The concept of a sovereign cloud is not novel at all. Due to shifts in the geopolitical landscape and new legislations that have affected data control, it has recently become a hot topic. In a sense, the sovereign cloud offers a clever answer to a global conflict over digital sovereignty. Let’s delve a little further into it

The need for cloud sovereignty has, in turn, initiated the idea of digital sovereignty. This is all about data: who controls it, where it resides, and where it flows to. These inquiries are crucial in the modern data economy, where data is the new currency. Cloud services inevitably receive attention. They serve as the data economy’s driving force.

The rules set for data sovereignty have been in place for several years in many nations, and new privacy laws like the General Data Protection Regulation (GDPR) emphasise their importance. For instance, countries like Russia, China, Germany, France, Indonesia, and Vietnam demand that citizen data be kept on servers within the country. The justification is that protecting citizens’ personal information from misuse is in their best interests, especially outside a country’s jurisdiction.

According to reports, global spending on cloud services is anticipated to reach $1.3 trillion by 2025, representing a growth rate of almost 17% annually. The pandemic’s push to move more operations to the cloud to accommodate an increase in the demand for remote work is undoubtedly accelerating this growth.

But lately, cloud sovereignty is under closer scrutiny as enterprises and governments work to reduce their external exposure and maintain control over crucial resources in the light of escalating international conflicts, evolving data protection laws, and the dominance of certain cloud operators.

What can decision-makers do to manage this complex issue?
Reports suggest a four-point plan; define, assess, align, and develop:

1. Define: Examine cloud service providers from the perspective of sovereignty, considering data sovereignty (for data residency, controls, transparency, storage, backups, etc.), operational sovereignty (for security, compliance, and operational resilience), and technical sovereignty (to evaluate integration, migration features, and a straightforward exit policy/ process).

2. Assess: Set up your cloud infrastructure to be flexible: choose the most practical of use cases and sensitive workloads; think about crucial management solutions and end-to-end encryption.

3. Align: Analyse hybrid options simultaneously and prepare for a multi-cloud architecture by being aware of its advantages and disadvantages.

4. Develop: Explore the value proposition of sovereign cloud in terms of trust, security, and cooperation through ecosystem engagement to maximise its potential.

Data sovereignty in the cloud reveals a complex environment; thus, it is wise for businesses to be informed and compliant. Here are three strategies or approaches for doing this.

1.Focus on the cloud

Maybe the answer to data sovereignty is in the cloud itself! Data sovereignty is an essential factor, even while the major cloud providers, such as AWS, Microsoft, and others, credit adoption rates based on customers’ focus on price, availability, and flexibility. Most IaaS providers have local data centres, allowing for the fulfilment of the first condition. Additionally, crucial features like encryption and other available security-as-a-service choices enable users to adhere to regional laws.

One critical note of caution: It is crucial that the appropriate enterprise stakeholder comprehends the data protection laws of each country and evaluates and applies the required management tools provided by each supplier to comply with these laws.

With the rise of the Chief Data Officer (CDO), the company now has a responsible individual who must make sure the cloud provider has responses to the following questions in the contract:

1. Regulations governing privacy compliance being followed
2. Optionality for data location and recommendations based on performance, cost, and compliance; and
3. Methods for data encryption, key management, backups, and recovery

2.Emphasise consistency

Businesses should consistently follow even the most burdensome of regulations. Maintaining compliance with the data sovereignty regulations of each region in which an organisation conducts business is a constant problem for organisations with a worldwide presence.

The strongest of these regulations should be applied uniformly throughout all regions, regardless of what other areas require, as this will help to decrease complexity. In this, the cloud can be helpful. Choose a cloud provider that offers these features; often, the more prominent providers and those that concentrate on specific business verticals are the best.

Even the tightest restrictions cannot guarantee data security due to the growing instances of data incursions caused by breaches by third parties, such as partners, contractors, and software libraries.

Governing systems adhering to legal requirements and open to continuous policy modifications are crucial.

3.Use the cloud to implement data governance

Although the cloud provider might offer capabilities for data sovereignty, applying and updating policies on top of the tightest laws help limit risk. A thorough data governance strategy ensures adherence, ongoing risk assessment, and risk mitigation are always maintained. To do that, follow these five steps:

Discoverability: Define and control your cloud data.
Quality control: Make sure domain and data sharing are followed.
Compliance: Update policies on top of stringent regulations to help limit risk.
Access: Access to administrators is monitored, automated, and managed; prompt customer, partner, and compliance responses are given.
Lifecycle administration: Control the generation, distribution, storage, and deletion of data.

Laws and regulations governing data sovereignty are expanding in scope and complexity daily. The use of cloud infrastructure is multiplying, and the data deluge remains unabated. Together, these three provide some significant obstacles. However, businesses can advance and maintain their lead with a small initial investment and continual process implementations.

In the future, the CDO’s responsibilities will continue to change and converge with those of the CIO, CISO, chief privacy officer, legal, and other roles. The organisation will be less vulnerable to risks if it can adapt by staying ahead of the data sovereignty regulations and developing robust data governance frameworks for the cloud.