SAP BTP in Sovereign Cloud
SAP Business Technology Platform (BTP) in a sovereign cloud is SAP’s answer to growing demands for local data control and compliance.
In simple terms, it’s a version of SAP BTP hosted in a way that keeps data and operations within a specific country or region’s borders, adhering to strict data residency and security requirements. Read our guide to SAP Sovereign Cloud.
Unlike standard SAP BTP (which is typically global and shared across regions), the sovereign cloud BTP ensures SAP data residency – your data stays in-country, managed by security-cleared local personnel, and insulated from unwarranted cross-border access.
Why does this matter in 2025? Several trends make sovereign clouds a hot topic. First, there’s an expansion of AI and analytics in business – but also new rules like the EU’s data boundaries and AI Act that demand tighter oversight on where data is processed.
Public sector digital programs and regulated industries (defense, healthcare, finance) are pushing for cloud solutions that guarantee local control.
Even the big hyperscalers (Microsoft, Google, AWS) are rolling out hyperscaler sovereign cloud offerings to address these needs. SAP, as a key enterprise player, is doing the same with BTP.
For buyers like CIOs and enterprise architects, this presents both opportunities and risks. On one hand, you get cloud innovation with local compliance.
On the other hand, there are service catalog gaps, complex SAP sovereign cloud licensing terms, integration and indirect access pitfalls, and a need for concrete evidence of compliance.
In this article, we’ll unpack what actually runs (and what doesn’t) in SAP’s sovereign cloud, how to navigate AI/analytics limitations, avoid indirect access traps, and enforce architecture guardrails – all with a practical, buyer-focused lens.
What Runs vs. What Doesn’t (Service Catalog Reality Check)
One of the first surprises when adopting SAP BTP in a sovereign cloud is that the service catalog differs from the standard global BTP.
There’s a core set of services that run just fine, and then there are notable gaps where certain tools are unavailable or restricted. Understanding this reality check upfront is critical.
What does run? In general, the foundational components of BTP are available in sovereign environments.
For example, the SAP Integration Suite (for connecting systems and orchestrating processes) is typically part of the sovereign offering – crucial since many government or local integrations rely on it.
Database-as-a-service is also covered: SAP HANA Cloud (the cloud database) has been made available in sovereign regions so that you can run your data persistence locally. Likewise, the basic extension and development services are there.
You can expect runtime environments to build custom applications or extensions (such as a Cloud Foundry runtime or ABAP environment) to be supported in sovereign mode, allowing bespoke apps and workflows to run within country borders.
In short, SAP ensures the bread-and-butter services for integrating and extending S/4HANA and other SAP apps are present.
What doesn’t run (at least not yet)?
Here’s where the gaps emerge. Many of the advanced or newer BTP services are restricted or missing entirely in sovereign cloud deployments as of 2025. Notably, a lot of the AI/ML and advanced analytics services are absent.
For instance, SAP Datasphere (SAP’s cloud data warehouse solution) is generally not available in sovereign environments at this time – SAP has indicated plans. Still, it remains a roadmap item (think 2026 or beyond for availability).
Similarly, SAP Analytics Cloud (SAC), SAP’s flagship analytics and dashboarding tool, has limited availability in sovereign clouds.
Some regions (like the UK or Australia) have recently gotten SAC deployed locally. However, many sovereign regions still lack it or are in early stages – meaning if you’re in a country without it, you might be told to use a global instance (which breaks sovereignty) or do without.
Advanced analytics offerings, such as planning, predictive, and certain SAP Business AI services, fall into a gray area; SAP may not offer them locally due to complexity or regulatory uncertainties.
Other examples: certain machine learning services (like SAP’s AI Business Services for document processing, translation, etc.) often run only in global multi-tenant clouds, so they’re typically unavailable in a strict sovereign cloud.
If you were hoping to leverage SAP’s newest AI or language models within your country’s borders, you’ll likely be disappointed for now.
Additionally, some “edge” services on BTP such as mobile services for app development, or eventing/messaging services (e.g., SAP Event Mesh for event-driven integration) – may not be provided in the sovereign edition.
The same goes for niche BTP services or beta innovations: they appear in the global cloud first and might never be ported to the sovereign cloud unless demand and compliance align.
This parity gap means you must scrutinize the service catalog line by line. Don’t assume that because it’s in global BTP, it’s in your sovereign BTP.
Always request the specific list of SAP BTP sovereign services available in your region’s data center. Also, be aware of hidden limitations: even for services that are listed, certain features may be turned off to keep everything within the specified boundary.
Red flags to watch:
As you explore the service catalog, a few technical red flags can signal potential sovereignty issues. One is background jobs or processes – if any BTP service you use relies on background processing that might spill over to global systems, that’s a problem.
For example, some customers found that certain monitoring or batch job features attempted to contact global SAP endpoints.
Another red flag is telemetry pipelines: many cloud services quietly send usage data, logs, or performance metrics back to SAP’s central operations.
In a sovereign cloud, you need those pipelines turned off or confined locally, but not all services allow that easily. If a particular service can’t run without phoning home, it effectively breaks the sovereignty principle.
Similarly, consider disaster recovery setup: if the service’s default DR is to replicate data to a secondary data center that is out of the country or not under the same sovereign controls, that service isn’t truly local.
We’ll talk more about DR later, but when evaluating “what runs,” ensure the entire architecture of each service (including backup, failover, support) stays in-region.
Read how it impacts other SAP services, RISE with SAP Sovereign Edition: Licensing Uplifts, Contract Riders, and a Buyer’s Negotiation Playbook.
AI & Analytics Limitations
Perhaps the biggest strategic limitation in today’s sovereign BTP offerings is in the area of AI and analytics.
For many organizations, these are the tools driving innovation – but in sovereign cloud contexts, they come with strings attached.
Let’s start with analytics. SAP Analytics Cloud (SAC), which is used for dashboards, reporting, and planning, is not yet universally available in every sovereign cloud region. As mentioned, some countries have it (SAP has rolled out SAC in certain sovereign data centers, such as in the UK and Australia), while others do not.
If your sovereign cloud contract doesn’t include SAC locally, that means you can’t use SAP’s cloud analytics unless you allow data to go to a global cloud or keep analytics on-premise.
Similarly, SAP Datasphere (the evolution of SAP’s Data Warehouse Cloud) is largely missing in action in sovereign environments as of 2025. SAP has been touting something called “SAP Business Data Cloud,” which would bring Datasphere into sovereign clouds.
However, the timeline is still speculative (and some insiders suggest it won’t be available until at least 2026 for high-security regions).
In practical terms, if you need a data warehouse or complex analytics within a sovereign cloud, you might need to look at alternative solutions or older on-premise products for now.
Now, on to AI and machine learning services. SAP BTP offers various AI solutions, ranging from pre-built AI business services (such as image recognition or service ticket intelligence) to tools like SAP AI Core, which enables the management of custom ML models. The sovereign cloud puts many of these on hold.
Most SAP AI/ML services today are designed as multi-tenant cloud services that often rely on global infrastructure (and sometimes third-party AI platforms).
For example, an SAP AI service that translates text likely calls an engine running in a global EU or US environment. Sovereign clients, especially in the public sector, usually can’t consume that due to data leaving the boundary.
As a result, those services will typically be marked “not available” in the sovereign catalog.
Even the term “embedded SAP Business AI” (the AI features built into apps like S/4HANA) can be tricky – SAP might claim they can run locally. Still, if they require large language model processing or external data, they might be effectively disabled.
Additionally, the regulatory environment is evolving. The upcoming EU AI Act and similar local regulations are putting pressure on cloud providers regarding how AI services operate, requiring transparency, an option for local processing, and the avoidance of biased or black-box models that cross borders.
SAP, being cautious, might delay offering certain AI functions in sovereign cloud until it can ensure compliance with these new rules.
For instance, any AI that could be deemed “high risk” under EU definitions might not be rolled out in EU sovereign BTP until it is clearly compliant.
What can buyers do about these limitations?
Firstly, acknowledge them early. If your digital strategy includes heavy use of SAP’s AI or advanced analytics, raise this with SAP during the planning stage. There are a few mitigation strategies.
One is to use alternative in-boundary tools: for example, if SAC isn’t available, you might use another analytics tool that can be hosted locally or use on-premise BI solutions pointed at your data.
If SAP’s ML services aren’t available, you might build your own models using open-source tools in a local cloud environment. Another strategy is to negotiate “roadmap riders” in your contract.
Essentially, get SAP to commit (in writing) to when certain key services will become available in your sovereign cloud, and include remedies if they don’t deliver.
For example, you could negotiate that “if SAP Datasphere is not live in the local sovereign environment by Q4 2026, we get a fee reduction or we can cancel that part of the contract.” This holds SAP accountable to their promises.
It’s also wise to press SAP on interim solutions – maybe they can propose a temporary architecture (like a secure connection to a near-regional cloud for a specific analytics need, with extra controls) if you absolutely need a capability now.
The bottom line: AI and analytics are the new frontier of sovereignty, and currently, it’s a limitation. Plan accordingly so you’re not caught off guard by missing features or compliance conflicts.
Indirect Access Traps in Sovereign BTP
When you centralize integrations on SAP BTP, which is a common pattern, especially in a sovereign cloud for government or regulated industries, you need to be very careful about indirect access licensing traps.
This isn’t a new issue (SAP indirect access has been a thorny topic for years), but the sovereign cloud context creates a perfect storm for it.
Consider the typical scenario: In a sovereign environment, SAP BTP might act as the integration hub connecting your SAP S/4HANA system with a host of other local systems – say a tax authority portal, a customs system, a citizen services app, or any non-SAP application that needs data from the SAP system.
This is great from an architectural standpoint (BTP can host APIs, integration flows, etc., all locally).
However, from a licensing standpoint, if those third-party or custom applications are not properly licensed, SAP might view their usage as “indirect use” of SAP S/4HANA.
In plain language, SAP could claim that those external users or applications are accessing SAP data without a license and try to charge you for it.
Why is sovereign BTP at particular risk here? Because one key use case of sovereign BTP is integration across government or sector ecosystems.
You might be exposing SAP data to many non-SAP systems under the assumption that it’s all within a closed, compliant environment. In doing so, you might inadvertently trigger license obligations.
For example, if a citizen portal (non-SAP) retrieves information from S/4HANA via an API you built on BTP, is that indirect access?
In SAP’s eyes, it could be, unless you have the right kind of licensing (SAP has something called Digital Access licenses for documents, or specific user licenses for external parties).
Traps to watch out for:
The biggest trap is assuming that because it’s a sovereign cloud and a controlled integration, you’re safe from extra charges. In truth, SAP’s standard contracts could still allow them to audit and claim fees for indirect access if not addressed.
Another trap is missing the nuance in contract language – sometimes SAP might allow certain scenarios but not others. If you just go ahead and implement, you might face a surprise in an audit.
How to mitigate indirect access risk? The answer is largely in the contract and upfront design. When negotiating your sovereign BTP agreement (or your S/4HANA agreement that goes with it), document all the integration use cases you anticipate.
Literally list out: “We plan to have System X (non-SAP) call functions in S/4HANA via BTP” and have SAP confirm in the contract or in writing that this is permitted under your licensing.
It’s wise to pre-approve integration patterns. For instance, if you use an API gateway or an integration flow on BTP to let an external app create a sales order in S/4HANA, ensure the contract says this is allowed without additional S/4 user licenses.
Essentially, you want to eliminate ambiguity so there’s no retroactive “Gotcha!” from SAP.
Another strategy is to use technical controls to separate what external systems can do – for example, using an integration user or a session that clearly indicates the source.
SAP has also introduced an indirect/digital access document licensing model (counting documents like Sales Order creation instead of users).
If you’re on that model, make sure you have enough capacity for the docs those external systems generate, or negotiate that as part of the deal.
Buyer-side negotiation levers: You do have leverage here because SAP wants sovereign cloud deals to succeed. Insist on clauses that shield you from indirect access claims for defined integrations.
If SAP balks, remind them that without those integrations, the solution is not very useful – so it’s in both parties’ interest to permit them.
Another lever is to consider SAP’s license exchange programs; sometimes you can convert old licenses to new models that cover indirect use (SAP had programs to convert some user licenses to document-based licenses).
Use the negotiation to clean up any shelfware licenses and repurpose them to cover these scenarios. The key point: Don’t leave indirect access to chance. Lock it down in the contract before you go live.
That is why you won’t face nasty surprises in an audit for your sovereign environment, where, ironically, you thought you were safest.
Architecture Guardrails & Technical Questions
Implementing SAP BTP in a sovereign cloud isn’t just about what services run – it’s also about how they run.
There are several architectural guardrails and technical considerations to address so that the solution truly meets the requirements of sovereignty.
Here are the key areas and questions you should raise:
- Customer-Managed Keys (CMK): One litmus test for true sovereignty is who controls the encryption keys for your data. By default, SAP manages encryption keys for many cloud services. In a sovereign cloud, you should demand customer-managed encryption keys – meaning you hold the keys (often literally in your own Hardware Security Module or key management system) that unlock your data. This ensures that data cannot be decrypted without your consent, even by SAP operators. Ask SAP if the sovereign BTP supports CMK for all relevant services. Also, inquire about dual control (so that no single SAP admin can access keys without customer involvement) and key recovery processes (if you rotate or lose a key, how is this handled?). If customer key management isn’t available for a given service, that’s a gap to flag and perhaps avoid using that service for sensitive data.
- Disaster Recovery (DR) in-region: Disaster recovery plans can inadvertently break sovereignty if not done right. Confirm with SAP how DR is handled in the sovereign cloud. The goal is in-boundary replication – your data and systems should be backed up or mirrored to another site in the same country or jurisdiction. For example, if your primary sovereign cloud data center is in France, the DR environment should also be in France (or at least in the EU if that fits your definition). Ask about RPO/RTO (Recovery Point Objective, Recovery Time Objective) – how much data loss and downtime is possible – and ensure you get those in writing. More importantly, ask for evidence: Has SAP actually tested DR failovers in the sovereign environment? Are they willing to do annual DR tests with your involvement? A sovereign cloud that cannot prove its DR within the region is a risk. You don’t want a scenario where, after a major incident, SAP says, “Well, we do have your data backed up, but it’s sitting in a data center in another country.” That would be a sovereignty fail.
- Telemetry & Monitoring Controls: Cloud platforms live on telemetry – usage data, performance metrics, error logs, etc., that are sent back to the provider. In a sovereign context, unrestricted telemetry can be a backdoor for data to leave the region or be accessed by global teams. You’ll want to ensure logs and metrics stay local. Ask SAP: What telemetry is collected from your BTP subaccount, and where is it stored? Ideally, all operational data (logs, metrics) should be stored in-region and accessible to you. Suppose SAP insists on some telemetry going to global systems (for support or improvement purposes). In that case, you should have the right to review and approve it, or opt out if it contains any sensitive information. It’s possible to negotiate turning off non-essential telemetry. Also, clarify how monitoring works – if SAP uses global monitoring tools, do they have access to your system metrics? Perhaps they’ve set up local monitoring nodes; you need to know. The principle is not to blindly accept default monitoring settings – configure them for optimal performance and security.
- SIEM Integration: In highly secure environments, you likely have your own Security Information and Event Management (SIEM) system to track incidents and logs. A good sovereign cloud setup should allow you to export logs to your SIEM in-region in real time. Confirm that SAP BTP will let you integrate with your enterprise SIEM or other monitoring tools without data leaving the region. For example, if your compliance team wants to run analytics on login attempts or data access logs, you should be able to pull those logs via API or feed them into your SIEM, rather than having them locked in SAP’s cloud. Also, verify that no out-of-bound log exports are happening – meaning SAP isn’t quietly shipping logs to their global support center. All support logs should stay in-region or only be shared with you. Essentially, you want full visibility and control over event data for compliance and security auditing.
- Identity & Access Management: Identity is another hidden area to scrutinize. Many cloud services use global identity providers or directory services. In a sovereign BTP, ask about IdP residency – can you use a local identity provider (or your on-premise AD/LDAP) so that authentication is done within the region? Or if you use SAP’s Identity Authentication Service, is there a sovereign instance of it? Also, inquire about how admin access is controlled. Who at SAP can access your systems and data? Ideally, only local, vetted personnel should have admin rights (this ties to the “operational sovereignty” concept). Any operator logs (logs of what admins do on your system) should be available to you for audit. And implement “break-glass” controls – this means any emergency access (say SAP needs to log in with a firefighter account to fix something) should be a controlled process, requiring your approval or at least immediate notification and subsequent review of what was done. Don’t overlook things like support access: if you raise a support ticket, ensure that the support team that handles it is allowed to see your data under the same sovereignty rules (e.g., they might route you to a special support center in-region or one that meets certain nationality requirements). It might feel paranoid, but these details matter for compliance.
- Data Lifecycle & Compliance: Finally, consider the lifecycle of your data in the sovereign cloud. Data deletion commitments are important – when you delete data or leave the service, how quickly is data scrubbed from all systems and backups? You might need contractual SLAs that say, for example, “within X days of contract end, all customer data will be deleted or anonymized, with certification.” Also consider immutable logs – you might want certain logs (security logs, transaction logs) to be write-once (tamper-proof) and stored for a certain period for audit purposes. Check if SAP offers an option for immutable logging in the sovereign environment (for compliance with regulations that require audit trails). eDiscovery and legal holds are another angle: if your country’s regulators or courts need to access data, can that be done in the jurisdiction without transferring data elsewhere? Ideally, yes – perhaps SAP can allow read-only access within the region to fulfill legal requests. These are not everyday concerns, but in sovereign cloud deals, they can be deal-breakers if not addressed. In summary, treat these topics as a checklist of technical questions. A sovereign cloud is only as strong as its weakest link, so push SAP for clarity on each of these points and get as much as possible baked into the contract or design.
Negotiation Playbook for BTP Sovereign
When it comes to SAP contract negotiation for BTP in a sovereign cloud, it’s important to be extra diligent and assertive.
You’re not just buying a technology platform; you’re also buying assurances of compliance and control.
Here’s a playbook of tactics and terms to consider at the negotiating table:
- Freeze the Service Catalog: One key ask is to lock down exactly which services (and versions) will be provided for the duration of your contract. Include a clause that the service catalog is frozen for the term – meaning SAP can’t suddenly withdraw a service you rely on, nor can they add new services that change how data is processed without your approval. If SAP wants to introduce a new service or feature in your environment, they should need your consent (especially if it might send data out of bounds). This protects you from unpleasant surprises where, say, an update enables a feature that violates sovereignty rules.
- Cap Sovereign Uplift Fees: Typically, SAP’s sovereign cloud services come at a price premium (often called an “uplift” on top of normal BTP costs) because of the extra controls and smaller scale. You need to negotiate those uplift fees carefully. Push for transparency on pricing – have SAP show how much each service costs in sovereign mode versus standard mode. Then negotiate a cap on any uplifts. For example, if standard BTP Integration Suite costs X, and sovereign costs X + 20%, you might negotiate that 20% down to 10% or at least ensure it won’t increase further over time. It’s also fair to ask for discounts, especially if some services aren’t available (e.g. “We’re not getting the full BTP, so we shouldn’t pay full price plus a premium”). Basically, challenge the pricing and try to peg it to clear value.
- Bring Your Own License (BYOL) and Conversions: If you’re moving from an existing SAP environment, clarify how BYOL to BTP sovereign works. For instance, if you already have licenses for SAP Process Orchestration or other integration tools, can those be converted or provide credits towards the BTP Integration Suite on the sovereign cloud? Often, SAP has conversion programs (to avoid “shelfware” where you’re stuck paying for old licenses you’ll replace with cloud services). Negotiate conversion credits or swaps so you’re not double-paying. Additionally, if you bought some BTP in global before and now switch to sovereign BTP, make sure SAP credits your unused global subscriptions towards the sovereign contract. The goal is to eliminate duplicate software and avoid paying twice for similar capabilities.
- Audit and Compliance Protections: Audits are scary enough in the SAP world; in a sovereign setup, you want extra protections. Negotiate terms for audits that might be more favorable. For example, insist that any SAP license audit is conducted with data staying in-region (no shipping logs to elsewhere) and perhaps by an independent auditor or with prior notice and agreement on scope. Even more, try to get pre-agreed remediation terms – meaning if an audit finds something, you already have a formula for resolving it (caps on penalties, time to resolve, etc.), rather than open-ended liability. Also, given the sovereignty, SAP should agree that any audit data or compliance data stays local and is handled discreetly. The contract can also stipulate that if SAP violates the sovereignty provisions (for example, an unauthorized data transfer occurs), it constitutes a breach of contract with penalties. You want to invert the usual scenario so that SAP is also responsible for maintaining compliance, not just you.
- Compliance Evidence Obligations: This is a significant one that is often overlooked. It’s not enough for SAP to say, “trust us, it’s sovereign.” You should build into the contract that SAP will provide regular compliance evidence. For instance, ask for quarterly reports on sovereignty measures – detailing things like which personnel accessed the system (and that they were locally authorized), confirmation that no data left the region, results of any internal audits or security tests, etc. You may also request annual penetration testing results or certifications that are relevant (for example, SAP may have ISO or national certifications for that data center – obtain those as well). Data residency attestations should be provided routinely – essentially a letter or document that states “for the last quarter, all your data remained within the [Country] sovereign cloud, with no exceptions.” These kinds of evidence are gold when you yourself get audited by regulators or when your board asks, “How do we know we’re compliant?” If SAP is unwilling to provide them, it’s a red flag. Often they will, but only if you explicitly put it in the contract.
To summarize, treat the sovereign cloud contract like a hybrid of a tech agreement and a compliance agreement. Nail down the technical scope (services, performance) and the “sovereignty terms” (data handling, access, evidence, pricing).
And don’t hesitate to use your bargaining power – if SAP wants your business, they need to commit to these protective measures.
Negotiation Scenarios Table
Let’s bring the negotiation advice to life with a few concrete scenarios.
Below are examples of how a baseline proposal from SAP might look, and how a savvy customer could negotiate a better outcome.
These illustrate potential savings and risk reductions achieved by pushing back on the initial terms:
| Scenario | Baseline Proposal | Negotiated Outcome | Savings | Risk Reduced |
|---|---|---|---|---|
| BTP integration suite + HANA DB in sovereign region | Limited discount; 20% price uplift for “sovereign” label; vague terms on telemetry (data monitoring unclear) | 10% uplift cap negotiated (controlled premium); explicit clause that telemetry is disabled by default (no data exhaust leaving region); inclusion of local SIEM log feed at no extra cost | ~$1M over contract | Eliminated potential compliance audit exposure (no unapproved data sharing) |
| AI/ML services missing in catalog | “Not available in sovereign, please use global region” (no price break, just omission) | Roadmap rider: SAP commits to local availability of the needed AI/ML service within 18 months, or provides service credits/fee reduction if delayed. Also right to use alternative service in interim without penalty. | Avoided incurring extra cost to build or buy separate solution | Prevented data export non-compliance by not forcing use of global AI service |
| Indirect access risk from local portal integration | No special terms – any indirect usage would be subject to standard license audit (i.e. risk of future charges) | All planned integration scenarios pre-approved in contract as compliant (no extra licensing needed for named non-SAP applications). Added clause that future similar integrations can be added with notice, not extra license. | N/A (avoids future cost rather than saving upfront) | Blocked retroactive indirect access claims (removed a major legal uncertainty) |
In each scenario, the negotiated outcome not only saves money or avoids cost, but more importantly, it reduces risk – be it compliance risk, unplanned cost risk, or project risk.
This kind of scenario planning should be part of your negotiation prep: think of where you might be in a bind and address it in the contract.
Common Pitfalls to Avoid
Even with all the planning, some common mistakes organizations make when diving into SAP BTP sovereign cloud are still prevalent.
Be aware of these pitfalls and avoid them:
- Assuming sovereign BTP equals full BTP parity: Don’t assume you’re getting every service or that everything will work the same as the public cloud version. This assumption leads to nasty surprises when you discover missing pieces later. Always verify the actual service list and any feature gaps.
- Overlooking AI/analytics service gaps: Many jump into a sovereign cloud for core ERP and integration, and only later realize that their analytics team can’t get SAC or their data team can’t use Datasphere. Don’t overlook these needs during planning. If analytics or data warehousing are important, address them up front (either via SAP’s roadmap or alternative solutions).
- Ignoring indirect access implications: It’s easy to be so focused on the tech that you forget the licensing side. Indirect access can bite you hard if you ignore it. Anytime you plan an integration between SAP and non-SAP in this environment, think licensing. Get it cleared with SAP or you could pay for it later.
- Accepting vague telemetry or support carve-outs: If SAP’s proposal or contract has fuzzy language like “SAP may collect certain data for support” or “global resources may be engaged as needed,” that’s a loophole. Push back on any vague language. Don’t accept “trust us” on telemetry or access – get specifics or the right to approve such activities.
- Forgetting to secure compliance evidence: You might assume that because it’s labeled “sovereign,” you’re automatically covered for audits. But if you haven’t baked in obligations for SAP to prove compliance, you could struggle to demonstrate sovereignty to regulators. It’s a pitfall to sign the deal and then later realize you have no visibility. Always include that evidence and reporting requirements in the deal.
Five Best Practices for Buyers
To wrap up the guidance, here are five best practices to ensure your SAP BTP sovereign cloud initiative succeeds and stays in bounds:
- Map service availability upfront: Before signing anything, get a detailed service catalog for your specific sovereign region in writing. Compare it against your requirements. Identify any missing services or features and plan around them. Essentially, know exactly what you’re getting (and not getting) on day one – no assumptions.
- Pre-approve integration patterns: List out all the ways you plan to integrate SAP with other systems (especially non-SAP systems) and get those patterns approved in the contract to avoid indirect access in sovereign environments. This closes the licensing trapdoor, giving you the freedom to integrate without fear.
- Mandate key safeguards (CMK, DR, SIEM): Use contract riders or project requirements to enforce key architecture guardrails. Require CMK in SAP sovereign cloud deployment (customer-managed keys for encryption), insist on in-country sovereign cloud DR setup for business continuity, and ensure SAP telemetry controls (no data phoning home) are in place. Also, integrate your SAP SIEM or logging from the start to maintain oversight. By making these non-negotiable, you ensure the technical foundation is solid.
- Cap costs and benchmark vs global BTP: Don’t accept open-ended premiums for sovereignty. Negotiate caps on the uplift and tie costs to what you’d pay for equivalent global services. This keeps SAP honest about not overcharging for compliance. Also, include provisions that if you move off certain on-prem licenses (as you adopt BTP), you get credits or cost relief – avoid paying double. In short, manage the financial side tightly, just as you do the technical side.
- Build in compliance attestations: Remember, sovereignty is only real if it’s evidenced. Make it standard practice (and contractual obligation) that SAP provides regular compliance attestations – quarterly reports, security certifications, data residency proofs, etc. Treat these as deliverables, not nice-to-haves. It will save you headaches later when an auditor or executive asks, “How do we know everything is staying in-country and secure?” You’ll have the documentation on hand.
Following these best practices will significantly improve your outcomes.
You’ll enter the project with eyes wide open, and you’ll have the guardrails and guarantees in place that separate a risky deployment from a reliable, compliant one.
FAQs
Finally, here are some frequently asked questions around SAP BTP in sovereign cloud, with quick answers:
- Q: Does sovereign BTP offer the full global catalog of services?
A: No – it only offers a subset of services. You should confirm exactly which services are available in your chosen sovereign region. Don’t assume all global services will be there. - Q: Can I use SAP’s AI and ML services in a sovereign mode?
A: Often not, or with heavy restrictions. Many AI/ML services are not yet available in sovereign clouds. You may need to negotiate a future roadmap or find alternative solutions to use those capabilities within your boundaries. - Q: How do I avoid indirect access costs when using BTP integrations?
A: The best approach is to document all your planned integration scenarios up front and secure contractual pre-approvals from SAP. This way, those uses are explicitly allowed and won’t trigger surprise licensing bills later. - Q: Is customer-managed encryption (CMK) standard in sovereign BTP?
A: Not by default. Some services may offer it, but you likely need to request and negotiate it. It’s wise to make CMK a requirement for any sensitive data in a sovereign cloud to ensure you control the keys. - Q: How do I get evidence that SAP is meeting sovereignty requirements?
A: Build it into your contract that SAP must provide regular compliance reports – for example, quarterly data residency and operations reports, security audit results, etc. Don’t just take their word for it; have them supply attestations that you can use for your own audits and peace of mind.
By keeping these FAQs and answers in mind, you’ll be better prepared to engage with SAP on a sovereign cloud journey.
Remember, the goal is to leverage SAP BTP’s innovation without compromising on your sovereignty and compliance needs – and that requires a proactive, informed approach every step of the way.
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