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What is Data Residency?

Data Residency refers to an idea in cloud computing that requires all data and information of an organisation to be stored in specific places or countries. Apart from the physical and geographical location of data, it also involves abiding by laws and regulations imposed on the country where the data is stored. Data Residency can sometimes be referred to it as data localisation. Due to the continuous advancements in cloud computing, data residency has become one of the rising concerns for organisations and governments trying to adopt cloud computing infrastructure.

Points to Remember

  • Generally, cloud services providers [link to #2.10] store data in several data centres [link to #4.4] located in multiple countries across the globe. This poses a major concern for cloud consumers because they often have little to no information about their data’s storage location and regulations enforced on that location.
  • To tackle the data residency challenges, many governments have introduced policies and regulations that are specially designed to handle data residency and protection issues.
  • Many organisations may encrypt their data using cloud data encryption tools. These tools help in preventing unauthorised access to data and easing some pressure that is due to data residency.