Usage of cloud computing is taking the world by the storm. Global Cloud data storing companies are eying the Indian market for their expansion by building local data centers in the country itself.
In order to maintain the security of financial transactions and unauthorized data made over the cloud, companies feel the need to keep the cloud stored data within the country. Even though there are no current data protection laws in India, the global companies are setting their local data centers in case of modification in the laws.
Shiv Kumar Bhasin, chief technology officer at State Bank of India commented that, bankers want to remain on the safer side in the foreseeable future and keep the data inside the country and eventually, if the regulator changes its mind, they will be in a safer position rather than on the wrong side of regulation. If data security breach happens on foreign land, there will lesser law and order control. (However), if it is in the Indian premises, a lot of times, if anything happens disclosure will happen with transparency.
Bhasin further said, “There has not been a regulatory pressure and the Reserve Bank of India has only said that customer data should not be compromised.”
Mega giants like Alibaba, Microsoft, Amazon Web Services and Google are forming their data centers within the country in order to increase their Indian clientele base.
Not only these, the multinational IT corporation, Oracle, has recently announced the establishment of its data centers, thereby targeting the Indian financial and investment sectors.
Leading in the cloud providing services, Microsoft has already built its data centers that focus on the employee and customer management relationships.
Samik Roy, country head-Dynamics at Microsoft India commented, “When we talk about local data centers, they go to the level of not only security but also the residency of data. We can conform to the Irda, RBI regulations and a good number of banks, wealth management, asset management (companies) have adopted our cloud process and they are very stringent when it comes to security.”
While Amit Kumar, the cloud leader at IBM India/South Asia, stated, “The financial services sector is highly regulated, and it sure helps to have a data center in India since it takes care of the data security and control aspect for these organizations.”
