Why on-premises and data sovereignty are non-negotiable in defense industry
When national security and innovation rely on your data, handing control to third-party clouds isn’t just risky—it’s reckless. For defense leaders, choosing on-premises or EU Sovereign Cloud solutions is no longer a technical preference, but a strategic necessity to protect critical operations, intellectual property, and compliance.
Table of contents
Why data integrity is a strategic imperative in defense
Cloud risks in defense: Data security and espionage
The CLOUD Act clash: Protecting EU data from US oversight
Solution? Easy Redmine's EU Sovereign Cloud
On-premises: Right choice for defense industry
Gaining control with on-premises software or Sovereign Cloud
Why data integrity is a strategic imperative in defense
In the defense sector, the stakes couldn't be higher. National security, cutting-edge research, classified projects, and intricate supply chains depend entirely on the integrity and security of your data.
As production processes and strategic planning become increasingly digital, safeguarding sensitive information—from product designs to operational plans and supplier contracts—is not merely an IT task, but a strategic imperative. Compromising this data can have dire consequences.
Consider a concrete example: New product introduction (NPI), crucial for defense innovation, is complex, highly sensitive, and regulated. It demands secure collaboration and full data control, preferably within your own infrastructure. Without strong security, NPI risks include leaked prototypes, exposed supplier data, and compliance breaches—potentially leading to long-term damage like intellectual property loss.
Cloud risks in defense: Data security and espionage
While the convenience of cloud-based solutions might seem appealing, they introduce significant limitations and concerns for sensitive industries like defense.
Questions surrounding where data is stored, who manages security externally, and who ultimately has access are critical. The data security reality is stark:
- intellectual property theft
- third-party breaches
- industrial espionage
These are ever-present risks. Furthermore, cyber threats can be criminal and sometimes politically motivated. In this environment, relying on external cloud platforms for sensitive operations can create unnecessary exposure.
Standard cloud tools often fall short in sectors dealing with sensitive data. Cyberattacks on operational technology (OT) systems—though not directly controlled by project tools—are rising and remain under-monitored.
This highlights the need for tools aligned with OT security, ensuring digital and physical systems stay protected in one secure environment.
The CLOUD Act clash: Protecting EU data from US oversight
Beyond the general security landscape, geopolitical tensions and evolving regulatory requirements, especially in the EU, demand scrutiny over where and how cloud-hosted data is stored.
Concerns over US surveillance oversight and the extraterritorial reach of the US CLOUD Act compel organisations operating in the EU to contain data within European jurisdiction. The invalidated EU-US Privacy Shield (Schrems II ruling) leaves data transfers to US-controlled clouds in a legal grey zone.
The CLOUD Act mandates providers "subject to U.S. jurisdiction" to hand over data stored abroad, creating unavoidable conflict with EU privacy law. This pressure to ensure data residency within the EU is now a primary cloud procurement criterion for a majority of European CIOs.
Solution? Easy Redmine's EU Sovereign Cloud
Luckily, Easy Redmine offers EU Sovereign Cloud—a secure and fully compliant alternative to standard public cloud services—tailored for regulated sectors such as defense.
Our solution runs exclusively in ISO 27001-certified data centres located in Europe, ensuring your sensitive data is protected under European law—without exposure to non-EU jurisdictions, such as the US CLOUD Act.
I must mention the key advantages of EU Sovereign Cloud by Easy Redmine:
- Full compliance with GDPR, NIS 2 and the AI Act: Ready for future regulations
- Dedicated European hosting: No data transfers outside the EU
- Encryption, tenant separation and access control: Designed for critical operations
- Lower legal risk and easier audit preparation
On-premises: Right choice for defense industry
McKinsey reports a 200% surge in attacks on operational technology, yet many organisations still lack full visibility into OT cyber risks. In this context, on-premises tools provide crucial control and isolation, reducing the exposure that comes with relying on external cloud platforms.
This is why on-premises software is not outdated for the defense sector—on the contrary, it is smarter. On-prem solution offers:
- essential control (owning the infrastructure)
- robust security (defining the rules for data access, storage, and protection)
- long-term reliability
This level of control is vital not just for protecting intellectual property but also for meeting strict compliance demands, aligning with industry-specific regulations and internal security protocols.
Unlike generic cloud tools, on-premises solutions allow tailored security settings like firewalls, encryption, and access logging to be applied directly within your infrastructure.
Self-hosted solutions (on-premises) also connect smoothly to existing internal systems like ERP or databases without exposing sensitive data to external servers. The operational benefits include predictable costs due to no recurring cloud fees, no unexpected vendor downtime, and full visibility into system performance.
Gaining control with on-premises software or Sovereign Cloud
For defense organisations, data sovereignty and integrity are non-negotiable. Public cloud solutions introduce legal and operational risks, including exposure to foreign laws like the US CLOUD Act and rising cyber threats.
With self-hosted project management software like Easy Redmine or within a certified Easy Redmine's EU Sovereign Cloud, manufacturers in defense industry gain not just powerful project tools but full data ownership and peace of mind. Your most valuable work—all critical data, files, and decision logs—stays securely in your hands, protected by your internal standards or guaranteed EU jurisdiction, not a third-party provider subject to foreign laws.
Contact us to learn more about implementing a secure solution by Easy Redmine tailored to the unique demands of the defense sector, ensuring your digital planning remains protected from start to finish.
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