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SAP Doles Out $20 Billion for Sovereignty Control

Expanding Sovereign Cloud solutions, SAP now caters to multiple deployment methods, including on-site data center operations.

SAP Considers Allocating $20 Billion for Sovereignty
SAP Considers Allocating $20 Billion for Sovereignty

SAP Doles Out $20 Billion for Sovereignty Control

In a significant move to strengthen Europe's digital independence, SAP has announced the introduction of two new deployment models for its Sovereign Cloud offerings. These new models, which are set to enhance regional coverage with secure, regulatory-compliant cloud services, will provide companies and organisations in heavily regulated industries with the ability to innovate in areas like artificial intelligence without compromising within a "sovereign framework".

The new deployment models, however, do not provide specific pricing details, and the pricing structure remains undisclosed. The funds for this expansion will be used by SAP to invest over 20 billion Euros by 2025, aiming to offer multiple deployment options for different security profiles.

One of the deployment options is the IaaS platform SAP Cloud Infrastructure, which runs on open-source components in SAP's own data center network and stores data exclusively in the EU. Another option is the Cloud-On-Site variant, which provides an SAP-operated infrastructure in the customer's chosen data center, ensuring local physical control.

The infrastructure of the Delos Cloud, one of the new deployment models, is based on Azure Stack but owned by Delos, which operates under German law. This model is designed to provide the most comprehensive control and sovereignty, and it prevents direct US manufacturer access, unlike the Hyperscaler option. The Delos Cloud also enables public administration to use Microsoft products sovereignly.

The need for local staff for these new deployment models may increase the overall cost. The staff will be hired at German prices, implying potential higher costs. The new models will require additional staff for round-the-clock operations from local data centers.

Enhanced protection for data is expected with these new deployment models. As a testament to their effectiveness, SAP has announced Hensoldt, a German defense electronics company, as one of the first customers to use its sovereign cloud offerings. This move is expected to boost Europe's digital independence.

The new deployment models may incur additional costs due to the need for local staff. However, SAP's Sovereign Cloud offerings, including the Delos Cloud, aim to enable companies and organizations in heavily regulated industries to innovate while maintaining control and sovereignty over their data.

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