Cloud sovereignty: From public sector priority to private sector imperative

Cloud sovereignty has traditionally been viewed as a public sector concern, driven by regulation and national policy. However, recent geopolitical shifts and vendor licensing shocks are pushing private sector organizations to reconsider their priorities, according to Ignacio Llorente, managing director of OpenNebula.

The Evolving Definition of Sovereignty

The concept of cloud sovereignty remains contentious, with varying interpretations across organizations and geographical boundaries. "I think one of the problems we have right now is that there is not a common definition for sovereignty," Llorente explains.

In the United States, sovereignty typically means on-premises infrastructure and open-source solutions that customers can control directly. European interpretations are more nuanced, emphasizing technology developed within the EU alongside data residency requirements.

Private Sector's Pragmatic Shift

Historically, private sector organizations have approached cloud decisions through a cost-driven lens. "They are more cost-driven, they don't consider sovereignty as a key thing... it's more about 'this is my RFP, you have to fulfill these requirements,'" Llorente notes.

However, this pragmatic approach is evolving. Organizations are increasingly adding sovereign requirements to their RFPs, recognizing that vendor lock-in and geopolitical dependencies pose significant business risks.

The Broadcom Effect

One of the most significant drivers of this shift has been Broadcom's acquisition of VMware. The licensing changes and uncertainty surrounding VMware's future have created a sense of urgency among organizations with multi-year subscription commitments.

"In private cloud, it's mostly driven by VMware's acquisition by Broadcom," Llorente says. "They have one year to manage the migration, and they are now starting to evaluate different alternatives, and they don't want to make the same mistake... they want to adopt something that is open."

OpenNebula's Sovereign Solution

Founded in 2008 and turning 18 in 2026, OpenNebula positions itself as a cloud and virtualization management platform that addresses sovereignty concerns across multiple dimensions. The platform runs across on-premises environments, public clouds including AWS, and European providers like Scaleway.

Llorente emphasizes that OpenNebula's definition of sovereignty extends beyond server location: "Ours is not only about where the servers are located. Sovereignty is about who controls the platform, who owns the technology stack, who can make decisions about the infrastructure, and even who controls the energy."

The Timeline for Change

Despite growing interest, Llorente cautions that the transition to sovereign solutions will be gradual. "We have been receiving an exponential number of requests," he says, "but this will take three, four, five years because of the multi-year term of the subscription licenses in different companies."

He predicts that 2027 will mark the peak of this transition as organizations complete their evaluation cycles and begin implementing sovereign alternatives.

European Regulatory Push

European Union initiatives are accelerating the sovereign cloud movement. The EU Cloud Sovereignty Framework establishes objectives that organizations must meet, while regulatory pressure encourages European firms to reduce dependence on US hyperscalers.

Companies like SUSE are capitalizing on this trend, launching tools to assess organizational compliance with EU sovereignty objectives. The emphasis on EU-native technology development and infrastructure control continues to intensify.

The Energy Dimension

An often-overlooked aspect of cloud sovereignty is energy control. As data centers consume increasing amounts of power, the ability to manage and source energy locally becomes a critical component of true sovereignty.

This holistic view of sovereignty—encompassing technology control, data residency, vendor independence, and energy management—represents a significant evolution from traditional cloud procurement approaches.

The Path Forward

The convergence of geopolitical tensions, regulatory requirements, and vendor behavior is fundamentally reshaping how organizations approach cloud infrastructure. While cost remains important, the ability to maintain control over critical technology assets is becoming equally valuable.

As Llorente observes, the private sector's pragmatic nature means that sovereignty will ultimately succeed when it aligns with business objectives. The challenge for sovereign cloud providers is demonstrating that control and cost-effectiveness can coexist in modern cloud architectures.

The shift toward sovereign cloud solutions represents a fundamental change in how organizations view their technology infrastructure—from a cost center to a strategic asset requiring careful governance and control.