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

Airfoil 5.6.4 - Send audio from any app...
Airfoil allows you to send any audio to AirPort Express units, Apple TVs, and even other Macs and PCs, all in sync! It's your audio - everywhere. With Airfoil you can take audio from any... Read more
Hazel 4.2 - Create rules for organizing...
Hazel is your personal housekeeper, organizing and cleaning folders based on rules you define. Hazel can also manage your trash and uninstall your applications. Organize your files using a familiar... Read more
Tor Browser Bundle 7.0.6 - Anonymize Web...
The Tor Browser Bundle is an easy-to-use portable package of Tor, Vidalia, Torbutton, and a Firefox fork preconfigured to work together out of the box. It contains a modified copy of Firefox that... Read more
Mellel 4.0.1 - The word processor for sc...
Mellel is the leading word processor for OS X and has been widely considered the industry standard for long form documents since its inception. Mellel focuses on writers and scholars for technical... Read more
Videobox 4.2.3 - Download Flash video th...
Videobox allows you to quickly and easily download Flash video from most all of the popular video sites on the internet. Videobox will convert the video into a native Quicktime format so it's ready... Read more
Apple iMovie 10.1.7 - 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
Apple iBooks Author 2.6 - Create and pub...
Apple iBooks Author helps you create and publish amazing Multi-Touch books for iPad. Now anyone can create stunning iBooks textbooks, cookbooks, history books, picture books, and more for iPad. All... Read more
OmniFocus 2.11 - GTD task manager with i...
OmniFocus helps you manage your tasks the way that you want, freeing you to focus your attention on the things that matter to you most. Capturing tasks and ideas is always a keyboard shortcut away in... Read more
Path Finder 7.6 - Powerful, award-winnin...
Path Finder makes you a master of file management. Take full control over your file system. Save your time: compare and synchronize folders, view hidden files, use Dual Pane and full keyboard... Read more
Herald 8.0 - Notification plugin for Mai...
Note: Versions 2.1.3 (for OS X 10.7), 3.0.6 (for OS X 10.8), 4.0.8 (for OS X 10.9), 5.0.2 (for OS X 10.10), 6.0.3 (for OS X 10.11, and 7.0.3 (for OS X 10.12) are no longer supported by the developer... Read more

Morphite guide - how to explore like a p...
The much anticipated space exploration game, Morphite, has finally arrived, and we can't get enough of it. The game is essentially everything we wanted No Man's Sky to be. It's a game that puts a heavy focus on exploring foreign worlds, but the... | Read more »
The best visual novels on mobile
Narrative games have been around for ages, but only now have they been creeping into the mainstream spotlight. These games tell some of the industry's finest stories, and they break new ground in terms of gameplay and mechanics regularly. Here are... | Read more »
The best new games we played this week -...
It's pretty much been one big release after another. We were privy to a bunch of surprises this week, with a lot of games we'd been waiting for quite some time dropping unexpectedly. We hope you're free this weekend, because there is a lot for... | Read more »
Stormbound: Kingdom Wars guide - how to...
Stormbound: Kingdom Wars is an excellent new RTS turned card battler out now on iOS and Android. Lovers of strategy will get a lot of enjoyment out of Stormbound's chess-like mechanics, and it's cardbased units are perfect for anyone who loves the... | Read more »
The best AR apps and games on iOS right...
iOS 11 has officially launched, and with it comes Apple's ARKit, a helpful framework that makes it easier than ever for developers to create mobile AR experiences. To celebrate the occassion, we're featuring some of the best AR apps and games on... | Read more »
Phoenix Wright: Ace Attorney - Spirit of...
Phoenix Wright: Ace Attorney - Spirit of Justice 1.00.00 Device: iOS Universal Category: Games Price: $.99, Version: 1.00.00 (iTunes) Description: ************************************************※IMPORTANT※・Please read the “When... | Read more »
Kpressor (Utilities)
Kpressor 1.0.0 Device: iOS Universal Category: Utilities Price: $4.99, Version: 1.0.0 (iTunes) Description: The ultimate ZIP compression application for iPhone and iPad. - Full integration of iOS 11 with support for multitasking.-... | Read more »
Find out how you can save £35 and win a...
Nothing raises excitement like a good competition, and we’re thrilled to announce our latest contest. We’ll be sending one lucky reader and a friend to the Summoners War World Arena Championship at Le Comedia in Paris on October 7th. It’s the... | Read more »
Another Lost Phone: Laura's Story...
Another Lost Phone: Laura's Story 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Another Lost Phone is a game about exploring the social life of a young woman whose phone you have just... | Read more »
The Witness (Games)
The Witness 1.0 Device: iOS Universal Category: Games Price: $9.99, Version: 1.0 (iTunes) Description: You wake up, alone, on a strange island full of puzzles that will challenge and surprise you. You don't remember who you are, and... | Read more »

Price Scanner via MacPrices.net

macOS High Sierra Brings Powerful New Core St...
Apple has announced the release of macOS High Sierra, the latest Mac operating system, as a free update. With macOS High Sierra, Mac users gain powerful new core storage, video and graphics... Read more
QuickerTek Announces External Battery For USB...
QuickerTek has announced their USB Type-C Most Versatile eyeBattery, claimed to be the only product of its kind, featuring the USB 3.1 adapter cable necessary to power and charge the 2015-2017... Read more
How to save $200 or more on a new 15-inch App...
B&H Photo has the new 2017 15″ MacBook Pros on sale for up to $200 off MSRP. Shipping is free, and B&H charges sales tax in NY & NJ only: – 15″ 2.8GHz MacBook Pro Space Gray (MPTR2LL/A... Read more
9-inch and 12-inch iPad Pros, Certified Refur...
Apple has Certified Refurbished 2016 12″ WiFi iPad Pros available starting at $589. An Apple one-year warranty is included with each model, and shipping is free: – 32GB 12″ iPad Pro WiFi: $589... Read more
Mac minis on sale for $100 off MSRP
B&H Photo has Mac minis on sale for $100 off MSRP including free shipping plus NY & NJ sales tax only: – 1.4GHz Mac mini: $399 $100 off MSRP – 2.6GHz Mac mini: $599 $100 off MSRP – 2.8GHz Mac... Read more
Snag a Certified Refurbished Apple Pencil for...
Apple has Certified Refurbished Apple Pencils available for $85 including free shipping. Their price is $14 off MSRP, and it’s the lowest price available for a Pencil. Read more
12-inch 64GB iPad Pro on sale for $749, save...
Adorama has 12″ 64GB iPad Pros on sale today for $749 including free shipping plus NY & NJ sales tax only. Their price is $50 off MSRP. Read more
Apple Certified Refurbished iPad minis availa...
Apple has Certified Refurbished 128GB iPad minis available today for $339 including free shipping. Apple’s standard one-year warranty is included. Their price is $60 off MSRP. Read more
12-inch 1.2GHz Retina MacBook Pros on sale fo...
B&H Photo has 2017 12″ 1.2GHz Retina MacBooks on sale for $100 off MSRP. Shipping is free, and B&H charges sales tax in NY & NJ only: 12″ 1.2GHz Space Gray MacBook: $1199 $100 off MSRP 12... Read more
Sunday sale: 13-inch 3.1GHz MacBook Pros for...
Amazon has 2017 13″ 3.1GHz MacBook Pros on sale today for up to $150 off MSRP, each including free shipping: – 13″ 3.1GHz/256GB Space Gray MacBook Pro (MPXV2LL/A): $1649.99 $150 off MSRP – 13″ 3.1GHz... Read more

Jobs Board

*Apple* Data Center Site Selection and Strat...
Job Summary As Apple 's products and services scale the globe, the Data Center Affairs team works behind the scenes to secure infrastructure for Apple 's data Read more
Development Operations and Site Reliability E...
Development Operations and Site Reliability Engineer, Apple Payment Gateway Job Number: 57572631 Santa Clara Valley, California, United States Posted: Jul. 27, 2017 Read more
Data Engineer - *Apple* Media Products - Ap...
Job Summary Apple is seeking a highly skilled data engineer to join the Data Engineering team within Apple Media Products. AMP (home to Apple Music, App Read more
Development Operations and Site Reliability E...
Development Operations and Site Reliability Engineer, Apple Payment Gateway Job Number: 57572631 Santa Clara Valley, California, United States Posted: Jul. 27, 2017 Read more
Development Operations and Site Reliability E...
Development Operations and Site Reliability Engineer, Apple Payment Gateway Job Number: 57572631 Santa Clara Valley, California, United States Posted: Jul. 27, 2017 Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.