Unseen business risks can cripple data centers and their owners
TweetFollow Us on Twitter

Unseen business risks can cripple data centers and their owners

Two major "unseen" risks threaten businesses that use data centers -- the "data factories" that power "the Cloud," the government and every major business. A peer group of senior data center professionals last week discovered that these major risk factors are often not considered until after a data centre has been built -- in a sub-optimal country, with very serious adverse implications.

This was one of the major surprise findings when 70 C-level executives -- between them responsible for tens of thousands of data centers around the globe -- met together with legal and tax specialists to pool expertise on the risks that face multinational companies from the design, location and operation of these business-critical systems.
 
Nicola Hayes, managing director of research analysts DCD Intelligence -- which planned the event based on their recent research findings -- said, data centers now operate just about everything we do -- from running our offices factories and businesses, online shopping and email, Facebook, Twitter, to banking and airline bookings.
 
"Historically, data centers have been built by technologists to minimize the risk of technical failure," Hayes added. " But now that the data center is such an integral part of most businesses -- it transpires that there are massive potential risks at the commercial and legislative levels that are being largely ignored -- with potentially business-crippling consequences."
 
He added that "two of our expert speakers explained just how damaging two rarely-considered types of risk can be to a business: the tax regime and the data privacy laws in the jurisdiction where the data centre is to be built."
 
According to Joe Bollard, Ernst and Young’s partner, international tax services; tax laws around the world have not caught up with online age. In many ways they are still in the age of the horse and cart.
 
"Governments are fearful that they are losing tax revenues as business and e-commerce is processed and transacted in data centers which might be the other side of the world from the customer and the supplier," he says. "As a result they are scrabbling to grab their fair share (or, in the eyes of some taxpayers, more than their fair share) of tax on these billions of online business operations."
 
Bollard went on to explain that failure to consider the location of a data centre from a tax perspective can lead both the owner and the users of that data center to face tax bills 20% to 40% higher than the business had expected. Unwitting companies can even find themselves subject  to double or triple taxation being levied by multiple countries through failing to perform due diligence on the tax implications of that data centre’s location.
 
"A business could find itself at a significant competitive disadvantage or yielding net losses if it only finds out that it has let itself in for these levels of taxation after building and opening a multi-million pound new data centre," says Bollard. "My message to all CIOs is: work with your CFO or tax advisor at the earliest planning stage to make sure that you don’t fall into this potential minefield."

A second major risk, rarely considered until it’s too late, was identified by Ruth Boardman, partner for international privacy and data protection with Bird and Bird. In some jurisdictions, private data can be anything as simple as the information on a business card, she explained. She added that, in fact, anything where the information can be directly or indirectly linked to an individual human, so it can cover the majority of data.”
 
"If a company fails to do due diligence on data privacy legislation in the countries in which it is considering building its new data center(s) it may find -- as some companies already have -- that it is illegal to transfer personal data to that datacentre or indeed back from the data center to the head office -- because that foreign government does not permit it," Boardman says. She further explained that most countries have or are implementing data privacy legislation -- but the details differ significantly from country to country and even between states within countries. 

"This can often lead to the laws of the businesses operating country and the data center country being mutually exclusive," she adds.
 
Boardman cited the example where EU law demands protection for personal data whilst, should the data centre be operated by an organization with USA presence, legislation linked to the US Patriot Act can allow US agencies access to data – including data not kept in the USA. Clearly it may be impossible for a company to comply with both laws.
 
"The penalties in some countries are draconian." Boardman warned.  "In extremis individuals rather than corporations can be held liable."

To demonstrate this she recalled the case in 2011 of three Google executives who were personally prosecuted and convicted for a corporate breach of Italy’s data privacy laws. The convictions were overturned on appeal, but it highlights the risks involved.
 
Summing up, DCD Intelligence’s Nicola Hayes said, data centers are no longer just big lumps of technology, they are a key enabler of every business-- equivalent to factories -- and companies need to do the same due diligence they would when considering building a new factory to understand and mitigate risks. Failure to do so can leave the entire business at risk from massive tax bills through to criminal prosecutions.
 
"No longer can the planning of data centre strategy be left to the technologists," Hayes adds. "Today’s CIO and the board must be fully involved in data centre planning.”
 
The next in this series of C-Level seminars on "Leveraging International Data Center Portfolios for Strategic Advantage" will be held in New York  later this year. To register your interest email info@dcd-intelligence.com .

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

ExpanDrive 6.1.8 - Access cloud storage...
ExpanDrive builds cloud storage in every application, acts just like a USB drive plugged into your Mac. With ExpanDrive, you can securely access any remote file server directly from the Finder or... Read more
DiskCatalogMaker 7.2.7 - Catalog your di...
DiskCatalogMaker is a simple disk management tool which catalogs disks. Simple, light-weight, and fast Finder-like intuitive look and feel Super-fast search algorithm Can compress catalog data for... Read more
DiskCatalogMaker 7.2.7 - Catalog your di...
DiskCatalogMaker is a simple disk management tool which catalogs disks. Simple, light-weight, and fast Finder-like intuitive look and feel Super-fast search algorithm Can compress catalog data for... Read more
Iridient Developer 3.2.1 - Powerful imag...
Iridient Developer (was RAW Developer) is a powerful image-conversion application designed specifically for OS X. Iridient Developer gives advanced photographers total control over every aspect of... Read more
BusyContacts 1.2.7 - Fast, efficient con...
BusyContacts is a contact manager for OS X that makes creating, finding, and managing contacts faster and more efficient. It brings to contact management the same power, flexibility, and sharing... Read more
MegaSeg 6.0.5 - Professional DJ and radi...
MegaSeg is a complete solution for pro audio/video DJ mixing, radio automation, and music scheduling with rock-solid performance and an easy-to-use design. Mix with visual waveforms and Magic... Read more
BusyContacts 1.2.7 - Fast, efficient con...
BusyContacts is a contact manager for OS X that makes creating, finding, and managing contacts faster and more efficient. It brings to contact management the same power, flexibility, and sharing... Read more
MegaSeg 6.0.5 - Professional DJ and radi...
MegaSeg is a complete solution for pro audio/video DJ mixing, radio automation, and music scheduling with rock-solid performance and an easy-to-use design. Mix with visual waveforms and Magic... Read more
Iridient Developer 3.2.1 - Powerful imag...
Iridient Developer (was RAW Developer) is a powerful image-conversion application designed specifically for OS X. Iridient Developer gives advanced photographers total control over every aspect of... Read more
iFFmpeg 6.6.1 - Convert multimedia files...
iFFmpeg is a comprehensive media tool to convert movie, audio and media files between formats. The FFmpeg command line instructions can be very hard to master/understand, so iFFmpeg does all the hard... Read more

Latest Forum Discussions

See All

Reigns: Her Majesty guide - how to use e...
Ruling a kingdom isn't easy--doubly so for a queen whose every decision is questioned by the other factions seeking a slice of power. Reigns: Her Majesty builds on the original game's swipey tactics, adding items that you can use to move the story... | Read more »
The best new games we played this week -...
Friday has crept up on us once again, so it's time to honor the best new games we've played over the past few days. This past week was a pretty exciting one, with the debut of lots of beautiful new indies and some familiar faces returning to the... | Read more »
Portal Knights guide- beginner tips and...
Portal Knights is finally making the jump to iOS and Android, and it's already climbing the ranks to become the next big MMO experience on mobile. This sprawling sandbox game will let you pursue any adventure you wish, whether you want to sling... | Read more »
Reigns: Her Majesty guide - how to swipe...
Reigns: Her Majesty is storming the App Store this week, bringing more tinder-esque kingdom building to eager players everywhere. If you've played the original Reigns, you'll know that leading a kingdom is never easy. It's a careful balancing act... | Read more »
Getting Over It (Games)
Getting Over It 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: A game I madeFor a certain kind of person To hurt them. • Climb up an enormous mountain with nothing but a hammer and a pot.•... | Read more »
Reigns: Her Majesty (Games)
Reigns: Her Majesty 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: | Read more »
Pocket Legends Adventures guide - how to...
Pocket Legends Adventures is a fun action adventure RPG that takes control when you want it to, but also opens itself for player input, too, if you're looking to tkae a more active role in combat. Regardless of play style, the game can be quite... | Read more »
Portal Knights (Games)
Portal Knights 1.2.4 Device: iOS Universal Category: Games Price: $4.99, Version: 1.2.4 (iTunes) Description: Craft your adventure. Forge your hero. Become the ultimate Portal Knight! | Read more »
Ashworld (Games)
Ashworld 1.3 Device: iOS Universal Category: Games Price: $3.99, Version: 1.3 (iTunes) Description: | Read more »
The best deals on the App Store this wee...
Another week means another roundup of quality bargain games. This week's list features a few games we haven't featured before in our weekly roundups. If you're on the prowl for new games, now's an optimal time to try something completely new for... | Read more »

Price Scanner via MacPrices.net

Beats by Dr. Dre – BeatsX Earphones on sale f...
Best Buy has BeatsX Earphones on sale for $109, $40 off, on their online store. Sale price for online orders only. Choose free store pickup, if available, or choose free shipping. Read more
10″ 64GB WiFi Apple iPad Pros on sale for $59...
MacMall has 10.5″ 64GB Apple iPad Pros on sale for $599 including free shipping. That’s $50 off MSRP and among the lowest prices available for these iPads from any Apple reseller. Read more
15″ 2.2GHz MacBook Pros on sale for $200-$300...
B&H Photo has the 15″ 2.2GHz MacBook Pro available for $200 off MSRP including free shipping plus NY & NJ sales tax only: – 15″ 2.2GHz MacBook Pro (MJLQ2LL/A): $1799 $200 off MSRP Apple has... Read more
Holiday sale: 15″ MacBook Pros for $200-$420...
MacMall has 15″ MacBook Pros on sale for $220-$300 off MSRP, each including free shipping: – 15″ 2.8GHz MacBook Pro Space Gray (MPTR2LL/A): $2179, $220 off MSRP – 15″ 2.8GHz MacBook Pro Silver (... Read more
Holiday sale: 13″ MacBook Airs for up to $150...
B&H Photo has 13″ MacBook Airs on sale for $100 off MSRP as part of their Holiday sale. Shipping is free, and B&H charges sales tax for NY & NJ residents only: – 13″ 1.8GHz/128GB MacBook... Read more
The best Holiday sale prices on 13″ MacBook P...
B&H Photo has 13″ MacBook Pros on sale this weekend, with models available for $100-$150 off MSRP. Shipping is free, and B&H charges sales tax for NY & NJ residents only: – 13-inch 2.3GHz... Read more
Holiday sale: 27″ Apple iMacs for $150-$200 o...
MacMall has 27″ iMacs on sale for $150-$200 off MSRP as part of their Holiday sale, each including free shipping: – 27″ 3.8GHz iMac (MNED2LL/A): $2099 $200 off MSRP – 27″ 3.5GHz iMac (MNEA2LL/A): $... Read more
Save on clearance 2016 15″ MacBook Pros, up t...
B&H Photo has clearance 2016 15″ MacBook Pros available for up to $700 off original MSRP. Shipping is free, and B&H charges NY & NJ sales tax only: – 15″ 2.7GHz Touch Bar MacBook Pro... Read more
Apple offers Certified Refurbished 9.7″ iPads...
Apple has Certified Refurbished 9.7″ WiFi iPads available for $50-$70 off the cost of new models. An Apple one-year warranty is included with each iPad, and shipping is free: – 9″ 32GB WiFi iPad: $... Read more
Save $200-$240 on a 12″ Apple MacBook with Ce...
Apple has Certified Refurbished 2017 12″ Retina MacBooks available for $200-$240 off the cost of new models. Apple will include a standard one-year warranty with each MacBook, and shipping is free.... Read more

Jobs Board

*Apple* Retail - Multiple Positions - Apple,...
Job Description:SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Retail - Multiple Positions - Apple,...
Job Description:SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Information Security - Security Data...
# Apple Information Security - Security Data Analyst Job Number: 113119545 Austin, Texas, United States Posted: 10-Nov-2017 Weekly Hours: 40.00 **Job Summary** This Read more
*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.