Amazon, Microsoft Can Be Ordered To Store Data In India Under New Cloud Computing Policy!

Earlier, TRAI had recommended that $1.8 billion Cloud Services needs to be regulated in India

By Mohul Ghosh On Aug 6, 2018

India is right now preparing a new Cloud Computing Policy, and there can be a big blow to companies like Amazon, Google, Microsoft and more.

Reason: Very soon, these companies can be ordered to store data of Indians, in India.

How it can impact these companies? Read on to know more!

Data Of Indians To be Stored in India?

Reuters has managed to have a glimpse of the draft which will be India’s new Cloud Computing Policy.

As per the initial reports, the draft pitches strongly for storage of any data inside India, which is generated in India, and belongs to the Indians.

A special Cloud Computing Panel has been formed, which is drafting the policy. This panel is headed by Kris Gopalakrishnan, co-founder of Infosys.

Localization of data stored under Cloud is an important ingredient of the report, as it said: “We recommend localization of cloud data and any data that is stored about Indian entities or data generated in India.”

The draft, which has not been public yet, also recommended that any data stored by company in India should be available to any investigative agency.

The final draft of the Cloud Computing Policy will be soon shared with the Govt.

How Can It Impact Cloud Computing Companies?

First and foremost, it is the factor of cost.

Data Centers, which host Cloud data are incredibly expensive to build, and the cost can go upto $200 per square feet to build it.

Now, if Cloud computing biggies such as Amazon, Microsoft and others are ordered to store data locally, then it will mean more expenses for the them, and this can harm their bottomline.

Cloud computing and storage companies make money was creative one solid infrastructure at one location, and then using the same to store data from various companies.

If data centre is located in say Singapore, then the same can be used to offer cloud services to several companies: One time investment, and regular profit, per month/year.

Now, if Amazon, Microsoft and others create data centers in India, solely for the purpose of storing data generated by Indians, then it will make a huge dent in the profits.

And here comes the most dangerous part: If the infrastructure costs increase, then the effect will be directly passed on to the end-user, the customer.

And the whole industry suffers.

What Is The Need For Data Localization?

Govt. is also not entirely wrong, if they are seeking local storage of data – Cambridge Analytica scandal in Facebook and rising concern for data security and threat to data privacy and data manipulation has triggered alarm bells all around.

Wallets and payment companies/startups have already been ordered to store financial data of Indians inside India, and this may form the basis for India’s new Cloud Computing policy.

Now, how this new Cloud Computing policy will impact Cloud Governance, is the question which needs some urgent answers.

We will keep you updated, as we receive more news.

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