December 8, 2022

Sovereign Cloud: What’s Under The Hood Of Cloud Delivery Models And Business Strategies

By Rakesh Soni

The Sovereign Cloud

Businesses and government organizations have realized that 100% cloud sovereignty is necessary. What is 100% cloud sovereignty? Why can you ignore it when moving to the cloud? This post uncovers the aspects of sovereign cloud and how businesses can ensure they meet all regulatory requirements to deliver a seamless customer experience.

We must realize that cloud computing is the single source of truth for enterprises today. It has grown immensely to become a critical part of user experience and a solid foundation for businesses to embrace opportunities and risks in an age where technology and shifting customer behavior are changing the digital landscape.

As the need to leverage the cloud continues to rise, businesses and government organizations have realized that 100% cloud sovereignty is necessary. But what is 100% cloud sovereignty? And why can’t you ignore it when moving to the cloud?

Cloud sovereignty is necessary to meet compliance standards and protect sensitive customer data, especially in the financial sector, where strict regulations are implemented.

Let’s uncover the aspects of sovereign cloud and how businesses can ensure they meet all the regulatory requirements to deliver a seamless and secure customer experience.

What is a Sovereign Cloud? Why Does it Matter Now More than Ever?

The global cloud market continues to grow at an exponential rate. As more organizations embrace digital transformation, the number of cloud services consumed continues to rise.

However, as more data is transiting local and foreign borders, it becomes increasingly essential for a company to know where its information is being stored and what access is given to these entities.

While the cloud has significantly transformed how companies and organizations operate, it’s essential to consider the risk of storing data in the cloud services of unknown providers. As such, sophisticated businesses demand their cloud providers meet the highest security, privacy, and compliance standards.

Sovereign cloud storage is a way to provide legal, safe, and secure cloud services by mapping your data onto a sovereign cloud platform. This ensures that every customer’s data is protected, stored, and managed in compliance with the respected originating country’s privacy mandates.

Cloud providers strictly following a sovereign cloud concept are always ahead of their competitors since they build customer trust. Let’s look at

Increasing Customer Awareness about Data Collection

With businesses collecting heaps of customer data, securely managing and storing the same becomes a daunting task.

Besides, things become more challenging when customers ask businesses to offer complete transparency. They want to know that the information they share with you is not being used in ways that violate their privacy or by third parties without their consent.

Most importantly, customers do not want their details to be used for transactions such as targeted advertising without their knowledge.

Hence, businesses must stay transparent regarding massive data collection and cloud storage. And this is perhaps the most crucial aspect of the sovereign cloud.

Black Cloud Tech

Stringent Data Privacy Regulations Across the World

With data privacy and security laws becoming more stringent, keeping businesses compliant with various norms, including CCPA and GDPR, is becoming a significant challenge for cloud vendors.

As part of this endeavor, organizations must implement policies and procedures to comply with local regulatory requirements.

This can be achieved by assessing the risk associated with data privacy & security breach by taking proper measures, analyzing third-party vendor contracts, and leveraging technology like cloud computing and AI/ ML in the cloud for reinforced customer data protection.

The Changing Data Localization Norms

Data localization norms are different in different countries, and international cloud vendors should know the data localization requirements when they offer customer services.

The vendors should ensure that they have the necessary processes and tools to meet all the requirements. They must also maintain records regarding the storage and management of customer data, as regulators can request this at any point.

Data localization laws have become a matter of vital importance for the cloud computing sector. Cloud vendors should carefully read through data localization laws to avoid conflicts with government regulations to ensure they meet all requirements.

Once a cloud service provider adheres to the data localization regulations, it’s already on the verge of attaining a sovereign cloud ecosystem.

In Conclusion

The advantages offered by cloud sovereignty are vast and irreversible. The game-changing approach that cloud sovereignty takes to cloud security is not only necessary for a global, comprehensive policy; it’s common sense.

From the smallest start-up to the giant corporation, businesses in the technology sector, financial or otherwise, all need to utilize cloud technologies – but without proper cloud sovereignty policies and protocols, they’re putting their customers, employees, and their data at risk.

By Rakesh Soni

Rakesh Soni

Rakesh Soni is CEO of LoginRadius, a leading provider of cloud-based digital identity solutions. The LoginRadius Identity Platform serves over 3,000 businesses and secures one billion digital identities worldwide. LoginRadius has been named as an industry leader in the customer identity and access management space by Gartner, Forrester, KuppingerCole, and Computer Weekly. Connect with Soni on LinkedIn or Twitter.
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