SAP and Arvato launch cloud platform for public authorities

Pandemic staff in the health department

A new cloud infrastructure could make the work of the authorities easier – but they also need the greatest possible security for the often sensitive data.

(Photo: dpa)

Dusseldorf SAP and the Bertelsmann subsidiary Arvato Systems are jointly investing in a cloud platform for German administration. The so-called “sovereign cloud” is intended to give the public sector more security when it comes to data protection. Data processing and data storage will remain in Germany, as will “the operation of all services”, as stated in a press release.

SAP boss Christian Klein called this a milestone: “Together we are providing the latest cloud-based technologies and at the same time meeting the strictest requirements for data sovereignty.” Arvato, as an “experienced infrastructure operator”, will take over the technical process, while SAP is responsible for software and processing. The new platform will run on “Microsoft’s secure cloud technology,” as the release states.

SAP and Arvato are targeting a lucrative market in cooperation with Microsoft. With the offer, they solve a major problem for municipalities, states or the federal government: Microsoft applications such as Office 365 are used everywhere in the public sector. The federal government alone paid 178 million euros for licenses and services from the US group in 2020.

However, experts worry about data security. Because, as in business, the cloud is also finding its way into everyday work in administration. The data is no longer stored on our own servers and other hardware, but in data centers from providers such as Microsoft Azure or Amazon AWS. The advantage: always up-to-date software as well as more flexibility, productivity and scalability.

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“It was not only during the Covid 19 pandemic that we experienced that data exchange and collaborative work are indispensable for our society, but also for administrative action,” says the data strategy of the federal government, in which the demand for a uniform federal cloud is provided.

The BSI ensures security

This is exactly what the special construct should ensure: offer the advantages of the cloud and at the same time prevent data access, for example by the US secret service NSA. SAP and Arvato did not publish details such as investment sums or the technical structure.

>> Read also: Cloud business boosts Microsoft sales

The cloud technology is to be developed in “close cooperation” with the Federal Office for Information Security (BSI). The requirements are already noted in a concept paper by the federal government from 2020: All data should be encrypted, officials can check every update before installation. Microsoft also has to do without telemetry, i.e. the transmission of analysis data.

However, the construct raises questions. The isolation of the platform could negate the core advantages of the cloud. There is a lack of immediate access to new functions and the exploitation of economies of scale, which is called “hyperscalers” in tech jargon.

Experts expressed skepticism as early as last year when the corresponding plans became public. It is more than questionable whether agility, flexibility and scalability are possible in the medium term, said Axel Oppermann, an analyst at the consulting firm Avispador. His warning was drastic: “Such a castrated cloud will do nothing.”

SAP, Arvato and Microsoft want to at least partially counter the criticism with “complete interoperability with other tools”. The sovereign cloud supports a large number of cloud solutions from a wide variety of providers: “This also includes open source software.”

For Microsoft, the project is of great importance. “The German understanding of digital sovereignty is our reference model for governments all over the world,” says a concept paper from the group from 2020. The statement is assigned to a photo of CEO Satya Nadella.

The federal government has great credibility when it comes to data protection, a contract would give the model a seal of approval with regard to other EU countries. Nadella is quoted in the press release as saying that together with SAP and Arvato, the “digital transformation in the country” will be promoted.

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