What has data sovereignty got to do with video…and why should I care?

In IT News last month it was reported that the Bank of Queensland wrote off $10 million on a failed trial of a cloud CRM platform.

In case you didn’t get that the first time, that was Ten MILLION dollars.

This was the direct financial cost of their failed trial of the Salesforce CRM system which is widely regarded as the go-to SaaS platform.

Simply put, Salesforce could not meet the ‘operational and regulatory requirements’ crucial for a financial services organisation. With no Australian data centre, all Salesforce data is currently stored offshore in Japan. Needless to say this presented a potentially huge security risk.

The result?

A massive financial hit to the Bank of Queensland and a major blow to Salesforce – the international leader in the provision of CRM technology.

This example raises important questions around data sovereignty, cloud security and regulation of data stored in different offshore locations. This doesn’t only affect financial data, but ALL data in the cloud, including video. Let’s look at why.

What exactly IS data sovereignty?

Let’s take a step back and understand what data sovereignty is and why it’s becoming such a ‘hot topic’.

http://whatis.techtarget.com/ defines data sovereignty as ‘the concept that information which has been converted and stored in binary digital form is subject to the laws of the country in which it is located.’

If we use this definition, coupled with our Bank of Queensland example, here’s why it’s a huge problem. Technically the Japanese authorities could access ALL the Bank of Queensland’s data and make it subject to their privacy regulations, which could contradict those of Australia.

According to http://whatis.techtarget.com/;

‘the widespread adoption of cloud computing services, as well as new approaches to data storage (including object storage), have broken down traditional geopolitical barriers more than ever before.’

This has opened a whole new set of potential issues for people operating in the cloud.

How does this affect MY video?

On the surface your video may not seem as important as financial or Government data.

But if you use video for internal communications or are a Government department or agency you need to dig deep into what’s happening with our content in the cloud.

More importantly, you need to know why it’s beneficial to have data storage in your ‘home’ country.

While Viocorp’s online video solutions are cloud-based technology, we store our client’s data locally, so for Australian clients that means right here in Australia. These are the main four reasons why we believe it’s a good idea;

1) Knowing where your video is stored gives your business invaluable peace of mind.

2) Storing overseas means that your data is liable to the laws of that country, which may conflict with the laws of the country in which your business operates.

3) Storing your video data locally can assist in the prevention of cyber attacks.

4) If your organisation produces video content that is not for public viewing, it may be considered counterproductive and problematic to implement stringent access restrictions but then store all the data off shore.

Where can I read more about data sovereignty?

In keeping with the conversation, the link below further explains the importance of data sovereignty. An easy to read whitepaper on the issue by the Cyberspace Law and Policy Centre at the University of New South Wales’ law faculty, the document outlines the 10 commandments of data sovereignty.

Read the 10 commandments of data sovereignty

If you’re unsure about cloud hosting and the impact it might have for your data security, get in touch:

Phone: +61 2 8007 6200 Email: info@viocorp.com