SAP will launch a secure UK-based cloud service and set up new offices in London and Manchester as part of a five-year investment package worth €250 million (approximately £212 million).

SAP UK Data Cloud, a new cloud infrastructure for the public sector, will combine the firm’s hyper-scale partnerships with AWS, Azure and Google Cloud with UK data centres to launch an in-nation cloud.

This will be designed to meet the tight regulatory needs of the public sector, while also supporting the UK’s critical national infrastructure in healthcare, transport, education, policing, utilities as well as central and local government operations.

Working with SAP National Security Services (NS2), SAP will ensure that all personal data is safeguarded and resides within the UK. 

The capability to handle official sensitive data will go live in early 2020, with a host of SAP cloud services available at launch. These include SAP S/4HANA Cloud, SAP Success Factors, SAP Business Technology Platform and SAP Analytics Cloud. 

It follows the company’s decision to go “all-in” on cloud computing in October last year. This announcement, however, saw the firm’s valuation drop by €25 billion (£27.8bn). 

“The impact of this for public services can’t be overstated,” SAP said in an explainer on what its UK Data Cloud is and how it works. 

“By modernising and transforming systems through cloud transformation, time after time we’ve seen services simplified, unnecessary costs removed and capacity created for staff, such as frontline workers, freed up to carry out crucial roles – without being waylaid by cumbersome and time-intensive administrative systems. 

“In addition to driving significant efficiencies, harnessing public cloud with sensitive data will facilitate better insights, driving faster and improved decision making to transform citizen services.”

As part of the five-year investment, SAP will also open offices this year to accommodate flexible working arrangements and serve its widespread customer base. 

There’ll also be a customer experience centre built into the new London offices, which will offer facilities for customers and partners to identify and pursue innovation opportunities with SAP. The facility near Manchester, which will be completed later this year, will allow SAP to work and engage more closely with companies around the country, the firm claims.

“It’s great to see SAP demonstrating its commitment to the UK and investing heavily to create new jobs and helping ensure long-term digital prosperity is evenly spread across the entire country,” said UK digital infrastructure minister, Matt Warman. 

“Tech is at the heart of our plans to power Britain’s recovery full speed out of the pandemic and we are backing the sector with world-class infrastructure and skills training to make sure the UK is the best place to start and grow a digital business.”

By 2026, SAP additionally hopes to support an additional 250 interns through its internship programme, alongside plans to scale up its apprenticeship programme to grow the number of skilled workers across the industry.