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

OmniOutliner Pro 4.6 - 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
Alfred 3.1 - Quick launcher for apps and...
Alfred is an award-winning productivity application for OS X. Alfred saves you time when you search for files online or on your Mac. Be more productive with hotkeys, keywords, and file actions at... Read more
OmniOutliner 4.6 - Organize your ideas,...
OmniOutliner 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
Default Folder X 5.0.6 - Enhances Open a...
Default Folder X attaches a toolbar to the right side of the Open and Save dialogs in any OS X-native application. The toolbar gives you fast access to various folders and commands. You just click on... Read more
Adobe Creative Cloud 3.8.0.310 - Access...
Adobe Creative Cloud costs $19.99/month for a single app, or $49.99/month for the entire suite. Introducing Adobe Creative Cloud desktop applications, including Adobe Photoshop CC and Illustrator CC... Read more
MYStuff Pro 2.0.25 - Create inventories...
MYStuff Pro is the most flexible way to create detail-rich inventories for your home or small business. Add items to MYStuff by dragging and dropping existing information, uploading new images, or... Read more
Viber 6.2.0 - Send messages and make cal...
Viber lets you send free messages and make free calls to other Viber users, on any device and network, in any country! Viber syncs your contacts, messages and call history with your mobile device, so... Read more
Data Rescue 4.2.3 - Powerful hard drive...
Use Data Rescue to recover: crashed, corrupted or non-mounting hard drive deleted, damaged, or lost files reformatted or erased hard drive One powerful new feature found in Data Rescue 4 is... Read more
Microsoft Remote Desktop 8.0.34 - Connec...
With Microsoft Remote Desktop, you can connect to a remote PC and your work resources from almost anywhere. Experience the power of Windows with RemoteFX in a Remote Desktop client designed to help... Read more
Microsoft Remote Desktop 8.0.34 - Connec...
With Microsoft Remote Desktop, you can connect to a remote PC and your work resources from almost anywhere. Experience the power of Windows with RemoteFX in a Remote Desktop client designed to help... Read more

Find out the story behind League of Ange...
If you’re looking for a new thrilling MMORPG to play with your friends then you’ll be excited to hear that there is a sequel to one of the most well known titles in the genre – namely League of Angels 2. With a brand new 3D engine offering... | Read more »
Naruto Shippuden: Ultimate Ninja Blazing...
I'm not sure if it's possible to say you are an anime fan but also never have seen one episode of Naruto. If it is, then I resemble that remark, and if not, I offer a hearty apology. [Read more] | Read more »
5 mobile games that let you explore spac...
No Man's Sky hasn't exactly turned out to be everything it was promised. Though its core concept of exploring an unimaginably vast universe of different planets is an intriguing one, the execution has left many PS4 and PC gamers feeling like they... | Read more »
Mummy madness in new action game Tomb He...
Hot on the tail of Bump Hero, ZPlay is giving gamers another reason to get screen bashing with a brand new release. Tomb Heroes is a challenging action game in which you battle enemies in various tombs around the world. You can select from nine... | Read more »
Siralim 2 (RPG / Roguelike) (Games)
Siralim 2 (RPG / Roguelike) 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: Siralim 2 is an old-school monster catching RPG. Summon and customize hundreds of creatures to fight for you as... | Read more »
Clean Text (Productivity)
Clean Text 1.0 Device: iOS Universal Category: Productivity Price: $3.99, Version: 1.0 (iTunes) Description: | Read more »
Gemini - A Journey of Two Stars (Games)
Gemini - A Journey of Two Stars 1.0.1 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0.1 (iTunes) Description: *** SPECIAL LAUNCH SALE: $2.99 (25% off) *** "A mesmerizing and unexpectedly emotional journey." -- Los... | Read more »
How to get four NFL superstars for your...
Even though you're probably well on your way to building a top notch squad for the new season in Madden NFL Mobile, let's say you could beef it up by adding Rob Gronkowski, Antonio Brown, Von Miller, and Todd Gurley to your roster. That's... | Read more »
Cartoon Network Superstar Soccer: Goal!!...
Cartoon Network Superstar Soccer: Goal!!! – Multiplayer Sports Game Starring Your Favorite Characters 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Become a soccer superstar with your... | Read more »
NFL Huddle: What's new in Topps NFL...
Can you smell that? It's the scent of pigskin in the air, which either means that cliches be damned, pigs are flying in your neck of the woods, or the new NFL season is right around the corner. [Read more] | Read more »

Price Scanner via MacPrices.net

RESCUECOM 2016 Semi-Annual Computer Reliabili...
The beginning of a new school year is upon us again, in which students and parents have some very important choices to make, often including the purchase of a computer or tablet. Whether you are... Read more
VRS Design Damda Glide Series iPhone 7 and 7...
What makes the Damda Glide Series for the iPhone 7 and iPhone 7 Plus special? Case maker VRS Design says its Damda Glide Series is the first mobile case to incorporate a semi-automatic mechanism for... Read more
Apple refurbished iMacs available for up to $...
Apple has Certified Refurbished 2015 21″ & 27″ iMacs available for up to $350 off MSRP. Apple’s one-year warranty is standard, and shipping is free. The following models are available: - 21″ 3.... Read more
Clearance 2015 13-inch MacBook Airs available...
B&H Photo has clearance 2015 13″ MacBook Airs available for $350 off original MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 1.6GHz/4GB/128GB MacBook Air (MJVE2LL/A): $829... Read more
Check Apple prices on any device with the iTr...
MacPrices is proud to offer readers a free iOS app (iPhones, iPads, & iPod touch) and Android app (Google Play and Amazon App Store) called iTracx, which allows you to glance at today’s lowest... Read more
Save $120 with Apple refurbished Time Capsule...
Apple has certified refurbished Time Capsules available for $120 off MSRP. Apple’s one-year warranty is included with each Time Capsule, and shipping is free: - 2TB Time Capsule: $179, $120 off (not... Read more
9-inch 32GB iPad Pros on sale for $70 off MSR...
B&H Photo has 9″ 32GB WiFi Apple iPad Pros on sale for $70 off MSRP, each including free shipping. B&H charges sales tax in NY only: - 9″ Space Gray 32GB WiFi iPad Pro: $529 $70 off MSRP - 9... Read more
Mac minis on sale for up to $140 off MSRP
Adorama has Mac minis on sale for up to $100 off MSRP including free shipping plus NY & NJ sales tax only: - 1.4GHz Mac mini: $449 $50 off MSRP - 2.6GHz Mac mini: $649 $50 off MSRP Amazon has the... Read more
Back To School with OtterBox Essentials
Back to school means back to an environment that is tough on tech. OtterBox has the back to school essentials you need to keep tech safe from drops, bumps, scratches and hallway havoc. Check out the... Read more
VRS Design Releases New iPhone 7 Plus Case Li...
With a device as large and costly as the iPhone 7 Plus, it is primal instinct to protect it from potential damage. According to a study by SquareTrade in 2012, iPhone damages cost Americans roughly $... Read more

Jobs Board

*Apple* Solutions Consultant - Apple (United...
# Apple Solutions Consultant Job Number: 51218354 Fredericksburg, Virginia, United States Posted: Aug. 18, 2016 Weekly Hours: 40.00 **Job Summary** As an Apple 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* /Mac Support Engineer - GFI Digital,...
FI Digital, Inc. is currently seeking candidates for a full time Apple Support Engineer to add to our Maryland Heights, Missouri IT team. Candidates must be dynamic Read more
*Apple* Solutions Consultant - Apple (United...
Apple Solutions ConsultantJob Number: 51218534Pleasant Hill, California, United StatesPosted: Aug. 18, 2016Weekly Hours: 40.00Job SummaryAs an Apple Solutions Read more
*Apple* Solutions Consultant - Apple (United...
# Apple Solutions Consultant Job Number: 51443201 Mishawaka, Indiana, United States Posted: Aug. 25, 2016 Weekly Hours: 40.00 **Job Summary** As an Apple Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.