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

iExplorer 4.1.9 - View and transfer file...
iExplorer is an iPhone browser for Mac lets you view the files on your iOS device. By using a drag and drop interface, you can quickly copy files and folders between your Mac and your iPhone or... Read more
PCalc 4.5.3 - Full-featured scientific c...
PCalc is a full-featured, scriptable scientific calculator with support for hexadecimal, octal, and binary calculations, as well as an RPN mode, programmable functions, and an extensive set of unit... Read more
Slack 2.9.0 - Collaborative communicatio...
Slack is a collaborative communication app that simplifies real-time messaging, archiving, and search for modern working teams. Version 2.9.0: Slack now officially, and fully, supports Japanese.... Read more
Microsoft Office 2016 15.40 - Popular pr...
Microsoft Office 2016 - Unmistakably Office, designed for Mac. The new versions of Word, Excel, PowerPoint, Outlook and OneNote provide the best of both worlds for Mac users - the familiar Office... Read more
Apple iOS 11.1.2 - The latest version of...
iOS 11 sets a new standard for what is already the world’s most advanced mobile operating system. It makes iPhone better than before. It makes iPad more capable than ever. And now it opens up both to... Read more
Adobe InCopy CC 2018 13.0.1.207 - Create...
InCopy CC 2018 is available as part of Adobe Creative Cloud for as little as $19.99/month (or $9.99/month if you're a previous InCopy customer). Adobe InCopy CC 2018, ideal for large team projects... Read more
Adobe InDesign CC 2018 13.0.1.207 - Prof...
InDesign CC 2018 is available as part of Adobe Creative Cloud for as little as $19.99/month (or $9.99/month if you're a previous InDesign customer). Adobe InDesign CC 2018 is part of Creative Cloud.... Read more
Tor Browser Bundle 7.0.10 - Anonymize We...
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
OmniOutliner Pro 5.2 - Pro version of th...
OmniOutliner Pro is a flexible program for creating, collecting, and organizing information. Give your creativity a kick start by using an application that's actually designed to help you think. It's... Read more
iShowU Instant 1.2.3 - Full-featured scr...
iShowU Instant gives you real-time screen recording like you've never seen before! It is the fastest, most feature-filled real-time screen capture tool from shinywhitebox yet. All of the features you... Read more

Latest Forum Discussions

See All

A Boy and His Blob (Games)
A Boy and His Blob 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: | Read more »
Fight terrible monsters and collect epic...
Released on Western markets early last month, Dragon Project, created by Japanese developer COLOPL, brings epic monster hunting action to mobile for the very first time. Collect a huge array of weapons and armor, and join up with friends to fight... | Read more »
I Am The Hero (Games)
I Am The Hero 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: I Am The Hero is a pixel art, beat 'em up, fighting game that tells the story of a "Hero" with a glorious but mysterious past.... | Read more »
Kauldron (Music)
Kauldron 1.0 Device: iOS Universal Category: Music Price: $3.99, Version: 1.0 (iTunes) Description: Kauldron is our warmest sounding, punchiest synth yet! A completely new modeling technology, combined with carefully designed... | Read more »
Lineage II: Revolution is mobile’s bigge...
NCSoft’s hit fantasy MMORPG series has just made the leap to mobile with the help of Netmarble in Lineage II: Revolution. With over 1.5 million players having already pre-registered ahead of the game’s launch, Revolution hit the app stores... | Read more »
Swing skilfully in new physics-based pla...
Sometimes it’s the most difficult of obstacles that can be the most rewarding. One game hoping to prove this is OCMO, the new tough but fair platformer from developers Team Ocmo. Primed to set every speedrunner’s pulse racing, as an otherworldly... | Read more »
RPGolf (Games)
RPGolf 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Once upon a time, the kingdom was a land of peace, harmony, and an all-consuming passion for the greatest sport - GOLF. Everyone in the... | Read more »
Everything you need to know about Fire E...
Fire Emblem Heroes is getting its biggest update yet as Nintendo unveiled Book II last night, featuring a whole new set of story missions and yes, collectible heroes. The update's not out just yet, but here's what you can expect when the new... | Read more »
The biggest updates out this week - Nove...
A big game update is always a treat. Multiply that by four and you're having a really good week. Those weeks don't come around very often, but you're in luck. This chilly mid-November is chock full updates for some of your favorite titles, and they... | Read more »
Ocmo (Games)
Ocmo 1.0.13 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.13 (iTunes) Description: Ocmo is an award winning ninja rope platformer that challenges even hardcore gamers. Fluid movement, physics based gameplay and... | Read more »

Price Scanner via MacPrices.net

Early Black Friday sale: Apple iMacs for up t...
B&H Photo has 27-inch iMacs in stock and on sale for up $130-$150 off MSRP including free shipping. B&H charges sales tax in NY & NJ only: – 27″ 3.8GHz iMac (MNED2LL/A): $2149 $150 off... Read more
Apple restocks refurbished Mac minis starting...
Apple has restocked Certified Refurbished Mac minis starting at $419. Apple’s one-year warranty is included with each mini, and shipping is free: – 1.4GHz Mac mini: $419 $80 off MSRP – 2.6GHz Mac... Read more
Save on 12″ MacBooks, Apple refurbished model...
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
Early Holiday sale: 12″ iPad Pros for up to $...
B&H Photo has 12″ iPad Pros on sale today for up to $130 off MSRP. Shipping is free, and B&H collects no sales tax outside NY & NJ: – 12″ 64GB WiFi iPad Pro: $749, save $50 – 12″ 256GB... Read more
Holiday sale prices on Apple 13″ MacBook Pros...
B&H Photo has 2017 13″ MacBook Pros in stock today and on sale for $100-$150 off MSRP, each including free shipping plus NY & NJ sales tax only: – 13-inch 2.3GHz/128GB Space Gray MacBook Pro... Read more
Sale: 13″ MacBook Airs starting at $899, $100...
B&H Photo has 2017 13″ MacBook Airs on sale today for $100 off MSRP including free shipping. B&H charges NY & NJ sales tax only: – 13″ 1.8GHz/128GB MacBook Air (MQD32LL/A): $899, $100 off... Read more
Week’s Best Deal on 13″ MacBook Pros: Apple r...
Apple has a full line of Apple Certified Refurbished 2017 13″ MacBook Pros available for $200-$300 off MSRP. A standard Apple one-year warranty is included with each MacBook, and shipping is free.... Read more
Deal: 15″ 2.6GHz MacBook Pro for $1799 w/free...
B&H Photo has clearance 2016 15″ 2.6GHz Touch Bar MacBook Pros in stock today and available for $600 off original MSRP. Shipping is free, and B&H charges NY & NJ sales tax only: – 15″ 2.... Read more
Black Friday pricing on the 1.4GHz Mac mini....
MacMall has the 1.4GHz Mac mini on sale for $399 including free shipping. Their price is $100 off MSRP (20% off), and it’s the lowest price for available for this model from any reseller. MacMall’s... Read more
Early Black Friday deal: 15″ Apple MacBook Pr...
B&H Photo has 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): $2199, $200... Read more

Jobs Board

AppleCare Support Engineer for *Apple* Medi...
…Summary AppleCare Engineering, Software & Services, is a group that works to represent Apple 's World Wide contact centers and Apple 's customers to groups within Read more
Site Reliability Engineer, *Apple* Pay - Ap...
Job Summary The Apple Pay Site Reliability Engineering Team is hiring for multiple roles focused on the front line customer experience and the back end integration Read more
*Apple* Solutions Consultant - Apple (United...
# Apple Solutions Consultant Job Number: 86078534 Fairless Hills, Pennsylvania, United States Posted: 07-Jul-2017 Weekly Hours: 40.00 **Job Summary** As an Apple Read more
Digital Marketing Media Planner, *Apple* Se...
Job Summary Apple is looking to add a hyper-organized, strategic, and fast-learning member to its Digital Marketing team to help support Apple Services ( Apple Read more
*Apple* Retail - Multiple Positions - Apple...
SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.