The global spending on sovereign cloud solutions could exceed 260 billion euros by 2027, according to estimates from the research firm IDC. This represents an annual growth rate of 26.6% during the period, in the firm’s first study on this phenomenon that is gaining importance in all industries, not just in heavily regulated ones.
Growth Drivers
The growth in cloud use and the need to improve cybersecurity are now the main drivers for companies. In 2022, the total investment in sovereign cloud was $79.4 billion, a figure expected to exceed $103 billion by the end of this year.
Concept of Digital Sovereignty
IDC describes digital sovereignty as the digital self-determination capacity of nations, organizations, and individuals. “Essentially, this means giving data owners complete control over how and where service providers manage, store, and process their information,” explains Rahiel Nasir, IDC’s lead analyst. This concept includes all the underlying infrastructure used for data, such as data centers, networks, and administrative and support staff with access.
Segments of Sovereign Cloud Spending
The IDC report divides sovereign cloud spending into three segments:
Sovereignty of Data: Solutions that provide a holistic view of data collection, classification, processing, storage, and protection.
Technical Sovereignty: All digital infrastructure located in a sovereign environment.
Operational Sovereignty: Tools for transparency, control, and monitoring of cloud operations.
“As cloud usage expands further, organizations will seek broader offerings that encompass both technical and operational aspects. Consequently, we also anticipate relatively steady growth in these areas over the coming years,” Nasir added.
Future of Sovereign Cloud
The projected growth reflects the growing demand for solutions that enable organizations to maintain control over their data and cloud operations in an increasingly complex and regulated environment. Digital sovereignty has become a priority for many companies looking to ensure the security and privacy of their data.