Google & Schwarz aim to deliver secure, sovereign cloud solutions for industries across Europe, combining Google’s tech with Schwarz’s local expertise.
European organisations face a unique set of challenges at the intersection of technology innovation and regulation.
The European cloud computing scene has been particularly complex, shaped by stringent data protection requirements under GDPR, sector-specific regulations and growing concerns about digital sovereignty.
These challenges have been further amplified by recent legal developments, including the Schrems II decision, which has cast doubt on the legitimacy of data transfers to US-based cloud providers.
The Schwarz Group, though primarily known as Europe’s largest retail conglomerate operating Lidl and Kaufland, has emerged as a significant player in Europe’s digital infrastructure through its technology division, Schwarz Digits.
The company’s STACKIT cloud platform, launched in 2018, has gained traction as a sovereign European cloud solution, while its 2021 acquisition of XM
Cyber for US$700m demonstrated its serious commitment to cybersecurity.
This digital transformation arm has positioned the Schwarz Group as more than just a retail giant – but a key player in Europe’s pursuit of digital sovereignty.
Google, meanwhile, has been strategically evolving its approach to the European market. Despite its global leadership in cloud technology and AI, the company has faced challenges in sectors where data sovereignty concerns have historically limited the adoption of US cloud services.
Google’s suite of workplace productivity tools, while technologically advanced, has encountered barriers in regulated industries due to complex compliance requirements and concerns about US surveillance laws.
Against this backdrop, a landmark partnership has been announced between these two industry giants, marking a potential turning point in how global technology companies address European data sovereignty concerns.
Schwarz & Google’s Cloud ambitions
This collaboration promises to open up new possibilities for regulated industries across Germany and Europe, combining Google’s technological capabilities with Schwarz Group’s deep understanding of European regulatory requirements and market needs.
“Together, we are opening up a world of new, sovereign opportunities for European organisations to innovate and build on our joint solutions, accelerating a new era of innovation.” – CEO of Google and Alphabet, Sundar Pichai.
It also comes at a crucial moment when European businesses and public sector organisations are actively seeking ways to harness the power of cloud computing without compromising on data sovereignty or security.
The timing is particularly significant as organisations accelerate their digital transformation initiatives while navigating an increasingly complex regulatory landscape.
“This partnership changes the game for regulated industry players in Europe by removing the sovereignty and security concerns that often hold back more ambitious adoption of the cloud for productivity and collaboration,” says Thomas Kurian, CEO, Google Cloud.
“Our alliance with companies of Schwarz Group will enable entire industries in Europe to deliver digital innovation with security and compliance at its core.”
Sovereign workplace solutions
The cornerstone of this partnership is a new offering that combines Google Workspace, Google’s suite of cloud-based productivity and collaboration tools, with STACKIT, the cloud platform developed by Schwarz Digits, the IT and digital division of the Schwarz Group.
Rolf Schumann, Co-CEO of Schwarz Digits, highlights the significance of this collaboration, stating: “Germany and the EU have until now lacked enterprise-grade cloud collaboration solutions that fully address the sovereignty requirements of regulated industries, including ensuring all data is secured and backed up on local soil with absolutely no opportunity for access by foreign nations or platform providers”.
“Our partnership and new offering with Google Cloud will fill this gap with an entirely new business model”, he adds.
The new offering is designed to fill this gap by providing customers with the option to enable client-side encryption of their Google Workspace data through STACKIT’s cloud platform.
This approach ensures that customer data remains within the European Union, with full redundancy offered by backups hosted solely in STACKIT’s European data centres.
KEY FACTS:
- STACKIT will provide local, encrypted storage for Google Workspace with XM Cyber security
- XM Cyber and Google Cloud will develop joint security offering for public and private sectors
- Schwarz Group’s 575,000 employees will adopt Google Workspace for enhanced data control, maximise security and efficiency
The solution is tailored to meet the stringent demands of regulated industries around data protection, data residency and data resiliency.
For European organisations, particularly those in highly regulated sectors such as finance, healthcare, and government, this offering provides a way to leverage
Google’s advanced productivity tools while maintaining complete control over their data.
The client-side encryption feature means that even Google itself cannot access the encrypted data, addressing concerns about potential access by foreign entities.
Enhanced cybersecurity offerings
The partnership extends beyond workplace solutions to address the critical area of cybersecurity.
In a time where cyber threats are becoming increasingly sophisticated, organisations need robust security measures to protect their digital assets.
Christian Müller, Co-CEO of Schwarz Digits, stresses the role Google will play in this partnership: “Google Workspace is the most secure and reliable productivity platform in the industry today, and we expect our organisation-wide migration to have significant flow-on benefits to all areas of operations from simplifying IT management to rendering our point-of-sale workflows significantly more efficient.”
To this end, Google Cloud’s security solutions will be integrated with those of XM Cyber, a hybrid cloud security company owned by Schwarz Digits.
The resulting joint offering will be distributed to customers via the Google Cloud Marketplace, providing a comprehensive security solution for organisations operating in multi-cloud environments.
Thomas, emphasises the significance of this collaboration for regulated industries in Europe: “This partnership changes the game for regulated industry players in Europe by removing the sovereignty and security concerns that often hold back more ambitious adoption of the cloud for productivity and collaboration.”
The integration of XM Cyber’s Continuous Exposure Management with Google Cloud’s security portfolio also aims to develop new joint security offerings targeted at public and private sector organisations.
This collaboration is expected to help German and European organisations enhance their enterprise and multicloud security posture, providing them with advanced tools to identify and mitigate potential security risks.
Sundar Pichai, CEO of Google and Alphabet, comments on the broader implications of the partnership: “Together, we are opening up a world of new, sovereign opportunities for European organisations to innovate and build on our joint solutions, accelerating a new era of innovation.”
