Welcome!

Java IoT Authors: Liz McMillan, Pat Romanski, Elizabeth White, XebiaLabs Blog, Yeshim Deniz

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
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
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...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, 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.
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.