Data Sovereign: How to Optimally Secure Your IT Infrastructure

The Essentials at a Glance

• True data sovereignty requires data to be stored and processed exclusively in the EU.
• Open standards prevent vendor lock-in and enable cost-effective data migration.
• US cloud providers may have to provide data to US authorities due to the CLOUD Act.
• Lack of transparency and non-compliance lead to GDPR risks and fines.
• STACKIT offers data sovereign cloud solutions from German and Austrian data centers.

2 min reading time

Most cloud providers now claim that their customers have full control over their data. However, this promise is rendered meaningless if a provider cannot guarantee that data is stored and processed exclusively in the EU. This is a key aspect of true data sovereignty, as understood by STACKIT. Additionally, a provider should be transparent, demonstrate high IT and compliance security, and offer open standards. This prevents companies from being locked into a specific provider and incurring additional costs.

The cloud solutions market is vast. Well-known providers advertise their services with buzzwords like “cost-efficient, scalable, and secure.” In reality, many companies consider cost savings to be the primary reason for switching to the cloud. According to the Bitkom Cloud Report 2023, almost two-thirds of companies already using cloud solutions want to reduce their costs by switching to on-premises solutions.

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However, does using cloud solutions automatically lead to cost savings? Not necessarily! There are many other factors to consider, such as comprehensive transparency, open standards, data protection, and data storage in the EU. If providers do not meet these requirements, companies risk incurring additional costs. Even the major hyperscalers have recognized this and are now advertising with the concept of data sovereignty.

Between Promise and Reality

As a result, it has quickly become a buzzword used primarily for marketing purposes. How can you tell? Many providers use the term but fail to substantiate their claims or guarantee the benefits of sustainable data sovereignty. German companies, however, place great importance on retaining control over their data stored in the cloud.

This control is precisely the essence of true data sovereignty–the uninterrupted authority over one’s own data. In contrast, major U.S. cloud providers may be legally required to make data accessible to American authorities, as mandated by the 2018 CLOUD Act. Despite advertising sovereignty, they often cannot actually deliver it in practice. Domestic companies thus risk violating the GDPR, which can result in significant fines.

The Business Impact of True Data Sovereignty

A European cloud solution, hosted exclusively in German or Austrian data centers, offers companies the most reliable option and is an essential component of true data sovereignty. With such solutions, companies do not need to worry about GDPR violations and fines.

Other core elements of true data sovereignty include high IT and compliance security, as well as transparent data storage and processing procedures. These enable data to be viewed around the clock. Open standards also play an important role, as they allow data to be migrated quickly, easily, and at no additional cost. In this way, companies avoid both economic and technical dependence on a particular provider (vendor lock-in).

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Lower Costs, More Trust