Navigating digital sovereignty

Alex Galbraith at SoftwareOne explains how to balance the opportunities and challenges of digital sovereignty

 

Anyone who has ever dabbled in Excel or been asked to pull data from a spreadsheet will tell you that managing data is no easy task. For big businesses, governments and organisations, which often deal with large, confidential datasets, this challenge is magnified and introduces a new wave of challenges – particularly when it comes to safeguarding and securing data. 

 

As cyber-attacks become increasingly sophisticated, aided by the boom of AI, and global reliance on data intensifies, companies need new solutions that enables them to manage, govern, and safeguard their data more efficiently – cue digital sovereignty. 

 

Digital sovereignty enables individuals, businesses and nations to maintain control over their digital assets and data. This control extends beyond mere ownership of data, encompassing full authority over factors such as data storage and processing, technological independence and the enforcement of local laws and regulations within the digital realm. Overall, it provides businesses with enhanced control, visibility, and security of their data.

 

Whilst the concept of digital sovereignty seems like a ‘no brainer’ for businesses, there are barriers in making this approach common practice, namely the number of data-localisation measures which have more than doubled in the past four years. Such measures restrict important data within national borders making dealing with data even more tricky.

 

Data localisation creates barriers to innovation and seamless data flow – crucial factors for driving forward digital sovereignty. Regulations such as GDPR, DORA in the EU, and HIPAA in the US are prime examples where organisations must be compliant – or risk hefty fines and reputational damage if they do not measure up. 

 

Increased control, security and compliance  

Why is digital sovereignty worth the investment and attention? It gives organisations increased control over data and keeps them compliant in the face of evolving data localisation regulations. By maintaining control over data processing and storing data within their geographic neighbourhood, companies can reduce the risk of unauthorised access to sensitive information, enhancing cyber-security and risk management.

 

This control enables organisations to more effectively comply with local data protection laws and reduce the risk of data breaches, severe financial penalties, and reputational damage.

 

Digital sovereignty also boasts infrastructure independence and resilience, enhancing an organisation’s ability to weather threats to business continuity. By reducing dependence on imported technologies and services, companies can maintain critical operations even when international supply chains or services are compromised.

 

This resilience was particularly evident during the COVID-19 pandemic, where organisations with greater digital sovereignty were able to pivot and adapt quickly in the face of international uncertainty.

 

Moreover, organisations with strong digital sovereignty are better positioned to compete in the global marketplace, as they can more rapidly develop and deploy unique digital solutions without being hindered by dependencies on global supply chains or foreign regulations.

 

Getting digital sovereignty right

The benefits of digital sovereignty are clear. Any organisation that uses and holds data needs to build a digital sovereignty action plan to adhere to regulation and protect their digital assets, but also capitalise on the new opportunities these create. This action plan should consist of four pillars – regulation and compliance, data governance, digital infrastructure, and innovation.  

• First comes regulation and compliance. Businesses should identify digital sovereignty champions in the business to keep on top of evolving regulations and conduct regular compliance audits. This will prove vital to stay up to date on the latest developments and ensure compliance with local legislation. 
• Next, data governance. Businesses should implement robust data protection measures to fortify their defences and stop data falling into the wrong hands. This will also help to create transparency of data processing activities. 
• The third pillar is digital infrastructure. Organisations must focus on developing robust, secure and compliant digital infrastructures that protects against the increased velocity and sophistication of cyber-attacks, data breaches, and other cyber-threats. Similarly, these solutions should be architected with resilience at their core, with clear business continuity and disaster recovery infrastructure and plans. Subject to the nature of their regulatory footprints, businesses would be wise to consider sovereign cloud solutions to their action plan, or alternatively enable sovereignty controls in existing solutions. 
• Finally, innovation and a competitive spirit. As a core pillar to business success, balancing investment in digital assets with investment in talent and research and development will be key to unlocking innovation.  

Challenges and rewards 

While a digital sovereignty action plan sounds great in theory, there are still three major hurdles that businesses must overcome to make this plan a reality.

 

First, navigating regulatory and governance issues; organisations must comply with evolving, and sometimes conflicting, regulatory frameworks while still enabling innovation. This regulatory landscape is particularly complex in regions like the European Union, with GDPR and DORA leading the charge. Leaders must remain mindful of regulation and ensure compliance at every stage of their digital sovereignty journey.

 

Next, the technical obstacle of building and maintaining independent digital infrastructure while ensuring robust cyber-security measures. This requires considerable expertise to bring infrastructure up to scratch and satisfy regulations. With big players such as AWS, Microsoft Azure, and Google Cloud Platform fast becoming commonplace, working with tech partners that specialise in digital sovereignty will be key to keeping operations and data secure.

 

Finally, the economic challenges of data sovereignty, including the high costs of developing domestic technologies, potential loss of economies of scale when moving away from global providers, and ongoing maintenance costs. Attempting to build and implement a digital sovereignty strategy in-house can prove significantly more expensive than turning to industry experts.   

 

However, despite these obstacles, the benefits of digital sovereignty are worth the investment. Increased control, security, and independence outweigh the difficulties, and success often comes through innovative problem-solving and strategic partnerships that help address these complex challenges. For instance, choosing the right partners that offer all-round, all-in-one digital sovereignty services and having a global presence with local expertise will be crucial to getting the most out of your digital investment. 

 

By adopting digital sovereignty, businesses can not only shield themselves from increasing cyber-threats and enhance their cyber-security measures, but also achieve digital independence and resilience, whilst giving them a competitive edge in their market.

 

As organisations continue to ramp up their digital transformation initiatives, and the business landscape shifts further into the digital space, having a well-defined digital sovereignty strategy will be a crucial factor in achieving regulatory compliance whilst safeguarding businesses most valuable assets.  

 

---

 

Alex Galbraith is CTO, Cloud Services at SoftwareOne

 

Main image courtesy of iStockPhoto.com and imaginima