FUTURE TECHNOLOGY
Benefits of private cloud for data residency and SMEs
Private cloud solutions empower businesses to localise data storage on dedicated infrastructure , ensuring compliance with local laws while maintaining control over their data . For healthcare , finance , government services , where data confidentiality is crucial , private clouds ensure secure , on-premises hosting without the risk of cross-border data transfers , says Ziad Nasr at Acronis Middle East .
Ziad Nasr , General Manager , Acronis Middle East
In 2024 , the average cost of a data breach in the Middle East increased by 8.4 %, reaching $ 8.75 million . As regional organisations race to embrace digital transformation , the pressing question they face is how to secure sensitive data while meeting stringent regulatory requirements ? As threats grow increasingly sophisticated , private clouds may be the key to thriving in this high-stakes environment .
Compared to public cloud platforms , private clouds offer greater control , enhanced security , and tailored scalability , making them particularly well-suited for the region ’ s unique business and regulatory environment . With an emphasis on data residency , regulatory compliance , and cybersecurity , private cloud adoption is becoming a critical strategy for businesses aiming to thrive in the Middle East ’ s dynamic economy .
One of the foremost challenges for organisations operating in the Middle East is adhering to strict data residency regulations . Saudi Arabia ’ s Personal Data Protection Law ,
PDPL was fully enforced in September 2024 . The PDPL is the primary legislation in Saudi Arabia regulating the use of personal data .
It applies to the processing of personal data within Saudi Arabia and its embassies abroad , as well as processing of Saudi residents ’ personal data outside the country . A breach of the law could result in fines of up to $ 1.34 million , with the possibility of doubling the penalty in the case of repeated violations .
Similarly , the UAE ’ s Personal Data Protection Law , Federal Decree Law No . 45 of 2021 provides a framework to safeguard the confidentiality and privacy of personal data . It mandates that companies secure personal data , obtain consent for processing , and allow individuals to correct or restrict their data .
Private cloud solutions empower businesses to address these requirements effectively . By localising data storage on dedicated infrastructure , organisations can ensure compliance with local laws while maintaining full control over their data . For industries such as healthcare , finance , and
government services , where data sensitivity is crucial , private clouds ensure secure , onpremises hosting without the risk of crossborder data transfers .
In addition to meeting regulatory requirements , private clouds also simplify compliance reporting . The ability to maintain complete visibility into data
One of the foremost challenges for organisations operating in the Middle East is adhering to strict data residency regulations .
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