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Sovereign Sky
Cloud Sovereignty
Assessment Methodology

A Practical Guide Using the European Commission Framework

​Cloud sovereignty assessment evaluates your organization's reliance on cloud service providers through the lens of European digital autonomy, data protection, and regulatory compliance. Using the European Commission's Cloud Sovereignty Framework (released October 2025), we provide a structured, quantifiable approach to understanding and managing sovereignty risks.

 

Why This Matters Now

Regulatory Pressure is Intensifying

  • GDPR enforcement has resulted in over €4 billion in fines, with individual penalties exceeding €100 million

  • DORA (effective January 2025) requires financial institutions to maintain comprehensive control over ICT third-party providers

  • NIS2 expands cybersecurity requirements to 18 sectors, with personal liability for management

  • Schrems II invalidated Privacy Shield, creating ongoing legal uncertainty for US cloud providers

 

Financial Risks Are Substantial

Organizations face potential exposure of €50-200+ million from:

  • Direct regulatory penalties (up to €20M or 4% of global revenue under GDPR)

  • Operational disruption from forced service termination

  • Litigation and data subject compensation

  • Reputational damage and lost business opportunities

  • Emergency migration costs (3-5× planned migrations)

 

The European Cloud Opportunity

The European sovereignty-focused cloud market is projected to grow from €13-17 billion today to €40-55 billion by 2028. Organizations achieving sovereignty compliance gain reduced regulatory risk, access to sovereignty-sensitive markets, strategic independence from geopolitical disruption, and alignment with European values.

 

The European Commission Cloud Sovereignty Framework

The EC Framework (October 2025) provides a standardized approach to evaluating cloud sovereignty across five dimensions, with defined scoring methodologies enabling quantitative assessment.

 

Five Assessment Dimensions

1. Data Sovereignty & Control (30% weight)

  • Data location and residency controls

  • Protection from foreign government access

  • Encryption and key management

  • Data portability and exit rights

  • Metadata sovereignty

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2. Operational Sovereignty (25% weight)

  • Service operation location and personnel

  • Operational independence from foreign control

  • Service continuity assurance

  • Incident response control

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3. Legal & Regulatory Sovereignty (25% weight)

  • Legal jurisdiction and governing law

  • Protection from foreign legal overreach (CLOUD Act, etc.)

  • GDPR, DORA, NIS2 compliance

  • Contractual sovereignty protections

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4. Technical Sovereignty (12% weight)

  • Technology independence and vendor lock-in risk

  • Open standards and interoperability

  • Source code transparency

  • Technical control and configurability

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5. Economic & Strategic Sovereignty (8% weight)

  • European economic contribution

  • Strategic autonomy and supply chain resilience

  • Value retention in European economy

  • Geopolitical risk exposure

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Four Sovereignty Levels

  • Level 1: Minimal Sovereignty (0-25%) - Non-compliant; suitable only for public, non-sensitive data

  • Level 2: Basic Sovereignty (26-50%) - Limited protections; requires supplementary measures

  • Level 3: Substantial Sovereignty (51-75%) - Strong protections; suitable for regulated systems

  • Level 4: Full Sovereignty (76-100%) - Maximum protections; required for classified/critical infrastructure

 

Our Six-Phase Assessment Methodology

Phase 1: Scoping & Preparation

Objectives: Establish foundation, align stakeholders, gather baseline information

 

Key Activities:

  • Define assessment scope (business units, geographies, service types)

  • Establish governance structure with Steering Committee and Working Team

  • Collect preliminary documentation (contracts, architecture diagrams, policies)

  • Configure assessment tools with EC Framework criteria

Outputs: Signed Scope Definition, governance structure, configured assessment platform, stakeholder alignment

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Phase 2: Cloud Service Discovery & Inventory

Objectives: Create comprehensive, accurate inventory of all cloud services

 

Multi-Source Discovery Approach:

  • Financial Analysis: Extract cloud expenses from procurement, AP, expense systems

  • Network Traffic Analysis: Analyze firewall logs, proxy logs, identify connections to cloud providers

  • Configuration Management: Extract inventories from CMDB, query cloud provider APIs, analyze infrastructure-as-code

  • Application Portfolio Analysis: Review application catalogs and dependencies

  • User & Access Analysis: Examine SSO and identity provider logs

 

Service Characterization: For each discovered service, we collect:

  • Service identification (provider, type, deployment model)

  • Usage context (owner, purpose, criticality)

  • Data characteristics (types, sensitivity, cross-border flows)

  • Technical architecture (integrations, dependencies, security)

  • Commercial terms and regulatory context

 

Risk-Based Prioritization:

  • Tier 1 - Deep Assessment: Critical systems, special category data, DORA/NIS2 regulated

  • Tier 2 - Standard Assessment: Personal/confidential data, important systems

  • Tier 3 - Light Assessment: Public/internal data only, non-critical functions

 

Outputs: Comprehensive Cloud Service Catalog, data flow diagrams, service classification matrix

 

Typical Results: 150-400 services identified, 15-40 unique providers, 25-60 cross-border data flows

 

Phase 3: Detailed Sovereignty Assessment

Objectives: Evaluate each service against EC Framework criteria, assign scores, document evidence

 

Assessment Scoring Framework

Each criterion uses a 0-100 point scale:

  • 0 points: Non-compliant

  • 25 points: Minimal compliance

  • 50 points: Basic compliance

  • 75 points: Substantial compliance

  • 100 points: Full compliance

 

Key Assessment Criteria Examples

Data Location & Residency Controls:

  • 0: Data stored anywhere globally

  • 50: Contractual EU/EEA commitment with some exceptions

  • 100: Guaranteed specific EU jurisdictions only; continuous verification

 

Data Access Rights & Legal Jurisdiction:

  • 0: Non-EU jurisdiction with broad government access powers

  • 50: EU jurisdiction but parent subject to foreign laws

  • 100: Fully EU-incorporated; no foreign ownership; complete EU legal jurisdiction

 

Customer-Managed Encryption:

  • 0: No/weak encryption; unrestricted provider access

  • 50: Strong encryption; provider-managed keys

  • 100: Customer HSM control; zero-knowledge architecture

 

Data Portability:

  • 0: Proprietary formats; no export capability

  • 50: Automated export; semi-standard formats; 30-90 days

  • 100: Real-time portability; standard APIs; no lock-in

 

Service Operation Location:

  • 0: Non-EU operations; foreign staff

  • 50: Primary EU operations; majority EU workforce

  • 100: Exclusively EU operations; EU staff only; operational independence

 

Protection from Foreign Legal Overreach:

  • 0: Fully subject to CLOUD Act/similar; no protections

  • 50: Technical/organizational measures reduce risk; challenge procedures

  • 100: Complete immunity; technically impossible for foreign government access

 

Vendor Lock-in Risk:

  • 0: Extensive proprietary tech; migration prohibitively expensive

  • 50: Mix of standard/proprietary; moderate complexity

  • 100: Entirely open standards; trivial migration

 

European Economic Contribution:

  • 0: Non-EU provider; profits flow outside Europe

  • 50: European subsidiary with significant autonomy

  • 100: Fully European; 100% EU ownership; complete EU value chain

 

Overall Sovereignty Score Calculation

Formula:

  • Data Sovereignty (30%) + Operational Sovereignty (25%) + Legal/Regulatory Sovereignty (25%) + Technical Sovereignty (12%) + Economic/Strategic Sovereignty (8%) = Overall Score (0-100)

 

Assessment Execution:

  • Service-by-service evaluation with evidence collection

  • Contract analysis and technical review

  • Stakeholder interviews

  • Systematic scoring across all criteria

  • Quality review and gap identification

 

Outputs: Complete sovereignty scores for all services, evidence documentation, aggregated scorecards, provider comparisons, regulatory compliance mapping

 

Typical Results: Overall portfolio sovereignty score of 35-55 (Basic to Substantial), with 15-30% of services at Minimal level requiring urgent attention

 

Phase 4: Risk Analysis & Gap Identification

Objectives: Translate sovereignty scores into business risk, prioritize gaps, quantify exposure

 

Risk Categorization

  • Regulatory & Compliance Risk: GDPR, DORA, NIS2 violations; enforcement actions

  • Operational & Business Continuity Risk: Dependencies causing disruption; single points of failure

  • Strategic & Competitive Risk: Vendor lock-in; inability to access sovereignty-sensitive markets

  • Reputational & Stakeholder Risk: Public perception; customer/citizen concerns

 

Risk Scoring Methodology

Impact Scale (1-5):

  • 5 - Critical: Major regulatory penalty (>€10M), significant disruption

  • 3 - Medium: Minor penalty (<€1M), limited business impact

  • 1 - Negligible: No material impact

 

Likelihood Scale (1-5):

  • 5 - Almost Certain: Will materialize within 12 months

  • 3 - Possible: May occur within 24-36 months

  • 1 - Rare: Theoretical; very low probability

 

Risk Score = Impact × Likelihood (1-25 scale)

 

Priority Matrix:

  • 20-25: Critical Risk - Immediate action required

  • 15-19: High Risk - Urgent action required

  • 10-14: Medium Risk - Action within 12 months

  • 5-9: Low Risk - Monitor and address opportunistically

 

Gap Prioritization

  • P1 - Immediate (0-6 months): Critical risks with active regulatory concern

  • P2 - Near-term (6-12 months): High risks requiring careful planning

  • P3 - Medium-term (12-24 months): Medium risks addressed systematically

  • P4 - Long-term (24+ months): Low risks acceptable with monitoring

 

Outputs: Comprehensive risk register, risk scoring matrix, financial exposure quantification, root cause analysis, regulatory compliance gap analysis

 

Typical Results: 15-30 Critical/High risks, 40-60 Medium risks, aggregate €50-500M potential exposure

 

Phase 5: Remediation Planning & Roadmap

Objectives: Develop practical plans to address gaps, create multi-year transformation roadmap

 

Remediation Options

Technical Approaches:

  • Service Migration: To European cloud provider, sovereign hyperscaler variant, or on-premises

  • Architecture Changes: Reconfigure for sovereignty, restructure data flows, hybrid architectures

  • Contractual/Legal: Renegotiate contracts, implement supplementary measures

  • Compensating Controls: Enhanced security, monitoring, limited data scope, risk acceptance

 

Commercial Strategies:

  • Negotiate improved sovereignty terms

  • Evaluate European alternatives

  • Portfolio rationalization and consolidation

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rganizational Improvements:

  • Establish sovereignty policy and standards

  • Integrate sovereignty into procurement

  • Build internal assessment capabilities

  • Establish governance and continuous monitoring

 

Multi-Year Transformation Roadmap

Phase 1: Foundation & Quick Wins (Months 0-6)

  • Address critical P1 risks

  • Implement contractual improvements

  • Establish sovereignty governance framework

  • Begin planning for major migrations

 

Phase 2: Major Remediations (Months 6-18)

  • Execute major service migrations

  • Renegotiate key provider contracts

  • Implement architectural changes for Tier 1 systems

  • Build internal capabilities

  • Address P2 priority gaps

 

Phase 3: Systematic Transformation (Months 18-36)

  • Complete remaining P2 gap remediations

  • Address P3 gaps opportunistically

  • Achieve target sovereignty posture

  • Establish continuous improvement processes

  • Demonstrate compliance to regulators

 

Outputs: Comprehensive remediation plans, 36-month transformation roadmap, business cases, resource requirements, vendor engagement strategy

 

Phase 6: Reporting & Presentation

Objectives: Synthesize findings into actionable deliverables, facilitate decision-making

 

Deliverable Suite

Executive Summary Report (15-20 pages)

  • Assessment overview and key findings

  • Overall sovereignty score and benchmarking

  • Top 10 sovereignty risks and financial exposure

  • Strategic recommendations and high-level roadmap

 

Detailed Assessment Report (80-150 pages)

  • Complete methodology documentation

  • Cloud service inventory and data flows

  • Service-by-service sovereignty scores

  • Detailed risk analysis and gap identification

  • Comprehensive remediation recommendations

  • Transformation roadmap with business cases

 

Sovereignty Scorecard & Dashboard

  • Visual, interactive presentation

  • Overall and dimension-level scores

  • Service heat maps and provider comparisons

  • Risk prioritization matrix

  • Progress tracking capabilities

 

Board Presentation (20-30 slides)

  • Executive summary and key messages

  • Sovereignty score and rating

  • Top risks and financial exposure

  • Strategic implications and recommended approach

  • Governance and next steps

 

Technical Implementation Guides

  • Detailed migration playbooks

  • Technical architecture blueprints

  • Configuration guides and operational procedures

 

Presentation & Socialization

Engagement Activities:

  • Executive Leadership Session: Present findings, facilitate strategic discussion, secure buy-in

  • Board Presentation: Governance review, approval for major initiatives

  • Technical Team Workshops: Deep-dive findings, review plans, build capability

  • Stakeholder Briefings: Brief legal, compliance, business units on specific implications

 

Expected Outcomes

Organizations completing the Sovereign Sky Cloud Sovereignty Assessment gain:

✓ Clarity: Quantified understanding of sovereignty posture using authoritative EC Framework

✓ Prioritization: Risk-based prioritization enabling focused resource allocation

✓ Actionability: Concrete remediation plans with clear timelines and ownership

✓ Compliance Confidence: Demonstrated alignment with GDPR, DORA, NIS2

✓ Strategic Alignment: Sovereignty strategy integrated with business objectives

✓ Risk Reduction: Systematic addressing of €50-200M+ potential regulatory and operational exposure

✓ Market Access: Ability to compete for sovereignty-sensitive contracts

✓ Sustainable Governance: Built-in capabilities for ongoing sovereignty management

 

Why Sovereign Sky

Sovereignty-First Expertise: Purpose-built around sovereignty advisory with deep EC Framework expertise

Independence: No implementation conflicts; no vendor referral fees; purely objective advice

Multi-Disciplinary Integration: Combined legal, technical, strategic, and policy expertise

European DNA: Explicitly European orientation with values alignment and deep regulatory networks

Pragmatic Business Focus: Balancing sovereignty principles with business reality

Proven Methodology: Structured, repeatable process with clear deliverables and measurable outcomes

 

Get Started

Cloud sovereignty is no longer optional—it's a regulatory, strategic, and operational imperative for European organizations.

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Contact Sovereign Sky today to begin your Cloud Sovereignty Assessment.

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