The independent analytical and consulting firm OMDIA released its market radar paper, explored the ruler’s market and how cloud service providers (CSPS) responded to this trend.
The IT Business InSights 2025 study analysis for the top five Western public cloud providers – AWS, Azure, Google, IBM and Oracle – found that they make up 86% of the cloud market, with the presence in 33 countries since 2024. North America has 347 data centers. Although the cloud is available worldwide, the report reveals its residential infrastructure.
According to OMDIA’s research research, new formats such as Edge Cloud and Sovereign Cloud are on the rise, and there is a higher focus on sustainable sustainability that Surmité will see more players to enter the market.
CSPs are expected to witness increased pressure around the world because Chinese CSPs are spreading around the world. The market has developed in recent years, with the CSP has now expanded its approach by providing other ways to satisfy operating car, data stay and resistance needs.
OMDIA found that it leads in the field of data protection and initiatives in the cloud of sovereign, such as the General Data Protection Regulation (GDPR) and Gaia-X. Regions, such as the Middle East, are beginning to develop similar regulations, with initiatives in the Middle East, including the Saudi vision 2030.
Genai growth has a quick country to consider the “sovereign AI”, developed and run inside the national borders, thereby reducing the data under local control. This creates challenges for CSPs that do not offer local devices, and some lose business potential business GoAS to locally -based data centers.
Omdia says he expects 2026/27 to be important for the development of AI, with the idea of ”Sovereign generated” with more talk-in organizations that need to protect this data generated by AI from internal information requiring the same level of protection as the original data set. This raises complex questions about digital ownership in the AI era, says paper.
OMDIA has determined recommendations for companies, service providers and technology suppliers based on its sovereign cloud model. Later, it emphasizes how the “autrees sovereign cloud can be applied to six different levels of sovereignty”.
For businesses, OMDIA is a recommendation to understand which business and data business is subject to local regulations, and develop an architectural approach that shows how they will implement sovereign cloud skills in their IT systems.
OMDIA recommends service providers to develop partnerships with local organizations to receive official approval () or accreditation) from national governments so that they can deliver sovereign cloud solutions.
It is recommended to explore technology dealers what is needed to fulfill local Sovegnty regulations. OMDIA also suggests that the application is modular, so they can be separated in accordance with local sovereignty rules.
Omdia’s Sovereign Cloud Model
In order to evaluate the degree of sovereignty when the cloud deployment, OMDIA has designed a model of six learm, which corresponds to the necessary growing level of control and adherence.
The model reflects how the country’s laws and regulations deal with the protection, processing, control and privacy of the data.
Six levels are:
Data residence
The data must be stored in the country, ordering the law that certain types of data, personal or sensitive information cannot be hosted by national borders.
Data processing
The data must be processed by locally approved entities after strict rules and consent of the protection of personal data, which attaches stricter control over who can handle data and how.
Privacy
If the data are stored and processed locally, they focus on inspections of access, they must be protected again, especially from foreign bodies. One of the largest challenges for personal data protection is currently from the US Cloud Act (clarification of the Latter Act on Data use) in 2018.
This allows the authorities to require access to data stored by US companies, even if the data is stored on the Forever servers. It understands it understands the main red flag for those who want to maintain the digital information of their citizens private and under local jurisdiction.
A generated access and control of data
OMDIA recommends that sovereign frames should define who has ownership and control over the generated data.
Cloud resistance
Cloud resistance ensures that cloud services are not dependent on foreign infrastructure, helping to reduce the risk of potential control of deporting national control, such economic or geopolic shocks.
Cloud as an important infrastructure/surgical jurisdiction
Level 6 suggests that the cloud is considered a national benefit such as energy, water or telecommunications. These governments able to regulate, audit and oversee the cloud in their jurisdiction.
How do CSPS react
Starting with the “sovereign penalty” strategies that Estaisuelly creates cloud platforms with regard to sovereignty, CSP had to evolve and move to a more adaptable and flexible model that copes with specific regions. CSP respond to growing demand for a sovereign cloud with two main approaches.
The first model that the company urges the cloud provider to access is full insulation with offers specific to the region. The main CSP, such as AWS and Oracle, create a separate isolated cloud in the country or in the region. They are then separated from the cloud infrastructure of the provider and manage local staff without the access of foreign employees. The model is designed to meet the strict needs of compliance with regulations such as GDPR.
The second approach comes in the form of a model of partnership, which was accepted by CSPS such as IBM and Huawei. In this model, the local service provider or the national telecommunications company Cloud Services on behalf of Global CSP. The partners then deploy and manage the CSP cloud magazines in the country and provide localized compliance with the regulations. The data remains in jurisdiction, allowing local employees to process operations.
Both models are part of a wider trend because CSP cannot offer universal cloud solutions according to the growing number of laws developed by national states. Cloud providers are obliged to build a sovereign variant that allows customers to choose the right level of control, compliance and privacy to meet their needs and needs to local laws. According to Omdio, “The optimal approach remains depends on each customer.”
(Figure source: “Clouds” by Kiwi Tom is classified under CC 2.0.)
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(Tagstotranslate) Private Cloud (T) Sovereign Cloud