SAP has announced a significant expansion of its sovereign cloud offering with a new “On-Site” solution.
The launch of the On-Site model will give customers the ability to host managed cloud infrastructure within their own facilities in a move the tech firm said provides the “ultimate level of physical control and data residency”.
Thomas Saueressig, member of the executive board of SAP SE for customer services and delivery, said the expansion is in direct response to growing enterprise calls for heightened data sovereignty controls.
“Organizations around the world are seeking greater control over their digital environments,” Saueressig said.
“With Sovereign Cloud On-Site, SAP empowers customers to define their own sovereignty boundaries while leveraging our global infrastructure expertise and partnerships.”
The new On-site option aims to offer “flexible sovereignty models” that meet the needs of organizations operating across various areas, SAP said, particularly governments and businesses in regulated sectors.
Varied deployment options mean organizations can choose between SAP-hosted infrastructure, hyperscaler-based models, or customer-site hosted options.
“With SAP Sovereign Cloud On-Site, we are redefining what sovereignty means for our customers,” said Martin Merz, president of SAP’s sovereign cloud division.
“By placing SAP-managed infrastructure directly within customers’ own facilities, we offer unmatched control, compliance, and operational assurance without compromising innovation.”
What to expect from SAP’s sovereign cloud
SAP said its sovereign cloud initiative centers around a series of “core capabilities”, which naturally includes a strong focus on data sovereignty.
Under the scheme, organizations retain full ownership and control of sensitive data, based on local regulatory requirements.
“Operational sovereignty” features allow enterprises to manage environments with SAP resources while “technical sovereignty” enables customers to run SAP workloads using deployment options based on their individual needs - this applies to those operating in regulated industries, for example.
Sovereign cloud in the spotlight
Data sovereignty has become a recurring talking point on both sides of the Atlantic in recent years. In May 2024, industry analysts told ITPro that sovereign cloud services are now the “bare minimum” expected from European customers.
A key factor behind this growing demand is the array of stringent regulatory requirements introduced - or currently being introduced - in Europe. Naturally, providers have acted swiftly to meet this demand.
A host of industry heavyweights, including Google Cloud, Amazon Web Services (AWS), Microsoft, and Oracle, have all since launched dedicated sovereign cloud services for European customers.
Recent months have seen new concerns arise about data sovereignty, with research showing enterprises in the UK and EU both cited worries about US interference.
These concerns came after the Trump administration issued a memorandum in early 2025 pledging to defend American tech companies from “overseas extortion”.
In the wake of the move, Microsoft president Brad Smith said the tech giant would resort to legal action to protect EU customers from US demands to shut down services.
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