Organisations worldwide are generating vast volumes of data on a daily basis – and there’s no sign of a slowdown. In fact, according to research by Statista, global data creation is projected to grow to more than 180 zettabytes by 2025. To put this figure into perspective, remember that the average e-book is one megabyte: 180 zettabytes is thus equivalent to about 180 trillion e-books! Collectively, we’re creating a truly staggering amount of data – and it’s causing significant challenges in management and security.

For business organisations, in particular, this data explosion is a mixed blessing. On the one hand, data is a valuable asset that can be leveraged in myriad ways; on the other, it’s a resource that must be managed, organised and protected in line with strict national and international legislation. With laws like South Africa’s Protection of Personal Information Act (POPIA) and the European Union’s General Data Protection Regulation (GDPR), among others, governments and state entities are working to ensure that data privacy and data security are mandated as widely as possible. Today, it’s estimated that 75% of the global population has personal data covered under modern privacy and security rules.

To remain compliant with data regulations like POPIA and the GDPR, for example, you must be able to control and safeguard all data in your possession, no matter where that data lives or travels. You must also have full visibility across your data landscape and knowledge of the security risks around your data so that you can put robust defences in place. Data discovery, data classification and continuous monitoring are critical stages in this process.

BUI Modern Work Specialist Dirk Prinsloo explains why it’s imperative to know where your cloud data resides – for the sake of security and compliance.

The rapid advances in cloud computing have made it easier than ever for businesses to store their data almost anywhere in the world – but this convenience has also raised a number of questions for enterprise stakeholders… Where, precisely, is digital information kept? How is it secured? And are there legal, regulatory, or privacy issues to consider when it comes to data in the cloud?

“Data residency and data sovereignty can be tricky topics to navigate,” says Dirk Prinsloo, Modern Work Specialist at BUI South Africa. “There’s a lot of confusion about these terms because they’re used so interchangeably. They are related, but they don’t mean the same thing. It’s important for the public – and for cloud customers in particular – to understand each concept so that sound decisions can be made regarding data processing and data storage.”

The difference between data residency and data sovereignty

Data residency refers to the defined geographic territory where a company stores its data. The actual location may be stipulated in local, regional, or national legislation; in sector regulations or industry standards; or even in the terms and conditions of a business contract.

“It’s about boundary lines,” observes Prinsloo. “It’s about the specific place where data is housed and retained. For a South African company serving South African customers within South African borders, the parameters are pretty clear. But for an international brand with offices across the globe, it can be a complex landscape.”

Data residency requirements vary from country to country. They typically apply to all business and customer data, but they can also be limited to certain types of information – including personal data (like someone’s name or gender), medical or healthcare data (like patient records from hospitals), or financial data (like a buyer’s credit card number or a company’s accounting statements)…