Cloud computing is seriously gaining ground. Even the online retailer Amazon has entered the storage space provision business, generating notable revenues. Companies outsource their data centres and secure their data on virtual machines.
In particular, when providing the documents for Merger & amp; (M & amp; A), companies are reverting to the cloud data room. These are virtual servers that provide the data relevant for the sale or the merger via web browsers and provide password-protected and encrypted data for selected prospective customers. Particularly these due diligence processes require high-security data centers and systems.
Big brother is watching you
The surveillance scenario that George Orwell has written in his 1984 novel is more recent than ever before. Secret services and business spies invent viruses, games, and software programs, and have access to software and data room providers to access secret data.
It has long been shown that American Internet companies were intercepted by the US screening program PRISM. Many data room providers, which advertise in Germany and Europe, however, have their servers in the USA.
Secret Services Crawl Data room Content
Especially in the case of company sales, this seems like the literal game with the fire. After all, economic espionage has long been a field of activity for the intelligence services. The Safe Harbor Agreement between the European Union and the US should actually ensure that data is stored on US computers in accordance with the European Data Protection Directive.
After the revelations of Whistleblower and former intelligence officer Edward Snowden, the European Commission had announced the agreement to the Americans. Many German associations and authorities therefore strongly recommend to hire local providers who operate their data room servers in Germany. This is, according to many security experts, the only effective protection against scandal.
Software from Germany
Another security criterion is that not only the server location but also the software was developed in Germany and by German software developers. „In Germany so far, no case has been known that German intelligence services or police officers had a secret gateway from the program developers or software houses,“ explains Martin Berg, Internet expert of data room operator „dataroomX.de“ the situation.
Data exchange between the EU and the USA redefined
Even though the Safe Harbor decision was replaced by a successor agreement between the EU Commission and the US government under the name „EU-US Privacy Shield“ at the beginning of the year, there is no assurance that the European Data Protection Directives will be complied with.
As a result of the decided changes, the European Commission has agreed to the most important legal certainty in the exchange of data between European and American companies. As long as companies should take care that the server location is Germany and the software „Made in Germany“.
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