Balancing Compliance and Innovation in International Cloud Computing: How International Legal Concerns Affect Security Plans, Cloud Monitoring, and Shared Responsibility

 International cloud computing sparks innovation and connectivity on a global scale without requiring new offices or infrastructures to expand into a new location. Political alliances have the ability to significantly limit an organization's ability to expand globally. International trade agreements and data localization laws govern how global organizations operate in the cloud. Earlier this year, National Security concerns were raised regarding the Chinese government's access to United States citizens' user data through the Chinese-owned social media platform TikTok (CRS, 2023). Localization agreements were created to ensure the United States governed all access to TikTok user data in the United States. As an industry leader, cloud providers offer data centers nationwide that assist organizations with meeting data compliance. Any software engineer with a creative heart knows that stringent requirements severely limit innovation; however, billion-dollar data breaches expose Americans to National Security risks. Finding a balance between data security and innovation involves comprehensive security plans that consider access control, encryption, and firewall protection. Schrems 2 upheld the authority of standard protection classes (SCC) but intentionally stressed the importance of developing data protection safeguards internationally. The Court of Justice of the European Union (CJEU) addressed concerns over Government access to data through concerns made over Facebook's data transfer agreements. While Schrems 2 upheld SCC, it invalidated the privacy shield frameworks that governed data transfer between European countries and the United States. IaaS, PaaS, and SaaS models heavily influence an organization's approach to security. As organizations expand globally in the cloud, coordination and compliance accountability spreads across the cloud provider, the organization, and third-party services. Security automation guides organizations in meeting compliance monitoring responsibilities across parties. As organizations offload more and more responsibilities to cloud services and cloud providers, they absorb a greater responsibility to monitor and guarantee an appropriate level of protection for users both locally and internationally.

References

Congressional Research Service (CRS). (2023, March 29). TikTok: Recent Data Privacy and National Security Concerns. https://crsreports.congress.gov/product/pdf/IN/IN12131

Sharp Cookie Advisors. (2020, November 23). Schrems II a summary – all you need to know. https://www.gdprsummary.com/schrems-ii/

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