European providers are balancing data sovereignty with cloud scalability in an environment marked by increased regulations, ISG Provider Lens report says
European service providers are forging alliances with hyperscalers to offer hyperscale-grade sovereign cloud services that comply with EU security and data ownership regulations, according to a new research report published by Information Services Group (ISG) a leading global technology research and advisory firm.
Read More: CIO Influence Interview with Eric Herzog, CMO at Infinidat
“Enhancing sovereign data security is key for European enterprises”
The 2023 ISG Provider Lens Multi Public Cloud Services report for the EU finds a growing number of partnerships between local providers and global hyperscalers aimed at preserving data sovereignty while meeting the technological demands of customers. Although European cloud service providers may not be able to compete with hyperscalers when it comes to their data center ecosystem and technological capabilities, they make up for it with an established local presence, the ISG report says.
“Localized data residency is a key priority for sovereign cloud services providers,” said Dr. Matthias Paletta, director, technology modernization, for ISG. “Providers with extensive regional coverage have a competitive edge.”
The merging of local and global in the European cloud market is due in great part to the Gaia-X initiative, a comprehensive framework designed to govern the data sovereignty of information deemed confidential by EU member states, the ISG report says. Since its launch in 2019, Gaia-X has grown from 22 European stakeholders to more than 340 organizations as of 2023, the report says. Stringent security and encryption are integral to the Gaia-X framework, the report says.
Gaia-X’s goal of European ownership control of providers of sovereign cloud services has created obstacles for EU organizations, both governmental and commercial, in maintaining a continuous service flow from their chosen providers, ISG says. That’s because these organizations still depend on the scalability and comprehensive technology stack that the global hyperscalers offer, the report says.
Cloud service providers are surmounting this obstacle by working extensively with key stakeholders to develop a seamless process that adopts a highly scalable cloud ecosystem built upon sophisticated technology and leveraging an open-source platform that ensures interoperability while maintaining a strong emphasis on European standards, the ISG report says.
Read More: CIO Influence Interview with Rich Nanda, Principal at Deloitte
“Enhancing sovereign data security is key for European enterprises,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “This means the personnel who handle sovereign data should be EU citizens or at least based in the EU.”
The report also examines how cloud service providers can add more innovative and agile cloud-native technologies to their sovereign cloud requirements.
The 2023 ISG Provider Lens Multi Public Cloud Services report for the EU evaluates the capabilities of 16 providers across one quadrant: Sovereign Cloud Infrastructure Services.
The report names AWS, Google, Microsoft, Orange Business, OVHCloud and T-Systems as Leaders in one quadrant each.
Read More: CIO Influence Interview with Gee Rittenhouse, Chief Executive Officer at Skyhigh Security
[To participate in our interview series, please write to us at sghosh@martechseries.com]
