I have worked among corporate software solutions that were deployed to AWS, GCP and/or IBM clouds and am puzzled what's so scary about competing against AWS, GCP, IBM : These vendors provide scalable solutions that are technically doable but by any measure not technically superior, based much on open-source solutions, and their prices are not particularly cheap.
Much of the stuff that companies deploy into these three-letter-vendor clouds are either virtual machines or various services running inside containers plus databases plus load balancers, and all that's quite standard technology.
I don't really see a reason why European cloud vendors that can provide scalable cloud services based on open-source components with better prices that AWS couldn't win customers, in particular no the old continent.
Azure is a slightly different basket if the solution architecture is locked into Microsoft solution, but that can be avoided by not designing solutions that are locked into Microsoft solutions.