Welcome!

Cognitive Computing Authors: Pat Romanski, Yeshim Deniz, Liz McMillan, Elizabeth White, Jason Bloomberg

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Cognitive Computing , Agile Computing, Cloud Security

@CloudExpo: Article

Cloud Computing in China

Data privacy and state secret laws don’t have to thwart widespread adoption

By David Canellos
PerspecSys President and CEO

Driven by large-scale government initiatives as well as private investment, cloud computing has become a hot growth area in China. Named a ‘Strategic Emerging Industry' in the government's 12th Five Year Plan (2011 - 2015), cloud computing is slated to become a primary force in the Chinese IT industry and overall economy in the next 3-5 years. In fact, according to IDC Asia-Pacific, China spent $286 million on cloud-computing infrastructure last year, and the amount will increase to more than $1 billion in 2016. The Asia Cloud Computing Association reports that total investment in cloud computing projects in China is expected to reach $154 billion over the coming few years.

So with all the internal focus on building a suitable infrastructure and nurturing cloud innovation, what factors will companies need to consider when deploying applications to the cloud in China? Key among the issues will be Chinese data privacy and state secrecy laws. Still nascent in comparison to similar laws in other part of the world, national Chinese data privacy regulations are considered quite vague (although they are currently undergoing broad revisions). And the sweeping state secrecy laws permit national security to be used as the rationale for almost any measure pertaining to data privacy and the Internet/cloud.

These ambiguities, combined with more than 200 local and provincial laws regarding use of personal information, have led to a legal framework for cloud services that is flexible to the point of being unpredictable - an understandably daunting environment for cloud innovation.

The question is - how can companies take advantage of the Chinese government's zealous embrace of cloud technology and the enormous Chinese market potential while staying out of trouble with data privacy enforcers? Fortunately, a technical solution exists. Cloud providers and cloud users will benefit from using a cloud data security and cloud data tokenization system that can be configured to keep sensitive information out of the cloud. By replacing real data values with undecipherable token values when data is outside an organization's firewall, enterprises can achieve compliance with strict data privacy laws and residency requirements. Importantly, this approach to cloud data security allows organizations to take advantage of cloud computing benefits, without sacrificing functionality or the user experience of the cloud application.

These solutions from companies like PerspecSys create a win-win situation in China as the government seeks to leverage cloud technology to drive future economic growth, and cloud service providers (and users) want to jump on board to realize the benefits.

Read the original blog entry...


PerspecSys Inc. is a leading provider of cloud data security and SaaS security solutions that remove the technical, legal and financial risks of placing sensitive company data in the cloud. PerspecSys accomplishes this for many large, heavily regulated companies who rely on cloud compliance by never allowing sensitive data to leave a customer's network, while maintaining the functionality of cloud applications. Based in Toronto, PerspecSys Inc. is a privately held company backed by investors that include Intel Capital and GrowthWorks.

More Stories By David Canellos

David Canellos is a security veteran who is now President and CEO of PerspecSys. An entrepreneur specializing in bringing innovative security and privacy solutions to market, he has been instrumental in establishing PerspecSys as the leader in the Cloud data Protection Gateway market.

Before joining PerspecSys, David held executive positions at Irdeto Worldwide, which acquired the company he led, Cloakware, which was a pioneer in encryption and digital rights management. Before joining Cloakware, he was the General Manager and Vice President of Sales for Cramer Systems (now Amdocs), a UK-based company, where he was responsible for the company’s revenue and operations in the Americas. Prior to his work with Cramer, David held a variety of executive, sales management and business development positions with the Oracle Corporation, Versatility and SAIC.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the mod...
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Druva is the global leader in Cloud Data Protection and Management, delivering the industry's first data management-as-a-service solution that aggregates data from endpoints, servers and cloud applications and leverages the public cloud to offer a single pane of glass to enable data protection, governance and intelligence-dramatically increasing the availability and visibility of business critical information, while reducing the risk, cost and complexity of managing and protecting it. Druva's...
BMC has unmatched experience in IT management, supporting 92 of the Forbes Global 100, and earning recognition as an ITSM Gartner Magic Quadrant Leader for five years running. Our solutions offer speed, agility, and efficiency to tackle business challenges in the areas of service management, automation, operations, and the mainframe.
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, compared the Jevons Paradox to modern-day enterprise IT, examin...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
DSR is a supplier of project management, consultancy services and IT solutions that increase effectiveness of a company's operations in the production sector. The company combines in-depth knowledge of international companies with expert knowledge utilising IT tools that support manufacturing and distribution processes. DSR ensures optimization and integration of internal processes which is necessary for companies to grow rapidly. The rapid growth is possible thanks, to specialized services an...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Scala Hosting is trusted by 50 000 customers from 120 countries and hosting 700 000+ websites. The company has local presence in the United States and Europe and runs an internal R&D department which focuses on changing the status quo in the web hosting industry. Imagine every website owner running their online business on a fully managed cloud VPS platform at an affordable price that's very close to the price of shared hosting. The efforts of the R&D department in the last 3 years made that pos...