GDPR and Cloud Service Compliance

The European General Data Protection Regulation (GDPR) will have a global impact when it comes into effect on May 25, 2018. The newly adopted privacy law aims to harmonize data protection regulation, bringing universal order to a patchwork of differentiated privacy rules across the EU. Being a regulation, and not a directive, GDPR is a clear legal binding force which will become immediately enforceable as law in all EU member states on the same day it is introduced. According to some research analysts, by the end of 2018, more than 50 percent of companies will not be in full compliance with the requirements of the GDPR, therefore, companies and organizations are advised to act now in order to prepare for the upcoming necessary changes. System integrators and Cloud providers across Europe are facing these changes head on, and while the challenges are substantial, new commercial possibilities are arising.

GDPR Compliance with Cloud

The deadline is approaching, and although GDPR is designed to make doing business easier and more transparent, the way to the end goal may prove difficult for companies of all sizes. No matter how challenging the GDPR compliance with the Cloud may seem, it is ultimately necessary. Recent studies have shown that as little as 1 percent of Cloud providers have data practices that comply with the announced regulations. Furthermore, with the introduction of GDPR, data processors (such as Cloud services providers) will now share equal liability with the data owners (banks, credit card services, membership organizations, etc.), ultimately yielding some adjustments to the way of Cloud operating. Cloud service providers are already on the move.

Unified Set of Rules and New Opportunities

Under the Directive on Privacy and Electronic Communication, local spam regulations in the EU have been differing significantly from country to country, up until now. With each member state free to translate the overall goals of this directive into local law, the practice resulted in different sets of rules for 26 out of 28 EU member states. The European General Data Protection Regulation will effectively change this and create a singular set of rules for companies across Europe, the US, and Asia. What this means for Cloud service providers is that once they reach compliance with the GDPR, they will immediately become attractive to all data collectors that want a safe place for Cloud functionality, and the market is rapidly growing.

We all know competition brings costs down and, arguably, makes for a healthier market, but regulation drives the costs up. So does compliance, ultimately forming a steady and reliable system. These additional costs are predicted to be passed on from provider to business customers, but in return would bring fewer data breaches, provide more security and ensure a much smoother and transparent workflow.

The Time to Act is Now

Cloud and system integrators will have their hands full, if not already; any company with more than 250 employees, or for which data processing is at the core of their business, has to prepare for the summer of 2018 when GDPR comes into effect. There is not much time left, and with the strict regulations and higher-than-ever penalties for businesses that don’t play by the rules, non-compliance with GDPR can result in fines of up to 4% of a brand’s annual turnover, or up to €20 million. Whether controllers or processors, organizations and businesses must make sure their Cloud service providers are compliant with GDPR before the approaching deadline. In the fast moving and ever-expanding world of data, security is vital, and system integrators have to ensure a smooth transition to allow the necessary regulations and rules to take hold and bring a positive impact on the way data is processed, stored and protected. Make sure your preparations for GDPR compliance are under way and act now.