Organisations in the Nordics are eager to embrace innovation and Digital Transformation, in many cases driven by cloud-first strategic imperatives. Yet, with this enthusiasm comes a unique set of challenges.
Organisations are grappling with the implications of the geopolitical situation alongside the intricacies of security, cost management and compliance within a complicated regulatory landscape. This article explores these hurdles and illuminates how a forward-thinking and strategic approach can transform this complexity into a clear pathway to success.
At the heart of the Nordic digital conundrum lies a key question: how do you protect the organisation without stifling innovation – while managing costs amid budget pressures. The geopolitical situation has shone a spotlight on how challenging it is to strike this balance. And together with the pressure to adopt AI and forge ahead with digital service development, tech leaders are being pulled in conflicting directions.
Sovereign cloud balances security and Digital Transformation
According to IDC, Nordic cloud spending is estimated to reach more than US$27 billion by 2026 and achieve 22% five-year CAGR. The geopolitical situation, however, is bringing the focus on the security and resilience implications of this transformation.
Sovereign cloud has therefore become a vital element of Nordic cloud strategies. For example, Sovereign Cloud from Google enables organisations to customise data residency and access controls within their public cloud environment. Data is stored in your chosen region and can’t be moved. For critical infrastructure and government organisations with the highest security requirements, there’s even the option for an air-gapped Google Cloud solution that doesn’t require connectivity to an external network
Importantly, sovereign cloud includes the ability to isolate AI workloads, so you can leverage AI capabilities with the residency, access and oversight settings needed to meet compliance needs at all levels.
Enabling AI wins at production scale
There’s an important lesson from the current AI hype cycle: even if you can move fast with proofs of concept (POC), organisations are hitting blockers when it comes to pushing through to production.
How can you overcome this POC loop and scale AI effectively? Nordcloud is helping Nordic organisations achieve this by:
- Leveraging a secure and reusable AI foundation – Using a modular AI landing zone helps you leverage cloud-native security and hyperscaler innovation, guaranteeing the governance and control needed to move quickly. This also makes the business case for future use cases more compelling because you’re using what’s already been signed off from a production perspective.
- Developing POCs as close to production readiness as possible – The more POCs are tested and validated towards the organisation’s production standards, the easier it is to get to the next stage and build something that can go live fast. It also makes it easier to get funding approved.
Popular Nordic children’s retailer Sprell Butikk is a prime example of how the right AI approach can deliver results from Day 1. The company was looking to enhance customer satisfaction and drive sales by improving its online shopping experience, particularly in product discovery and search. They wanted to explore using AI to provide more accurate and relevant product results, reduce search abandonment and offer personalised recommendations.
Nordcloud supported them in integrating Google Vertex AI – Search for Retail into its product catalogue and product information management solution. Immediately after implementation, Sprell Butikk noticed significant improvements in online shopping experience metrics, together with higher conversion rates, increased order values and overall improved customer satisfaction.
Achieving more with less – while staying ahead of the curve
From tariffs to inflation, the macroeconomic environment is putting pressure on budgets and creating uncertainty about investment. While cloud and Digital Transformation commitments remain crucial to enable growth and competitiveness, Nordic organisations must also maintain tight control over costs.
Nordcloud is helping leading Nordic organisations manage this in several ways:
- Agentic AI and automation – Whether it’s enabling IT teams to self-serve or streamlining processes around managing cloud environments and applications, we’re deploying agents and introducing automations that make the IT lifecycle more efficient and cost-effective.
- The right cloud migration approach – Cloud is significantly cheaper than on-prem if you take the right approach. We’ve helped Nordic organisations achieve 63% annual savings from an easy tweak to their migration approach that incorporated straightforward hardware optimisation into the strategy (without affecting timelines).
- Post-migration optimisation – Exiting the data centre is the beginning, not the end. By keeping on top of optimisations, we helped achieve an 8% decrease in total cloud spend alongside a 17% increase in consumption.
- FinOps – We’ve helped Nordic companies achieve a 40% reduction in cloud spend with a strategic and integrated FinOps approach. This includes providing cost visibility and the ability to allocate accurately through showbacks and chargebacks. It then extends to the buy and use optimisations that make an impact on the bottom line. Through a combination of best practices, processes, training and tooling, we’ve helped organisations gain control while keeping engineers and developers on side.
Simplify your cloud journey and plan with precision
The Digital Transformation journey for organisations in the Nordics doesn’t have to be a choice between innovation and control.
By embracing sovereign cloud, scaling AI into production and implementing strategic cost optimisation practices that leverage agentic AI and FinOps, organisations can navigate the complex landscape of geopolitical pressures, regulatory compliance and budget constraints while still driving meaningful digital progress.
The key lies in taking a holistic approach that views security, innovation and cost management not as competing priorities, but as interconnected elements of a comprehensive strategy. As Nordic organisations continue to drive digital adoption, those that successfully balance these imperatives will not only weather current uncertainties – but will emerge stronger and more competitive.
Want to know more? Meet Nordcloud at the Google Cloud Nordics Partner Summit in Stockholm, to see live examples of how the organisation helps its customers thrive with Google Cloud. The event will take place on June 11, 2025, at Avicii Arena, Stockholm – details can be found here.
