SAP to invest over 20 billion euros in sovereign cloud in Europe


An individual holds a smartphone displaying the brand of SAP, a German multinational software program company recognized for its enterprise useful resource planning options.

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German software program large SAP on Tuesday introduced it can invest over 20 billion euros ($23.3 billion) into its sovereign cloud capabilities in Europe over the following 10 years.

The firm mentioned it was increasing its sovereign cloud choices to embody an infrastructure-as-a-service (IaaS) platform enabling firms to entry numerous computing providers through its knowledge middle community. IaaS is a market dominated by gamers like (*20*) and Amazon.

It may even roll out a brand new on-site choice that permits clients to use SAP-operated infrastructure inside their very own knowledge facilities.

The intention of the initiative is to be sure that buyer knowledge is saved throughout the European Union to keep compliance with regional knowledge safety laws such because the General Data Protection Regulation, or GDPR.

“Innovation and sovereignty cannot be two separate things — it needs to come together,” Thomas Saueressig, SAP’s board member tasked with main buyer providers and supply, mentioned throughout a digital press convention Tuesday.

He added that it was vital for European firms to have the ability to entry the newest technological developments corresponding to synthetic intelligence “in a full sovereign context.”

Technological sovereignty is a subject that has been gaining momentum in the final yr or in order geopolitical frictions have pressured firms to assess their reliance on international applied sciences.

Countries world wide are more and more wanting to on-shore computing infrastructure wanted to practice and run highly effective AI programs. That has led to main world tech gamers like Amazon and Microsoft to announce new sovereign cloud initiatives to guarantee the info of European customers is saved throughout the EU.

The European Commission, which is the manager physique of the EU, has made AI a high precedence for the bloc because it appears to ramp up competitors with the U.S. and China. Europe has lengthy lagged behind each international locations when it comes to technologically extra broadly.

Earlier this yr, the Commission unveiled plans to invest 20 billion euros in the creation of latest so-called “AI gigafactories,” services geared up with huge supercomputers to develop next-generation AI fashions.

Saueressig mentioned that SAP is “closely” concerned in the creation of the brand new AI gigafactories however wouldn’t be the lead accomplice for the initiative.

He added that the corporate’s greater than 20-billion-euro funding in Europe’s sovereign cloud capabilities won’t alter the corporate’s capital expenditure for the following yr and has already been baked into its monetary plans.