Compliance Is Possible with the Right Provider
Because today’s companies operate in the cloud, they can reach a global audience with ease. At any given moment, you could have customers from Indiana, Indonesia, and Ireland using your services or purchasing your products. With such a widespread customer base, your business data will inevitably cross borders. What does this mean for data privacy, protection, and compliance?
If your company deals with customers on a global — or at the very least, multi-national — scale, then understanding the concept of data residency is essential. Data residency deals with the laws and regulations that dictate where data must be stored and managed. Compliance with the relevant laws keeps you in good business standing and builds trust with your customers.
In this post, we’ll explore the concept of data residency. We’ll look at the implications of a global customer base on your compliance footprint and efforts. At first glance, achieving compliance with data residency requirements may seem like an insurmountable task. However, leveraging cloud regions from the right cloud provider — such as through Private Dynos from Heroku Enterprise — can help relieve your data residency headaches.
Before we begin, and as a reminder, this blog should not be taken as legal advice, and you should always seek your own counsel on matters of legal and regulatory compliance. Let’s start with a brief primer on the core concept for this post.
What is data residency?
Data residency refers to the legal requirements that dictate where your data may be stored and processed. When it comes to data management — which is how you handle data throughout its lifecycle — taking into account data residency concerns is essential. Ultimately, this comes down to understanding where a user of your application resides, and subsequently where their data must be stored and processed.
When people think of data protection laws, many immediately think of the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA). GDPR has certain requirements about how organizations handle and process the data of individuals residing within the EU. The CCPA regulates how businesses handle the personal data of California residents.
GDPR and CCPA have stringent rules about how data is processed, but they do not necessarily impose strict requirements on where data resides, as long as that data has been processed in a compliant manner. However, many countries have strict data residency laws regarding certain kinds of data. For example, China’s Personal Information Protection Law requires handlers of certain types of personally identifiable information (PII) of a Chinese citizen be stored within China’s borders.
Tangentially related to the concept of data residency are two other concepts worth noting:
- Data sovereignty deals with a nation’s legal authority and jurisdiction over data, regardless of where it is physically located.
- Digital rights emphasizes the individual’s autonomy and authority over their personal data.
Why does data residency matter for compliance?
Your enterprise may be dealing with data from residents or citizens of specific countries or with specific industries in countries that have strict requirements about where the data must be stored. These are data residency requirements, and businesses that operate internationally must comply with these requirements to avoid running afoul of the law.
Compliance ensures that your data handling aligns with local laws and regulations. It helps you avoid legal penalties, and it builds trust among your global customers.
What happens if you don’t comply? The risks of non-compliance are significant. Non-compliance can have far-reaching consequences for any business, including:
- Hefty fines
- Legal disputes
- Possible loss of a license to operate as a business
- Erosion of customer trust
- Damaged company reputation
If your business has a global customer base, then data residency matters because compliance is a must. Managing your data in compliance is more than just a legal buffer; it’s foundational to business integrity and customer trust.
How cloud regions can help you with data residency compliance
This brings us to the all-important concept of cloud regions. Leveraging cloud regions effectively could be a game-changer for your enterprise’s ability to meet data residency requirements, thereby maintaining compliance.
When a cloud provider gives you the option of cloud regions, you can specify where your data is stored. This helps you to align your data handling practices with regional compliance laws and regulations.
For example, if your customer is an EU resident, you might choose to store their data in an EU-based cloud region. If the sensitive data you process is sourced in India, then it might make sense to store that data in India, to satisfy local jurisdiction and compliance requirements.
When you take advantage of cloud regions, you bring better and more granular control over your data. In addition, you likely boost application performance by using geographical proximity to optimize data access.
Using cloud regions lets you scale operations internationally while maintaining compliance. You can be sure that each segment of your business adheres to the data protection standards of any given local jurisdiction.
Heroku’s Private Dynos for global application data compliance
Heroku Enterprise offers dynos in Private Spaces. These Private Dynos give you enhanced privacy and control, allowing your company to choose from the following cloud regions:
- Dublin, Ireland
- Frankfurt, Germany
- London, United Kingdom
- Montreal, Canada
- Mumbai, India
- Oregon, United States
- Singapore
- Sydney, Australia
- Tokyo, Japan
- Virginia, United States
These options enable globally operating companies to maintain compliance across different jurisdictions.
In addition to cloud regions, Heroku offers Heroku Shield, which provides additional security features necessary for high compliance operations. With Heroku Shield Private Spaces, Heroku maintains compliance certifications for PCI, HIPAA, ISO, and SOC.
As we’ve discussed, understanding and implementing adequate data residency measures is essential to your ability to operate. However, with cloud regions from a reliable and secure cloud provider platform, compliance is achievable.
Taking advantage of Heroku’s various products — whether it’s Private Dynos or Heroku Shield — to address the various laws or regulations that apply to your organization can move you in the direction of maintaining compliance. In addition, by using these features to simplify your data management and data residency concerns, you’ll also level up your operational efficiency.
Are you ready to see how Heroku can streamline your compliance efforts with Private Dynos and Heroku Shield? Contact Heroku to find out more today!