Welcome!

Linux Containers Authors: Elizabeth White, Anders Wallgren, Derek Weeks, Jason Bloomberg, Scott Allen

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
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
SYS-CON Events announced today TMCnet has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Technology Marketing Corporation (TMC) is the world's leading business-to-business and integrated marketing media company, servicing niche markets within the com...
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, will discuss how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technol...
Join IBM June 8 at 18th Cloud Expo at the Javits Center in New York City, NY, and learn how to innovate like a startup and scale for the enterprise. You need to deliver quality applications faster and cheaper, attract and retain customers with an engaging experience across devices, and seamlessly integrate your enterprise systems. And you can't take 12 months to do it.
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
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, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
The paradigm has shifted. A Gartner survey shows that 43% of organizations are using or plan to implement the Internet of Things in 2016. However, not just a handful of companies are still using the old-style ad-hoc trial-and-error ways, unaware of the critical barriers, paint points, traps, and hidden roadblocks. How can you become a winner? In his session at @ThingsExpo, Tony Shan will present a methodical approach to guide the holistic adoption and enablement of IoT implementations. This ov...
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...