Article 76CE3 Digital sovereignty needs an operating model

Digital sovereignty needs an operating model

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from www.theregister.com - Articles on (#76CE3)
Story ImageEurope, like much of the world, is living through a period of heightened geopolitical uncertainty in which sanctions risk, legal divergence, and cyber disruption have moved from abstract concerns to board-level variables. Digital sovereignty is shifting from aspiration to operational requirement, driven by resilience expectations, critical service dependency, and rising geopolitical and cyber risk. Definitions of sovereignty vary, ranging from blanket data localization edicts to industrial policy to national security, but the absence of an agreed definition should not be mistaken for an absence of intent. Sovereignty is already shaping procurement, regulatory compliance, and technology strategy. From my years working at the intersection of government and the technology industry, I have seen how quickly digital policy can harden into operational constraints. I have also seen how easily "sovereignty" becomes a stand-in for broader concerns: dependency, geopolitics, and the fear that critical services may not remain available during a crisis Two issues are at play. First, policymakers are right that over-dependency on foreign technology can become a national resilience problem. Cloud market concentration is a case in point: last year across Europe, the three leading cloud providers accounted for around 70 percent of the market, while European providers' collective share remained around 15 percent. Concentration is not, by itself, a security failure, but it is a strategic dependency that can become acute when legal regimes diverge, access is contested, or a geopolitical shock tightens the room to maneuver. It also amplifies the "ripple effect": disruption at a small number of providers can cascade across thousands of organizations and supply chains. Second, business leaders are right to worry that blunt sovereignty initiatives raise costs and regulatory complexity. A hard localization mandate or a "sovereign-only stack" duplicates infrastructure, slows modernization, and in practice keeps organizations tied to legacy systems longer than planned while limiting access to leading technologies. The same tension is shaping Europe's competitiveness debate. Former Italian prime minister Mario Draghi has argued that security is a precondition for sustainable growth and that deep dependencies can leave Europe vulnerable to coercion as geopolitical volatility increases. The question is not whether sovereignty matters but how to pursue it without turning it into a counterproductive procurement ideology. From policy to platform choice A recent decision by the French government to restrict certain foreign-made video conferencing tools in favor of a homegrown alternative illustrates the direction of travel across the EU. Whether one agrees with the decision or not, it signals something larger: sovereignty is becoming a set of practical constraints that can reshape technology choices quickly. Many organizations are responding with a third, damaging outcome: delay. In a recent Zscaler-commissioned survey, 73 percent of respondents said digital sovereignty concerns had caused them to delay or cancel transformation initiatives. That "pause dynamic" is dangerous because it prolongs exposure to legacy risk, weakens cyber readiness, and leaves organizations less able to absorb disruption from ransomware, supply chain compromise, systemic outages, or sudden changes in cross-border rules at a time when the threat landscape is shifting faster than ever. If Europe wants sovereignty that strengthens resilience rather than undermines it, political and business leaders need a framework that is practical, measurable, compatible with open markets, and informed by the technology sector's expertise. Here is one: control, choice, and continuity. An outcome-based framework Sovereignty begins with what an organization can control in practice: who can access data, who can administer systems, whether a vendor can see customer content, where logs are stored, how keys are managed, what subcontractors can see, and how policies can be enforced. Control is not about isolation; it is about enforceable governance and reducing hidden dependency. Sovereignty also requires choice: credible options when assumptions break. Too many organizations discover too late that their "vendor strategy" is really a dependency strategy, with few realistic alternatives. Choice is not achieved by buying two of everything. It is achieved through architecture and contracts that keep an organization mobile and avoid vendor lock-in: portability for data and configurations; full transparency on who they rely on, where access sits, and which jurisdictions and subcontractors are in the chain; and pre-agreed exit paths that can be executed under time pressure. It also requires leaders to prevent the sovereignty debate from becoming an excuse to stop transformation. Every program facing sovereignty constraints should be forced through a decision path: redesign, mitigation, or exit on a timeline. The third C is continuity: keeping critical services running during any kind of disruption. If sovereignty is meant to reduce strategic vulnerability, continuity is where it either becomes real or becomes theater. Continuity is measurable through recovery time objectives, tested failover, supplier-failure drills, and exercises for jurisdiction-change scenarios. Across Europe, the urgency is reinforced by the threat environment. Zscaler ThreatLabz data shows rising numbers of damaging ransomware attacks year over year across the region: Spain (+116 percent), Germany (+74 percent), Belgium (+73 percent), Italy (+53 percent), and France (+34 percent) among others. Separate research on resilience found that 52 percent of IT executives believe their current security measures are insufficient to defend against existing or emerging threats such as agent-based AI and quantum computing. The UK's National Cyber Security Centre, meanwhile, reported a 130 percent rise in "nationally significant" incidents over the past year. AI is accelerating these risks. It already gives "bad actors" new capabilities to increase the speed, scale, and sophistication of their attacks. The question is not whether disruption happens, but whether systems can withstand it. Mandate outcomes, not vendors Business leaders argue that sovereignty will raise costs, increase compliance friction, and shrink access to leading technology. That is often true. Policymakers' concerns are also legitimate: strategic dependency can undermine national security and resilience. The mistake is writing sovereignty rules that dictate which vendors to buy rather than what controls buyers must have to keep services running during shocks. The most useful sovereignty requirements are outcome-based: enforceable control over access and data, credible choice through portability and exit, proven continuity through testing and recovery. They create room for organizations to use global platforms safely while meeting local requirements, without freezing modernization. If sovereignty is now an operating requirement, every stakeholder has a role. Boards should define what "sovereign enough" means for their organization, then require regular reporting and testing, with incentives tied to resilience outcomes. CEOs and COOs should treat sovereignty as continuity, fund the modernization that reduces brittle legacy dependency, and force decisions on blocked programs. CIOs and CISOs should map and minimize third-party access, implement localization and multi-region resilience where required, and build plans for supplier failure and jurisdiction-change scenarios. Regulators should clarify definitions, harmonize requirements where possible, and create compliance pathways with transition periods that reward modernization rather than incentivize delay. The approach must be risk-based and agreed in consultation with industry. Scaling control, choice and continuity To make control, choice and continuity achievable at scale, two additional disciplines are required: collaboration and compliance. Collaboration keeps sovereignty compatible with openness through interoperability, shared incident readiness, transparent subcontracting, and trusted vendor partnerships that reduce concentration risk instead of merely relocating it. Solutions must be tailored for local demands and drive investment in local ecosystems. Compliance makes sovereignty measurable through clear definitions, auditable evidence, and regulatory approaches that focus on operational controls so that organizations are pushed to modernize rather than to delay. Sovereignty on European terms should be judged by outcomes rather than rhetoric: whether organizations can govern access, keep options open, recover quickly when incidents happen, and continue delivering critical services when dependencies fail. Done well, digital sovereignty becomes a catalyst for resilience, innovation, growth and competitiveness; done bluntly, it becomes a brake on the very transformation it is meant to protect. Contributed by Zscaler.
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