International Data Transfer and US Processing

This question asks whether customer data crosses international borders, specifically into or out of the United States. Think of it like customs for data - when information travels between countries, different laws apply. Your customer needs to know if their European students' data ends up on US servers, or if their US financial data gets processed in India, because each scenario has different legal implications.

International data transfers can make or break enterprise deals. The EU-US data transfer situation is particularly complex after Privacy Shield was invalidated. Companies have lost millions in European business for improper transfers. Conversely, clear data residency options and proper transfer mechanisms (like Standard Contractual Clauses) can be a major competitive advantage, especially for global enterprises.

Companies often forget that using US-based cloud providers means data enters the US, even if your company isn't American. Another mistake is not considering data backups - if your primary servers are in Europe but backups go to US data centers, that counts. Many also overlook that even temporary processing or caching in different regions constitutes data transfer.