Salesforce has announced it will open three new data centers in Europe by the end of 2015 to address data residency concerns. To remain compliant with regulatory bodies, some companies find it difficult to move to cloud solutions.

On the flip side, cloud technology offers both cost savings and economic benefits to businesses. Four primary economic benefits of cloud technology are highlighted in a recent study:

  • Cost Reduction: The reduced or eliminated capital expenditure cloud technology offers was listed as the primary benefit by 35% of survey respondents.
  • Automatic Updates: 36% of respondents enjoy the ability cloud technology provides to automatically update software and security.
  • Flexible and Scalable: Flexibility to increase bandwidth and scale based on demand is the main benefits for 33% of respondents.
  • Remote working capabilities: Working remotely is a benefit for 30% of CIO’s surveyed. Remote capabilities allow employers and employees increased flexibility in their roles.

Since the adoption of cloud technology has increased globally, there have been concerns regarding data residency and data security. Although in a recent survey 82% of respondents say the economic benefits of the cloud outweigh the potential risks.

A recent report showed that 52% of CIO’s in the UK view security risks as the biggest challenge associated with moving their existing IT systems to the cloud. Data at rest in a data center is not encrypted and could potentially be exposed to a security breach. Although a review of Salesforces data center security measures will alleviate some of these concerns.

Data residency issues are also at the forefront for businesses, particularly insurers. Insurers are concerned with cloud solutions where personal and medical data is stored in data centers outside their jurisdiction. In particular, when data is stored in the US, the patriot act comes into play, potentially giving the US government access to the data.

At present, Salesforce has data centers in the US and Asia. By the end of 2015 they are adding three data centers to Europe. The first of these data centers will open in the UK by the end of 2014, with two more opening in France and Germany by the end of 2015. Hopefully this is only the beginning and new data centers will encourage the adoption of cloud technology globally.

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