There’s no doubt that cloud computing can offer significant advantages for many businesses. The ability to access an extensible, flexible infrastructure without the overhead associated of of the typical DIY approach can deliver substantial cost and operational benefits to many businesses. However, many industries, either through law or by preference, can’t use offshore cloud providers.
A recent study by Gartner says that “public cloud computing solutions are being driven predominately by U.S.-based suppliers and are being delivered through data centers being built in the U.S. Therefore, although the dynamics driving the demand for public cloud computing are largely consistent, there is a significant difference in its supply dynamics. This has created anxiety for non-U.S. enterprise IT organizations, because the location of data creates a new set of risk management contingencies.”
That challenge is one that is now being faced by many companies and it can have significant legal implications. In Singapore Monetary Authority of Singapore can jail or fine companies that don’t carry out appropriate due diligence. The Australian Prudential Regulatory Authority (APRA) has written an open letter to financial bodies advising executives to evaluate cloud computing as a new form of outsourcing or offshoring that requires APRA's approval. The European Union has issued a directive stating that that the transfer of personal data outside the EU can only be done where the country in question provides an adequate level of protection.
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Source: searchcio.techtarget.com.au
By: Anthony Caruana
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