Brad Smith from Microsoft recently shared a blog post titled ‘Microsoft’s New European Digital Commitments (https://blogs.microsoft.com/on-the-issues/2025/04/30/european-digital-commitments/). This broad whitepaper covered a range of topics, including data centre expansion to provide scale for AI services and announcements around digital resiliency, security, encryption, and data and privacy commitments.
However, two key points caught my attention: First, Microsoft plans to provide more options for other European cloud partners to run Microsoft workloads. I assume this is targeted at Windows desktop and server infrastructure rather than delivering Microsoft Paas/SaaS services, and it raises questions about the ongoing EU and UK competition probes around Windows licensing costs.
The second part of this section specifically referenced two partnerships in France and Germany, where Microsoft is collaborating with local partners to provide sovereign cloud services.
I found this interesting for several reasons. Conversations around the sovereign cloud have been around for some time, and they are usually directly related to central government or defence workloads. See the US Government Cloud for an example, but I had not noticed much movement outside of the US, even the recent (ish) announcement between Microsoft and the UK government did not specifically mention sovereign cloud services (https://news.microsoft.com/source/emea/features/microsoft-and-uk-government-sign-five-year-agreement/). However, with the growth of data being hosted in public cloud services, as well as regulations such as GDPR, US Cloud Act and others, as well as the changing geo-political climate and the risks associate with it, mean that the ability to specific and control the location of sensitive data, and therefore control access to it become increasingly important.
Understanding Sovereign Cloud
As mentioned above, sovereign cloud refers to a cloud service designed to comply with local laws regarding data location, access, and compliance. Historically, these have been the domain of central or local government, although in certain circumstances, depending on the provider and justifications, non-government workloads may be allowed.
It does not necessarily mean a “locked down” version of a public cloud provider’s services, as more traditional private clouds (in my opinion) can fall into this category.
What are the benefits?
Several benefits may be attained by going down a sovereign cloud route, but the primary benefits include:
Regulatory Compliance: Compliance with local data law is the cornerstone of many regulatory controls. As a result, strict control over where data is located is a key benefit of a sovereign cloud solution.
Access controls: Although cloud providers often prohibit employees from accessing the underlying data, applications, etc., a sovereign cloud provides an additional layer of control over these activities.
However, depending on the provider, there are other potential benefits such as alternate encryption options (a level available on most public cloud providers), improved control over the provider’s support staff, e.g. may be required to be security cleared, and the possibility of guaranteed network capacity.
Trade-offs and Challenges
As always, there are considerations that organisations should consider before going down this route.
Increased Costs: Generally, sovereign cloud services are more expensive than “standard” public cloud variants.
Eligibility: Typically, sovereign clouds are the domain of central & local government, or related services, e.g. public health services, especially if you are looking for equivalent public cloud services (i.e. not private cloud). Organisations which do not fit into this category may not be eligible to leverage these services or may require some level of vetting, etc.
Breadth of Service: Depending on provider, location and other variables, not all services may be available in the sovereign cloud version.
Alternatives to Sovereign Cloud.
There are other options available if there is a requirement for enhanced data and privacy controls. The one that readily comes to mind is the Azure Stack / Azure Local options (other cloud providers have similar offerings), which allows organisations to run workloads in their own data centres, in some instances, these can be completely disconnected from the host cloud provider.
Final Thoughts
This announcement from Microsoft certainly seems to hint that they see sovereign cloud as an essential component of their strategy, and with both the rise in data regulations, not just in Europe, and the continuing development of AI systems that require access to said data, I believe that we are going to continue to see a broadening of demand both sovereign cloud, edge and hybrid cloud solutions. I think it will be interesting to see the next developments in this space.
IBM on LinkedIn
IBM Launches New Microsoft Practice
Chris McGuire announced the launch of the new Microsoft practice, which brings together over 33,000 Microsoft-certified professionals across key markets, combining our deep industry expertise with Microsoft’s powerful technology portfolio including Copilot, Azure OpenAI, Azure Cloud, Fabric, and Sentinel
DCC signs contracts for major smart meter network upgrade
AskIAM for Microsoft Entra
I took the opportunity to do something a little different last week. To support IBM CSS in their launch of AskIAM on Microsoft Entra, I was asked to create some content which would run on one of the displays at the IBM booth at RSA.
This is what I ended up creating.
Microsoft SSE
Cyrus Irandoust revisits his section from an earlier episode of our pod, which was titled is the VPN dead? https://www.linkedin.com/posts/cyrusirandoust_microsoftsse-entraprivateaccess-globalsecureaccess-activity-7326590084038746114-ZveJ?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAGPt4EBUQnHuhRKZiTHxz8hwxfIV_l3JTM
Securing your M365 Estate for Copilot
Molly Dery and Dinesh Nagarajan presented our vision of securing your Data and AI estate alongside Microsoft.
Launch of AskIAM for Microsoft Entra
Amit launched AskIAM at a breakfast session at RSA. https://www.linkedin.com/posts/helloamitkagarwal_rsac2025-microsoft-askiam-activity-7323423920554917888-yMtk?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAGPt4EBUQnHuhRKZiTHxz8hwxfIV_l3JTM
Empowering IoT with Agentic AI: A Microsoft-Powered Approach to IoT and Industrial Automation
Azhar Amir Mohammed discusses the use of Agentic AI in industrial operations.
Cloudy with a Chance of Insights
This weeks episode includes conversations on the following topics:
➡ AI Innovations: A summary of a recent hackathon and its focus on advancing artificial intelligence solutions.
➡ Cybersecurity: Updates on the importance of automatic attack disruption and its role in improving digital security.
➡ Changes to SharePoint Licensing: Analysis of the subscription model, its impact on legacy system migrations, and considerations for enterprises maintaining older technology.
➡ Sovereign Cloud Initiatives: An exploration of Microsoft’s commitments to European data sovereignty and the broader implications for global cloud strategies.
➡ Future of BizTalk: Insights on the prospects for this established integration tool within evolving IT infrastructures.
The hosts also delve into updates to Microsoft’s Security Reference Architecture, the unification of security tools, and advancements in Intune’s capabilities for enterprise environments. This episode provides a comprehensive overview for IT professionals and technology enthusiasts alike, offering valuable perspectives on the future of cloud technology and cybersecurity
YouTube: https://www.youtube.com/@CloudyWithaChanceofInsights
Other Platforms: https://themicrosoftcloudblog.com
The Microsoft Cloud Blog 
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