Meeting the challenge of digital sovereignty amid uncertain times

It’s always dangerous to think of “technology” as an ivory tower, untouched by the tumultuous world outside.

But when the world changes, technology must sometimes follow suit.

Over the last decade, companies and countries have rushed to digitalise and move their data to the cloud. The AI revolution has only reinforced how important it is that data and intellectual property (IP) are on tap, ready to fuel new systems and applications.

But businesses and nations have recently begun to realise how digitalisation and increased reliance on the cloud and AI could also make them vulnerable. It’s not just that cloud systems or applications, for example, could be hacked. They could simply be cut off, or foreign governments could unilaterally appropriate data or IP.

Which is why digital sovereignty has become a C-level topic. Almost two-thirds (63%) of organisations are “more likely to adopt sovereign cloud services specifically as a result of recent geopolitical events,” recent IDC research showed.

Separate IDC research showed European companies in particular are worried about “extra-territorial data requests,” reflecting concerns over foreign access to sensitive data.

But there are ways that technology leaders can plan for this without giving up on the benefits of new technologies, Juergen Reiner, co-CEO of Fujitsu’s consulting business Uvance Wayfinders, Europe, explained in a CIO webcast.

First, he said, it helps to recognise that this not actually an entirely new concern. For centuries, institutions and companies relied on physical means to protect their IP and data, whether borders, fences or safes.

The problem is, he explained, these assets have all now moved to “a virtual digital layer, in which not all the rules have been established and not all the protection mechanisms are in place.”

Recent geopolitical turmoil has simply thrown the spotlight on this pre-existing issue, Reiner added.

Reiner warned: “Not everything in the digital universe is governed and regulated, and there are not rules for everything.” This is something Uvance Wayfinders is already working on with customers, Reiner said, and it helps to consider things in three layers.

The first is to consider what is required legally, he explains. “It’s good to know the context and content to see what companies need to pay attention to.”

In an increasingly digital world, businesses must learn how to handle customer data in accordance with a complex regulatory landscape that evolves as issues emerge.

Then comes the operational layer, which should protect critical business processes and IP. Here, technology leaders must consider the practical processes they need to implement.

Third is the data and technology layer, he said. The aim is to make sure that institutions and authorities are building their business on a stable foundation. One where access cannot be simply cut off or where data can be co-opted against the wishes of the customer.

The good news is there is a wealth of tools and technology to build a sovereign stack, he said — ranging from using sovereign cloud providers, to selecting open-source tools, to choosing to train a smaller language model that’s trusted and properly controlled.

Reiner advises customers to do an assessment of their sovereign maturity. But beyond that, it’s an ongoing process of making sure they stay in control of their operations, technology stack and legal responsibilities.

“There are so many potential new risks. There’s so many open questions,” Reiner said.

As Reiner reminds us, geopolitical turmoil is nothing new. But by working with the right partners and exploiting the full range of tools available to them, business leaders can still protect their critical data and IP, while continuing to leverage innovation in an economy that will continue to evolve.

Watch the other video interviews in this series.

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