A few weeks ago, I ran across a very interesting article in eWeek.com that really got me thinking. It was about the state of Ohio placing a ban on using public funds for offshore outsourcing. Click here for the full article. It’ll give you some background information on the topic.
Combined with the recent H-1B visa fee increase, international trade groups around the world—in particular, from Asia—are upset at this move by Ohio. Some groups have gone so far as to call it “protectionist” and even “discriminatory.” These critics go on to say, “Ohio’s ban on outsourcing can only be viewed as counterproductive to the U.S. government thrust on reducing public deficit and possibly lead to an increased tax burden on its citizens.”1
Ohio Governor Tim Strickland maintains, “Ohio’s policy has been—and must continue to be—that public funds should not be spent on services provided offshore.”2
The reason I bring this whole issue up is that, regardless of which side of the argument you find yourself on, it’s clearly something you need to consider when planning and deploying cloud computing solutions. For security’s sake, if nothing else.
By definition, cloud computing involves an abstraction of the underlying infrastructure. That abstraction could easily mean that your company’s data—including its proprietary and sensitive data—could find itself residing on a server in a country that isn’t really known for protecting intellectual property rights. Maybe that country doesn’t even protect human rights. These are important issues to consider.
Let’s take a look at the healthcare industry for a moment. For years now, medical transcription has been heavily outsourced to overseas companies. Now what’s interesting—or actually quite scary, if you ask me—is that regulations like HIPAA don’t even exist in most of these countries. People’s medical records—which contain extremely personal information, including medical histories, conditions and treatments as well as social security numbers, addresses and more—are being sent to these countries for processing. Now HIPAA requires that companies outsourcing these tasks ensure patient privacy. However, the data is located a half a world away. Oversight is difficult, if not outright impossible.
Obviously, you need to ensure your company’s information is protected—no matter where it finds itself. That’s the whole idea behind intelligent workload management (IWM) and Novell’s WorkloadIQ strategy. Identity management must be built into your workloads, so regardless of where they run, your information always remains protected.
Regarding the political fallout of the new Ohio law? It’s anyone’s guess at this point. Stay tuned—and safe.
–Richard
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