Half of organisations now see data sovereignty as crucial

Fifty one percent of UK organisations now see data sovereignty as a crucial aspect of their data management approach, according to new research from OVHcloud. The study of 500 IT decision makers in large organisations showed that organizational understanding of data sovereignty is rapidly maturing, with more businesses admitting that data sovereignty is important because of its implications for customer trust, rather than simply being a compliance challenge.

“Forty one percent of UK organisations told us that data sovereignty is simply something to be complied with,” said Matt Tebay, Multi-Cloud Evangelist at OVHcloud. “However, forty two percent said that it was important to customers, and therefore an asset to them and their businesses. This shows a change in how companies have traditionally seen data sovereignty, and an evolution of how they’re approaching it more broadly.”

Over three quarters (77%) of IT decision makers mentioned that data sovereignty is now more important to their organization than it was three years ago, with only four percent saying that it was less important. However, how organisations understood data sovereignty varied considerably: 40% did see it primarily as a compliance issue, while 36% saw it as a question of data access, handling or storage, and 28% saw it as relating to data portability.

“Having a robust data sovereignty strategy means that you know who controls your data, where it is, who has access to it, and which regulations it’s subject to,” continued Tebay. “Organisations are increasingly realizing that it’s not simply a cost and regulatory burden, but can build better customer trust, enhance governance and provide a layer of security and transparency to customers.”

The study also revealed that businesses are willing to put their money where their mouth is, with almost two thirds (65%) of organisations happy to pay between 11% and 30% more for a sovereign technology product that would meet all of their regulatory and sovereignty needs. In fact, only 6.5% were not willing to pay ‘more than normal’ for a sovereign product.

“Data sovereignty is gaining maturity, but it’s not an easy matter,” concluded Tebay. “23% of IT decision makers told us that they viewed data sovereignty as ‘complex and full of drama’, and 27% said that they thought it was comparable to the hit TV show The Office – and if they didn’t laugh, they’d cry. Clearly, the intersection of customer trust, technology, regulation and commercial considerations can make for a challenging journey, but it’s an important one and like all journeys, the first step is the most important.”