranteed right. Specifically, the provider must complete the switch within a transition period of usually up to 30 days once the notice period has expired. It does not have to guarantee functional equivalence at the target provider, but it must supply all the information and exportable data that an orderly move requires.

Importantly, these obligations do not arise only on request. Providers must include the corresponding clauses and information in their contracts on their own initiative. For you as an SMB, this means: a look at your current contract quickly reveals whether a service provider takes the requirements seriously - or whether renegotiation is needed.

Switching fees phase out by January 2027

The economically most important point for SMBs is the end of switching fees. The Data Act provides for a transition phase with reduced fees. These so-called switching and egress charges must be phased out completely by January 12, 2027. After that, switching fees are prohibited as a matter of principle - with only very narrow exceptions.

That is a sea change. Until now, data egress costs could make a switch economically unattractive because extracting large volumes of data was billed per gigabyte. Industry figures show the scale: egress fees account for around 6 percent of cloud storage costs on average, and some providers charge up to 0.09 US dollars per gigabyte transferred out. With several terabytes of business data, this quickly adds up to a noticeable deterrent - and exactly that barrier now falls away.

Anyone planning a cloud switch in 2026 should factor the interplay of reduced transition fees and the approaching zero line in 2027 into their cost and time planning. In some cases it can pay off to schedule an already planned switch so that the bulk of the data transfer happens after the cut-off date. One exception remains, however: providers may still charge separately for optional premium services such as an accelerated migration or a format conversion - but then as a voluntary add-on service, not as a mandatory fee.

What SMBs need to keep in mind now

The new obligations expressly apply to smaller providers as well. A narrow special case concerns micro and small enterprises with fewer than 50 employees and under 10 million euros in annual revenue: they are exempt from certain obligations regarding access to product and service data, provided they designed the product themselves and no larger partner company demands access. As soon as a larger partner in the supply chain is involved, however, the obligation applies in full.

For you as a cloud customer, this means above all: you now have enforceable rights. Review your current contracts to see whether they contain the new minimum clauses. If they are missing, you can demand an amendment. Pay particular attention to three points: the notice and transition periods, the list of exportable data including formats, and the question of whether any switching fees are still being charged at all.

Setting up your exit strategy and backups properly

A right is only worth as much as its practical implementation. For a cloud switch to actually run smoothly when it matters, SMBs should not start developing an exit strategy only once they want to switch. Documenting data formats, interfaces and dependencies early prevents nasty surprises.

• Document which data is stored in which formats and which proprietary services you use.
• Request from your provider a list of exportable data and supported standards.
• Test data exports regularly - an export that has never been rehearsed is not a reliable plan.
• Set up backups so that they can be restored independently of the primary provider.

Particular caution is warranted with proprietary services that cannot be replicated one to one at another provider - such as special database or AI functions. Here, the real lock-in risk often lies not in the data itself but in the application logic built around these services. A good exit strategy therefore assesses not only whether data is exportable but also how much effort rebuilding the application at the target provider would take.

How to approach a provider switch in practice

An orderly switch follows a clear sequence and should never be improvised under time pressure. Those who think the steps through in advance can use the statutory deadlines with confidence instead of being driven by them.

• Inventory: which services, data and dependencies are actually affected?
• Target picture: where should the journey go - to another provider, to your own environment or to a hybrid model?
• Trial run: migrate a non-critical part first to verify formats and interfaces.
• Timeline: factor in notice periods and the January 12, 2027 cut-off date for fees being abolished.
• Safety net: keep a working backup on the old system during the transition.

What SMBs should look for in new contracts

The Data Act only unfolds its full effect if you factor the new rights into provider selection from the start. A contract that fulfills the legal requirements only grudgingly is harder to enforce when it matters than one that actively supports switching and exit capability. It is therefore worth asking specifically about the decisive points before signing and recording the answers in writing.

• Are the notice and transition periods clearly stated, and do they match the legal framework?
• In which open formats can your data be exported, and are there documented interfaces for this?
• Are switching or egress fees still listed, and do they expire before January 2027?
• Which proprietary services would make a switch harder, and are there open alternatives?
• How does the provider actually support the move - only passively, or with active help?

Asking these questions early prevents you from maneuvering yourself into dependency all over again. After all, a cloud switch should not only resolve the current lock-in but also prevent the next one from the outset. So treat provider selection as a long-term decision in which openness and exit capability count just as much as price and feature set.

Conclusion

The EU Data Act ends the era of forced lock-in. With switching fees phasing out by January 2027 and binding exit obligations, SMBs gain negotiating power that did not exist before. Those who know these rights and actively maintain their exit capability gain flexibility, can compare providers on genuine competitive grounds and lower their risks in the long term. The best time to review your own cloud strategy is 2026 - before the big cut-off date.

Would you like to review your cloud contracts for Data Act compliance or prepare a provider switch cleanly? Cryon supports mid-sized companies from Leipzig and the surrounding area from the initial inventory through the exit strategy to a smooth migration. Arrange a no-obligation consultation.