Digital sovereignty is becoming an increasingly important topic for organisations that rely on cloud software. If you work with systems for HR, Payroll or ERP, your organisation processes large amounts of sensitive data every day - from employee information to financial records.
Anyone who assumes their data is safe as long as it sits in a European data centre misses a crucial point: data sovereignty is not only about where your data is stored, but about who ultimately controls it.
On this page we explain why digital sovereignty has become such an important topic, what it means for organisations using business software like AFAS HR, Payroll and ERP, and – most importantly – what you can do about it today. Including a practical checklist you can use right away.
A few years ago, cloud adoption was mainly about efficiency and scalability. Organisations moved to the cloud to work faster, manage less infrastructure themselves and scale more easily. Today, more factors are at play.
Across Europe, regulation around data and digital infrastructure is expanding. Well-known examples include:
These regulations mean organisations must increasingly demonstrate where data is stored, who has access to it and how it is protected. Digital sovereignty is also about answering key questions: under which legislation does your data fall, which parties can access your systems and to what extent can you switch providers if necessary. By understanding this, organisations maintain better control over their data and digital processes.
There is another reason why digital sovereignty has become urgent: trust. Customers, patients and citizens expect their information to be safe. A data breach is serious. But the idea that sensitive information could be accessed by foreign parties without your knowledge directly affects your credibility.
Digital sovereignty is often confused with data residency, but the two are different concepts.
Digital sovereignty also involves practical control. Organisations need insight into who has access to data, how encryption is applied, where encryption keys are managed and which external partners or subprocessors are involved in processing information. This level of transparency is important for audits, compliance checks and security incidents.
Strategic dependency also plays a role. When organisations rely heavily on a single cloud provider or technology platform, switching can become difficult — a situation known as vendor lock-in. European legislation such as the EU Data Act aims to reduce this by giving organisations more options to move data and systems between providers, but it remains important to consider this when making architectural decisions.
Start by identifying key data flows, such as:
For each category, determine where the data is stored and who has access to it. Also ask yourself: where is this data located today, who can access it and through which channels does it leave your organisation
For every supplier with access to data, it is important to understand
This helps you better understand risks across the supply chain. If you cannot get clear answers to these questions, that is a warning sign
Encryption protects data, but only when it is properly configured. Important considerations include:
Many data flows leave organisations through documents shared with external parties.
Also consider:
Digital sovereignty requires clear internal agreements, such as
AFAS Online is the cloud platform from AFAS for using business software via the internet. AFAS Online runs in Europe at Leaseweb, a Dutch provider with data centres within the EU. Both AFAS and Leaseweb fall under European legislation such as the GDPR. There is no dependency on parties outside the European Economic Area (EEA). This means there is no risk that your data could be influenced by foreign laws or decisions outside Europe.
We only work with partners that meet the same privacy and security standards. This allows us to maintain control not only over our infrastructure, but over the entire chain.
We believe you should always remain in control of your data. That is why you can easily export your data in an open format or connect with other software through our open AFAS APIs. And if you ever decide to switch to another provider, you can do so without additional costs or restrictions. Our processes and security are regularly tested and audited. We do not just promise this - we demonstrate it. Terms, SLA and security agreements are transparently available online.
In short: with AFAS Online, the “plug” of your data is in Europe - and in your hands