Opinion

Simplify the Complicated. Developing a Unified Data Center Strategy in a Fragmented Regulatory Landscape

While discussing the digital economy we tend to focus on the trendiest and most innovative products and services on the market. The digital economy is massive and still growing rapidly, but we do not realize that large and modern data centers are at the heart of this, being shaped by big data, analytics, mobility, IoT and cloud computing.

As far as data centers are concerned, the buzzwords right now are “regulations” and “compliance”. With an increasingly sensitive legal and regulatory digital landscape, organizations face more requirements to comply with in rapidly-changing data regulations. The global businesses that use data centers need to implement complex regulations, both internationally and locally. And there is an important decision to make: to deal with national providers for multiple countries, or work with a global data center provider that specializes in operating within a fragmented regulatory environment. As the global regulatory environment becomes more disparate, the decision about where to store your data becomes more and more crucial, because businesses certainly don’t want to fall foul of legislation with all the significant associated costs – financial and in terms of loss of reputation – that this entails. That is why businesses need to find a global data center provider that is flexible enough to meet the needs of any regulatory requirements.

Global regulations and their impact on global business

How can the security of intellectual property in large global economies be handled? For any organization that expands globally and needs data center services, it may seem that the choice of a reliable service provider is one of the key challenges. Businesses have always chosen their data centers in locations that provide them with the lowest latency, data regulation such as the PCI DSS (Payment Card Industry Data Security Standard), various state privacy and data protection laws, and of course the most dreaded – SSAE 16 certification for the financial sector.

There is no doubt that global data regulation is fragmented. While some countries prioritize data sovereignty, others push for free data transfer across borders. European Union Member States have agreed on a fixed set of regulations for the whole bloc, but there is still no global agreement on data regulation. Some EU countries, while agreeing to the GDPR, are also keen to keep their citizens’ data hosted within their borders, complicating the regulatory landscape for businesses operating in the region. For example, organizations based in France are encouraged by the government to store and process data on French soil, and businesses must receive authorization from the French Data Protection Authority if they intend to transfer data outside of the EU. This is a significant headache for global businesses that operate across this fragmented regulatory market.

How do data center providers support compliance efforts?

In order to stay updated with the constantly changing regulatory environment, businesses need to choose a technological partner that operates internationally, can provide different data storage options and has a proven track record of managing data centers for global businesses.

So, how do global organizations select a data center partner while conducting business at the same time? There are several key factors to prioritize, such as budget, willingness to cooperate, going beyond simply buying a service, on-premises disaster recovery procedures, and compliance with local regulation.

The following checklist will help you make the right decision when selecting your data center partner:

  • Does a given provider have in-depth knowledge of local legislation and the business environment?
  • Do they have a track record of a consistent service and reliable uptime guarantee?
  • Do they keep track of industry trends and adopt new technologies to save time and money for their clients?
  • Are they flexible enough to tailor their services to clients’ unique needs?
  • Do they have a robust data center network providing clients with a consistent and secure service no matter where they are located?
  • Do they offer 24/7 support from set-up and throughout the contract?
  • Do they have a clear data control system that can safeguard against possible loss of data?

 

A global business environment also means a global regulatory environment. Data regulation is a complex, fragmented landscape of laws with which businesses must comply or face massive fines. International businesses need to cooperate with a data center provider that understands and abides by the regulations in every country, state and province in which the business operates.  To make the right decision, it’s important to keep up with policy and regulatory changes.

 

Maintaining a compliant data management process is critical for any business, especially as more regulations are being introduced. Businesses need to trust their data center partners to ensure they comply with the latest regulations and maintain the necessary standards and certifications.

 

If you are interested in data centre services and how business can operate in a fragmented regulatory landscape, read Comarch’s new white paper, entitled “Managing Data Centre Strategies in a Fragmented Regulatory Landscape”.

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