Data legislation won’t stop with GDPR

The tension between what information is being collated and the need to protect it is growing. The most secure way to protect data is to lock it away in a safe and never access it. But that would make it unusable. This predicament, however, is creating a “push-me, pull-you” effect, according to Peter Gee, director Orange Cloud for Business.

“Increased regulation is a challenge. Data is now so valuable that increased legislation and fines can be construed as a tax, which has the potential to hobble the digital economy,” he says.

The amount of money at stake for companies that fail to meet GDPR standards is big. Up to €20 million or 4 percent of group global turnover (whichever is the greater) against both data controllers and data processors. With privacy and data protection a major issue in governance worldwide, this is the stark reality of doing business in the digital age.

 
Big data is getting bigger

Data lakes are getting bigger by the day. IDC estimates that by 2025 we will be creating 180 zettabytes of data annually. This is being driven by new technologies such as the Internet of Things and connected cars. Intel, for example, estimates that an autonomous car will create 4,000 GB of data from one hour’s driving!

 Gee cites the example of the connected car. Both the manufacturer and the dealer want the car’s data to gain insight into the customer, which creates conflict. If this data is repurposed, say to an insurance company, it becomes even more valuable on quoting premiums on usage as opposed to the driver.

The Second Payment Services Directive (PSD2), which took effect at the beginning of the year across the EU, has answered some of these questions for financial institutions. Banks must give third party 'account information service providers' (AISPs) and 'payment initiation service providers' (PISPs) access to the payment account data they hold on customers, at those customers' request, to allow the businesses to provide the customers with their services. 

The idea is that it will enable development of innovative new fintech services and broaden competition in the payments market – increasing services choice and lower banking costs for customers. “The amount of data banks collect is phenomenal. Being able to use it in a productive way and share it with others like this is very powerful. It turns them from banks into information businesses,” explains Gee.

You are not going to stop the data legislation train

Data legislation is not going to stop with GDPR. There is a lot more legislation to come, particularly in the wake of the Facebook and Cambridge Analytica scandal, as we all become more concerned about where our information is stored and how it is being used.

“The proliferation of our data is huge,” says Gee. “In order to police and govern that data and make users confident that the digital world is a safe place to be, regulation can only increase.”
The biggest step organizations can take in protecting themselves is it to get their data Under control. “Business needs to be honest with itself and look to see where the data lakes are
leaking,” says Gee. “Look to technology to search that dark data. Be confident in the fact that you know exactly where the data is, what it is doing and why.”

Shockingly, 32 percent of respondents to the Veritas GDPR report 2017 said they were fearful
that their current technology stack was incapable of managing their data effectively, which
could hinder their ability to search, discover and review data.

Wrestling back control means going back to basics; looking at back-up and recovery, the very
cornerstones of any IT infrastructure. “The big message we are taking to market is
standardization and it is starting to resonate,” explains Gee. “With so many disparate systems
and data pools, business needs to standardize backup and recovery. When the data pools are
backed up, managed and secure, enterprises can move up a level and move data around.”

Big data diet

The key learning is that legislation can’t be avoided, but it can be turned into a positive. By getting data under control and being selective about what data is retained and what can be jettisoned, enterprises can make big savings on storage, work within the law and dramatically reduce risk exposure.

“The data economy is here and it’s the new currency,” concludes Gee. “By getting back to basics, enterprises have a fighting chance of doing something really useful with their data.”