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JotForm 2016 Predictions: US Based Companies Will Buy European Server and Cloud Resources to Meet EU Data Privacy Needs

Virtualization and Cloud executives share their predictions for 2016.  Read them in this 8th Annual series exclusive.

Contributed by Steve Gibson, Director at JotForm

US Based Companies Will Buy European Server and Cloud Resources to Meet EU Data Privacy Needs

In October 2015, the highest court in Europe struck down the thin legal cable through which US-based companies transferred European data to the US. For fifteen years, US-EU Safe Harbor provided the legal framework that allowed US companies both large and small to handle their EU user data freely.

With Safe Harbor gone, US companies no longer legally meet the data privacy requirements of their European users.

Currently, US and EU authorities have until the end of January to prepare a new legal framework, Safe Harbor 2.0, to allow for continued transatlantic data transfers.

JotForm, hailed by the Wall Street Journal as part of a vanguard of businesses shifting data from the US to Europe, was among the first to release an EU only solution. That vanguard is still forming, with notable compadre Microsoft announcing plans for an entirely new European data center to accommodate European data privacy standards.

We at JotForm predict that further discourse and legal motions will fall short in allowing the free flow of European personal information to US servers. We don't think companies will be able to add an item to their terms of service, notify their users, and go back to transferring data as they did before. US companies will have to honor the stricter privacy standards of their European users by storing the data exclusively in Europe.

In the words of JotForm's founder Aytekin Tank, "The only permanent solution is to do what European governments are asking: Store European user data only on European servers and never transfer it back to the US."

Nobody knows for sure how this will play out in 2016, but we've already begun the migration. It has the added benefit of providing faster performance for our European users, as they're always closer to their servers.


About the Author

Steve Gibson is Director at JotForm, an online form builder. They securely process millions of form submissions a year, all of which needs to be stored according their specific users needs. EU Safe Forms is JotForm's solution to their European user data privacy needs.
Published Wednesday, December 09, 2015 6:27 AM by David Marshall
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