Sovereign cloud: definition, challenges and solutions for businesses

What is the Sovereign Cloud?

Definition and principles

The term Sovereign Cloud denotes a cloud infrastructure hosted and operated exclusively within the borders of a specific country or region. This model ensures that the data stored in the cloud remains entirely under national jurisdiction, preventing any foreign intervention or the extraterritorial application of laws such as the US Cloud Act.

Among the fundamental principles of the sovereign cloud are strict data localisation, compliance with local and international regulations on personal data protection (RGPD, LPD/nLPD in Switzerland), and full, transparent control of IT infrastructures. This type of cloud thus meets precise needs in terms of national security, the confidentiality of sensitive data and technological autonomy.

Origins of the concept

The sovereign cloud emerged mainly after Edward Snowden’s revelations in 2013 about the massive surveillance carried out by the United States. These revelations prompted several states, particularly in Europe, to become aware of the issues involved in protecting their sensitive and strategic data. This triggered discussions about digital independence and a growing awareness of the strategic importance of having IT infrastructures that are autonomous and secure. Since then, many countries have implemented or encouraged the development of national or regional cloud solutions, in an effort to meet these challenges.

Difference from other types of cloud

It is important to emphasise that the sovereign cloud is a concept that can also be applied to the different types of cloud already out there:

• Public cloud: shared infrastructure open to all, hosted by providers such as AWS or Google Cloud. Data can circulate freely outside the country, raising concerns about security and jurisdiction.
• Private cloud: Infrastructure that is dedicated to a single organisation, but does not necessarily guarantee territorial or legal sovereignty, or protection from extraterritorial laws.
• Hybrid cloud: Combines public and private resources, offering flexibility without necessarily providing the strict sovereignty and security guarantees that a sovereign cloud has to offer.

What really sets sovereign clouds apart is the fact that they have strict legal, political and geographical dimensions, making them particularly useful for companies and public institutions that want to fully control the access to and security of their data, while scrupulously complying with the regulatory requirements in force in their territory.

Why is the sovereign cloud essential?

The sovereign cloud is not just a technical alternative to traditional public or private cloud solutions. It offers a way to meet a number of major strategic challenges, both from a legal and economic standpoint, but also in terms of national security and the technological autonomy of companies and governments.

Strict compliance with regulations (GDPR, the Swiss LPD, etc.)

The legal framework is another key factor that accounts for the growing interest in the sovereign cloud. With the implementation of regulations such as theGeneral Data Protection Regulation (GDPR) in Europe and theSwiss Federal Data Protection Act (LPD), companies are facing strict requirements regarding the collection, processing, security and, above all, location of personal data.

The sovereign cloud thus guarantees total regulatory compliance, wards off high financial penalties and ensures there is greater trust among end-users.

Digital independence and technological sovereignty

In an international environment in which geopolitical tensions are increasing and technological dependence on external powers is becoming a risk, the sovereign cloud represents a strategically useful tool for gainingdigital independence. It enables each country or region to regain control of its IT environment, thereby reducing the risks associated with international sanctions, extraterritorial laws such as the American Cloud Act, or economic conflicts.

In this way, companies can guarantee not only their digital security, but also their strategic autonomy and greater resilience in the face of international geopolitical or economic pressures.

Building trust with customers and partners

The sovereign cloud is also an important lever for strengthening theconfidence of customers, partners and investorsin companies. Knowing that sensitive data remains protected and transparently located in a clearly identified territory is reassuring to stakeholders, and that is a real competitive advantage.

This transparency enables companies to improve their brand image by demonstrating their strong commitment to data security and protection, specifically. This is very promising and positive: at long last, some local tools!

Local and regional economic development

Finally, adopting sovereign cloud solutions actively encourages local economic development. By choosing national or regional market players, companies help to strengthen the local technological ecosystem, creating skilled jobs and supporting innovation at territorial or European level.

This positive dynamic is helping to build an economic fabric that is solid, sustainable and digitally self-sufficient.

Is it compulsory?

At present, the sovereign cloud is not strictly speaking mandatory for all companies. However, it is becoming essential in certain specific cases:

• Regulated sectors (finance, healthcare, public sector)
• Companies handling sensitive or strategic data
• Specific contracts imposing data localisation constraints

Key players in Sovereign Cloud

Faced with the increasing challenges faced in the field of digital sovereignty, several players have emerged in Switzerland and Europe who offer reliable solutions that comply with local regulatory requirements. These firms play a key role for companies wishing to secure their sensitive data while remaining compliant with local or European regulations.

In Switzerland

In Switzerland today, several renowned providers offer sovereign cloud solutions that meet the country’s high security standards:

• Infomaniak: 100% Swiss web hosting provider with a strong focus on confidentiality, known for its environmental commitments (carbon neutrality, eco-responsible data centres).
  Offers a full range of services, from classic web hosting to sovereign private cloud solutions.
• Exoscale: a well-known Swiss firm whose target market are technology companies, with modern, agile infrastructure based in Switzerland and Germany.
  Offers a direct alternative to hyperscalers thanks to ease of use and high degree of security.
• Swisscom Cloud: the market leader in Switzerland, offering solutions tailored to large Swiss companies and public institutions.
  Extensive certification and solid guarantees in terms of data confidentiality and security.

These players share a common commitment to sovereignty, security, and total transparency as regards the location and use of data.

In Europe

On the European scale, the Gaia-Xinitiative has become central to the field of sovereign cloud. Gaia-X is a collaborative project launched by Germany and France, with the ambition of creating a transparent, secure European cloud ecosystem that complies with European regulations. Gaia-X brings together numerous European players within a common approach, to promote:

• strong, competitive European digital sovereignty;
• greater interoperability of cloud services between European countries;
• greater transparency in the storage and management of sensitive data.

Notable European players involved in Gaia-X or operating independently include:

• OVHcloud (France): recognised European leader, ISO 27001 certified and SecNumCloud certified in France, offering a complete range from private clouds to sovereign public clouds.
• Scaleway(France): dynamic, innovative player offering highly competitive sovereign solutions with a focus on innovation and open source.
• Orange Business Services (France): recognised for its technical expertise and international presence, while guaranteeing strict, transparent data localisation.
• Deutsche Telekom / T-Systems (Germany): a major service provider in Germany and Central Europe, actively involved in Gaia-X, with a particular focus on security and European regulatory compliance.
• Aruba Cloud(Italy): a competitive solution promoting Italian and European digital sovereignty, committed to collaborative and open projects aimed at strengthening the European sovereign cloud.

Ultimately, these European players are seeking to offer a credible, competitive and secure alternative to American solutions (AWS, Azure, Google) and Asian ones (Alibaba Cloud, Tencent). However, they lack maturity in areas such as IAM permissions management, network management (private connection) and so on.

How do you go about choosing a sovereign cloud solution?

Choosing a sovereign cloud solution shouldn’t be confined to just checking the geographical location of your data. There are several key elements to consider to ensure that the solution truly meets your company’s specific requirements.

Selection criteria

To choose the right sovereign cloud for a company’s specific needs, there are several key criteria that must be carefully considered:

• Data localisation and legal sovereignty:
  Check exactly where your data is going to be hosted. The supplier must be able to guarantee that it will remain strictly under national or European jurisdiction, with no possibility of foreign interference (particularly American or Chinese influence, via the Cloud Act or equivalent). This means that there must be total transparency regarding storage locations and any subcontracting chain.
• Regulatory compliance and certifications:
  Compliance with the GDRP, but also with other sector-specific regulations (e.g. the HDS for healthcare data in France, the LPD in Switzerland) must be clearly documented. Recognised certifications such as ISO 27001, ISO 27017 (cloud security), or SecNumCloud (France) are surefire evidence of quality.
• Technical capabilities and scalability:
  Make sure the supplier offers a scalable infrastructure capable of adapting quickly to your resource requirements (storage, bandwidth, computing), whether in the short or long term. Also check the availability of options such as multi-cloud or hybridisation, which will enable your company to combine several solutions while complying with regulatory constraints.
• Security and confidentiality:
  In addition to legal guarantees, analyse the specific security measures that the service provider offers:
  • Systematic data encryption (at rest and in transit)
  • Multi-factor authentication Continuous infrastructure monitoring and regular audits
  • Strict access management (principle of least privilege)
• Technical support and quality of service:
  Responsive technical support is essential, especially in the event of a critical incident or urgent need for assistance. Assess the supplier’s commitments in terms of availability and responsiveness (SLA), as well as the quality of technical support (language, time zones, expertise).
• Pricing and contractual transparency:
  Choose service providers who offer a clear pricing structure, with no hidden charges, and with all contractual terms and conditions clearly documented. This includes transparency on data access conditions in the event of requests from local or international authorities.
• Reputation and customer feedback:
  Finally, find out about the supplier’s reputation, consulting customer reviews, specific feedback, or even references to use cases similar to those of your company.

Comparison with hyperscaler solutions

When making your decision, you’ll probably be faced with a dilemma: choose a sovereign solution or opt for a global hyperscaler such asAWS,Google Cloud Platform (GCP) orMicrosoft Azure. Here’s a summary of the pros and cons of each approach:

Please note: As yet, there is no legally recognised “Sovereign Cloud” certification. However, there are certifications that come close to this idea, such as SecNumCloud.

In a nutshell:

• Sovereign solutions: ideal for companies that handle sensitive data or are subject to strict regulatory constraints. They offer better security, but can sometimes be more expensive and less flexible.
• Hyperscalers (AWS, Azure, Google Cloud): ideal for projects that require agility, scalability and a diverse range of innovative services. However, they carry a real risk in terms of data sovereignty and strict regulatory compliance.

Your choice should depend above all on your priorities in terms of sovereignty, industry regulations and confidentiality, and also on your specific commercial and technical imperatives.

Future prospects for the sovereign cloud

The future of the sovereign cloud looks set to be bursting with opportunities and significant developments, driven mainly by the consolidation of the regulatory framework and ongoing technological development. At the European level, initiatives such as Gaia-X are fostering the emergence of robust, transparent and competitive solutions, capable of competing directly with international leaders such as AWS, Azure and Google Cloud. Gaia-X, in particular, promises to strengthen the degree of synergy between European companies by offering common standards, thereby guaranteeing data sovereignty and interoperability on a continent-wide scale.

Against this dynamic regulatory backdrop, legislation such as the GDPR in Europe and the Data Protection Act in Switzerland (LPD) will continue to grow stronger, prompting companies to opt for local solutions, to meet the increasingly stringent legal requirements as regards security and confidentiality. This trend is also set to extend beyond European borders, gradually influencing international regulations on the management and localisation of sensitive data.

On the technical front, sovereign cloud players will be stepping up their efforts to offer increasingly advanced services, capable of competing directly with those of major international players such as AWS, Azure and Google Cloud. This includes the development of more sophisticated managed services, the bringing on board of artificial intelligence or machine learning tools, and also a major strengthening of security capabilities, with innovative technologies such as advanced encryption or “Zero Trust” security approaches.

At the same time, companies are becoming increasingly aware of the geopolitical and economic issues associated with digital sovereignty. As a result, demand for national or European infrastructures that guarantee security, compliance and strategic independence is set to experience sustained growth.

Finally, an emerging trend could link the sovereign cloud to ecological issues, with industry players stepping up their commitment to more sustainable practices (reducing the carbon footprint of data centres, renewable energy, energy optimisation of infrastructures).

The sovereign cloud thus represents much more than just a local alternative to global hyperscalers: it is now an essential component of future digital strategies, both for governments and for companies keen to preserve their digital independence and their strategic independence.

How Qim info can help you set up a sovereign cloud

Qim info is your go-to partner for any sovereign cloud project! Whatever your location and requirements, our Cloud & DevOps Solutions department will have a solution for you. Don’t hesitate to contact us so that we can go over your project together.