Enterprises rethink cloud amid digital sovereignty push

Digital sovereignty has moved to the boardroom as geopolitical tensions rise and cloud adoption accelerates. Organisations are reassessing infrastructure to protect autonomy, ensure compliance, and manage jurisdictional risk. Cloud strategy is increasingly shaped by data location, control, and resilience.

Regulations such as NIS2, DORA, and national data laws have intensified scrutiny of cross-border dependencies. Sovereignty concerns now extend beyond governments to sectors such as healthcare and finance. Vendor selection increasingly prioritises sovereign regions and stricter data controls.

Hybrid cloud remains dominant. Organisations place sensitive workloads on private platforms to strengthen oversight while retaining public cloud innovation. Large-scale repatriation is rare due to cost and complexity, though compliance pressures are driving broader multicloud diversification.

Government investment and oversight are reinforcing the shift. Sovereignty is becoming part of national resilience policy, prompting stricter audits and governance expectations. Enterprises face growing pressure to demonstrate control over critical systems, supply chains, and data flows.

A pragmatic approach, often described as minimum viable sovereignty, helps reduce exposure without unnecessary complexity. Organisations can identify critical workloads, secure enforceable vendor commitments, and plan for disruption. Early adaptation supports resilience and long-term flexibility.

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