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SAP reveals €2 bn investment in sovereign cloud

SAP has unveiled a €2 billion investment program aimed at developing sovereign cloud technologies tailored for the public sector and highly regulated industries.

SAP HANA business customers

Over the next decade, SAP will focus on expanding its cloud portfolio with solutions that meet stringent data protection, security, and regulatory compliance requirements, particularly for industries with heightened data control needs.

“With our billion-dollar investment in Sovereign Cloud offerings, we are sending a clear message: innovative strength and digital sovereignty go hand in hand,” Thomas Saueressig, Member of the Executive Board of SAP, said.

The initiative includes two major components:

VS-NfD Certified Cloud Infrastructure: SAP plans to introduce a fully SAP-based cloud service by 2024, designed to process data classified as “VS-NfD” (Classified Matter for Official Use Only) in Germany. The infrastructure will be operated in German data centers, ensuring all data remains within the country.

Sovereign Cloud Based on Delos Cloud Platform: SAP’s subsidiary, Delos Cloud, will launch a sovereign cloud platform for Germany’s public sector by 2025. Built on Microsoft Azure technology but operated independently, the platform will meet stringent federal data protection and IT security regulations. SAP and Microsoft services will gradually be made available on this platform by 2026.

SAP has appointed Martin Merz as President Sovereign Services & Delivery to lead the strategic expansion of the Sovereign Cloud Business. This realignment will drive closer integration of sales and delivery, furthering SAP’s efforts to support national security and technological sovereignty.

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