The Answer: Data Residency
Cloud data residency (also called data sovereignty) refers to the physical location of where data actually resides. With cloud adoption, residency is ultimately determined by the geographic location of where data is stored. Cloud service providers (CSPs) may have data centers all over the world, so it is these locations that matter most to enterprises concerned with complying with residency laws.
With recent revelations about government surveillance of online data and many high-profile data breaches, there is understandably a focus on how to best protect sensitive data going to the cloud. Many enterprises face a growing set of data compliance regulations. Some of these laws or rules are specific to data residency.
Privacy and data residency requirements vary by country and may include specifics around what types of data may leave its borders and what must remain physically within the country. Enterprises adopting the cloud need to consider the rules that cover each of the jurisdictions they operate in, as well as the rules that govern the treatment of data at the locations where the CSP operates. Restrictions around data residency may make it more challenging for an enterprise to adopt certain cloud applications and many are seeking out solutions for keeping data resident, despite the CSP selected.