In age of AI, time to own your data

Geopolitical tensions and a sense of control have made data sovereignty an urgent strategic issue for enterprises, report Shivani Shinde & Ajinkya Kawale

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Geopolitical uncertainty and the rapid evolution of artificial intelligence (AI) are making concerns about data sovereignty increasingly urgent. Analysts and industry experts say the risk of not being able to access your own data is prompting businesses to reevaluate their information technology architecture.

Nayara Energy, the Russian-backed Indian refiner, sued Microsoft in July after it abruptly suspended critical software services. Earlier this month, the refiner moved court against SAP for suspending software services. SAP India told the court that it cannot provide the services without its parent firm’s support.

Cloud question

Nayara’s experience adds to the debate about data, sovereignty and security. According to analysts, around 55-60 per cent of world enterprise data is on Cloud services largely owned by American technology firms.

“Data sovereignty is fast emerging as a major theme. In many customer conversations, the most frequent question is about data residency — where the data actually sits,” said D D Mishra, vice-president analyst at Gartner.

“In today’s VUCA (volatile, uncertain, complex, ambiguous) world, shifting geopolitics and rapid change are driving ‘uncertainty. Concerns over national security, threat perception, and latency are forcing leaders to rethink their data strategies. Added to this are the imperatives of privacy, citizen rights, compliance with global standards, resilience, and strategic autonomy,” he said.

It's no surprise that after Microsoft’s action, Nayara moved some of its services to Rediff, an Indian company that provides email service and other business tools.