Sovereignty concerns are the greatest barrier to cloud adoption for large enterprises across EMEA, as cited by 63% of respondents to a Red Hat survey of over 900 IT managers, directors and AI engineers across nine countries.
Over two-thirds (68%) of organisations have identified sovereignty as a top IT priority for the next 18 months, with that figure rising to 80% in Germany, where it ranks as the number one strategic focus.
The importance of sovereignty stems from a convergence of rising operational issues, such as supply chain instability and the threat posed by cyber attacks, and frequently shifting geopolitical dynamics.
Challenges like these together with the desire to harmonise the different national rules in the various EU countries have resulted in additional regulatory pressure, with laws like the digital Operational Resilience Act (DORA) and NIS2 mandating stricter operational controls for critical sectors such as the financial industry.
Sovereignty, therefore, is about resilience, and the ability to operate independently and fortify security without uncontrollable dependencies.
This need for control and independence is prompting enterprises and the public sector to reevaluate the risks of viewing cloud as a single strategy.
While cloud adoption is essential for digital transformation, traditional cloud models often involve ceding a degree of operational control to a handful of global providers, creating a potential single point of failure.
Concerns about data privacy, foreign third-party access to data and the risk of vendor lock-in can halt cloud migration projects in their tracks.
Open source is the bedrock of digital sovereignty
In the quest for sovereignty, vendor-supported enterprise open source has emerged as a critical enabler. A massive 92% of IT managers in EMEA agree that enterprise open source software is an important part of achieving sovereignty.
Open source provides transparency, control and freedom while a trusted vendor offers quality assurance, lifecycle management and technical support along with interoperability and validated integration with ecosystem partners.
With access to source code and an upstream first development model that is decentralised and community-driven, organisations are not tied to a single vendor’s roadmap.
This fosters innovation, allows for independent security auditing and builds a foundation of trust. Open source makes it easier for governments and enterprises to access and cultivate new talent by lowering the barrier to entry and providing publicly available, modern technology stacks.
Ultimately, open source is the key to developing digital infrastructures that can be operated and further developed independently, providing a path to affirming EMEA’s digital future.
Key priorities for a sovereign cloud strategy
When asked about their cloud sovereignty priorities for the next 18 months, IT leaders pointed to a clear and interconnected set of goals centred on control and systems security.
The top two priorities as agreed by 78% of respondents are securing flexibility and choice of IT suppliers, and ensuring transparency and auditability of systems.
Directly following this, 77% of respondents are focused on maintaining operational control and autonomy, while an equal percentage prioritise securing the software supply chain.
Foundational elements remain critically important, with 75% of leaders highlighting data privacy and protection as well as service and support continuity and regulatory compliance as key drivers.
Finally, 74% see partnering with providers in specified geographies as a strategic necessity for their sovereignty plans.
Sovereignty and AI
Sovereignty also impacts artificial intelligence. 74% of survey respondents believe AI sovereignty is a priority for their organisation's AI strategy for the next 18 months.
For further analysis of the survey results on how enterprises are investing in AI, check out the blog post enterprise AI survey: ambition, the value gap, and the importance of open source.
As AI becomes more integrated into core business functions, controlling the data, models and underlying infrastructure becomes paramount to establish compliance with regulations like the EU AI Act and to maintain a competitive edge.
Cost efficiency of the hardware supporting AI is also a major factor impacting infrastructure strategies, and we are already starting to see banks and other businesses turn to the development of on-premise data centres to power their AI ambitions.
Not all companies can afford to buy GPUs and build data centres, but where the banks go others will follow. GPUs are only part of the mix, and organisations will be looking for a hybrid cloud platform that enables them to run any AI model on any accelerator on any cloud.
Red Hat is your partner for digital sovereignty
Red Hat’s commitment to open source, the open source upstream first development model and hybrid cloud provides the foundational transparency and trust that sovereignty demands.
Platforms like Red Hat AI, Red Hat OpenShift and Red Hat Enterprise Linux are designed to empower organisations with control, choice and portability of data and workloads across on-premise data centres, sovereign clouds and hyperscalers out to any edge. This flexibility is essential for maintaining operational resilience and adhering to data residency requirements.
Red Hat’s technology is engineered for high performance, an enhanced security footprint and operational stability, helping customers meet evolving regulations while benefitting from community driven innovation.
Furthermore, our extensive ecosystem of local cloud providers and system integrators enables organisations to access regional expertise and build solutions that comply with local laws.
This commitment to local control is further demonstrated by offerings like Red Hat Confirmed Sovereign Support, which provides dedicated technical support entirely within the European Union by verified EU citizens, delivering localised operational independence for critical services.
Finally, as AI sovereignty takes centre stage, Red Hat’s platforms provide the tools and architectures to deploy and manage AI workloads with their choice of model and hardware with the governance and control that the new era demands.
With Red Hat, enterprises can confidently build a sovereign, resilient and innovative digital future.
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