In early 2018, one of our data centre partners, DigiPlex, conducted a study on Nordic Data Centre Trends in Sweden and Norway in association with IDG Connect. The results were recently published in the report “A Perfect Storm” – digital disruption, complexity and business pressures put the data centre at the top of the management agenda.” The study is based on interviews with 300 decision makers and unveils a number of key insights on digital transformation, data availability and new technologies which are critical for the modern Enterprise.
CIOs are half way towards reversing the 80:20 ratio
IT budgets are up for 2018 by +5.3% in Sweden and +4.6% in Norway which is above the major global IT spending analyses. The hottest buzzword on the block is of course innovation and unsurprisingly it is the top of the agenda for most progressive CIOs. The study reveals that Swedish and Norwegian CIOs are half way towards reversing the 80:20 spending ratio, previously in favour of operations over innovation.
Our most recent evidence of this change comes from the CIO of SBAB, Klas Ljungkvist, and the story of how one of Swedens largest banks has become a fast moving digital company.
The key, alarming insight
One of the key insights from this report is the fact that 60% of the respondents, 24% of whom comes from Government/Public Administration/Military*, can’t say for sure in which country their company data resides.
This is mind boggling and especially worrying given the time and age of laws such as GDPR and the newly implemented US Cloud Act. The whereabouts of Government, Military, Financial or other sensitive data should be crystal clear, both for the governing bodies and the data subjects. More importantly, in many cases, sensitive data is required to stay within the borders of the country of origin by law. How can citizens be sure that their data is treated correctly when a whopping 60% of this particular study’s respondents say that they aren’t sure where their data is stored?
*”On aggregate, 24% of respondents came from Government/Public Administration/Military and 19% came from Finance/Banking/Accounting/Investment. The remainder came from a wide spread of industries including Insurance, Retail and E-commerce. The respondents represented an equal mix of CEO, CFO and CIO roles.”
Urgency might be the cause but not an excuse
Is this perhaps a result of the race to survive? We think that might be the case since the same study concludes that 74% of the respondents say that survival on the market depends on transforming into a digital enterprise and 71% say that they are already there or urgently transforming.
Urgency might be a reason but not an excuse for mistreating data and breaking laws. But one thing is for sure, security is by far the greatest challenge for enterprises when outsourcing their data.
Focus on multi cloud and control
We have and will always continue to promote multi cloud solutions. We believe that no organisation should put all of their eggs in the same basket and there are so many good cloud solutions for different challenges out there, be it proprietary solutions such as AWS and Azure or open source-based solutions such as City Cloud.
The one thing we do not condone however, is a lack of control. Any organisation, regardless of which industry they operate within, must care enough about their data subjects to make good risk assessments and know exactly which data resides where and the laws each data set is subject to.
The race against survival in the digital era can never be triumphed by the respect and care that we must continue to invest in the most valuable asset that we have today – data. Enterprises are forced to innovate in order to keep up with the competition but at the same time they are under tremendous pressure to protect and prove that they are protecting their data.
Compliant Cloud can solve many headaches
Often times, the innovation race and the obvious demands for data protection collide and hold enterprises back. They either make mistakes when outsourcing their data and pay the price in terms of trust, lost business opportunities and many time by being publicly shamed for their mistakes. Others struggle with legacy and organisational transformation. As a result they are left with both trying to innovate their core business on top of managing the IT infrastructure on which it relies.
Focus on innovating your core business, programmable IT infrastructure and automation is the key to success and this is precisely the problem that our Compliant Cloud solutions are designed to solve.
Compliant Cloud is completely separated cloud installations, based on OpenStack and adapted for specific verticals such as financial, insurance, healthcare and government. We believe that being regulatory challenged shouldn’t be a reason to fall behind and we have invested heavily in our Compliant Cloud solutions to fit fast paced enterprises such as Giesecke+Devrient Mobile Security, SBAB and Folksam. These are just a few examples of large organisations that are now able to utilise the full potential of IaaS without waiving any of the requirements of scalability, availability, data protection or auditability.