In today’s digitally-driven landscape, organisations are increasingly concerned about sovereignty requirements and data residency. In response, a variety of sovereign cloud offerings have emerged, each aiming to address regulatory needs and operational independence.
However, the scope and definitions surrounding these sovereign clouds vary widely, making it essential for CIOs and IT leaders to develop a tailored strategy. For organisations exploring sovereign cloud solutions, establishing a clear understanding of data, operational, and technological sovereignty is paramount.
1. Understanding data, operational, and technological sovereignty
As data privacy and protection laws proliferate, organisations face rising pressure to ensure compliance in each country they operate. Yet, navigating the realm of sovereign cloud can be challenging, primarily due to the differing definitions of sovereignty across providers. This ambiguity complicates the process of selecting solutions that align with specific regulatory demands and organisational goals. Therefore, begin by defining what sovereignty means for their organisation, focusing on three primary pillars: data, operations, and technology.
Data sovereignty is the crux of a sovereign cloud strategy. It encompasses compliance with local data protection laws, preventing unauthorised access, and ensuring that data resides within desired geographical boundaries. Many global organisations handle highly sensitive data subject to strict legal frameworks, such as GDPR, which dictate how and where this data must be stored and processed. A robust data sovereignty approach should encompass access controls, encryption, and secure data management practices that prevent foreign interference.
Operational sovereignty, on the other hand, centres on maintaining control over the provider’s operational framework. This includes monitoring how data is accessed, processed, and stored to mitigate risks from unauthorised third-party interference. Organisations often rely on trusted local partners to manage cloud infrastructure. Yet, despite efforts to delegate control to domestic operators, cloud providers frequently retain some level of involvement due to the complexities of managing infrastructure at scale.
Lastly, technological sovereignty focuses on independence from external technology providers, thereby ensuring that an organisation’s systems remain operationally autonomous. For example, companies may seek sovereign solutions that allow for a fully disconnected mode, ensuring continued function even if separated from a wider network.
2. Aligning cloud sovereignty with organisational goals
A significant challenge for multinational organisations is balancing the benefits of public cloud capabilities (such as scalability and innovation) against the need for sovereignty. Cloud providers have developed sovereign solutions aimed at complying with regional regulations, but these solutions often come with trade-offs. To achieve a balanced approach, work closely with internal stakeholders, including legal, compliance, and technical teams, to assess the specific needs of their organisation in relation to sovereignty.
As organisations define their requirements, it is crucial to perform a comprehensive impact analysis to understand the potential sacrifices. For instance, while sovereign cloud solutions might address local compliance needs, they may lack the scalability and flexibility of public cloud services, limiting the ability to leverage advanced analytics or AI capabilities. Therefore, prioritise the cloud strategy based on what matters most, whether this is regulatory compliance, operational autonomy, or technological independence.
With over half of multinational enterprises expected to adopt sovereignty strategies by 2028, sovereignty is clearly becoming a strategic imperative. However, defining and achieving these requirements is no small feat. It requires organisational alignment on core sovereignty goals and a clear understanding of potential trade-offs.
Moving forward, the role of cloud sovereignty will likely continue to grow, spurred by ongoing regulatory changes and increasing concerns around data privacy. This shift presents both challenges and opportunities. By strategically implementing a sovereignty-focused cloud strategy, organisations can not only comply with local regulations but also enhance control over their data and operations and build a resilient foundation for future growth.
René Büst
René Büst, Senior Director Analyst at Gartner will be discussing this topic further at the Gartner’s IT Symposium/Xpo taking place in Barcelona, Spain, on the 4-7th of November 2024.
