SAP expands Australian Sovereign Cloud capabilities as part of ongoing public sector investment
On 3 September 2025, SAP announced the expansion of its Sovereign Cloud capabilities in Australia, which it claims will strengthen security, sovereignty and trust for public sector organisations and their partners, including logistics provider Toll Group.
At the centre of the announcement is the launch of the SAP Sovereign Cloud On-Site solution, described by SAP as a new model that allows customers to host SAP’s managed cloud infrastructure within their own facilities. Built on open-source technology, the On-Site model is said to provide maximum physical control and data residency, responding to global demand for digital sovereignty while maintaining the benefits of cloud services.
The company also said its Sovereign Cloud portfolio in ANZ has been expanded to include SAP Digital Supply Chain, SAP Business Network and SAP Concur. These capabilities build on sovereign offerings first introduced in 2023, which included SAP S/4HANA Cloud private edition, SAP SuccessFactors, SAP Analytics Cloud and SAP Business Technology Platform.
“Government and enterprises alike face increasing regulatory, security and sovereignty requirements,” said Brian Senior, Executive General Manager of Federal Government at SAP ANZ.
“Sovereign cloud is not just about where data sits. It’s about who controls it, protects it and how confidently government and industry can modernise and innovate knowing their digital foundations are secure and compliant. By expanding our sovereign cloud services to cover areas like procurement and supply chain on top of finance and HR, we’re ensuring critical data stays protected and managed within Australia. For citizens and businesses that provides a greater sense of trust in the security, reliability and innovation of the digital services they depend on every day.”
According to SAP, its sovereign cloud services are designed to meet the data, operational, legal and technical sovereignty requirements of government agencies and highly regulated industries across Australia and New Zealand.
Toll Group extends sovereign innovation to Defence
Toll Group, a global transport and logistics provider and one of the top 20 contractors to the Australian Defence Force (ADF), has extended SAP Sovereign Cloud capabilities across its business to deliver secure, compliant solutions for Defence operations.
“Being trusted by government and highly regulated customers like the Australian Defence Force requires the very highest levels of performance, value and – most importantly – security,” said Perry Singh, President of Government and Defence, Toll Group. “By extending SAP Sovereign Cloud Capabilities across our IT ecosystem, we’re able to accelerate security assessments and compliance, provide heightened cybersecurity capabilities and provide the confidence to navigate an ever-changing threat landscape.”
Using SAP Sovereign Cloud, Toll has developed the Toll 4PL Supply Market Place, which streamlines Defence’s procurement of commercial off-the-shelf products through a supplier network and e-commerce platform. The system, underpinned by SAP S/4HANA Cloud, SAP Business Network and SAP Commerce Cloud, brings together cataloguing, purchasing and vendor management in a central portal intended to ensure a secure, sovereign procurement process for ADF members.
Toll is also hosting its Defence Transport Management system on SAP Sovereign Cloud to support Defence Theatre Logistics.
“SAP Sovereign Cloud Capabilities has empowered us to work with customers to create, implement and manage outcomes that are secure by design. And because we know the SAP team have all the relevant security clearances, they act as an extension of our team,” concluded Singh. “We’re excited to work closely with SAP to leverage our readily usable current solutions in new Markets like the Future Defence Support Services for UK MoD as well as bring new data solutions like SAP Business Data Cloud and AI innovations like SAP Joule to our customers all secured by sovereign capabilities.”
Ongoing public sector investment
SAP said it plans to further expand its Sovereign Cloud offerings in Australia in 2026, with new capabilities slated for SAP Business Data Cloud, SAP AI Services, SAP Fieldglass and SAP Ariba.
“The expansion of SAP Sovereign Cloud capabilities is just one part of our ongoing investment in the Australian public sector,” concluded Senior. “We’ve been working with Australia and New Zealand’s government departments for more than 35 years, employing more than 1,400 people in the country and contributing over AUD$1.2bn to the local economy1. This is just another committed to investing in the success of the Australian public sector today and for the long-term.”
SAP’s sovereign cloud services are also available to government entities and regulated industries in the United States, UK and Canada, with further European expansion expected.