Final answer:
Moving to a global public cloud provider introduces compliance issues such as data privacy regulations, data sovereignty, and management of third-party providers. These issues can lead to conflicts with international laws, challenges in data governance, and increased vulnerability to data breaches. Organizations must navigate these complexities to ensure the protection of customer data and compliance with legal requirements.
Step-by-step explanation:
When an organization moves its internal core data-processing functions to a global public cloud provider, several key compliance issues may arise. Among these, data privacy regulations, data sovereignty, and the involvement of third-party providers are likely to be the most significant challenges. This shift implicates laws across various jurisdictions, complicates the enforcement of internal data governance, and may create difficulties in ensuring that third parties maintain the organization's privacy standards. Data privacy regulations like GDPR in Europe place strict requirements on how personal data is handled, potentially conflicting with the global nature of cloud services. Moreover, data sovereignty issues emerge since customer data may be stored and processed in different countries, subjecting the data to those countries' laws and potentially conflicting with the organization's home country regulations. Finally, the use of third-party providers through the cloud service can introduce risks related to security breaches, inconsistent data handling practices, and potential legal liabilities.
Examples of large-scale data breaches highlight the tremendous risks associated with improper data management and the necessity for robust security protocols. Outsourcing data management to third parties requires careful consideration of these partners' risk profiles, as well as their adherence to required standards and regulations. Additionally, complexities arise in cross-border data transfers, which are subject to a variety of export controls and international regulations. Organizations must weigh the costs and benefits of utilizing global cloud services, including the potential risks associated with offshoring and the challenges in maintaining consistent audit functions. In conclusion, understanding and managing compliance issues related to data privacy, sovereignty, and third-party providers is critical for organizations shifting to cloud-based services.