Cloud Strategy Shifts as Data Control Concerns Eclipse Cost Savings

A major shift is underway in how companies manage their digital infrastructure. According to the 2025 Thales Cloud Security Study, which surveyed over 3,100 professionals globally, enterprise priorities are moving beyond simple cost and efficiency. The new imperative is direct control over data, driven by rising security incidents and tightening international regulations.

The report reveals a stark reality: 31% of organizations suffered a cloud data breach in the last year. At the same time, nearly half of firms now manage more than 100 software-as-a-service applications, creating vast and often unmonitored digital terrain for attackers to exploit. Eric Hanselman of S&P Global's 451 Research unit, which partnered on the study, pointed to the 'scale and complexity' of these operations as a primary security challenge.

This isn't just a technical issue. Data sovereignty—the question of which nation's laws govern stored information—has become a boardroom concern for 66% of respondents. Regulations like the EU's GDPR set early standards, but similar laws are now emerging worldwide, from Brazil to Australia. The legal landscape compels businesses to know precisely where their data lives and who can access it.

In response, cloud providers are rolling out 'sovereign' offerings, such as Microsoft's EU Data Boundary and Google's partnerships with local European firms. However, analysts note these services vary widely; some guarantee data storage within a border but not that foreign-based technicians cannot touch it.

The study identified a critical vulnerability: only 33% of companies encrypt more than half of their sensitive cloud data. Sebastien Cano of Thales argues firms must move 'beyond compliance checklists' to achieve 'operational sovereignty'—maintaining real-time control over data regardless of the hosting provider.

The conclusion for technology leaders is unambiguous. The cloud's next chapter will be defined not by migration, but by mastery. Companies are demanding the cloud's power, but on terms that ensure their data remains under their command.

Source: Webpronews