News

Microsoft To Give Cloud Users Option To Store Data Abroad

In response to customer concerns over government surveillance programs, Microsoft is planning to give cloud customers outside the United States the option to store their data in offshore datacenters.

The move is aimed at assuaging the worries of customers outside the United States over whether the National Security Agency (NSA) or other U.S. agencies can intercept their encrypted communications. NSA surveillance activities -- such as the PRISM  program revealed last year by former contractor Edward Snowden -- have led to concerns that data stored within the United States is not secure.

Microsoft's plan will cover data sovereignty requirements of those in foreign countries, particularly Brazil and throughout the European Union.

Brad Smith, Microsoft's chief counsel, revealed Microsoft's plan to give customers the choice of where their data is stored in an interview last week with the Financial Times.

"People should have the ability to know whether their data are being subjected to the laws and access of governments in some other country and should have the ability to make an informed choice of where their data resides," Smith said.

Microsoft confirmed Smith's comments but said it has no immediate plans to elaborate.

Jeffrey Chester, executive director of the Center for Digital Democracy, an advocacy organization for privacy, said Microsoft is the first major U.S.-based digital provider to give customers control over where their data is stored.

"Practically the entire industry is strongly opposed to any EU rule requiring that data on its citizens be stored -- and also regulated -- by either member states or other governmental entities," he said in an e-mail this week. "This move should boost the company's prospects attracting EU and other privacy-concerned businesses or consumers. It's unlikely, however, that others will follow suit, despite Microsoft breaking ranks with the industry lobby."

Asked why, Chester pointed to a number of groups that oppose forcing providers to offer that choice. Among them are the Internet Association, whose members include Amazon, eBay, Facebook and Yahoo; the Business Coalition for Transatlantic Trace (BCTT) Digital Trade Working Group, which includes companies that perform online international trade, including its corporate chairs Amway, Chrysler, Citigroup, Dow Chemical, FedEx, Ford, GE, IBM, Intel, Johnson & Johnson, JP Morgan Chase, Eli Lilly, MetLife and UPS; and the  Information Technology and Innovation Foundation (ITIF), a Washington, D.C.-based think tank that, ironically, is backed by Microsoft, Chester noted.

"They want to stuff exporting consumer data to the cloud down the throat of EU consumers," Chester said. "Perhaps demand will, over time, change their position, but for now they want no local rules."

About the Author

Jeffrey Schwartz is editor of Redmond magazine and also covers cloud computing for Virtualization Review's Cloud Report. In addition, he writes the Channeling the Cloud column for Redmond Channel Partner. Follow him on Twitter @JeffreySchwartz.

Featured

  • Report: Cost, Sustainability Drive DaaS Adoption Beyond Remote Work

    Gartner's 2025 Magic Quadrant for Desktop as a Service reveals that while secure remote access remains a key driver of DaaS adoption, a growing number of deployments now focus on broader efficiency goals.

  • Windows 365 Reserve, Microsoft's Cloud PC Rental Service, Hits Preview

    Microsoft has launched a limited public preview of its new "Windows 365 Reserve" service, which lets organizations rent cloud PC instances in the event their Windows devices are stolen, lost or damaged.

  • Hands-On AI Skills Now Outshine Certs in Salary Stakes

    For AI-related roles, employers are prioritizing verifiable, hands-on abilities over framed certificates -- and they're paying a premium for it.

  • Roadblocks in Enterprise AI: Data and Skills Shortfalls Could Cost Millions

    Businesses risk losing up to $87 million a year if they fail to catch up with AI innovation, according to the Couchbase FY 2026 CIO AI Survey released this month.