Last year, Salesforce announced that it had partnered with Amazon to use their Web Service (AWS) to scale their business and enter international markets more quickly. Well last week, they announced that due to increased growth in the APAC region, they would offer all their core products to the Australian market hosted on AWS in the second half of 2017.

Salesforce Announces new Data Center in SydneyAfter six years of promising to deliver a data center to Australia, this is a big step in the right direction. Data protection laws have prevented and restricted Australian businesses from migrating to the cloud, due to strict APRA (the Australian Prudential Regulation Authority) regulations. APRA oversees banks, credit unions, building societies and insurance companies, and is particularly concerned when sensitive data might be open to access from the US government due to the US Patriot Law.

What does this mean for Salesforce Customers?

The Salesforce Intelligent Customer Success Platform, including its Sales Cloud, Service Cloud, App Cloud, Community Cloud and Analytics Cloud will be hosted locally by AWS in Sydney, Australia.

Up until now, all data was stored in Salesforce data centers, which are all located outside of Australia. When AWS goes live later this year, all data which is stored in a Salesforce data center will be stored in this Sydney location, and will no longer be stored in a center within the US. This protects sensitive data from the US Patriot Law, which allows the US justice department to monitor American citizens and others within their jurisdiction.

What does this mean for ClaimVantage?

The ClaimVantage claims software solutions are developed and hosted on the Salesforce platform. Cloud-based claim data is stored in a Salesforce data center outside a company’s firewall.

Occasionally Australian customers have used encryption to protect sensitive data from being stored in Salesforce data centers. Encryption can slow down software processes as more layers need to be processed when taking an action. This new data center will allow businesses to comply with regulations and only store data in this local data center.

New ClaimVantage customers, who come on board after this data center goes live, will have their data stored in Sydney. Existing ClaimVantage customers in Australia will need to contact their Salesforce representative to review the options available to them.

With data security being a prime concern for global insurers hopefully, this will set the trend for Salesforce to host data locally across the globe.
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