Data localisation – A step towards data privacy

Fundamentally every aspect of our modern lives is linked with the data in some form or the other. Each day we generate a phenomenal amount of data, approx. 2.5 quintillion bytes.

The most interesting ways this is happening is through Social Media Applications, Financial Transactions, Visitor Activity patterns, smartphones, personal details collection, search engines either through approval or in sneakier ways.

The evolvement of technology is also contributing to filling the data banks. Over a decade a lot has improved in the data collection in terms of maintenance, storage, retrieval, processing & data archiving strategies. Many businesses have started utilizing the collected data for understanding their customer and forming patterns resulting in trendlines, scores statistics & information – so it’s just not easier to ignore.



Where is this data stored?

The simple answer to the above question is most of the data and financial transactions are happening in a cloud environment. Being on Cloud means that data is stored on the data center of the service provider which can span across multiple locations in the world. When speaking of multiple locations, it means that the servers holding the data might be in China, the US, UK or anywhere in the world. It is very difficult to know where your data actually resides, and a cloud provider may not necessarily disclose this.

Now, this raises questions such as –

  • who can access this data?
  • Is the data Safe?

Privacy Framework

As the world becomes more connected, maintaining the integrity and privacy of data is becoming a rising concern. Efforts have been made, laws passed, GDPR emerged as a model for data protection regulations in several countries to curb the situation.

Drifting on a similar model for data privacy and protection, India has released legal guidelines for data privacy & localisation practices.

India’s central bank, i.e. the Reserve Bank of India (“RBI”) has issued a notification asking the companies operating in India to ensure that the entire financial transactions and data handled by them should be stored within India to address safety considerations. The RBI observed the growth in the Indian digital payment ecosystem collecting sensitive and personal data for which security measures were a must.

Along with this, recently a data privacy draft bill has been introduced which may soon shape the law leading into more punitive measures on data security and privacy concerns on Indian land

While these moves are still a start, the businesses should not wait for a last-minute to adopt the data security and privacy aspects.

Data Localisation policies

Specialists from across the globe are of an opinion that data should be restricted to local data centers and therefore efforts are being made to confine the movement of information beyond the line of control

Source: ASG Data Localization Report

Source: ASG Data Localization Report

As far as the Indian data localisation is concerned, the idea of the government is to keep & maintain the personal and sensitive information confined within the border. As suggested in National Digital Communications Policy draft release, the data sovereignty has been a principal agenda of the government.

Data localisation requires various industries and e-commerce businesses to keep their consumer information and sensitive financial information on servers within India. Similarly, most other players also have to opt for Indian servers with localisation of their data.

What you should know

Fears of government compliances and data privacy concerns of storing data outside country exist. Local cloud services can help organizations benefit from data residency and lower latency within India. Trusted Indian Cloud providers with Indian Datacenters can address this issue squarely.

While there are many Indian Cloud providers with the same benefits but when it comes to delivering cloud and apps on a scale for better performance, integrity and best price to performance ratio then E2E conforms with broad-set of canons.

E2E Networks Cloud is an Indian Cloud provider with a vast experience of helping start-ups, entrepreneurs, & SMEs with their Cloud Computing requirements. Additionally, E2E has built its own cloud infrastructure and technology stacks thus making its Cloud offerings amongst the most affordable in the Indian market. E2E’s cloud comprises latest-generation hardware which offers high speed of execution. The SLA’s are in place designed with an intent for the Indian market.

Well, it is essential to understand and learn the way on how systems operate. Work it through with the industry experts to avoid the pitfalls of issues and exploits.

If you have questions or concerns that are worrying you then please get in touch with us!

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