SAP expands sovereign cloud services for public sector in ANZ
SAP has announced an expansion of its Sovereign Cloud capabilities in Australia, as part of its ongoing investment into the public sector in Australia and New Zealand.
The company has launched its SAP Sovereign Cloud On-Site solution in Australia. This solution enables customers, particularly those in the public sector, to host SAP's managed cloud infrastructure within their own facilities. The On-Site model, which leverages open-source technology, is designed to offer a higher degree of physical control and data residency for organisations requiring assurance around digital sovereignty.
SAP has also extended its Sovereign Cloud offerings in the region to include SAP Digital Supply Chain, SAP Business Network, and SAP Concur. These join the company's earlier sovereign offerings: SAP S/4HANA Cloud private edition, SAP SuccessFactors, SAP Analytics Cloud, and SAP Business Technology Platform, which were introduced in 2023.
Brian Senior, Executive General Manager of Federal Government at SAP ANZ, commented on the expansion:
"Government and enterprises alike face increasing regulatory, security and sovereignty requirements," said Brian Senior, Executive General Manager of Federal Government at SAP ANZ.
Senior went on to state:
"Sovereign cloud is not just about where data sits. It's about who controls it, protects it and how confidently government and industry can modernise and innovate knowing their digital foundations are secure and compliant. By expanding our sovereign cloud services to cover areas like procurement and supply chain on top of finance and HR, we're ensuring critical data stays protected and managed within Australia. For citizens and businesses that provides a greater sense of trust in the security, reliability and innovation of the digital services they depend on every day."
SAP's sovereign cloud capabilities have been developed to meet the data, operational, legal and technical sovereignty needs for government and highly regulated industries. The company provides managed services and cloud solutions within the sovereign borders of Australia for customers in both Australia and New Zealand.
Toll Group partnership
Toll Group, which is a major contractor to the Australian Defence Force (ADF) as well as one of the largest transport, logistics and supply chain companies in the world, has extended its collaboration with SAP. By deploying SAP's Sovereign Cloud capabilities, Toll aims to raise compliance levels and cybersecurity for its government and defence customers.
Perry Singh, President of Government and Defence at Toll Group, said:
"Being trusted by government and highly regulated customers like the Australian Defence Force requires the very highest levels of performance, value and – most importantly – security. By extending SAP Sovereign Cloud Capabilities across our IT ecosystem, we're able to accelerate security assessments and compliance, provide heightened cybersecurity capabilities and provide the confidence to navigate an ever-changing threat landscape."
Toll Group has developed its Toll 4PL Supply Market Place using SAP's solutions, intending to streamline Defence procurement of commercial off-the-shelf products. The system, built on SAP S/4HANA Cloud, SAP Business Network, and SAP Commerce Cloud, centralises cataloguing, purchasing and vendor management into a secure, sovereign portal for ADF members.
Additionally, the company is using SAP Sovereign Cloud capabilities to support its Defence Transport Management system, which delivers transport services for ADF's Defence Theatre Logistics.
Singh commented further:
"SAP Sovereign Cloud Capabilities has empowered us to work with customers to create, implement and manage outcomes that are secure by design. And because we know the SAP team have all the relevant security clearances, they act as an extension of our team," concluded Singh. "We're excited to work closely with SAP to leverage our readily usable current solutions in new Markets like the Future Defence Support Services for UK MoD as well as bring new data solutions like SAP Business Data Cloud and AI innovations like SAP Joule to our customers all secured by sovereign capabilities."
Future plans
SAP has indicated it will continue investing in public sector digital capabilities in Australia, with additional sovereign services in SAP Business Data Cloud, SAP AI Services, SAP Fieldglass and SAP Ariba scheduled for release in 2026.
Senior concluded:
"The expansion of SAP Sovereign Cloud capabilities is just one part of our ongoing investment in the Australian public sector. We've been working with Australia and New Zealand's government departments for more than 35 years, employing more than 1,400 people in the country and contributing over AUD$1.2bn to the local economy1. This is just another committed to investing in the success of the Australian public sector today and for the long-term."
SAP's sovereign capabilities are currently available for government entities and regulated industries in the United States, United Kingdom and Canada, with further European availability expected to be announced in the future.
