Country-specific regulations governing privacy and data protection vary greatly. According to a recent Whitepaper by Connie Carnabuci, a partner of law firm Freshfields Bruckhaus Deringer, data stored offshore remains subject to the laws of the country in which it is stored, requiring local customers to submit to a US court, for example, in the event of litigation.
As a result, if a company hosts data in the US, it will need to ensure that data will not be used in a way that is inconsistent with the National Privacy Principles of Australia. Other countries, such as Singapore, have similar restrictions.
If you need more information on this subject you can download either of these expert whitepapers:
The long arm of the USA Patriot Act: tips for Australian businesses selecting data service providers (PDF 147k)
The Cloud and Cross Border Risks - USA (PDF 110k)
The Cloud and Cross Border Risks - Singapore (PDF 154k)
With our Managed Hosting and Cloud services based and delivered completely within Australia, Macquarie Telecom offers the benefits of Cloud computing without the risks of offshore data residency.
Video: Cloud Data Residency Risks & Compliance