Dive Brief:
- Box Inc. announced Tuesday that it will offer overseas clients the option to locally store information in cloud data centers owned by either Amazon or IBM, beginning in May.
- Box Zones will allow customers to choose where they store their data, with options in Germany, Ireland, Japan and Singapore. The company plans on adding more options in the future.
- The company is rolling out the option to assist clients outside the United States concerned about privacy crackdowns.
Dive Insight:
Some areas of the world require certain types of data to be stored locally. The issue of geographical storage was thrust into the spotlight last October when a European high court threw out an agreement governing data transfers between Europe and the U.S. The court said the existing rule didn’t sufficiently safeguard privacy. As a result, more companies are paying attention and making changes to how they handle data.
Offering "in-region data storage," Box can boost both privacy and control in the cloud for its customers. The zones will also alleviate data residency concerns, the company said.
Chief Executive Officer Aaron Levie told Bloomberg that the company plans to add more regions in the future, with additional locations in Europe and Asia as well as some in Australia and Latin America. Box may also add other data center providers. By using existing data centers, Box said it is saving the costs of building out internationally.
In February, Box’s competitor Dropbox said, later this year, it will allow customers to store their files at Amazon’s data center in Germany.
