Cloud sovereignty is more important than ever for businesses

The issue of cloud sovereignty is increasingly becoming a sticking point for EU regulators, and it is something that businesses are starting to recognize, research from Capgemini has said.

In a survey, it found over two-thirds (69%) of businesses cited potential exposure to extra-territorial laws in a cloud environment as a potential issue.

Another 68% cited a lack of transparency and control over what is done with their data in the cloud as a potential problem, while 67% mentioned operational dependency on vendors based outside their region’s jurisdiction.

How are busineses reponding?

A large majority – 71% – of organizations surveyed said they will adopt cloud sovereignty to ensure compliance with regulations, while 67% said they will bring in additional controls over their data, while 65% said they will ensure immunity from extra-territorial data access.

But despite fears on the horizon. the majority of firms hold a positive viewpoint on the issue, 60% of respondents believe that cloud sovereignty will facilitate sharing of data between trusted ecosystem partners.  

What’s more, 42% of the surveyed organizations believe that a trusted interoperable cloud service could help them scale new technologies such as 5G, AI, and IoT. 

Cloud vendors are definitely stepping up to reflect the changing demands of businesses. 

Oracle Cloud Infrastructure (OCI) has introduced new sovereign cloud regions for its customers in Europe, which says will allow says private and public sector organizations across the EU will provide cloud hosting for data and applications that are sensitive, regulated, or of strategic regional importance. 

“In designing their cloud strategies, organizations should not just focus on compliance requirements but also have a true ‘enterprise view’ of their data,” said Marc Reinhardt, head of public sector at Capgemini. “In so doing, they will fully reap the benefits from sovereign cloud, including trust, collaboration, and innovation for even the most sensitive of data areas, and build a competitive advantage or better service for their constituents.”

It’s not just Oracle that moving to meet these demands.

Google has announced a new set of tools for Google Workspace it says will provide new “digital sovereignty” capabilities for public and private organizations in the EU.

• Concerned about cloud sovereignty? Check out our guide to best cloud hosting to find out more