@DXWorldExpo Authors: Pat Romanski, Yeshim Deniz, Liz McMillan, Elizabeth White, Roger Strukhoff

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Linux Containers, Cloud Security, @DXWorldExpo

@CloudExpo: Article

Key Data Residency Requirements Global Organizations Need to Understand

…And some advice on how to satisfy them as you move to the cloud

One challenge more and more enterprises are grappling with as they plan to adopt the cloud is data residency & sovereignty. They are finding that if they want to use a cloud service hosted outside of their borders, life can become quite complex. Perhaps it is a result of the often discussed "Snowden Effect," but no one can deny that countries and regions are putting some strict guidelines in place to ensure privacy of sensitive data that is moving outside of their borders. These three examples are indicative of what I foresee we will be seeing much more of:

Australia: The Privacy Amendment Act
The Privacy Amendment Act introduced many changes to the original Privacy Act and just recently went into effect. The Act includes a set of new privacy principles that cover the processing of personal information by government agencies and businesses. The new principles are called jointly called the Australian Privacy Principles (APPs).

In the context of cloud adoption, agencies and businesses that deal with personal information are subject to APP8 (cross-border disclosure of personal information) which regulates the disclosure/transfer of personal information by an agency or business to a different entity (including a parent company) offshore. Before moving this type of data offshore, the Australian agency/business (Australian sender) must take reasonable steps to ensure the overseas recipient will comply with / not breach the APPs. The Australian Sender will remain liable for the overseas recipient's acts associated with any transferred personal information and, where relevant, be in breach of the APPs due to the overseas recipient's acts or omissions. In addition, APP11.1 (security of personal information) requires that an organization must "take reasonable steps to protect the personal information it holds from misuse".

Germany: The Federal Data Protection Act
Germany's Federal Data Protection Act is known as Bundesdatenschutzgesetz or BDSG, and these laws were reformed to cover a range of data protection-related issues. The key principles of the law state that organizations cannot collect any personally identifiable information without express permission from an individual (this includes obvious things like name and date of birth, as well as less obvious things like phone number, address and computer IP address). The permission that an individual grants must specify how, where, how long and for what purposes the data may be used and the individual can revoke the permission at any time.

Organizations must have policies, procedures and controls in place to protect all data types and categories that fall under the BDSG umbrella. Further, Germany does not recognize Safe Harbor regulations in the same way as other EU states (note - other EU states are re-examining this issue). It requires all parties involved in data transfer to assure that Safe Harbor requirements are met in a more formalized and structured manner.

In addition to the Federal Data Protection Act, components of the German criminal code regulate personal data protection, particularly for telecommunications, healthcare, and insurance companies. And all of the 16 German states have their own specific data protection laws pertaining to these areas.

United Kingdom: The UK Data Protection Act
The UK Data Protection Act is the UK's legislation covering the processing of data on people and is the main piece of legislation that governs the protection of personal data in the UK. The Act places clear demands upon those holding personal data in terms of the security that must be applied to protect it and it is necessary to apply a wide range of security measures to meet these standards:

  • Data must be processed fairly and lawfully
  • Data must be processed in accordance with the rights and freedoms of data subjects
  • Data must be protected against unauthorized or unlawful processing and against accidental loss, destruction or damage
  • Data must not be transferred to a country or territory outside the European Economic Area unless that country or territory protects the rights and freedoms of the data subjects.

The Information Commissioner's Office (ICO) is the UK's independent authority set up to uphold information rights in the public interest. They recently provided guidance around the use of cloud computing reiterating that the responsibility for data protection remains with the data controller (the enterprise). And particular consideration should be given to mitigating the security risks relating to personal data since foreign law enforcement agencies may have the power to demand access to personal data stored in a foreign data center. Failing to protect private data can result in ICO-levied fines.

What is an organization to do? Look exclusively at cloud solutions that are based wholly in the country where they operate? Avoid cloud services altogether? Both of these approaches are impractical. Enterprises need to adopt cloud-based solutions, the best ones available irrespective of location, in order to drive their businesses and remain competitive. So what to do? Technology in the form of Cloud Data Control Gateways (CDCGs) using a technique called tokenization can help.

CDCGs are increasingly being used by global organizations to meet data residency requirements. Using tokenization, where clear text data is replaced by a surrogate token (check out a cool infographic describing the technique here), sensitive data can remain physically onsite while only surrogate replacement tokens go to the cloud for processing and storage. This solution enables enterprises to use public cloud applications no matter where they are located because actual data never needs to leave their in-country data center where the tokenization process occurs. It is a simple and straightforward way to adhere to complex data residency/sovereignty requirements. For those concerned about the "Snowden Effect," the reality is that any requests for information through one of their US-based cloud providers cannot result in compromising customer or corporate data without the enterprise being part of the conversation.

Of course, not all tokenization technologies are created equal. This solution only works when it is designed and deployed properly so as to fulfill all data obfuscation goals and objectives. Most important, it needs to be part of a gateway approach that ensures that the functionality of the cloud application is not disrupted for cloud end users. For example, users need to be able to use the cloud as if the gateway was not in the middle of the equation at all (e.g., they need to be able to Search or Sort on data that has been tokenized).

Please check out our website, which offers more insights on data sovereignty and tokenization with specific pages addressing laws in a number of countries as well as sector-based requirements for verticals like Banking and Healthcare. We also provide various reference pieces, including a broader whitepaper, International Privacy Laws.

Read the original blog entry...

Perspecsys Inc. is a leading provider of cloud data tokenization and cloud encryption solutions that enable mission-critical cloud applications to be adopted throughout the enterprise. Cloud security companies like Perspecsys remove the technical, legal and financial risks of placing sensitive company data in the cloud. Perspecsys accomplishes this for many large, heavily regulated companies across the world by never allowing sensitive data to leave a customer's network, while maintaining the functionality of cloud applications. For more information please visit perspecsys.com or follow on Twitter @perspecsys.

More Stories By Gerry Grealish

Gerry Grealish is Vice President, Marketing & Products, at PerspecSys. He is responsible for defining and executing PerspecSys’ marketing vision and driving revenue growth through strategic market expansion and new product development. Previously, he ran Product Marketing for the TNS Payments Division, helping create the marketing and product strategy for its cloud-based payment gateway and tokenization/encryption security solutions. He has held senior marketing and leadership roles for venture-backed startups as well as F500 companies, and his industry experience includes enterprise analytical software, payment processing and security services, and marketing and credit risk decisioning platforms.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

@BigDataExpo Stories
@DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises - and delivering real results.
DXWorldEXPO LLC announced today that Dez Blanchfield joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Dez is a strategic leader in business and digital transformation with 25 years of experience in the IT and telecommunications industries developing strategies and implementing business initiatives. He has a breadth of expertise spanning technologies such as cloud computing, big data and analytics, cognitive computing, m...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...