By Kesava Reddy
The idea of the ‘Cloud’ often makes us think of a digital space that is not connected to the real world. It is a compelling metaphor, but data in the cloud isn’t formless or untethered – it resides somewhere, on actual hardware. It is subject to the risks and regulations of the real world, as any service or commodity you can imagine.
The Illusion of the Cloud
The idea that the cloud is a seamless, omnipresent entity has led many to believe that data is simply ‘out there. In reality, every file, every application, and every transaction stored in the cloud is physically stored in massive data centers spread across the globe. Data centers, owned by cloud service providers, house servers, storage systems, and networking equipment. They are tangible, complex, and resource-intensive industrial facilities that are governed by specific regional laws.
Uploading a file to a cloud storage is instantaneous, but where does it go? The illusion of the cloud persists because users rarely see these infrastructures that store their data. But the physical location of data is important to the users, especially in matters of governance, security and privacy of their data.
Where Your Data Really Lives
Data centers operate across multiple regions, based on costs, infrastructure, and local regulations. Users- individuals and organisations- don’t always know where their data is being stored or processed. This is because cloud service providers move data dynamically to optimise performance and redundancy. For businesses and governments, this would mean unexpected compliance risks. If your data contains sensitive or regulated information, cross-border storage could cause legal complications, further exposing the organisation to potential risks.
Cloud Sovereignty & Compliance
Data sovereignty is a critical concern today. It is the idea that data is subject to the laws and regulations of the country where it is generated and stored. The Indian Government’s DPDP Act, the European Union’s General Data Protection Regulation (GDPR), and the United States’ CLOUD Act (Clarifying Lawful Overseas Use of Data) are examples of regulations imposed by governments to ensure their citizens’ data remains within national borders. This causes potential conflicts to businesses operating in multiple regions, as each nation imposes its own rules on data storage and access.
Companies relying on foreign cloud providers face yet another challenge- escalations in geopolitical tensions could cause sudden service discontinuation. It is not enough to ensure that a cloud provider adheres to compliance certifications – organisations need to ask where their data resides and under which laws it falls.
The Risks of Data Dispersion
Data Dispersion, the practice of storing data in multiple locations, might seem like a sound strategy, but it opens up several cybersecurity risks. Each location becomes a potential entry point for a cyber attack. When organisations lose track of their data’s exact locations, they inadvertently create blind spots that make consistent security protection nearly impossible.
The complexity is accentuated when third-party partnerships enter the picture. Cloud service providers frequently collaborate with external companies to manage storage, networking, and data processing — a web of connections that can quickly become opaque. Without clear visibility, sensitive information could be passing through multiple hands, each transfer increasing the risk of unauthorised access or accidental exposure. One weak link in this chain could potentially compromise the entire system’s confidentiality and security integrity.
What Can Users and Businesses Do?
Cloud computing has become a necessary tool in our digital landscape. But mastering this tool requires understanding its physical and legal realities. For businesses, especially those in regulated industries, a sovereign cloud ecosystem can be an efficient cloud strategy to navigate this landscape. A sovereign cloud offers significant benefits for data management and risk mitigation, with advanced encryption, strict access controls, and comprehensive audit trails to protect its digital assets. Sovereignty should be an essential feature of your cloud, not just an afterthought.
To break the myth of the cloud- it isn’t a space without limits- it is bound by very tangible limitations and risks. As more organisations migrate to cloud environments, understanding the implications of where your data resides and who can access it becomes paramount. While the cloud offers infinite possibilities, its magic lies in how intelligently we can navigate its very real boundaries.
(The author is the Chief Revenue Officer, E2E Cloud – Cloud Computing Platform)
Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.
