In the global digital economy, sovereign computing is a pivotal concept for global organizations to understand and manage.
Data sovereignty is the concept that a country or jurisdiction has the authority to govern and control data generated or stored within its borders. An organization’s legal requirements regarding its data, as well as the legal rights of its data subjects, depend on both where the data is generated and where it is being stored geographically. These rights and regulations can create complicated scenarios impacting data, operational, and technology sovereignty for organizations.
The Evolving Landscape of Data Sovereignty
The wide-spread adoption of cloud computing and new approaches to data storage have created new considerations for global organizations and the flow of data. With Europe leading the way, certain regions and countries have limitations on data transmission outside of the area of origin, and some have privacy laws that restrict the disclosure of personal data to third parties.
This means companies conducting business in these geographies could be prohibited by law from transferring their data or sending data to a third-party cloud provider for storage or processing. As organizations consider where to store data, they should consider what laws will apply and whether storing data in certain locations will be beneficial or harmful to their business.
In addition, regulations such as GDPR, the U.S. Cloud Act and legal decisions like Schrems II reshape the management of data across borders. Creating a transatlantic data protection framework between the EU and the U.S. has been a focal point of this evolution. Recently, the European Commission adopted a new adequacy decision under the EU-U.S. Data Privacy Framework (DPF), which states that the U.S. ensures an adequate level of protection for personal data transferred from the EU to organizations in the U.S. that are certified under the DPF.
The new framework is a significant milestone in EU-US data transfer regulatory action, providing a lawful basis for transatlantic data transfers and offering a new level of certainty for global organizations. However, the requirements are likely to continue evolving, and organizations must stay informed and agile to navigate this complex regulatory environment.
The Implications for Global Organizations
Global organizations are grappling with the challenges of managing, storing, and processing data in an era of stringent data sovereignty laws. Storing data within a single jurisdiction may create barriers for global teams when it comes to collaboration and cross-border initiatives. This may limit the potential for innovation and knowledge exchange, as teams are unable to leverage the full breadth of collective expertise and data insights.
The implications for AI and machine learning are particularly significant, as these technologies depend on large, diverse datasets. Data sovereignty restrictions can limit the data available across regions, potentially affecting AI model performance and the insights they generate. Organizations must navigate these complexities while continuing to innovate, ensuring robust data protection measures are in place to safeguard the data used in AI and machine learning applications.
The Three Pillars of Cloud Sovereignty
Because modern cybersecurity needs a comprehensive approach that includes endpoints, cloud, network and all other locations data is stored, organizations need to ensure that their MDR provider is being compliant with data, operational, and technology sovereignty.
Data Sovereignty
Solutions must be designed to align with local data handling laws, ensuring that data remains secure and under the control of its rightful jurisdiction. For instance, GDPR does not mandate that data can only be processed and stored within the EU. However, it does dictate that the transfer of data is on the basis of “appropriate safeguards.” All providers should, upon request, provide information to its customers regarding those safeguards so organizations can demonstrate appropriate due diligence.
Operational Sovereignty
Security customers face operational sovereignty challenges, particularly when their operations span multiple jurisdictions. Providers must offer solutions that cater to the specific needs of each region without sacrificing service quality, including in instances where sovereignty requirements dictate that delivery personnel must reside in a specific jurisdiction in order to interface with the customer’s data. In those cases, it may be necessary to seek out regional or local providers. In the case of a multinational organization that has one or more locations with strict operational sovereignty requirements, the organization will need to determine if local providers can provide support for their other regions. If not, it may be necessary to work with multiple providers or partners.
Technology Sovereignty
The dependence on open-source solutions and the challenges associated with proprietary technology are critical considerations. These decisions affect the flexibility, compatibility, and security of the services provided, and ultimately, the sovereignty of the technology itself.
Real-world Implications for Global Organizations
Understanding data types and data flows is an important step for organizations to undertake, while also adopting robust data protection measures such as encryption, access controls and monitoring to ensure that data is protected from unauthorized access and use.
Organizations should also have a data protection policy that outlines how sensitive data is handled and stored, and what measures are in place to protect it. This policy should be regularly reviewed and updated to ensure it remains in compliance with relevant laws and regulations.
Work with a provider You Trust
For global organizations, partnering with a provider that understands and respects the nuances of data sovereignty is not just beneficial — it's imperative. Such partnerships can lead to enhanced compliance, fortified security, and smooth business operations across international borders.