SAP bets big on sovereign cloud, targets governments and regulated industries

Core Insights - SAP launched its Sovereign Cloud in India, aligning with the National Information Security Policy & Guidelines, aimed at helping governments and regulated industries modernize while maintaining control over sensitive data [1] - The company announced a long-term investment of over €20 billion to prioritize digital sovereignty [1] Group 1: Sovereign Cloud Requirements and Strategy - Sovereignty emphasizes control and national security, with demand from governments and regulated industries for cloud migration due to innovation needs [2] - The Sovereign Cloud is a niche offering, targeting specific customers rather than the mass market, with expectations of profitability despite initial costs [3] Group 2: Investment Focus and Infrastructure - The €20 billion investment will be global over the next 10 years, focusing on hiring, technology, innovation, R&D, and infrastructure [4] - Special facilities will be built, requiring significant investment and certifications, with plans to hire in triple digits over the coming years [5] Group 3: Target Customers - The primary customers include the public sector and regulated industries, which are critical for national security, such as utilities and government agencies [6][7] Group 4: Infrastructure Partnerships - SAP will utilize AWS data centers for infrastructure while also partnering with local data centers as needed to meet specific customer requirements [8][9]