How can location of data servers determine which data protection laws applies to sensitive data?

The privacy concern in cloud computing

Cloud computing is the on-demand availability of computer system resources, especially data storage and computing power, without direct active management by the user.  Large clouds often have functions distributed over multiple locations, each location being a data center.  Cloud services have become an essential for business as it includes web-based applications, storage, processing, and other service for company. In an interconnected world with the help of computing information can be shared, errors can be fixed, and problems can be fixed as long as it is connected to the internet.  Cloud computing allows companies to reduce the costs of IT infrastructure, and the manpower needed that is required for the service.  Cloud computing provides a soaring level of flexibility and unlimited dependability for growing businesses.  The location of data servers determines the protection laws that applies to sensitive data of companies.  They’re compliant with data protection laws within the country they are in, but that these laws may not be considered adequate by the countries the data originates from.  Depending on the legislation, companies may need additional consent from data subjects to allow their data to be stored outside the country it was collected.  Data loss or data theft is secondary security challenges that the cloud providers face and it comes within the protection laws of data. When cloud vendors report data loss or theft then over sixty percent of the users declines to use the cloud services provided by the vendor.  Outages of the cloud services are very frequently visible even from firms such as Dropbox, Microsoft, Amazon, etc., and that is indeed the result of trust in these services during a critical time.  Attackers can easily access when there is an internal problem with the provider and the companies.

Companies can choose good data provider can give company the peace of mind by protecting the data from cybercrime and breach of data.  One way to block the risk of non-compliance and data leaks is to secure that categories of data are kept out of the cloud.  By storing sensitive data on companies’ networks, organizations can easily keep track of the movements, control how it is shared, and ensure that it stays in the country where they are located, and it doesn’t go overseas.  This can be done through Data Loss Prevention (DLP) solutions that identify, monitor, and control sensitive data, whether it is Personally Identifiable Information (PII), Intellectual Property (IP), or other sensitive information of a company.  DLP tool scan can track the cloud and if the service/ file is without the consent of organization it can block the access and can note down the log. 

Companies must always consider the legal implications and risks of storing sensitive data in the cloud.  Companies must use DLP, PII and other tools to keep their stored data safe and secure.

References:

  1. 7 Privacy Challenges in Cloud Computing
     https://www.geeksforgeeks.org/7-privacy-challenges-in-cloud-computing/
  2. What are the Privacy Challenges of Cloud Computing?
    https://www.endpointprotector.com/blog/the-privacy-challenges-of-cloud-computing/
  3. What is Cloud Computing
    https://www.techplayon.com/what-is-cloud-computing
  4. The Privacy Challenges of Cloud Computing
    https://emtmeta.com/the-privacy-challenges-of-cloud-computing
  5. Cloud computing
    https://en.wikipedia.org/wiki/Cloud_computing

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Written by Ahsanur Tipu at https://www.linkedin.com/in/ahsanur-tipu-5816b0224/