Pega Collaborates with AWS to Deliver Pega EU Service Boundary

Rhea-AI Summary

Pegasystems Inc. (NASDAQ: PEGA) has announced an expansion of its relationship with Amazon Web Services (AWS) to deliver the Pega EU Service Boundary. This new offering, set to launch at the end of 2025, will leverage the AWS European Sovereign Cloud to help customers meet stringent digital sovereignty requirements within the European Union.

The Pega EU Service Boundary will provide:

• Data storage and processing within the EU
• Control and support by EU staff
• Enhanced digital sovereignty assurances at all service layers
• Flexibility of Pega Cloud while addressing regulatory requirements

This collaboration aims to serve public sector and highly regulated industries, offering operational autonomy and enhanced data protection measures.

Positive

• Expansion of partnership with AWS to enhance digital sovereignty offerings
• Launch of Pega EU Service Boundary to meet stringent EU data regulations
• Potential to attract more clients from public sector and highly regulated industries
• Leveraging AWS European Sovereign Cloud for improved data protection and control

Negative

• Launch date set for end of 2025, potentially limiting immediate market impact
• Increased operational costs due to regionalized customer support organization

Insights

Tech Expert

Pega's collaboration with AWS to deliver the Pega EU Service Boundary is a strategic move in the evolving landscape of digital sovereignty. This offering addresses the growing demand for data localization and control in the EU, particularly for public sector and highly regulated industries.

The solution leverages AWS European Sovereign Cloud, providing operational autonomy with physically and logically separate infrastructure. This approach offers enhanced security, availability and resilience while maintaining compliance with stringent EU regulations.

From a technical perspective, Pega's commitment to data isolation, access controls and process automation combined with AWS's infrastructure creates a robust framework for digital sovereignty. This could potentially set a new standard for cloud services in regulated environments, offering a competitive edge for Pega in the EU market.

Market Research Analyst

The announcement of Pega EU Service Boundary aligns with the growing trend of digital sovereignty in Europe. With Deloitte forecasting 149 zettabytes of data generation in 2024, this move positions Pega strategically in a high-growth market.

The collaboration with AWS enhances Pega's value proposition, potentially expanding its customer base in regulated industries and public sector. This could lead to increased market share and revenue streams in the EU.

However, the 2025 launch timeline is relatively distant in the fast-paced tech world. Competitors might develop similar solutions earlier, potentially impacting Pega's first-mover advantage. Investors should monitor the market dynamics and Pega's ability to maintain its competitive edge during this period.

Legal Expert

Pega's EU Service Boundary offering is a proactive response to the evolving regulatory landscape in Europe. It addresses key concerns around data sovereignty, processing and access control, which are critical for compliance with EU data protection laws.

The commitment to store and process data within the EU, under EU staff control, aligns with the principles of the GDPR and emerging digital sovereignty regulations. This approach could mitigate legal risks associated with cross-border data transfers and provide a competitive advantage in highly regulated sectors.

However, the regulatory environment is dynamic. Pega and its clients must remain vigilant to ensure ongoing compliance as laws evolve. The 2025 launch allows time for regulatory alignment but also risks potential legislative changes before implementation.

New offering to provide EU clients with further digital sovereignty controls

READING, England--(BUSINESS WIRE)-- Pegasystems Inc. (NASDAQ: PEGA), the leading enterprise AI decisioning and workflow automation platform provider, today announced it is expanding its relationship with Amazon Web Services (AWS). Pega is among the initial companies to reveal it will leverage the recently announced AWS European Sovereign Cloud to deliver the Pega EU Service Boundary – a solution that will help customers meet their most stringent digital sovereignty goals within the European Union (EU). The Pega EU Service Boundary is set to launch alongside the AWS European Sovereign Cloud at the end of 2025.

The new offering will provide a commitment from Pega to store and process data within the EU, under the control of and supported by EU staff, to provide the flexibility of Pega Cloud, while addressing stringent digital sovereignty requirements from clients in public sector and highly regulated industries. By combining Pega Cloud’s already stringent approach to data isolation, access controls, and process with the AWS European Sovereign Cloud, Pega will provide further digital sovereignty assurances at all layers of the service, from Pega’s platform and supporting technologies, all the way to the supporting infrastructure.

According to Deloitte, the world is forecast to generate 149 zettabytes of data in 2024. With cloud services now widely used by global enterprises to scale data creation and processing, it’s critical that both the data and its sovereignty is protected within a cloud environment. This is particularly true for those in regulated industries, such as public sector or financial services, who face significant regulatory pressure to maintain data sovereignty. The Pega EU Service Boundary will help customers meet their requirements, and provide further control on where data is stored and processed, how access is managed, and where people that service EU client data are located.

The Pega EU Service Boundary will sit on top of the AWS European Sovereign Cloud, which will provide operational autonomy with infrastructure that is physically and logically separate from existing AWS Regions, while still providing the benefits of the AWS infrastructure that include industry-leading security, availability, performance, and resilience. The Pega EU Service Boundary will harness Pega Cloud’s operational best practices and automation to regionalize its customer support organization, and minimize the need for human intervention.

Quotes & Commentary
“At this crucial time, it is imperative to ensure data can be processed, accessed, and managed securely in the cloud,” said Frank Guerrera, chief technical systems officer, Pega. “The ability to leverage data with flexibility and agility will deliver exceptional results for end users and internal stakeholders, and will also help ensure digital sovereignty, a critical requirement in public sector and highly regulated industries. Pega is committed to prioritizing our clients, collaborating to address their needs and meet regulatory and business obligations. The introduction of the Pega EU Service Boundary will facilitate these efforts, providing our EU clients with peace of mind through a range of resources and infrastructure from Pega and AWS. I am excited to see the value this will bring our clients in the years ahead.”

“AWS is committed to providing customers with more choice and control to help meet their unique digital sovereignty needs without compromise. We’re thrilled that the Pega EU Service Boundary will be available on the AWS European Sovereign Cloud to help customers across the public sector and regulated industries drive innovation while meeting necessary requirements,” said Max Peterson, Vice President of AWS Sovereign Cloud. “This type of collaboration is critical for helping customers protect their data in a world with changing regulations, technology, and risks. We’re looking forward to our continued work with Pega and the ways that organizations across Europe will drive advancements with the AWS European Sovereign Cloud.”

Additional Resources

• Product background: Pega Cloud
• Collaboration details: Pega-AWS relationship
• AWS Marketplace: Pega Cloud in AWS Marketplace

About Pegasystems
Pega provides a powerful platform that empowers the world’s leading organizations to unlock business-transforming outcomes with real-time optimization. Clients use our enterprise AI decisioning and workflow automation to solve their most pressing business challenges – from personalizing engagement to automating service to streamlining operations. Since 1983, we’ve built our scalable and flexible architecture to help enterprises meet today’s customer demands while continuously transforming for tomorrow. For more information on how Pegasystems (NASDAQ: PEGA) empowers the world’s leading enterprise to Build for Change®, visit www.pega.com.

All trademarks are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240807743080/en/

Press Contact:

Jon Brigden

Pegasystems

jon.brigden@pega.com

Twitter: @pega

Source: Pegasystems Inc.

FAQ

What is the Pega EU Service Boundary and when will it be available?

The Pega EU Service Boundary is a new offering from Pegasystems (NASDAQ: PEGA) that provides enhanced digital sovereignty controls for EU clients. It is set to launch at the end of 2025 alongside the AWS European Sovereign Cloud.

How does the Pega EU Service Boundary benefit customers?

The Pega EU Service Boundary benefits customers by providing data storage and processing within the EU, control and support by EU staff, and enhanced digital sovereignty assurances. It helps meet stringent regulatory requirements for public sector and highly regulated industries.

What is the significance of Pega's collaboration with AWS for the EU Service Boundary?

Pega's collaboration with AWS allows the Pega EU Service Boundary to leverage the AWS European Sovereign Cloud. This provides operational autonomy with physically and logically separate infrastructure, offering industry-leading security, availability, performance, and resilience.

How does the Pega EU Service Boundary address data sovereignty concerns?

The Pega EU Service Boundary addresses data sovereignty concerns by committing to store and process data within the EU, under the control of EU staff. It combines Pega Cloud's data isolation and access controls with AWS European Sovereign Cloud to provide digital sovereignty assurances at all service layers.