In response to 2015 piece on Office 365 compliance in regulated industries, we've prepared this article to update you on the FCA's latest guidance (approval) of Cloud services and what you also need consider post Brexit.
In this article we cover what the FCA recently announced and more importanlty highlight the considerations your business needs to make when evaluating Cloud services. Cloud computing can deliver significant cost, flexibility and performance benefits which will help you tackle the uncertainty ahead.
The Good News
In July 2016, the FCA announced "We see no fundamental reason why cloud services (including public cloud services) cannot be implemented". This means is that regulated business now can seriously consider the use of Cloud services and benefit from the flexibility and cost reduction that these services provide.
The Business Challenge
How do you ensure the systems you implement now, are still compliant once we conclude the Brexit negotiations and formally exit the EU?
If the data protection laws between the EU and UK start to diverge, or our new laws require UK data to be held in the UK, then you could find yourself in a situation where the Cloud service(s) you've chosen are no longer compliant.
One option, would be to keep your services in-house. That way you don't have to worry (as much) about data protection laws. However, this option is more expensive and less flexible than deploying Cloud services, and with uncertainty ahead our recommendation would always be to ensure you're as agile as possible.
The question remains, how to balance the business risks against the need to be more agile?
Identify the providers which can offer data residency guarantees. Not only will this protect your business against the future unknowns of Brexit, it is also a key requirement in the FCA's guidelines on the use of 'Cloud' services.
Microsoft recently launched their UK data centres, to deliver Office 365 (email) and Azure (server hosting) from onshore locations. One of their key launch customers was the Ministry of Defence (MoD), who have moved their email system to Office 365.
This UK presence means that your organisation can adopt the hyper-scale Cloud services that deliver certianty of cost, performance, security and compliance, in an otherwise uncertain time.
Alternatively, if you want some more information on what to consider (from an FCA perspective) when choosing a Cloud provider, click below...