ARTICLE
SPONSORED BY NUTANIX
Ports, steel mills and containers may dominate the imagery used to depict the current economic and geopolitical situation, but data is equally integral to the new business environment. As economies partially move away from globalization, data sovereignty, governance and security are becoming a priority for business technology leaders.
Building an enterprise-wide data platform using hybrid multicloud technologies enables CIOs to adapt to rising data levels and demands, protect data, embrace new technologies such as AI, and meet data sovereignty regulatory requirements.
Data sovereignty is a response to the modern hyperconnected digital economy. Regulators and customers demand sovereignty to ensure data is protected and stored in the jurisdiction (usually national) where the customer resides, and trade occurs.
Concerns about data privacy, heightened by GenAI and connected devices, are driving data sovereignty demands as economic powerhouses like China become digital heavyweights.
Localization and data sovereignty regulations vary by vertical market, with health, finance and the public sector having some of the most stringent requirements. "Ultimately, they are forcing us to build a better architecture and to protect data," says Daryush Ashjari, Nutanix CTO for Asia Pacific and Japan.
While the demand for data sovereignty is beneficial for businesses, Ashjari points out that it remains a challenge. Global data sovereignty regulations are fragmented, and digital leaders report that frameworks have conflicting policies that are difficult to implement. Europe’s General Data Protection Regulation (GDPR) is often cited as one of the most complex.
Pressure to achieve data sovereignty coincides with increasing data demands from the business. CIOs must accommodate both, as the data strategy underpins the digital transformation of the organization and all its strategic imperatives.
"This is the data epoch, as the impact of big data is revolutionizing organizations to become more data-centric," says Dr. Art Langer, Associate Vice Provost and Director of the Center for Technology Management and Digital Leadership at Northeastern University.
The former CIO turned academic adds, "The way we do business now is based on data rather than processes or organizational structure." AI will continue this trend, as it relies on data, and the growing levels of data, in turn, require AI for management.
A significant driver of data sovereignty regulations is to guarantee data privacy and security. Customers, businesses and regulators are increasingly concerned about where their data resides, who has access to it, what can be done with it, and how it is protected.
Failures in data protection have heightened awareness of the complexity of the digital landscape and its implications for personal and organizational data. "The days of building a datacenter and treating it as a fortress are gone," says Ashjari.
As the data epoch has emerged, so have threats to data security. Data breaches are now a regular part of the news cycle. Recently, European retailers were hit by major ransomware breaches, while oil pipelines, tech firms and airlines have left customers stranded. IP theft and cybercrime are highly lucrative for perpetrators and are used by nation-states in a new form of cold war.
Business technology leaders increasingly view data breaches as a matter of "when," not "if." CIOs must be prepared for such events. "Pay attention to your business resumption metrics and the amount of data you need to move to ensure your business can transition from primary to backup sites," Ashjari advises.
A data breach is more than a technological catastrophe; it can have a lasting impact on the business. If customers lose trust, the business's reputation is tarnished.
"We all know that bad news travels very fast," Ashjari says. Regulators are quick to act, and since 2019, major brands have received fines for data breaches. CIOs cannot rely solely on technology to protect data and ensure data sovereignty. As the senior technologist in the organization, the CIO must lead data sovereignty and privacy education within the business.
A robust education program ensures that staff are aware of the rules and regulations, why they exist, and the importance of adherence. "Without proper education, people will find ways to bypass data protection, and bad actors rely on disgruntled or complacent staff," Ashjari warns.
A fragmented data sovereignty regulation landscape, rising cybersecurity threats and an ever-demanding business appetite for data require technology that can meet all of these demands.
A platform approach using hybrid multicloud infrastructure is enabling CIOs to satisfy business peers, regulators and customers. A key benefit of the platform approach is its adaptability, which positions data and processes adjust quickly to accommodate changing market conditions.
CIOs in various markets are opting for the platform approach. A hybrid multicloud platform enables CIOs to manage compute and storage across the entire enterprise landscape, which can include data being managed on edge devices, in the home offices of employees, on mobile devices, and within systems hosted by a global cloud hyperscaler.
With a hybrid multicloud platform, CIOs can streamline the technology estate while meeting the competing demands of data sovereignty and business growth.
"The modern architecture that we build has to be efficient and protect the data assets," Ashjari says. "Hybrid multicloud enables us to build a sustainable set of data practices with a consistent operating environment,” which enables data best practices across the organization and strong data security.
On a technological front, a hybrid multicloud platform provides IT teams with a unified operating environment that can include cloud, on-premises, VMs, and containers. This approach eliminates the need to learn and manage multiple siloed systems and pursue the reduction of errors.
Data sovereignty is complex yet vital to the modern enterprise and global economy. Technologies such as hybrid multicloud enable CIOs to build a platform that meets business and data sovereignty demands.
"As businesses navigate the changing landscape, the key to success lies in adopting flexible strategies that meet the regulatory environment while fostering innovation," Ashjari concludes.
©2025 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo and all Nutanix product and service names mentioned herein are registered trademarks or trademarks of Nutanix, Inc. in the United States and other countries. All other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). Certain information contained in this publication may relate to, or be based on, studies, publications, surveys and other data obtained from third-party sources and our own internal estimates and research. While we believe these third-party studies, publications, surveys and other data are reliable as of the date of this paper, they have not independently verified unless specifically stated, and we make no representation as to the adequacy, fairness, accuracy, or completeness of any information obtained from third-party sources.