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Sovereign Clouds - Paradox or Paradigm?
DataQuest
|November 2023
Regulatory pressures aside; the changing dynamics of data control, privacy, security and localisation are being the big nudge for sovereign clouds to really emerge as a big market need and business model.

What do you do when you have something really precious to keep in a bank locker? Chances are, you prefer a bank that’s in close proximity—preferably, somewhere in your neighbourhood. It is both a logistical, and psychological, comfort to know that your ‘stuff’ is nearby. Of course, without compromising on the bank’s credentials and ability to guard your chattels.
So why does that not apply to lockers called clouds? Or does it? Specially after a slew of regulatory disruptions around data localisation in many countries and industries.
From SEBI’s principle-based framework for cloud adoption and recommended baseline security measures (that entail data ownership and data localisation), to GDPR’s de facto localisation requirements, to RBI’s requisites on storing payment data, to the ‘fresh from the oven’ Digital Personal Data Protection Bill, 2023 – it’s time we looked at sovereignty of data as major factor in cloud models. Here we go.
DOES SOVEREIGNTY MATTER?
A sovereign cloud takes care of not just regulatory requirements but control issues for an enterprise user. The data, including metadata, never leaves the soil—and access to data is limited to employees and workloads specific to that region.
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