Using a cloud server? Here is how its location can affect your business


This the age of cloud. Even the next door teenager uses dropbox in his android to back up his photos. The business scenario in India rapidly moving towards cloud management. From accounting to data storage, everything is on cloud. But where is the cloud server actually located? We hardly care to find out. Today, we tell you why you should care. Using a cloud server? Here is how its location can affect your business.

Image Credit: Shutterstock
Image Credit: Shutterstock





Cloud Computing also known as online computing, is included in a type of internet-based computing that provides shared processing data as well as resources to computers and various other devices as and when required. It is seen that in a cloud computing environment, applications and data are introduced in the cloud. The thing that matters is the cloud and where the components of the cloud are located. In case you will ask the cloud service vendor about the placement and processing of the data, you will indeed be getting lame answers like, in the cloud, data moves around constantly so there is no specific place for the processed data or they may say that the information cannot be revealed due to security reasons and other such lame excuses will be given in order to avoid answering the question.

Server location is a must to be known by all. From a legal standpoint, what matters in the cloud environment is the location. Following are few points discussed:

  1. Privacy and Data Security Concerns

It includes the following major cloud computing privacy concerns:

  • Information that is been stored on the cloud is subject to different protections than information that is stored in-house.
  • It is important for the cloud provider to protect the information of the customers.
  • The Protection Acts formed governs the protection of personal information that is possessed in a particular area for which the Protection Act applies to the companies working in that particular area.
  • Various other data protection laws are: Electronic Communications Privacy Act, Stored Communications ct, Family Education Rights and Privacy Act, Health Insurance Probability and Accountability Act, EEA Act, etc.
  • When a cloud service provider chooses to install servers in the EEA or other countries with a similar data protection law, all data which are maintained, stored and processed on these servers are under the data protection laws of the country where the various servers are located.
  1. Data Jurisdiction is where server is located

According to the high court, a company can only be held responsible for providing internet-hosted material in a country where the server is based rather than in a various countries where the data of the company is seen or is being used. Therefore it can be said that location of the hosted material is frequently associated with jurisdiction. Jurisdiction is concerned with the power of the judge or a government entity to imply authority on the things or persons involved in the action. According to this point, if the cloud service provider hosts your data on a server that is located in the foreign country, the laws of that particular foreign country will be governing your data when it will be stored on the server of that country.

  1. Government Surveillance

In addition to the foreign data protection laws that have been made, there may be a possibility that a third part or a foreign government may wish to have an access to a cloud service server that is actually holding your data. It is very clear that without an appropriate authorization, access by a third party, which includes a government, has restrictions, and also the police or secret service may also have no access to the premises or equipments. The authorization must be in a form of search warrant or a court order before being allowed to check your computer. However the case may not be the same for all. This would be clear by the following example: In case your data is stored on a server that is located in India, then the server will be under the laws of India. There is an Act in India that governs many facets of the protection of computer use, networks, etc. Similarly there are other related Acts in India that issue different laws for the protection of computer use and use of networks. A Section in India giver the authority to Central Government to authorize any agency which is under the government to constantly check and collect data or information being generated, transmitted, stored or received on any particular computer system. So here in both the cases that are mentioned, there is no requirement for a court order or any such permission that are to be taken from any legal body. Also, there are no limitations to the powers.

In the end you first need to decide whether or not the location of data is important to you. And in case it is important then the best thing you can do is limit the geographical area in which your data will be stored or will be processed.

Visit us at – Business Maintenance for any feedback, query or support.



Leave a Reply

Your email address will not be published.