What a Schwarz & Google Alliance Brings Cloud Security

EU-operating enterprises face unique challenges where technology innovation meets regulation.

Nowhere is this more evident than in cloud computing, where stringent requirements under GDPR, sector-specific mandates, and growing concerns about digital sovereignty have created a complex landscape.

This has been further compounded by landmark legal decisions, such as Schrems II, which raised significant doubts about the legality of data transfers to US-based providers. 

Schwarz & Google’s Cloud strengths

Schwarz Group, best known as Europe’s largest retail conglomerate operating Lidl and Kaufland, has entered the fray with its technology arm, Schwarz Digits. In 2018, it launched STACKIT, a sovereign European cloud solution.

Its ambition was underscored in 2021 when it acquired cybersecurity firm XM Cyber for US$700m. This strategic pivot has positioned Schwarz Group as a key player in Europe's pursuit of digital sovereignty.

Meanwhile, Google has sought to navigate Europe’s unique regulatory challenges. Despite its global leadership in cloud and AI, concerns about US surveillance laws have hindered adoption of its tools in highly regulated industries.

A significant step forward came with the announcement of a partnership between Schwarz Digits and Google Cloud. This collaboration signals a potential shift in how global tech companies address European sovereignty concerns.

A partnership for digital sovereignty

The partnership between Schwarz Digits and Google Cloud offers new possibilities 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," says Thomas Kurian, CEO of Google Cloud.

Meanwhile, Google has sought to navigate Europe’s unique regulatory challenges. Despite its global leadership in cloud and AI, concerns about US surveillance laws have hindered adoption of its tools in highly regulated industries.

A significant step forward came with the announcement of a partnership between Schwarz Digits and Google Cloud. This collaboration signals a potential shift in how global tech companies address European sovereignty concerns.

At its heart is a new offering that pairs Google Workspace, Google’s productivity tools, with STACKIT, Schwarz Group’s cloud platform. This combination ensures that sensitive data remains within European borders.

“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," says Rolf Schumann, Co-CEO of Schwarz Digits.

The solution includes client-side encryption of Google Workspace data, ensuring that even Google cannot access encrypted files. By offering full redundancy through STACKIT’s European data centres, it provides a robust option for industries like finance, healthcare, and government, where compliance and data security are paramount.

The solution includes client-side encryption of Google Workspace data, ensuring that even Google cannot access encrypted files. By offering full redundancy through STACKIT’s European data centres, it provides a robust option for industries like finance, healthcare, and government, where compliance and data security are paramount.

Enhanced cybersecurity for a complex era

Cybersecurity also plays a critical role in this collaboration. With cyber threats becoming increasingly sophisticated, the integration of Google Cloud’s security solutions with those of XM Cyber, a hybrid cloud security company owned by Schwarz Digits, strengthens the offering.

“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," says Christian Müller, Co-CEO of Schwarz Digits.

Together, the partners aim to develop new joint security offerings, targeting public and private sector organisations across Europe. These will be distributed via the Google Cloud Marketplace, equipping enterprises with tools to identify and mitigate security risks in multi-cloud environments.

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.

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