Microsoft has announced a new version of its 365 productivity suite that runs on-premises. The offering, called “Microsoft 365 Local,” operates within a controlled environment on Microsoft’s on-premises cloud infrastructure, Azure Local. Azure Local is designed for applications that need low latency or enhanced security.
Judson Althoff, Microsoft’s executive vice president and chief commercial officer, stated that Microsoft 365 Local enables customers to deploy productivity tools such as Exchange Server and SharePoint Server within their own data centers or sovereign cloud environments. This gives them full control over security, compliance, and governance. The main target for this new offering appears to be European customers.
Althoff emphasized “comprehensive sovereign solutions empowering European organizations.” This includes initiatives such as “Data Guardian,” which ensures that only European Microsoft employees can access the company’s cloud infrastructure within the European Union.
Microsoft’s new local data solution
Althoff stated, “All remote access by Microsoft engineers to the systems that store and process your data in Europe is approved and monitored by European resident personnel in real time and will be logged in a tamper-evident ledger.
Microsoft has also extended its External Key Management to Azure Managed Hardware Security Module (HSM).
This allows customers to store their encryption keys on-premises. Microsoft is collaborating with major hardware security module (HSM) manufacturers, including Futurex, Thales, and Utimaco, to integrate their support. According to Althoff, Microsoft’s sovereign cloud service is currently in preview and will be generally available across all European cloud regions later this year.
The move aligns with European laws, such as the General Data Protection Regulation (GDPR), which require data sovereignty for EU citizens. This ensures that Microsoft’s services comply with these regulations. Offering more on-premises options and strict data control mechanisms may reassure European customers amid geopolitical changes impacting data privacy and security.
As data protection becomes increasingly important, Microsoft aims to provide solutions that meet the unique needs of its European customers, allowing them to maintain control over their data and operations.
Kirstie a technology news reporter at DevX. She reports on emerging technologies and startups waiting to skyrocket.
