SAP launches UK sovereign cloud to address data security concerns

Initiative aligns with the company's broader investment strategy in the UK

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SAP announces Uk sovereign cloud service

SAP, a leading global provider of enterprise application software, has announced the general availability of its dedicated Sovereign Cloud service in the UK.

SAP, a leading global provider of enterprise application software, has announced the general availability of its dedicated Sovereign Cloud service in the UK.

The strategic move aims to meet the growing demand for data localisation, especially in sectors such as critical infrastructure (CNI), government, and highly regulated industries where sensitive information must be kept within national borders.

The concept of sovereign cloud is gaining momentum as governments worldwide increasingly prioritise national security and data autonomy. By confining data storage and processing within a country, sovereign clouds help safeguard sensitive information from unauthorised access.

SAP's UK Sovereign Cloud is designed to meet these needs, making it an ideal solution for sectors like Aerospace and Defence, Central Government, the Ministry of Defence, and Energy and Natural Resources, all of which demand stringent data security and compliance.

Post-Brexit, the UK has imposed stricter data residency and cybersecurity compliance requirements, making data sovereignty a critical concern.

The UK sovereign cloud is operated by security-cleared personnel in dedicated UK facilities, adhering to UK Data Protection Act 2018 and National Cyber Security Centre standards.

Initial services include S/4HANA Private Cloud Edition, SuccessFactors HCM, Business Technology Platform, Fieldglass, Analytics Cloud, and Digital Supply Chain solutions.

SAP's new Sovereign Services & Delivery organisation, established on 1st October 2024, will oversee these operations.

"At SAP, we are committed to protect the security and well-being of the societies we serve. With more than 20 years of experience in operating sovereign cloud solutions, today marks a significant milestone for us," said Martin Merz, President of Sovereign Services & Delivery at SAP.

The initiative aligns with SAP's broader investment strategy in the UK. The company has already invested €250 million in the country and plans to further expand its cloud infrastructure and facilities.

Looking ahead, SAP intends to expand the scope of the UK Sovereign Cloud, adding new services and capabilities to better support customers in achieving their strategic goals.

Leila Romane, Managing Director of SAP UK & Ireland, affirmed this commitment, adding, "This launch also reinforces SAP's ongoing commitment to investing in the UK, as we continue to develop cutting-edge infrastructure, invest in facilities and talent, and create new opportunities that drive growth and digital transformation across the nation."

While SAP is moving forward with its Sovereign Cloud launch in the UK, Microsoft has faced challenges regarding data localisation commitments for UK policing data.

In June, Microsoft disclosed in correspondence with the Scottish Police Authority that it could not ensure UK policing data stored on Azure would remain exclusively within UK borders, as required by local law

This exchange, made public under freedom of information rules, revealed that data uploaded to the Digital Evidence Sharing Capability (DESC)—a trial system developed for managing digital evidence—may be transferred and processed outside the UK.

Microsoft clarified that the existing data processing agreement for DESC does not meet UK-specific data protection standards, though the company stated it could implement technical adjustments to comply with these requirements.

The correspondence highlighted that data within Microsoft's hyperscale cloud infrastructure is routinely transferred and processed internationally, raising questions about compliance with UK data sovereignty regulations.