As businesses hop onto the cloud and focus more on data privacy to maintain regulations around data safety and avoid data breaches, it seems that sovereign cloud has come to the rescue. Experts believe sovereign cloud protects your data from interference by foreign authorities. All data, including metadata, is expected to be stored locally, making it easier to comply with residency laws and other local sovereign requirements. It is believed that a sovereign cloud can bolster data security by granting organisations more control. “Moreover, sovereign cloud can shift the cloud paradigm by tailoring data storage and processing to align with local laws, enhancing compliance and trust, among others. It emphasises a personalised approach to data protection,” Sundееp Rana, co-foundеr, NеtSеtGo Media, a mobile advertising company, told FE-TransformX.
Understanding sovereignty
The global cloud computing market is expected to grow from $480 billion in 2022 to $2.297 trillion by 2032, as per insights from Demandsage, a market research platform. Reportedly, AWS (Amazon Web Services) has the highest market share at 32%. “ Sovereign Clouds can diminish the risk of data breaches by reducing dependence on international data networks. These platforms can enable nations to implement tailored security protocols, offering a robust counterpoint to the generic security measures of global cloud providers,” Suman Bannerjee, CIO, Hedonova, a Paris-based hedge fund investing in alternative assets, highlighted, adding that by reinforcing data security in this manner, sovereign clouds can be instrumental in creating a resilient and independent digital framework, among others.
Global data storage is expected to exceed 200 zettabytes of data by 2025, as per insights from Demandsage, a market research platform. And to cash onto this Oracle, Accenture, and Microsoft have positioned the sovereign cloud as a solution for government and public sector services, critical infrastructure protection, financial services, defence and national security, R&D and healthcare, among others. To enhance the security of such vast data, cloud safety needs to be strengthened. It is believed that sovereign clouds have the potential to represent a pivotal advancement in cloud computing. It can address needs for data residency and compliance, providing a secure haven for sensitive data. “The balance between maintaining data sovereignty and utilising the power of cloud computing is delicate, yet crucial. Looking forward, the development of more interconnected sovereign cloud solutions can be key to supporting global operations while respecting local data governance laws. Embracing sovereign clouds is not just about securing data; it’s about positioning users for a future where data integrity and compliance are paramount,” Kuldeep Raina, president, Embee Software, a cybersecurity solutions provider, explained.
Towards sovereignty
Reportedly, the cloud technology market is anticipated to reach $864 billion by 2025, growing at a CAGR of 12.8% annually, as per insights from Demandsage. As per several media reports the Reserve Bank of India (RBI) has pushed India’s financial services sector towards data localisation, in particular foreign credit card companies. However, they are permitted in many cases to do limited processing of the data abroad and as such the data sovereignty is not intended to be absolute. It is believed that with the Digital India Act in place, a much larger adoption of local data storage whether on cloud on otherwise is expected to happen. “ Sovereign cloud makes the data storage providers accountable to domestic regulators who are entrusted by law to protect the privacy of citizens and security of the nation. However, data security is dependent on the safeguards and IT infrastructure in place and the risk of leaks or hacking should prove agnostic to whether the data is locally stored or not,” Avimukt Dar, founding partner, INDUSLAW, a law firm, said.
Moreover, a sovereign cloud is designed to meet an organisation’s digital sovereignty requirements, aligning with the laws and policies of a specific sovereign entity, such as a nation-state. “While the enhanced security control offered by sovereign cloud mitigates risks associated with cross-border data transfers and ensures data governance under privacy and security laws, achieving absolute data sovereignty may not be possible in all cases. External factors, such as changes in laws or international agreements, among others, can impact data sovereignty,” Alok Kashyap, founder and CEO, Yatiken Software Solutions, an information technology platform, concluded.
