Why Sovereign Cloud is Essential for Today’s Businesses
So, why suddenly does everyone care about “where the data lives?” Well, the truth is, we’ve always cared. Policymakers interested in leveraging data sovereignty requirements to advance economic and investment goals certainly continue to care. As a candidate for European Commission President in 2019, Ursula von der Leyen highlighted the economic importance of data sovereignty, and in his September 2024 report on European Competitiveness, former European Central Bank President Mario Draghi noted that a “minimum level of technological sovereignty” is needed “to increase the long-term ‘bankability’ of new investments in Europe.” In today’s cloud-driven world, data residency and compliance have become top priorities due to government regulations and increasing public concern over data privacy. What has changed are the critical design factors in the interconnected world of cloud computing: the physical location of the data, metadata, and the governance surrounding it. Sovereign Cloud solutions address these needs by ensuring data security and jurisdictional control while giving cloud service providers the tools needed to be more innovative and competitive for their customers. The growing web of regulations worldwide, including Europe’s GDPR, the DGA, and the U.S. Cloud Act, highlight the need for organizations to manage data within specific jurisdictions to ensure compliance and security. Public awareness around data privacy issues further fuels this trend, compelling enterprises to seek cloud solutions that ensure compliance and security. All of this occurs amid a backdrop of significant geopolitical factors, ranging from development and investment policies to national security concerns, which influence both government regulatory frameworks and enterprise cloud strategies, prompting public and private organizations to rethink their data residency approaches. Sopra Steria (Nordics)“The demand for sovereign cloud solutions that can help ensure national autonomy is on the rise in the Nordic countries. As a Pinnacle Tier VCSP partner, we are well-positioned to meet the data residency and security requirements for our customers. Our Sopra Steria SolidCloud platform is built on VMware Cloud Foundation, which enables us to deliver a flexible and scalable sovereign cloud infrastructure. VMware Cloud Foundation enables us to innovate and deliver sovereign cloud services quickly by providing built-in compliance management, operations, and security capabilities.” — Roger Samdal, Agency Director Hybrid Cloud, Sopra Steria With global data creation projected to surpass 180 zettabytes by 20252 and as much as 92% of business data previously projected to be stored by U.S.-based hyperscale cloud providers3, non-U.S. countries are reevaluating data residency requirements to strengthen jurisdictional control and protect their citizens’ data privacy. While the U.S. Public Cloud vendors have worked hard to mitigate these risks for their customers by gaining regulatory certifications across the world, some of the key factors that drive data governance and security controls to protect the data from unauthorized third-party access are beyond their ability to natively protect1. The U.S. government has a number of legal frameworks in place to address national security concerns that extend beyond its geographical borders. For instance, the U.S. Cloud Act of 2018 allows U.S. courts to instruct U.S. companies to collect data on systems they manage not just on U.S. soil but, in theory, anywhere in the world. As a result of this and other legislation enacted in multiple other countries, the landscape is changing. Much of the global population is now protected by data privacy regulations for both personal and business-related data, much of it in line with the EU’s GDPR framework. Furthermore, the definition of personal information is ever-changing, and people’s attitudes evolve, as we saw during the Covid-19 pandemic. One thing is sure: with our online presence ever increasing, this architecture will only get more complex over time. Typically, VMware’s approach to Sovereign Cloud involves defining three types of solution architecture, which can align with the requirements of different organizations and different regulatory requirements. Broadcom These might be defined as: Provider Sovereign Cloud: VMware Cloud Provider who offers services that deliver on customers’ requirements for data and application sovereignty. VMware partners providing such a service would be part of the VMware Sovereign Cloud Program for CSP Partners, outlined below. Enterprise Sovereign Cloud: A commercial business entity with regulatory requirements (in some cases, industry-specific) for data/digital sovereignty. These include heavily regulated industries such as aerospace, nuclear energy, and military/defense suppliers. This solution is hosted and managed by the enterprise or in conjunction with a partner, with strict oversight from regulators. Government Sovereign Cloud: A government entity that requires, for legal or governance reasons, to hold data and application processes on sovereign soil. This solution is hosted and managed by the government entity itself or in conjunction with a partner, with strict oversight from regulators. Broadcom: Sovereign Cloud Focused Broadcom’s Sovereign Cloud solution is designed for VMware Cloud Service Partners to deliver sovereign cloud services that comply with a specific jurisdiction’s digital sovereignty requirements, which are defined in our 10-point self-attested Sovereign Cloud criteria (listed below). Data residency relates to where the data is physically and geographically stored and processed. Due to the extreme scale of the large public cloud providers, this is something they are usually able to primarily provide, but often artifacts like metadata (data about the data) can leak out into other regions, typically the U.S. In some cases, data residency alone is not sufficient to ensure compliance with data privacy laws. Data sovereignty relates to law, specifically, data being subject to the governance structure and, more importantly, the jurisdiction of the nation where the data is processed and stored. Despite this, the data still needs to be accessible by an authorized entity, and this is a really important aspect of sovereignty. A sovereign cloud solution needs to not only protect critical data but also unlock its value. Data can be extracted in a meaningful way for both private and public sector organizations while providing transparency around architecture and operations. STC (Middle East) “STC offers Sovereign Cloud services built on VMware Cloud Foundation that meet the specific needs of businesses and government entities in Saudi Arabia. Our services aim to foster trust, security, and compliance in cloud computing while supporting the broader digital transformation
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