Microsoft to host data in Germany to evade US spying | Naked Security - 0 views
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Microsoft's new plan to keep the US government's hands off its customers' data: Germany will be a safe harbor in the digital privacy storm. Microsoft on Wednesday announced that beginning in the second half of 2016, it will give foreign customers the option of keeping data in new European facilities that, at least in theory, should shield customers from US government surveillance. It will cost more, according to the Financial Times, though pricing details weren't forthcoming. Microsoft Cloud - including Azure, Office 365 and Dynamics CRM Online - will be hosted from new datacenters in the German regions of Magdeburg and Frankfurt am Main. Access to data will be controlled by what the company called a German data trustee: T-Systems, a subsidiary of the independent German company Deutsche Telekom. Without the permission of Deutsche Telekom or customers, Microsoft won't be able to get its hands on the data. If it does get permission, the trustee will still control and oversee Microsoft's access.
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Microsoft CEO Satya Nadella dropped the word "trust" into the company's statement: Microsoft’s mission is to empower every person and every individual on the planet to achieve more. Our new datacenter regions in Germany, operated in partnership with Deutsche Telekom, will not only spur local innovation and growth, but offer customers choice and trust in how their data is handled and where it is stored.
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On Tuesday, at the Future Decoded conference in London, Nadella also announced that Microsoft would, for the first time, be opening two UK datacenters next year. The company's also expanding its existing operations in Ireland and the Netherlands. Officially, none of this has anything to do with the long-drawn-out squabbling over the transatlantic Safe Harbor agreement, which the EU's highest court struck down last month, calling the agreement "invalid" because it didn't protect data from US surveillance. No, Nadella said, the new datacenters and expansions are all about giving local businesses and organizations "transformative technology they need to seize new global growth." But as Diginomica reports, Microsoft EVP of Cloud and Enterprise Scott Guthrie followed up his boss’s comments by saying that yes, the driver behind the new datacenters is to let customers keep data close: We can guarantee customers that their data will always stay in the UK. Being able to very concretely tell that story is something that I think will accelerate cloud adoption further in the UK.
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The European Community's Court of Justice decision in the Safe Harbor case --- and Edward Snowden --- are now officially downgrading the U.S. as a cloud data center location. NSA is good business for Europeans looking to displace American cloud service providers, as evidenced by Microsoft's decision. The legal test is whether Microsoft has "possession, custody, or control" of the data. From the info given in the article, it seems that Microsoft has done its best to dodge that bullet by moving data centers to Germany and placing their data under the control of a European company. Do ownership of the hardware and profits from their rent mean that Microsoft still has "possession, custody, or control" of the data? The fine print of the agreement with Deutsche Telekom and the customer EULAs will get a thorough going over by the Dept. of Justice for evidence of Microsoft "control" of the data. That will be the crucial legal issue. The data centers in Germany may pass the test. But the notion that data centers in the UK can offer privacy is laughable; the UK's legal authority for GCHQ makes it even easier to get the data than the NSA can in the U.S. It doesn't even require a court order.
