Welcome!

Cloud Security Authors: Scott Sobhani, Peter Galvin, Elizabeth White, Dana Gardner, Sanjay Zalavadia

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

@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.


@ThingsExpo Stories
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
industrial company for a multi-year contract initially valued at over $4.0 million. In addition to DataV software, Bsquare will also provide comprehensive systems integration, support and maintenance services. DataV leverages advanced data analytics, predictive reasoning, data-driven diagnostics, and automated orchestration of remediation actions in order to improve asset uptime while reducing service and warranty costs.
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...