Australian enterprises are increasingly prioritizing data sovereignty, with a significant majority willing to forgo advanced product functionalities to partner with local or sovereign providers, according to new research, as reported by Arn Net.
A recent Everpure Global Data Sovereignty Report 2026 revealed that 83% of Australian enterprise C-suite leaders would sacrifice advanced features for a sovereign provider. This trend highlights a shift in technological priorities, moving from a focus on ease of access and extensive functionality to a "good enough" approach centered on data control and local partnerships. Matthew Oostveen, Everpure Asia Pacific and Japan CTO, noted that while international hyperscalers may offer more features, local system integrators and cloud service providers are well-positioned to innovate and meet these evolving needs.
The report also indicated that 38% of Australian respondents are limiting their use of SaaS providers reliant on non-domestic infrastructure. Despite 85% viewing data sovereignty as a business concern and 88% fearing job loss due to sovereignty failures, 66% lack visibility into data access and control, and 62% have no mitigation plans for geopolitical risks. This suggests a gap between executive recognition of risk and operational readiness, creating opportunities for local partners to address these concerns.
Source: Arn Net
