Microsoft adds sovereign cloud tools to control data and keys

On Tuesday, Microsoft expanded its sovereign cloud tools. Sovereign is control by the customers of where data is kept, who can get access and how services operate. The change adds control of keys, local AI and checks by European partners. Analysts say the tools decrease risk but do not remove it. US hyperscalers hold about 70% of the European cloud market.

How it works

• Customers keep root keys in their hardware. The tool is Azure Managed HSM and it is available at this time.
• Sovereign Control Panel shows risks and missing controls. A first test comes at Microsoft Ignite.
• Data Guardian gives EU and EFTA customers a partner in their area that checks each access by Microsoft engineers.

The numbers

Microsoft gave no test results and no cost data. The 70% number is from analysts, not from Microsoft.

What is not known

A Gartner analyst says that this is not complete control. Customers must check if Microsoft stays in identity, software updates, management or support. Pareekh Jain says that Microsoft must obey US laws, sanctions and export limits. More control has more cost.

Insight: Microsoft works in local law to keep its market

Europe wants a law that can limit US cloud use for sensitive government data. Microsoft names local partners, and the sovereign standards of the European Broadcasting Union with NVIDIA include Microsoft tools. This reads as a move to work in local law, not against it, to keep a market that it holds. Buyers can tell local providers to give the same controls.