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

Evernote 6.0.15 - Create searchable note...
Evernote allows you to easily capture information in any environment using whatever device or platform you find most convenient, and makes this information accessible and searchable at anytime, from... Read more
MacUpdate Desktop 6.0.7 - Search and ins...
MacUpdate Desktop 6 brings seamless 1-click installs and version updates to your Mac. With a free MacUpdate account and MacUpdate Desktop 6, Mac users can now install almost any Mac app on macupdate.... Read more
Freeway Pro 7.0.4 - Drag-and-drop Web de...
Freeway Pro lets you design and build sophisticated responsive websites code free. With its user-oriented drag-and-drop interface, Freeway Pro helps you piece together the website of your dreams. Add... Read more
VueScan 9.5.18 - Scanner software with a...
VueScan is a scanning program that works with most high-quality flatbed and film scanners to produce scans that have excellent color fidelity and color balance. VueScan is easy to use, and has... Read more
Firetask 3.7 - Innovative task managemen...
Firetask uniquely combines the advantages of classical priority-and-due-date-based task management with GTD. Stay focused and on top of your commitments - Firetask's "Today" view shows all relevant... Read more
VOX 2.5.3 - Music player that supports m...
VOX is a beautiful music player that supports many filetypes. The beauty is in its simplicity, yet behind the minimal exterior lies a powerful music player with a ton of features and support for all... Read more
Apple iMovie 10.0.9 - Edit personal vide...
With an all-new design, Apple iMovie lets you enjoy your videos like never before. Browse your clips more easily, instantly share your favorite moments, and create beautiful HD movies and Hollywood-... Read more
MarsEdit 3.7.1 - Quick and convenient bl...
MarsEdit is a blog editor for OS X that makes editing your blog like writing email, with spell-checking, drafts, multiple windows, and even AppleScript support. It works with with most blog services... Read more
ClamXav 2.8.1 - Free virus checker, base...
ClamXav is a free virus checker for OS X. It uses the tried, tested, and very popular ClamAV open source antivirus engine as a back end. I have been working on ClamXav for more than 10 years now, and... Read more
CrossOver 14.1.4 - Run Windows apps on y...
CrossOver can get your Windows productivity applications and PC games up and running on your Mac quickly and easily. CrossOver runs the Windows software that you need on Mac at home, in the office,... Read more

World of Tanks Blitz celebrates its firs...
Today marks the first anniversary of the launch of World of Tanks Blitz, the mobile version of the PC tank battler, World of Tanks. World of Tanks Blitz launched on iOS and Android on June 26th last year and to celebrate, Wargaming is giving all... | Read more »
Heroes and Castles 2 Has its Own Standal...
Heroes and Castles 2 is a third-person castle defense game from the same team behind Block Fortress and Bug Heroes. It's cool, it's fun, and now it has its very own free version. [Read more] | Read more »
Formula Cartoon All-Stars Lets You Race...
Ever want to pit your favorite characters from shows like Steven Universe, Adventure Time, and Regular Show against each other in a not quite death race? Well once upon a time you could, but Formula All Stars Touch N' Go doesn't exist anymore. Hope... | Read more »
Retype - Typography Photo Editor (Photo...
Retype - Typography Photo Editor 1.0 Device: iOS Universal Category: Photography Price: $2.99, Version: 1.0 (iTunes) Description: Retype is built out of passion for great typography and it's all about adding text to photo with style... | Read more »
Hungry Shark Evolution Celebrates Shark...
Shark Week is almost here, as is Independence Day, so naturally Hungry Shark Evolution is going to get in on the action. Yes, even the fireworks. [Read more] | Read more »
The New Trivia Crack Will Feature a Musi...
It's official: iHeartMedia (you may know them from iHeartRadio) will be in charge of providing music-related questions for Trivia Crack's upcoming sequel. Also Trivia Crack is getting a sequel. [Read more] | Read more »
Toca Life: City (Education)
Toca Life: City 1.0 Device: iOS Universal Category: Education Price: $2.99, Version: 1.0 (iTunes) Description: Welcome to Toca Life: City, a metropolis filled with everyday fun! Customize characters, explore exciting locations and... | Read more »
Ironkill's Big New Update is Big an...
The other popular robot fighting game on the App Store, Ironkill, has received a pretty substantial update today. We're talking new bots, new rewards, graphical tweaks; the works. [Read more] | Read more »
iOS Users, Say Hello to Dragon Quest VI:...
The App Store is no stranger to the Dragon Quest series, and has had its fair share of ports for quite some time. That tradition is staying pretty much exactly the same with the release of Dragon Quest VI: Realms of Revelation. [Read more] | Read more »
Now is the best time to try League of An...
League of Angels - Fire Raiders is the mobile sequel to the hit Facebook MMORPG League of Angels and is out now on iOS and Android. There are over a hundred beautifully hand-drawn heroes and angels to collect that each possess their own unique... | Read more »

Price Scanner via MacPrices.net

MacBook Airs on sale for up to $75 off MSRP
Save up to $75 on the purchase of a new 2015 13″ or 11″ 1.6GHz MacBook Air at the following resellers. Shipping is free with each model: 11" 128GB MSRP $899 11" 256GB... Read more
Apple’s Education discount saves up to $300 o...
Purchase a new Mac or iPad at The Apple Store for Education and take up to $300 off MSRP. All teachers, students, and staff of any educational institution qualify for the discount. Shipping is free,... Read more
Save up to $600 with Apple refurbished Mac Pr...
The Apple Store has Apple Certified Refurbished Mac Pros available for up to $600 off the cost of new models. An Apple one-year warranty is included with each Mac Pro, and shipping is free. The... Read more
Mac Pros on sale for up to $260 off MSRP
B&H Photo has Mac Pros on sale for up to $260 off MSRP. Shipping is free, and B&H charges sales tax in NY only: - 3.7GHz 4-core Mac Pro: $2799, $200 off MSRP - 3.5GHz 6-core Mac Pro: $3719.99... Read more
Save up to $400 on 2014 15-inch Retina MacBoo...
B&H Photo has previous-generation 2014 15″ Retina MacBook Pros on sale for up to $400 off original MSRP. Shipping is free, and B&H charges NY sales tax only: - 15″ 2.2GHz Retina MacBook Pro... Read more
15-inch Retina MacBook Pros on sale for up to...
B&H Photo has new 2015 15″ Retina MacBook Pros on sale for up to $125 off MSRP including free shipping plus NY sales tax only: - 15″ 2.2GHz Retina MacBook Pro: $1899.99 $100 off - 15″ 2.5GHz... Read more
College Student Deals: Additional $100 off Ma...
Take an additional $100 off all MacBooks and iMacs at Best Buy Online with their College Students Deals Savings, valid through July 11, 2015. Anyone with a valid .EDU email address can take advantage... Read more
Apple refurbished Time Capsules available for...
The Apple Store has certified refurbished Time Capsules available for $100 off MSRP. Apple’s one-year warranty is included with each Time Capsule, and shipping is free: - 2TB Time Capsule: $199, $100... Read more
Newsweek Launches iPhone App
The venerable weekly news magazine Newsweek, owned by IBT Media, has announced the launch of its first iPhone app. The new app is available through Apple’s App Store and will allow consumers to read... Read more
New Initiative Covering 80 Million Homes Will...
Today, Internet service providers, equipment suppliers and retail equipment manufacturers joined the Consumer Electronics Association (CEA) and the National Cable & Telecommunications Association... Read more

Jobs Board

Architect / Senior Software Engineer, *Apple...
**Job Summary** Apple Pay is already changing our pay-habit in a deeper and fundamental level. We are looking for a software engineer with a passion for large scale inte Read more
Project Manager, *Apple* Retail New Store O...
**Job Summary** An Apple Retail New Store Openings & Remodels Project Manager is responsible for successfully managing the openings, remodels, and small works of Read more
*Apple* Solutions Consultant - Retail Sales...
**Job Summary** As an Apple Solutions Consultant (ASC) you are the link between our customers and our products. Your role is to drive the Apple business in a retail Read more
Program Manger, WW *Apple* Direct Fulfillme...
**Job Summary** We are seeking a business analyst to work within our Worldwide Apple Direct Fulfillment Operations team. This role will work closely with related program Read more
Hardware Design Validation Engineer - *Apple...
**Job Summary** The Apple Watch team is looking for a Hardware Design Validation Engineer. This person will be part of the Apple Watch hardware team with Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.