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IJARCCE
International Journal of Advanced Research in Computer and Communication Engineering
Impact Factor 7.39Vol. 11, Issue 4, April 2022
DOI: 10.17148/IJARCCE.2022.11402
© IJARCCE This work is licensed under a Creative Commons Attribution 4.0 International License 5
ISSN (O) 2278-1021, ISSN (P) 2319-5940
Potential Risk: Hosting Cloud Services Outside
the Country
A.S. Hovan George1, Dr. A. Shaji George2
Masters IT Solutions, Chennai, Tamil Nadu, India.1,2
Abstract: An object of the study is the potential risk of hosting the server outside of the country. The goal of this article
is to define the risks and opportunities associated with the rapid development of cloud technologies and their penetration
into almost all technological areas. The modern-day economy is evolving under the influence of information and
communication technology. People are witnessing huge success in every sphere of management and economy with the
use of Cloud Computing, Big Data, and Cyberphysical Systems. Modern life and work are shaped by cloud computing.
It has become a part of the daily lives of people. Companies of all sizes have now turned to cloud computing for their
business needs. Currently, everyone is talking about the cloud solution as a way to save money and increase the efficiency
of resources. However, nothing is perfect, and this is no exception for cloud computing. The use of this technology is
undoubtedly beneficial, however, there are some risks and concerns that should not be overlooked. The purpose of this
article is to raise awareness about the ongoing war between Ukraine and Russia, how it impacts cloud technology when
hosted outside of the country. Furthermore, this article will also look at how this war affects the IT industry if
organizations depend on their operations and get support from outside countries, including hardware, software, network
infrastructure, data centers, mobile device management, cloud computing, cyber security etc. Although cloud computing
is developing rapidly, both conceptually and practically, legal, contractual, economic, service quality, interoperability,
security, and privacy issues continue to pose significant challenges. The discussion focuses on critical challenges in cloud
computing: regulatory, security, and privacy issues. A brief presentation on the future trends of cloud computing
deployment is also presented, together with some solutions to mitigate these challenges.
Keywords: Cloud Computing, Bigdata, Blockchain, Cyber Security, Russia & Ukraine Cyber War, IT Army, DDos.
I. INTRODUCTION
Modern life and work are shaped by cloud computing. In fact, it has become an integral part of the daily lives of people
around the world. Companies of all sizes have now turned to cloud computing for their business needs [1]. The adoption
of cloud computing has been increasing rapidly in recent years due to a number of important advantages including cost
savings, scalability, security, ease of deployment. Currently, everyone is talking about the cloud solution as a way to save
money and increase the efficiency of resources. In the past few years, organizations have been actively migrating their
infrastructure and applications to the cloud. In the field of remote work, managing critical business processes, and having
access to key systems, cloud technologies play a crucial role in helping companies solve all of these challenges [2]. As
companies migrate to cloud infrastructure, cloud security has become a high priority for a growing number of
organisations as well as the government. While many businesses and governments are still cautious about cloud
technologies, most do see the benefits and understand the strengths of cloud solutions. However, many organizations are
still wary of taking the first step. To a certain extent, this may be correct, however, the cloud may not be the most suitable
solution for every business or government. It depends on a set of conditions and circumstances [3]. The growth of cloud
adoption also brings with it a number of challenges regarding privacy and security of data [4]. If Cloud technologies are
implemented properly, used intelligently, and adopted in accordance with the correct cloud security principles, will help
to drive and improve business performance. In the Government, Semi-Government and vital sectors, cloud services are
usually classified as regulated approaches for data privacy and security, ever since data privacy and security has become
a top concern among government bodies. A recent war illustrates the importance of choosing the location for hosting
cloud solutions for businesses and governments. The new study discusses the attitudes of Russian companies towards
cloud technologies and explores the main factors that prevent their adoption. In this article, the author mainly focuses on
an important phenomenon the fear of the cloud and its underlying factors [4]. Due to this reason, establishing enhanced
cybersecurity standards for cloud computing has become a top priority for businesses and nations around the globe, not
just a need, but an essential social requirement as well. However, nothing is perfect, and this is no exception for cloud
computing. The use of this technology is undoubtedly beneficial, however, there are some risks and concerns that should
not be overlooked.
IJARCCE
International Journal of Advanced Research in Computer and Communication Engineering
Impact Factor 7.39Vol. 11, Issue 4, April 2022
DOI: 10.17148/IJARCCE.2022.11402
© IJARCCE This work is licensed under a Creative Commons Attribution 4.0 International License 6
ISSN (O) 2278-1021, ISSN (P) 2319-5940
II. OVERVIEW OF CLOUD DATA LOCALIZATION
Cloud Data localization is the method of maintaining data inside the region it came from. For instance, if the organization
collects data in a country, they store it in the country instead of transferring it to a different country for further processing
[6]. The Internet allows data to traverse the globe in milliseconds, so where that data goes and what is done with the data
is of growing interest to regulators, privacy advocates, as well as consumers [7].
Cloud Data localization vs. Cloud data residency
Cloud Data localization and cloud data residency are two concepts that are occasionally used interchangeably, even if
they have somewhat different meanings [6]. Independently, Cloud data residency means a place where Information
(data)is stored. Cloud Data residency requirements could compel organizations in order to change the location where
their data is stored [8]. Cloud Data localization is an action of observance of Cloud data residency requirements [6].
III. THE REQUIREMENTS OF CLOUD DATA LOCALIZATION
There are some legal norms that have cloud data residency requirements that require organizations to localize the cloud
data [10]. Though, the majority of cloud data privacy frameworks do not require data localization [7]. But although
jurisdictions might not require data localization by the law, heavily regulated industries such as banking as well as
healthcare will be able to adopt best practice guidelines establishing more data requirements in order to be processed
beyond their country of origin. In such cases, organizations might prefer to localize data instead of meeting these extra
requirements. Many companies operating in regions with strict data-processing regulations can want to prevent possible
violations entirely by maintaining data in those regions, even if this does not protect data any better.
IV. THE FUNCTION OF CLOUD DATA LOCALIZATION
Cloud Data localization is straightforward for organizations that rely upon one country or region and will use local
infrastructure to store data [7]. If their data stays secure inside their data centers (DC), it needs to be properly localized.
Cloud computing makes data localization more complex. Cloud servers are accessed through the internet and can be
placed worldwide [8]. Organizations that depend on cloud computing have far less visibility into where their data are
actually processed and stored, due to the fact that the cloud computing supplier is processing those decisions.
Nevertheless, cloud data localization was made possible by cloud computing in the event that the cloud vendor commits
to just managing and storing data inside data centers (DC) in the designated region. Not all cloud vendors have a sufficient
global footprint to set it up, however many do. If a cloud vendor has the data center within the established region, then
there are any number of ways in which they can secure a given customer's data stays in that data center (DC).
V. THE GOAL OF DATA LOCALIZATION
Most data localization laws apply for the creation and storage of personal data [5]. Since, People have a basic
understanding of what data localization is, let us move on to some of the reasons why governments would put them in
place. The primary objective of data localization is to:
Fig -1: The Goal of Data Localization
IJARCCE
International Journal of Advanced Research in Computer and Communication Engineering
Impact Factor 7.39Vol. 11, Issue 4, April 2022
DOI: 10.17148/IJARCCE.2022.11402
© IJARCCE This work is licensed under a Creative Commons Attribution 4.0 International License 7
ISSN (O) 2278-1021, ISSN (P) 2319-5940
Whether warranted or not, localization requirements are increasing and creating an enormous challenge for companies
that want to remain compliant [5,6].
VI. TYPE OF CLOUD DATA LOCALIZATION
Cloud Data localisation refers to the practice of data storage on any device located within the boundaries of the country
where the data is produced [13]. Currently, the vast majority of this data is stored in a cloud outside of country’s [14].
Localisation decrees that companies gathering critical data regarding consumers need to store and process them within
the boundaries of the relevant country. Many countries worldwide have implemented or in the process of implementing
cloud data localisation laws to protect their own country's data and the privacy and data of their citizens.
Fig -2: Types of Cloud Data Localization
VII. BENEFITS OF CLOUD DATA LOCALIZATION
• Cloud Data Localization will offer Law enforcement simple supervisory access. This helps law enforcement
authorities efficiently investigate crimes and national security threats.
• Local governments and regulators are empowered to request data in case of disputes or fraud [16].
• Cloud Data localization guarantees the safety of citizens’ data as well as provides data privacy protection and
freedom from foreign surveillance.
• Cloud Data localization will guarantee more accountability from tech, particularly about the end-use of data
gathered [17].
• Cloud Data warehousing is huge business, and it will help boost the data centre(DC) industry in the country and
provide jobs.
• It will reduce conflict of authority due to cross-border data-sharing and guarantee the delivery of justice for
cases that arise as a result of data violation and privacy suits.
VIII. ISSUES FACED BY THE CLOUD MARKET
Localization of Cloud data will be a hot topic in the coming years. Recently, many countries have expanded their
enforcement of the cloud data localization law against the technology giants. Although this battle may be unique to the
megalithic tech companies, how aggressively and in what manner the country plays its data privacy card may have inverse
effects on future investments [20]. The fear of clouds, which is widespread throughout the world, is another factor. There
are three major challenges associated with cloud migration, according to a recent study: the adaptation of cybersecurity
controls, compliance with legal and regulatory requirements, and migration of IT systems to the cloud. Cloud services in
all countries face the same issues many industries and regions have had when it comes to adopting the cloud. Even though
the cloud offers vast advantages in cost optimization and scalability, basic cloud information remains elusive to the
majority of people. Those who work for companies that utilize cloud technology either did not know how their company
protected data in the cloud or were using it "as is" without additional cybersecurity protocols. Even worse are some of
the concerns that people have regarding cloud computing. When asked about the most important risks involved with
IJARCCE
International Journal of Advanced Research in Computer and Communication Engineering
Impact Factor 7.39Vol. 11, Issue 4, April 2022
DOI: 10.17148/IJARCCE.2022.11402
© IJARCCE This work is licensed under a Creative Commons Attribution 4.0 International License 8
ISSN (O) 2278-1021, ISSN (P) 2319-5940
cloud technologies, they believe accessing critical data by cloud provider staff indicates a deep mistrust of technology
[20]. If so, many users do not trust the cloud, it could be a significant barrier to establishing country-wide cloud services.
Even though many companies have been using the cloud, they may be reluctant to fully commit to using it. Whether the
problem relates to global cloud services or country-specific cloud services is unclear, but service providers need to be
transparent, otherwise, the confluence of country-specific data privacy and the general public's mentality could pose a
barrier to growth and adoption.
IX. THE BEST PRACTICES FOR CLOUD SECURITY
There are six pillars to a security reference architecture that describe the minimum requirements required by organizations
to place workloads securely in the cloud [18].
The best course of action is:
It should be done as follows:
Design and implement the basic security
controls to create a secure landing zone in the
cloud solution provider platform.
It is important to define the roles that are
authorized to operate in the environment, what
they are expected to do and what their
responsibilities are.
Design re-usable cloud solutions provider
secure PaaS templates with the integrated
security controls.
Secure connectivity between on-premises data
centers and utilize the "hub and spoke" model
of network security
Platforms and services can be combined in
order to bring together existing enterprise
security tools for clients with operational
processes and procedures.
Set up secure landing zone configuration
policies and apply platform security controls to
cloud service providers.
Table -1: Best Practices for Cloud Security
X. RUSSIA-UKRAINE CYBER CONFLICT: HOW CLOUD SERVICES ARE WEAPONS
Russia continues its invasion of Ukraine, and the Researchers have examined how cloud technology contributes to
conflict at least in a virtual war [19]. When Russia invaded Ukraine, online action was triggered [19]. In the past, Ukraine
has experienced numerous attacks resulting in defacement of websites, (DDoS) outages, as well as the use of destructive
wiper malware. A group of anonymous hackers subsequently became engaged, and Ukraine's government sought
volunteers with cybersecurity skills to help secure key infrastructure.
Ukrainian government officials have formed an IT army to defend Ukrainian networks and counter Russian threats. In
the study, cloud technologies are now playing a part in the digital aspect of the conflict. There is a lot of code and tools
that have been tracked by the team in public repositories, including code libraries, Docker images, as well as other
software packages. In the search, they searched for guides, names, as well as tools that were promoted by either side to
use in the cyberattacks. There was an effort to interfere with the network traffic of online services by utilizing these public
repositories to carry out denial-of-service attacks. The team was particularly interested in the container images. Through
DDoS tools that provide how-to guides, the audiences with no technical expertise are able to disrupt websites through
cloud deployment. On the list of targets are financial institutions and providers of multiple services in Russia.
In addition, the container images also included attack tools that initiated DNS floods through the UDP protocol, sending
a large number of DNS requests through UDP in port 53 and targeting Russian banks. Honeypots have been deployed to
collect data regarding Russian and Ukrainian IP addresses. In general, network and media organizations were the most
frequently attacked. The advancement of technology allows experienced threat actors to develop and distribute simple
automated tools that allow individuals with limited technical expertise to participate in cyberwar. Additionally, it enables
individuals and organized hacking groups to influence the conflict using their skills and resources. There is no doubt that
emerging technologies are relevant to these efforts and can make a significant contribution.
XI. THE NEGATIVE IMPACT OF STOPPING SALES OF HARDWARE AND IT SUPPORT FROM THE
WESTERN WORLD
The majority of companies and government agencies have relied on technology developed in the West for their own and
operated IT systems for decades [22]. This includes servers, operating systems, applications, and tools. In general, these
tools enable organizations to send emails, analyze data, store records, and generally manage their operations. Many of
these technologies cannot be switched off remotely by vendors [22]. However, there are several ways to impede a client's
IJARCCE
International Journal of Advanced Research in Computer and Communication Engineering
Impact Factor 7.39Vol. 11, Issue 4, April 2022
DOI: 10.17148/IJARCCE.2022.11402
© IJARCCE This work is licensed under a Creative Commons Attribution 4.0 International License 9
ISSN (O) 2278-1021, ISSN (P) 2319-5940
system. As an example, local cloud service providers, banking, transport, telecom, and other organizations in the country
may be hindered if vendors stop supplying replacement parts, security patches, software updates, and technical assistance.
A halt in the supply of goods will have an adverse effect on everything. Consequently, clients may be forced to find other
options, such as pen-and-paper bookkeeping, if the services go offline or degrade due to a lack of updates.
XII. CYBER WAR: THE RISK IN REMOTE MANAGED SERVICES AND CLOUD SERVICES
Managed services: Managed service operators manage services of an Organisation on their own behalf. This could
include a) authentication services, b) application services, c) cloud services, d)backup services, e)desktop services,
f)enterprise mobility services, g)gateway services, h)hosting services, i)network services, j)security services, k)support
services, l)procurement services, and other commercial-associated services. By doing so, managed service providers can
manage the services from their clients’ facilities or their own premises. In taking into account the security risks related
to the managed services, an organization should examine all managed service providers who have access to their systems,
facilities, or data. These services may be put at risk in the event of a cyberwar.
Outsourced cloud services: Outsourcing may be a cost-efficient option for delivering cloud services, and also possibly
providing a superior service. Though, outsourcing may affect an organization’s security risk profile. An Organisation
will still have to decide if a particular outsourced cloud-based service is equivalent to acceptable security risk and, if
suitable, authorize it for its own use [5]. In the event of a cyberwar, these services may be at risk.
XIII. DATA LOCALIZATION WITHIN A COUNTRY
The country data localization law requires that at least a copy of all information about country citizens be stored locally
within local data centers. With data localization and the center of country data privacy, the crucial consideration is that
even though a copy or the original of the data must be held on local soil, you can trust the storage and processing of that
restricted information to a third party within the country. As a result of the reality of those countries' data protection laws,
local cloud services do hold a significant advantage in helping businesses store data within compliance. This is the
primary reason why observers expect market growth to mainly come from national cloud providers rather than further
expansion by global cloud providers.
XIV. DO DATA RESIDENCY REDUCES CLOUD RISKS
In order to protect private and classified data generated by their citizens, countries are establishing their own data
residency regulations to mandate the storing of that information in that country the country of origin instead of outside
of it [21]. This theory is based on the idea that the laws of the country in which the data is stored will apply to the data.
Six aspects are involved in the life cycle of data. Following are the creation, use, storage, sharing, archiving as well as
the destruction of the data. Data residency only deals with the aspect of storing data. Data residency requests will be
based on concerns that data privacy laws may be less stringent in some jurisdictions [22]. In some jurisdictions, data
residency has been adopted as a policy, however, there is some question as to whether it is effective. Is it more beneficial
to store protected data in the country of origin or does the level of risk remain the same while the nature of the risk
changes? Although storing data meets data residency requirements, data residency is not effective in protecting data if
the owner of the cloud center, or the SaaS provider, has access and can send the data to be processed in a different
jurisdiction [23]. Remember that Cloud computing is based on the layered service model that makes use of Cloud
federation to achieve maximum functionality, reach, performance, and economy.
XV. THE RISE OF RISK FROM CLOUD COMPUTING
When cloud services are used, the control of data is automatically lost [12]. Even when the cloud service provider (CSP)
encrypts data during both the transit and when it will be stored in the cloud, it could easily decrypt it too [12]. A crucial
risk is a fact that government agencies or private organizations that use the courts could force the cloud service provider
(CSP) to deliver your data or appropriate encryption keys. Many times, it may not even be known whether such a legal
proceeding or court order was executed. This is termed Blind Subpoena. The problem becomes apparent when your data
is being processed in various countries while it is residing in a particular country. If data resides in the data centers located
in the country, it is possible to be able to count on legal protections which apply to the data.
XVI. CONCLUSIONS
Usage of the internet is becoming increasingly common as governments and business organizations move services on the
internet to make processes more effective and to provide a wider reach. With the development of global enterprises and
IJARCCE
International Journal of Advanced Research in Computer and Communication Engineering
Impact Factor 7.39Vol. 11, Issue 4, April 2022
DOI: 10.17148/IJARCCE.2022.11402
© IJARCCE This work is licensed under a Creative Commons Attribution 4.0 International License 10
ISSN (O) 2278-1021, ISSN (P) 2319-5940
the growing digital economy, organizations must carefully review the application of cloud data localization as well as
data transfer laws to their operations and those of their clients. Cloud computing certainly offers many advantages, and
the future seems clearer too. Though, it also includes many risks and challenges for the enterprise. Therefore, it's
important to know the problems which can come up if the organization or government intends to move the workload to
the clouds. However, given its extensive reach of loose as well as light digital infrastructure, it represents a big threat to
nations, and public as well as private businesses and individuals. The government must take accountability for tackling
the nation's potential vulnerabilities. The biggest concern between the government and the organizations to shift their
workloads or processes to the cloud is data security. Although security measures laid down in cloud computing have been
evolving throughout the years, it is still a significant challenge. There are lessons to be learned from the Russian War for
the rest of the world. The war demonstrated the risks associated with using the cloud. Therefore, all government and
public sector organizations should be analysed before the Government and Organization transfer their data to the cloud.
In today's world, cloud solutions are used more and more, making any nation susceptible to such a digital crisis. To deal
with this, the government or organization must be prepared. In today's world, it is not surprising to see a digital crisis
because it may happen at any time and to anyone. This research paper offers an overview of multiple threats,
vulnerabilities, and the potential risk of cloud data, this is an article that can serve as a guide to policymakers in
organizations to assess the security potential risk hosting cloud services outside the country.
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International Journal of Advanced Research in Computer and Communication Engineering
Impact Factor 7.39Vol. 11, Issue 4, April 2022
DOI: 10.17148/IJARCCE.2022.11402
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ISSN (O) 2278-1021, ISSN (P) 2319-5940
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