Tag: Secure Cloud (Secure & Recover)

Data Sovereignty in a Cloud-Connected World – Where is your data really being stored, managed and processed?

Why organisations with complex and critical data compliance requirements should be exploring a colocation strategy in a world being increasingly dominated by public cloud. 

In today’s digital economy, data is the lifeblood of business. It fuels operations, customer engagement, and innovation. Yet, as organisations increasingly rely on global cloud services, the question of where an organisations data resides has never been more critical. 

Data sovereignty, the principle that data is subject to the laws of the country where it is stored, has emerged as a crucial consideration for UK businesses navigating a complex landscape of regulation, cyber threats, and geopolitical uncertainty. 

In this article, we explore why data sovereignty matters, the global risks of non-compliance, and how UK-based colocation datacentres provide a trusted foundation for secure, resilient infrastructure. 

The Global Risks of Data Residency – A Shifting Landscape 

The idea that “data is everywhere” may sound liberating, but it also carries significant risk. In a period of geopolitical instability, where your data lives dictates who has access, under what laws, and for what purposes. 

For example: 

The US Cloud Act allows US authorities access to data held by US-based providers, even if the data is stored in the UK or Europe. This has led to an increase in EU countries such as The Netherlands and Germany developing initiatives to move government infrastructure away from US hyperscale cloud services and reduce the reliance on American services. 

The fallout from Schrems II, The ruling by Court of Justice of the European Union (CJEU) in 2020 invalidated the EU-US Privacy Shield, has left many businesses scrambling to ensure data transfers outside the EU comply with GDPR. This has also been complicated by Brexit and the UK’s new Data (Use and Access) Bill, which is still being finalised through Parliament.  

Meanwhile, countries like China, Russia, and India have introduced strict data localisation laws, requiring that data be stored within their national borders. 

And let’s not forget the ever-growing threat of state-backed cyberattacks and supply chain compromises, where sensitive data may be exposed through third-party providers (as discussed in one of our recent articles. Overcoming Supply Chain Cyber Security challenges: Where organisations need to focus in 2025).

For UK businesses, relying on global cloud services or hyperscalers such as AWS, Azure or Google Cloud, this introduces potential exposure to foreign jurisdictions and extraterritorial access laws. Without careful planning, this can jeopardise compliance, increase risk, and erode trust. 

UK Data Residency – More Than a Checkbox exercise 

At first glance, keeping data in the UK might seem like a simple compliance tick-box. But it’s much more than that. It’s about control, resilience, and trust. Storing, managing and processing data outside the UK may be cheaper via a global cloud services provider but is it really satisfying data protection laws which have to be adhered to? Does it fit with your cloud data security and regulatory compliance strategy if your business is operating in the UK? 

The UK’s legal framework, including the Data Protection Act 2018 and UK GDPR, offers strong protections aligned with European standards while maintaining national sovereignty. UK data centres operate within a stable, predictable regulatory environment, unlike regions where laws can change overnight or data may be exposed to foreign surveillance regimes.  

By choosing a UK-based data centre, businesses gain:  

• Assurance that their data is governed by UK law
• Reduced risk of cross-border legal disputes or compliance breaches
• Simpler contractual terms and fewer complications from data transfer mechanisms
• Greater confidence when handling sensitive or regulated data, such as financial  records, healthcare information, or intellectual property

European Regulations on the Horizon: Why UK Businesses Must Pay Attention 

Even though the UK is no longer part of the EU, UK businesses operating across Europe, or serving EU clients, must stay alert to evolving regulations: 

• The Cyber Resilience Act (CRA) introduces strict cybersecurity standards for products with digital elements, impacting SaaS providers and critical services
• NIS2 Directive expands cybersecurity obligations to more sectors, including data centres, and tightens reporting requirements for incidents
• The Digital Operational Resilience Act (DORA) will regulate third-party ICT providers in the financial sector, requiring robust risk management and resilience

These regulations demand higher levels of cybersecurity, transparency, and accountability. UK data centres with strong governance frameworks (ISO 27001, ISO 22301, PCI DSS) are well-placed to help customers meet these challenges, offering infrastructure that supports both UK and EU compliance standards. 

Where to start? 

From our experience at Cyberfort we believe there are 5 key reasons why organisations need to start reviewing where their data is stored, managed and processed as part of a data sovereignty strategy within the Cloud they are: 

Compliance with UK Regulations
UK laws like the Data Protection Act 2018 and UK GDPR place strict requirements on how personal and sensitive data is handled. By ensuring data remains within UK jurisdiction, organisations simplify compliance and reduce exposure to international regulatory conflicts or oversight complexities. 

Mitigation of Legal Risk
Storing data outside the UK may expose businesses to foreign surveillance laws (e.g. the US Cloud Act), which can conflict with UK privacy standards. Keeping data within the UK helps avoid these jurisdictional tensions and mitigates the risk of unauthorised third-party access. 

Data Residency Assurance for Public Sector and Regulated Industries
Public sector bodies, financial services firms, and healthcare providers often have explicit or implicit mandates requiring data to remain within national borders. UK data centres ensure alignment with government procurement standards and sector-specific frameworks. 

Reduced Latency and Improved Performance
Hosting and processing data closer to end users in the UK can improve application performance and user experience, particularly for latency-sensitive workloads such as financial transactions, media streaming, or real-time analytics. 

Trust, Reputation, and Customer Assurance
Demonstrating a commitment to UK data sovereignty builds trust with customers, partners, and regulators. It reinforces transparency and responsible data stewardship which can be seen as a competitive differentiator in an era where digital trust directly impacts business value. 

But understanding the key reasons for reviewing data sovereignty compliance as part of a cloud strategy is only one area of the puzzle. Each organisation is different in terms of the volumes, types and access requirements to data being in the cloud.

At Cyberfort when we start a data sovereignty engagement as part of a cloud vs colocation strategy, we ask 5 key questions to help organisations understand what the risks, challenges and compliance measures are likely to be with their data stored in the cloud and if colocation could be the right way forward for their business, they are: 

Where is your organisations business critical data physically stored as part of a public cloud strategy, and under which legal jurisdictions does it fall? This helps to identify potential sovereignty conflicts and compliance risks. 

Does your cloud and SaaS providers guarantee UK-based data residency and processing? The answer to this will help to ensure contractual and technical alignment with data sovereignty requirements. 

How resilient are your UK-based data storage and processing solutions in the face of cyber threats, geopolitical disruption, or regulatory change? To assess operational risk and business continuity readiness. 

Are you able to maintain clear audit trails and access controls for data stored in or accessed from outside the UK?  To enhance governance, security, and compliance transparency. 

Does your current cloud strategy allow for flexibility if future regulation demands stricter data localisation or sovereignty requirements?  Future-proofing the infrastructure and avoiding costly migrations. 

By answering the above questions and embedding UK data sovereignty into digital and cloud strategies, businesses can better protect sensitive data, comply with domestic law, and build long-term resilience in an increasingly regulated digital environment. In some cases, following a review it is often found those businesses with complex and critical data management requirements need a supplementary strategy to Public Cloud. This is where colocation comes into play. 

Why Colocation is the Foundation for Sovereign, Compliant Infrastructure vs Public Cloud 

For organisations seeking control and compliance, colocation offers a powerful alternative to public cloud models. 

With colocation, your business retains ownership of hardware, software, and data, while benefiting from the physical security, power, cooling, and connectivity of a state-of-the-art UK datacentre run by experts. 

While public cloud offers flexibility and scalability, it’s not always the best fit for businesses with complex, critical, or highly regulated workloads. A colocation strategy, housing your infrastructure in a third-party data centre can provide a compelling alternative. From our experience at Cyberfort we have discovered customers with complex and critical data management requirements are choosing a colocation provider alongside public cloud for the following reasons: 

Control and Performance
With colocation, businesses retain full control over their hardware and software configurations. This is ideal for workloads requiring high performance, low latency, or specific hardware optimisations not supported in the public cloud. Ultimately you know exactly where your data is stored, who has access, and how it is managed. 

Security and Compliance
Colocation enables businesses to meet strict security, data residency, and compliance requirements, especially in industries like finance, healthcare, or government. Dedicated environments reduce exposure to shared infrastructure vulnerabilities found in multi-tenant public cloud platforms. This helps to meet sector-specific requirements (NHS DSP Toolkit, FCA, ISO standards) with audited, certified facilities.   

Predictable Costs
Unlike public cloud’s usage-based pricing, which can be difficult to forecast and prone to cost spikes, colocation offers predictable, long-term pricing. Enabling organisations to budget more effectively and avoid unexpected expenses. 

Hybrid and Legacy Integration
Colocation supports hybrid IT strategies, allowing businesses to integrate legacy systems with newer cloud services while keeping sensitive or resource-intensive workloads on dedicated infrastructure. 

Scalability Without Vendor Lock-in
As businesses grow, colocation offers scalability without being locked into a single cloud provider’s ecosystem. This opens the door to multi-cloud or hybrid models with greater flexibility and negotiation power. Additionally, as AI solutions become more integrated, accessible and advanced, there is a greater need of privacy and localised storage to provide increased protection.

In summary, colocation offers a secure, high-performance, and cost-predictable infrastructure model that complements or replaces public cloud for organisations with specific operational, regulatory, or technical needs.

Case in Point
A UK healthcare provider or SaaS provider delivering into UK Healthcare may use colocation to host patient data, ensuring compliance with NHS England’s data residency requirements, while integrating with cloud services for analytics or AI workloads. 

Taking Action: A Data Sovereignty Checklist for UK Businesses 

To protect your business in a fast-changing regulatory and cyber risk landscape, all organisations with complex and critical data management requirements should consider these steps: 

Audit Your Data Flows
Map where your data is stored, processed, and backed up including SaaS and cloud services. 

Review Contracts and SLAs
Ensure data residency clauses align with your compliance obligations. 

Choose UK-Based Providers
Prioritise colocation, cloud, and managed services with physical infrastructure in the UK. 

Plan for Regulatory Change
Stay informed about EU and UK developments (CRA, NIS2, DORA) that could impact your business. 

Build Resilience into Your Architecture
Combine colocation with private cloud, direct network interconnects, and DR solutions for a robust, compliant environment. 

Final Thoughts

In an unpredictable world, where cyber risks and compliance requirements evolve rapidly, your data strategy is your resilience strategy. Data Sovereignty as discussed in this article has come sharply into focus in the past 12 months. One thing is clear ‘inaction’ is not an option. 

All IT professionals should be exploring how a colocation strategy can supplement their public cloud strategy and realise that a ‘one size’ fits all model is probably not going to work. Those organisations who take the time to review their data security, compliance and management requirements today will be better placed for the future.

Those organisations who take action and explore where colocation can help with data sovereignty requirements in the cloud will gain control, compliance, and confidence knowing their data is protected by a trusted legal framework, secure infrastructure, and a partner dedicated to your success. 

For more information about Cyberfort Colocation and Cloud services contact us at [email protected].  

Over the past decade, businesses have moved significant volumes of data and applications to public cloud services. Many organisations did this as they wanted easy access to scalable, flexible infrastructure at a low cost compared to traditional infrastructure and data storage options. However, many businesses are now realising that the public cloud isn’t always the best fit. Hidden costs, performance issues, compliance concerns, and security risks are driving a shift back to dedicated hosting solutions.

In this blog article Cyberfort Cloud and Data Centre professionals discuss why moving workloads from hyperscale public clouds to a specialist hosting provider can offer greater control, cost efficiency, and performance optimisation.

What is Cloud Repatriation?

Cloud repatriation has increasingly become a growing discussion point for IT teams over the past 12 months. This is because many businesses are realising due to the complexity and critical nature of their data being stored in the public cloud, the services they have chosen may not be as secure and compliant as they first envisaged.

So, what do we mean by cloud repatriation? In summary cloud repatriation means shifting the balance between the cloud and on premises hosting infrastructure. This type of migration can happen for many different reasons including wanting cost certainty, having dedicated specialist teams to address performance issues, and ensuring data centres where data is stored, is secure and compliant with country and industry regulations, or as the result of a business reassessing their overall cloud strategy.

It is important to note that cloud repatriation should not be viewed as a replacement of a cloud computing strategy. It’s a strategy to reflect the changing nature of IT decision-making, where businesses are evaluating and adjusting their technology models to align with changing business demands. It is also critical to address the misconception that cloud repatriation represents taking a step backwards. Some people may view on premises models to be secondary option to public cloud hosting, especially if an organisation previously had a ‘cloud first’ strategy in place. At Cyberfort we believe it is a strategic decision focused on optimising resource allocation, ensuring performance levels are met, and mitigating compliance and security risks.

Why organisations should be considering cloud repatriation

Based on our experience at Cyberfort and from discussions we have had with our customers over the past 12 months, there are 7 key reasons why businesses are considering cloud repatriation. In the next section of this article, we will explore each of the 7 areas to help readers decide if cloud repatriation is the right choice for their business.

Cost Certainty

One of the biggest myths with moving to the public cloud is that it always results in cost savings and cost management is easy to control. The pay-as-you-go model may seem attractive initially, but as businesses scale and their needs grow, cloud expenses can spiral out of control. Data egress fees, API call costs, and storage expenses can often lead to unpredictable pricing. Additionally, companies often end up paying for unused or underutilised cloud resources when committing to reservations or savings plans, further inflating their IT spend. It is estimated by a number of industry commentators that 30%+ of public cloud spend is wasted each year for example.

By repatriating workloads to a specialist hosting provider, businesses can benefit from fixed pricing models that align with their actual resource needs. Dedicated hosting solutions eliminate unpredictable expenses and provide greater visibility into long-term costs. Additionally, businesses can leverage ‘right-sized infrastructure’, ensuring they pay only for the resources they need. This approach not only brings financial stability but also allows for better budget forecasting, reducing the risk of unexpected operational costs. With the right hosting provider, companies can optimise their IT spending while maintaining high-performance infrastructure.

Performance and Latency Improvements

Public cloud environments operate on a shared infrastructure, meaning businesses often contend for resources with other tenants. This can result in unpredictable performance fluctuations, latency issues, and bottlenecks, especially for applications requiring real-time processing, high availability, or intensive workloads such as data analytics and machine learning.

Repatriating to a specialist hosting provider ensures businesses receive dedicated resources that are optimised for their specific use cases. This setup allows for greater consistency in application performance, as companies are no longer at the mercy of cloud provider traffic congestion or ‘noisy neighbours’ in multi-tenant environments. Specialist hosting providers also offer tailored network configurations, allowing businesses to optimise connectivity and reduce latency by placing workloads closer to end-users or integrating directly with private networks.

Additionally, dedicated infrastructure minimises downtime and enhances reliability. Hosting providers like Cyberfort can offer service level agreements (SLA’s) that guarantee performance thresholds, ensuring that data and applications remain highly available. With more granular control over hardware and network resources, businesses can make their IT environments ready for peak efficiency, ultimately improving user experience and operational effectiveness.

Enhanced Security and Compliance

Security concerns are among the top reasons organisations are reconsidering their reliance on public cloud providers. While hyperscale cloud platforms offer extensive security tools, they operate on a shared responsibility model, meaning businesses must still manage their own configurations, access controls, and compliance requirements. Misconfigurations, insider threats, and third-party dependencies introduce security vulnerabilities that can be challenging to mitigate in a complex cloud environment.

By moving workloads to a specialist hosting provider, businesses can leverage dedicated security architectures tailored to their specific regulatory needs. For example, at Cyberfort we offer fully managed security services, including firewalls, intrusion detection systems, data encryption, and dedicated security monitoring. Unlike public cloud platforms, which require businesses to implement their own security measures, specialist hosting providers like Cyberfort can include these protections as part of their service offerings.

Compliance is another critical factor. Industries such as retail, finance, and government must adhere to strict data protection regulations like GDPR, PCI-DSS and SOC 2. Specialist hosting providers often have expertise in regulatory compliance, ensuring businesses remain in alignment with industry standards while minimising the burden of managing complex compliance requirements internally.

Greater Control and Customisation

One of the main downsides of public cloud environments is their standardised approach to infrastructure deployment. While this model works well for companies seeking rapid scalability, it often forces businesses to adapt their applications to fit within a rigid framework. This lack of flexibility can lead to inefficiencies, as organisations may be unable to adjust their environments for optimal performance.

Repatriating workloads to a specialist hosting provider allows businesses to regain full control over their infrastructure. Companies can customise their hardware specifications, operating systems, and networking configurations to match their unique requirements. This level of control enables businesses to deploy mission critical applications with the exact requirements they need to deliver the right performance for end users, ensuring better resource utilisation and performance optimisation.

Additionally, specialist hosting providers will offer tailored service models, allowing IT teams to select the level of management they require. Whether a business needs fully managed hosting or just infrastructure support, they can work with providers to create a customised solution. This flexibility ensures that IT teams can focus on strategic initiatives rather than dealing with cloud platform limitations and vendor-imposed restrictions.

Data Sovereignty and Reduced Vendor Lock-In

Public cloud providers often use proprietary technologies and pricing structures that make migrating workloads complex and expensive. Vendor lock-in can severely limit an organisation’s ability to shift its IT strategy or adapt to changing business needs. Additionally, data sovereignty concerns arise when businesses operate in regions with strict regulations on where data can be stored and processed.

Repatriating workloads to a specialist hosting provider gives businesses more control over their data, ensuring compliance with regional regulations. Many hosting providers offer data residency options, allowing organisations to choose where their data is stored. This is particularly important for industries subject to legal restrictions on data movement, such as financial services, healthcare, and government.

Open-source and hybrid hosting solutions provided by specialist providers allow businesses to avoid reliance on a single cloud vendor. By maintaining infrastructure that is not tied to proprietary cloud technologies, organisations gain the flexibility to transition between hosting environments as needed. This reduces long-term risks and provides a strategic advantage by preventing cloud lock-in constraints from limiting future innovation.

Sustainability and Energy Efficiency

As organisations strive to reduce their environmental impact, the sustainability of IT infrastructure has become a critical consideration. While public cloud providers claim to operate energy-efficient data centres, their sheer scale results in significant energy consumption and carbon emissions. Businesses looking to enhance their corporate sustainability initiatives may find that repatriating workloads to a specialist hosting provider presents a greener alternative.

Specialist hosting providers often deploy energy-efficient hardware, optimise data centre cooling systems, and utilise renewable energy sources. Some providers also prioritise sustainable practices, such as carbon-neutral operations, server recycling programs, and lower overall power consumption. By working with environmentally conscious hosting providers, businesses can actively contribute to reducing their carbon footprint.

Having the ‘right-sized’ infrastructure plays a crucial role in energy efficiency. Unlike public cloud environments that encourage over-provisioning, specialist hosting providers design customised solutions that align with actual resource needs. This prevents unnecessary energy waste and ensures that IT resources are utilised as efficiently as possible. For organisations committed to sustainability, moving away from hyperscale public clouds can be a strategic step toward achieving environmental goals.

Improved Support and Service Quality

Public cloud providers serve millions of customers, making personalised support difficult to obtain. Many organisations struggle with slow response times, automated troubleshooting systems, and limited access to expert engineers. When critical applications experience issues, businesses may face delays that impact operations and customer experience.

Specialist hosting providers, by contrast, offer high-touch, customer-focused support. For example, at Cyberfort we have dedicated engineering teams available to each customer. Businesses benefit from direct access to experienced engineers, proactive monitoring, and customised service agreements tailored to their operational needs. Unlike the generalised support provided by hyperscale cloud providers, specialist hosting providers take a hands-on approach to problem resolution.

Specialist providers can also offer more flexible support models, including dedicated account managers and 24/7 monitoring services. This ensures that businesses receive timely assistance when issues arise, minimising downtime and improving overall reliability. For businesses that depend on mission-critical applications, high-quality support can make a significant difference in maintaining business continuity.

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Final Thoughts

While the public cloud remains a viable option for certain workloads, it is not always the best solution for every business. Cloud repatriation to a specialist hosting provider can offer cost certainty, performance aligned to your businesses unique KPI’s, enhanced security, and greater operational control. By moving workloads to a more tailored and predictable environment, businesses can optimise their IT strategy while reducing risks and inefficiencies. Organisations seeking to regain control over their infrastructure should seriously evaluate whether cloud repatriation is the right move for their business.

For more information about Cyberfort colocation and data centre services contact us at [email protected].