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Data Sovereignty and the Cloud

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Of the many issues to do with the remote hosting of data that organisations have to consider, data sovereignty – how legal jurisdictions affect data security and third-party access – is one of the most sensitive, because knowing who can see your private data and on what basis is central to managing the risk of cloud computing. To help decision-makers address this issue, NEXTDC has sponsored the whitepaper Data Sovereignty and the Cloud in partnership with the UNSW Cyberspace Law and Policy Centre, Aon, and Baker & McKenzie. It is a practical and easy-to-use guide for managers developing policy around the risks and rewards of cloud computing, and a bible for those who need to understand the law, their responsibilities and best practice measures for managing data in the cloud. See whitepaper: http://nextdc.com/data-sovereignty-whitepaper

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Page 1: Data Sovereignty and the Cloud

88%

&

9%

62%between

36%

31% of companies spend 20% budget on cloud

31%

20%

$37billion

in 2013

88% of organisations have at least one data breach each year.

Between 36% and 62% say that their data breaches involved mistakes by third parties such as outsourcers and cloud providers.

The Australian e-commerce market continues to grow; increasing to

over $37 billion in 2013.

Ponemon reveals that corporate security professionals are involved in

the vetting process for cloud providers an alarming 9% of the time.

A Board and Executive Officers’ GuideTechnical, legal and risk governance issues around data hosting and jurisdiction.

Data Sovereignty and the Cloud

Ten commandments

Thou must be aware that information stored in a cloud environment

can conceivably be subject to more than

one nation’s laws.

Thou must acknowledge it is

not the application, but the data which

needs to be profiled and classified so a

policy can automate its residence within a

hybrid cloud.

Thou shalt check whether your cloud service provider has

extended its insurance policy so that it also

includes cover for your data; not all clouds are

created equal.

Thou must remember, by nature a cloud computing

environment invites international

considerations.

Thou must remember that the onus is on the

business, to ensure the cloud provider

used complies with local laws.

Thou should note the ramifications of the revised Privacy Act coming into effect in 2014, where it is not stipulated that

foreign providers must comply with Australian

Privacy Law.

Thou must be aware a foreign owned vendor

may be subject to their country’s laws, even if they operate

in Australia.

Thou should know the US has entered

into mutual legal assistance treaties

with over 50 countries.

Thou shalt investigate whether ‘personal information’ really needs to be stored in identifiable form, since permanent

de-identification can mean privacy rules no

longer apply.

Thou shalt investigate and formulate criteria that determine what

information should be housed in Australia or exclusively under Australian control.

NATIONAL LAW

DATA SOVEREIGNTY

LOCAL LAW INTERNATIONAL LAW

INSURANCE

PRIVACY RULES APPLICATION

INTERNATIONAL TREATIES

FOREIGN VENDORS

DATA PROFILE

PRIVACY ACT

VI VII VIII XIX

I III IV VII

What to look for when selecting a cloud provider

HirinG PrACTiCES

SimiLAr PrACTiCES

rECOrD Of rELiABiLiTy

SECUriTy PrOCEDUrES

DATA CEnTrE LOCATiOnS

BrEACH nOTifiCATiOn PrOTOCOLS

infrASTrUCTUrE

ExPEriEnCE WiTH THE CUSTOmEr’S SySTEmS

finAnCiAL COnDiTiOn

DiSASTEr rECOvEry PLAnS

inSUrAnCE COvErAGE

mETHODS fOr PrEvEnTinG UnAUTHOriSED ACCESS Or inTrODUCTiOn Of mALiCiOUS CODE