ISG Research is happy to share insights gleaned from our latest Buyers Guide, an assessment of how well software providers’ offerings meet buyers’ requirements. The Sovereign Cloud Platforms: ISG Research Buyers Guide is the distillation of a year of market and product research by ISG Research.
Data privacy and local compliance are gaining importance, and the Sovereign Cloud stands out as a tailor-made
ISG Research defines Sovereign Cloud as a cloud model that is exclusively controlled by an enterprise or a trusted provider, focusing on local compliance. This approach ensures adherence to jurisdiction-specific laws regarding data sovereignty and privacy, which is becoming essential whereas data breaches can have severe repercussions. By maintaining sensitive data within geographic boundaries, enterprises reduce risks associated with cross-border data transfers.
ISG asserts that by 2028, 60% of Sovereign Cloud providers will have completed country-level certifications to deploy isolated and governed infrastructure, meeting demand from public sector and regulated organizations.
Sovereign Clouds play a crucial role in industries such as telecommunications, financial services, healthcare and the public sector, where compliance with local regulations is critical. Enterprise organizations in these sectors often require a dedicated infrastructure that aligns closely with legal requirements, effectively managing risks associated with data governance. As global data regulations become more stringent, adopting Sovereign Cloud strategies is vital for enterprises aspiring to fortify their compliance postures while delivering assurance to stakeholders about the security and privacy of their data.
The Sovereign Cloud concept emerged in response to the growing concern surrounding data privacy and compliance stemming from regulatory change. As enterprises began to recognize the risks associated with cross-border data transfers, particularly in the wake of scandals and data breaches, the demand for localized cloud solutions surged. This shift prompted cloud providers to develop services that enable enterprises to retain control over their sensitive data while ensuring compliance with specific legal frameworks, leading to the birth of Sovereign Cloud offerings.
From an IT perspective, Sovereign Cloud solutions have rapidly evolved into comprehensive platforms that prioritize data protection, security and compliance with local regulations. As enterprises face mounting pressure to safeguard sensitive information and adhere to regulations such as GDPR and CCPA, the Sovereign Cloud has become an essential component of their IT strategy. One-third (33%) of respondents in the 2025 ISG Data and AI Market Lens study include legal and regulatory data compliance in their top five initiatives (i.e., funding). The ongoing evolution of this model reflects the critical need for enterprises to maintain data governance while fostering stakeholder trust.
To make informed buying decisions about Sovereign Cloud solutions, enterprises must first comprehend the specific regulatory environments in which they operate, ensuring that their data management practices align with local legal requirements concerning data sovereignty and privacy. Enterprises should conduct a detailed analysis of their data flows, identifying sensitive information that necessitates compliance with jurisdiction-specific regulations to determine the advantages of a Sovereign Cloud approach.
Enterprises must also evaluate potential provider offerings to understand how they facilitate compliance while ensuring appropriate security and governance measures are in place. This includes assessing the provider’s infrastructure capability, support for data localization and mechanisms for safeguarding sensitive data from unauthorized access. Additionally, enterprises should gauge the provider's commitment to transparency and accountability regarding legal obligations, as well as their capabilities in disaster recovery and data integrity, thereby informing a purchasing strategy that addresses both operational needs and regulatory mandates.
Successful Sovereign Cloud software must prioritize data localization and compliance with local regulations, ensuring that sensitive information remains within the geographic boundaries dictated by law. This entails comprehensive data governance frameworks that not only protect data but also facilitate adherence to specific jurisdictional requirements. Enterprises require assurance that their chosen solution will maintain compliance with regulations such as GDPR, CCPA and others relevant to their industry.
Sovereign Cloud platforms should also incorporate strong security measures, including encryption and access controls, to safeguard sensitive data from unauthorized access or breaches. They should provide enterprises with intuitive management interfaces that allow for effective monitoring of data usage and compliance status. Incremental support for integration with existing enterprise systems, as well as capabilities for interaction between different cloud environments, is essential for enterprises looking to leverage multiple platforms while adhering to data sovereignty requirements. By fulfilling these needs, Sovereign Cloud software can help enterprises maintain trust and accountability regarding their data management practices.
In Sovereign Cloud environments, generative artificial intelligence (GenAI) and agentic AI have yet to appear as tools for manageability or usability of software services. Potential future use cases include data localization strategies, sensitive information handling and automation of regulatory compliance reporting. This does not preclude Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) applications operating on a Sovereign Cloud from incorporating GenAI and agentic functionality. All considerations for the security of AI applications and data apply.
Enterprises evaluating software providers for Sovereign Cloud applications should emphasize the provider’s compliance with local data protection regulations and their ability to maintain data sovereignty. Enterprises need to seek providers that implement strong data governance and security measures, assuring adherence to regional legal requirements regarding data handling and storage. It is essential for businesses to assess the transparency of the provider’s data management practices, including how data is accessed and processed. Engaging in comprehensive due diligence and considering the total cost of ownership will help enterprises make informed decisions while ensuring that their data remains secure and compliant within jurisdictional frameworks.
The ISG Buyers Guide™ for Sovereign Cloud Platforms evaluates software providers and products in key areas. This evaluation focuses on Sovereign Cloud capabilities including compliance certifications, performance benchmark tools, isolation, scalability, AI integration, openness, data protection and security, control and governance, configuration and customization, compliance assurance, service efficiency, support and training, multi-cloud compatibility, sustainability practices, incident response and management, automation and integration capabilities, testing and validation mechanisms, and data lifecycle management. It also evaluates Infrastructure-as-a-Service (IaaS), PaaS, SaaS, Hybrid Cloud functionality, AI/ML-as-a-Service, Compute-as-a-Service, Data Platform-as-a-Service, Function-as-a-Service, Networking-as-a-Service, Storage-as-a-Service, Cloud Application Marketplace, GenAI and Agentic AI, Global Reach and investment in capabilities. By diligently assessing these vital factors, the guide empowers enterprises to make informed decisions that safeguard their data while fulfilling compliance obligations in an increasingly regulated environment.
This research evaluates the following 16 software providers that offer products that address key elements of Sovereign Cloud platforms as we define it: AWS, Bleu, Clever Cloud, CloudFerro, Delos Cloud, Google Cloud, IONOS, Microsoft, OpenNebula, Oracle, OVHcloud, SAP, Scaleway, Schwarz Digits, T-Systems and Vultr.
This research-based index evaluates the full business and information technology value of sovereign cloud platforms software offerings. We encourage you to learn more about our Buyers Guide and its effectiveness as a provider selection and RFI/RFP tool.
We urge organizations to do a thorough job of evaluating sovereign cloud platforms offerings in this Buyers Guide as both the results of our in-depth analysis of these software providers and as an evaluation methodology. The Buyers Guide can be used to evaluate existing suppliers, plus provides evaluation criteria for new projects. Using it can shorten the cycle time for an RFP and the definition of an RFI.
The Buyers Guide for Sovereign Cloud Platforms in 2025 finds Microsoft first on the list, followed by Oracle and Google Cloud.
Software providers that rated in the top three of any category ﹘ including the product and customer experience dimensions ﹘ earn the designation of Leader.
The Leaders in Product Experience are:
The Leaders in Customer Experience are:
The Leaders across any of the seven categories are:
The overall performance chart provides a visual representation of how providers rate across product and customer experience. Software providers with products scoring higher in a weighted rating of the five product experience categories place farther to the right. The combination of ratings for the two customer experience categories determines their placement on the vertical axis. As a result, providers that place closer to the upper-right are “exemplary” and rated higher than those closer to the lower-left and identified as providers of “merit.” Software providers that excelled at customer experience over product experience have an “assurance” rating, and those excelling instead in product experience have an “innovative” rating.
Note that close provider scores should not be taken to imply that the packages evaluated are functionally identical or equally well-suited for use by every enterprise or process. Although there is a high degree of commonality in how organizations handle sovereign cloud platforms, there are many idiosyncrasies and differences that can make one provider’s offering a better fit than another.
ISG Research has made every effort to encompass in this Buyers Guide the overall product and customer experience from our sovereign cloud platforms blueprint, which we believe reflects what a well-crafted RFP should contain. Even so, there may be additional areas that affect which software provider and products best fit an enterprise’s particular requirements. Therefore, while this research is complete as it stands, utilizing it in your own organizational context is critical to ensure that products deliver the highest level of support for your projects.
You can find more details on our community as well as on our expertise in the research for this Buyers Guide.