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Data residency is key to digital strategy of companies in future: IBM India MD

The concept of data residency, wherein a cloud infrastructure built and operated within a country’s borders under its jurisdiction, has gained global traction

Dipak Mondal

MUMBAI: Given today’s geopolitical uncertainties and evolving regulations, data residency has become a critical driver of business value, says Sandip Patel, managing director for IBM India & South Asia region.

Patel, who was speaking at the IBM’s annual event Think, said the cloud conversation is no longer just about speed, scale, openness, and relevance, it’s also about where your data resides. He says ensuring that data and control planes remain within national borders will be key in future.

He said that IBM is taking steps to advance its hybrid cloud strategy for India — empowering enterprises to adopt AI and hybrid cloud at scale while ensuring compliance with India’s data residency and governance frameworks.

Data residency --wherein a cloud infrastructure built and operated within a country’s borders under its jurisdiction — has gained global traction as nations look to balance technological innovation with data independence. For India, where digitisation is expanding rapidly across governance, finance, and citizen services, ensuring that data stays within national boundaries is crucial to maintaining trust and resilience.

Analysts say data residency in India will be driven by compliance requirements, rising cyber risks, and the government’s push toward Atmanirbhar digital ecosystems. Sectors such as BFSI, defence, and healthcare are expected to be early adopters, given their sensitivity to data handling norms.

Hans Dekkers, GM, IBM Asia Pacific, says that enterprises want control over their data, their AI, and their digital destiny, and IBM is tying up with local firms across Asia to empower that control with enterprise-grade AI and hybrid cloud solutions.

“Enterprises want flexibility — to choose where their data resides, how it’s governed, and how it creates value. IBM helps clients and governments build open, secure, and trusted AI models and platforms tailored to their needs,” he says.

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