European enterprises are accelerating their adoption of sovereign cloud options to deal with stricter laws, geopolitical danger and rising calls for for information sovereignty and transparency, based on a brand new analysis report revealed by Data Providers Group (ISG) , a world AI-centered expertise analysis and advisory agency.
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European enterprises are reclassifying sovereign cloud as core infrastructure. Regulatory enforcement, safety issues and AI adoption are main organizations to pursue resilient, clear and regionally ruled cloud platforms for essential workloads.
The 2025 ISG Supplier Lens® Multi Public Cloud Providers report for Europe finds that enterprises are increasing their use of sovereign clouds from area of interest deployments targeted solely on compliance towards foundational infrastructure to assist workloads, companies and AI platforms below EU jurisdiction. This shift is reshaping the supplier panorama, growing the momentum of each regional gamers and localized hyperscale choices from international gamers.
“European enterprises are reclassifying sovereign cloud from a compliance safeguard to core infrastructure,” mentioned Matthias Paletta, director at ISG. “Regulatory enforcement, safety issues and AI adoption are main organizations to pursue resilient, clear and regionally ruled cloud platforms for essential workloads.”
Regulatory alignment, operational resilience and industrial transparency are rising as crucial standards for selecting sovereign cloud platforms, particularly in extremely regulated industries, the report says. Organizations anticipate multizone EU-based infrastructure, customer-managed encryption keys and policy-driven companies that assist safe DevOps and catastrophe restoration. Enterprises are additionally inserting higher emphasis on clear pricing fashions that provide visibility into capability commitments, infrastructure utilization and long-term prices, significantly for public sector deployments.
Accelerating enterprise adoption of AI is driving up demand for sovereign AI infrastructure to assist coaching, inference and deployment below EU jurisdiction, ISG says. Suppliers are responding by embedding zero-trust architectures, automated compliance tooling and real-time menace detection into their options to assist enterprises scale back publicity to insider threats and overseas surveillance.
To strengthen cloud safety, organizations are deploying air-gapped environments, exterior key administration and confidential computing. Procurement groups more and more favor European-owned cloud suppliers to tighten management over governance, scale back authorized publicity and obtain operational independence from entities outdoors the EU.
Enterprises in search of sovereign cloud companies examine choices based mostly on information management, governance constructions and alignment with nationwide necessities, the report says. International cloud suppliers are growing funding in Europe with regionally ruled working fashions designed to fulfill EU necessities. Regional suppliers are increasing native infrastructure for regulated and public sector environments throughout key European markets and industries.
“European enterprises are embedding sovereign cloud deeper into their IT methods,” mentioned Meenakshi Srivastava, lead analyst, ISG Supplier Lens Analysis. “Laws and danger administration drive most adoption now, however within the coming years, extra firms will anticipate companies to incorporate options akin to open-source interoperability and sustainability compliance.”
The report additionally examines different traits in European cloud adoption, together with enterprises’ rising use of superior encryption and compliance automation and the growth of sovereign cloud marketplaces that assist versatile deployment fashions throughout Europe.
For extra insights into the cloud-related challenges going through European enterprises, plus ISG’s recommendation for addressing them, see the ISG Supplier Lens® Focal Factors briefing right here.
The 2025 ISG Supplier Lens® Multi Public Cloud Providers report for Europe evaluates the capabilities of 19 suppliers throughout one quadrant: Sovereign Cloud Infrastructure Providers.
The report names AWS, Deutsche Telekom/T-Techniques, Google, Microsoft, Oracle, Orange Enterprise and OVHcloud as Leaders within the quadrant.
Within the space of buyer expertise, LTIMindtree is called the worldwide ISG CX Star Performer for 2025 amongst multi public cloud service suppliers. LTIMindtree earned the best buyer satisfaction scores in ISG’s Voice of the Buyer survey, a part of the ISG Star of Excellence™ program, the premier high quality recognition for the expertise and enterprise companies business.
Personalized variations of the report can be found from AWS, Deutsche Telekom/T-Techniques and Orange Enterprise.
The 2025 ISG Supplier Lens® Multi Public Cloud Providers report for Europe is obtainable to subscribers or for one-time buy on this webpage.
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