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Non-US businesses want to cut back on using US cloud systems

The article titled "Non-US businesses want to cut back on using US cloud systems" from TechRadar Pro discusses a significant shift in the global business landscape regarding the use of cloud computing services. The piece, authored by Sead Fadilpašić, delves into the findings of a survey conducted by the International Association of Privacy Professionals (IAPP) and the law firm DLA Piper. The survey reveals that a growing number of non-US businesses are considering reducing their reliance on US-based cloud systems due to various concerns, primarily related to data privacy and security.

The article begins by highlighting the key findings of the survey, which involved over 500 privacy professionals from around the world. According to the survey, 40% of respondents indicated that their organizations are actively looking to decrease their dependence on US cloud providers. This trend is driven by several factors, including heightened concerns over data sovereignty, the potential for US government surveillance, and the complexities of complying with international data protection regulations.

One of the main reasons cited for this shift is the increasing importance of data sovereignty. Many countries have introduced or strengthened their data protection laws, which often require that data be stored and processed within the country's borders. The European Union's General Data Protection Regulation (GDPR), for instance, has set a high standard for data protection, and non-compliance can result in hefty fines. As a result, businesses operating in the EU and other regions with strict data protection laws are seeking cloud solutions that can guarantee compliance with these regulations.

Another significant concern is the potential for US government surveillance. The revelations by Edward Snowden in 2013 about the US National Security Agency's (NSA) surveillance programs have left a lasting impact on global perceptions of data security. Many businesses fear that their data could be accessed by US intelligence agencies, even if they are not based in the US. This fear is compounded by the fact that US laws, such as the Cloud Act, allow the US government to access data held by US companies, regardless of where the data is stored.

The article also discusses the complexities of navigating the global regulatory landscape. With different countries implementing their own data protection laws, businesses face a challenging task in ensuring compliance across multiple jurisdictions. This complexity is particularly acute for multinational corporations that operate in regions with conflicting regulations. The survey found that 60% of respondents believe that the regulatory environment is becoming more challenging, and 45% feel that it is becoming more fragmented.

In response to these concerns, many non-US businesses are exploring alternative cloud solutions. The article mentions that European cloud providers, such as Germany's Deutsche Telekom and France's OVHcloud, are seeing increased interest from businesses looking to reduce their reliance on US-based services. These providers often emphasize their compliance with local data protection laws and their commitment to data sovereignty.

The article also touches on the potential impact of this shift on the US cloud industry. Major US cloud providers, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, have dominated the global market for years. However, the growing demand for non-US cloud solutions could pose a challenge to their continued growth. The article suggests that these companies may need to adapt their offerings to better address the concerns of international customers, such as by providing more options for data localization and enhanced privacy protections.

Furthermore, the article discusses the broader implications of this trend for the global tech industry. As businesses increasingly prioritize data privacy and security, there may be a shift towards more decentralized and localized cloud solutions. This could lead to the development of new technologies and business models that prioritize data sovereignty and compliance with local regulations.

The article also highlights the potential challenges that businesses may face in transitioning away from US cloud providers. Many organizations have invested heavily in building their IT infrastructure around these services, and switching to alternative providers could be costly and time-consuming. Additionally, some businesses may find that non-US cloud providers do not offer the same level of service or scalability as their US counterparts.

In conclusion, the article emphasizes that the trend of non-US businesses seeking to reduce their reliance on US cloud systems is a significant development in the global tech landscape. Driven by concerns over data privacy, security, and regulatory compliance, this shift could have far-reaching implications for the cloud industry and the broader technology sector. As businesses navigate this changing landscape, they will need to carefully consider their cloud strategies and weigh the benefits and challenges of different solutions.

Overall, the article provides a comprehensive overview of the current state of the global cloud market and the factors driving the shift away from US-based services. It offers valuable insights for businesses, policymakers, and technology professionals as they grapple with the complex issues surrounding data privacy and security in the digital age.

Read the Full TechRadar Article at:
[ https://www.techradar.com/pro/non-us-businesses-want-to-cut-back-on-using-us-cloud-systems ]