If Universities are anything like other large public/public-adjacent organizations, the bulk of the in-house IT department was long since replaced by Microsoft resellers posing as IT. It’s insidious.
They get government funding for both (British resident) students and research so the government has leverage but would have to use that to incentivise them. I imagine at least some other European countries are much the same.
An even trickier question if you are interested in digital sovereignty is how to get the private sector to do the same. Running everything on AWS and requiring a mobile app to do anything seems to be almost instinctive for many organisations.