The Snowden effect has caused the European Court of Justice (ECJ) to strike down Safe Harbor. This 15-year-old data transfer agreement between the EU and the U.S. allowed multinationals to store Europeans’ data in the U.S. if the companies agreed to comply with Europe’s data privacy laws.
This turn of events certainly causes operational angst for thousands of U.S. businesses that store data overseas. Tightening data privacy regulations carry potentially dire consequences for businesses that can’t quickly adapt.
In particular, the Safe Harbor ruling puts Cloud Service Providers (CSPs) in a tough spot as many of them depend on the framework, or closely related approaches, to do business in Europe as it acts as the mechanism to authorize them to store data on behalf of European companies.
This ruling will have a large impact on some corporation’s investment focus and their financial performance. For example, companies like CSPs may need to build new data centers in countries in which data must now reside, and in the meantime, it will impact their ability to sell services to entire regions if their lack of a local presence precludes them from complying with data privacy regulations.
As organizations aggressively push cloud adoption, it’s a given that more sensitive and regulated data is ending up in the hands of outside service providers and solutions like SaaS application systems. Organizations need actionable advice for instituting proactive means and mechanisms to ensure data privacy and regulatory compliance while they run the business – a significant piece of guidance that is lacking from the Safe Harbor legislation.
Read more : http://thenextweb.com/insider/2015/11/03/living-in-the-cloud-in-the-post-safe-harbor-age/
This turn of events certainly causes operational angst for thousands of U.S. businesses that store data overseas. Tightening data privacy regulations carry potentially dire consequences for businesses that can’t quickly adapt.
In particular, the Safe Harbor ruling puts Cloud Service Providers (CSPs) in a tough spot as many of them depend on the framework, or closely related approaches, to do business in Europe as it acts as the mechanism to authorize them to store data on behalf of European companies.
This ruling will have a large impact on some corporation’s investment focus and their financial performance. For example, companies like CSPs may need to build new data centers in countries in which data must now reside, and in the meantime, it will impact their ability to sell services to entire regions if their lack of a local presence precludes them from complying with data privacy regulations.
As organizations aggressively push cloud adoption, it’s a given that more sensitive and regulated data is ending up in the hands of outside service providers and solutions like SaaS application systems. Organizations need actionable advice for instituting proactive means and mechanisms to ensure data privacy and regulatory compliance while they run the business – a significant piece of guidance that is lacking from the Safe Harbor legislation.
Read more : http://thenextweb.com/insider/2015/11/03/living-in-the-cloud-in-the-post-safe-harbor-age/
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