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US Unhappy With Australians Storing Data On Australian Shores

Fluffeh writes "The United States' global trade representative has strongly criticized a perceived preference on the part of large Australian organizations for hosting their data on-shore in Australia, claiming it created a significant trade barrier for U.S. technology firms. A number of U.S. companies had expressed concerns that various departments in the Australian Government, namely the Department of Defence had been sending negative messages about cloud providers based outside the country, implying that 'hosting data overseas, including in the United States, by definition entails greater risk and unduly exposes consumers to their data being scrutinized by foreign governments.' Recently, Acting Victorian Privacy Commissioner Anthony Bendall highlighted some of the privacy concerns with cloud computing, particularly in its use by the local government. He said the main problems were the lack of control over stored data and privacy, in overseas cloud service providers."

48 of 386 comments (clear)

  1. ERROR by Elbart · · Score: 5, Funny

    The irony-meter is off the charts. Or is this a late April-fools-article?

    1. Re:ERROR by Anonymous Coward · · Score: 5, Insightful

      The US believes in being fair. They need the Australian government & companies to store data on US servers so it can be fairly stolen by them not just China.
      They're too lazy/incapable of getting the data themselves.

    2. Re:ERROR by Moryath · · Score: 5, Informative

      No, this is typical US attitude. They think they own the world.

      If the rest of the world would tell the US to piss off, maybe things could get better. Instead, the US throws their totalitarian weight around and we get bought-off British judges trying to extradite British citizens to the US for conduct that occurred in Britain, between British citizens, that was 100% legal under British law because the US MafiAA wants to try to have the British citizen prosecuted under US fascist law.

    3. Re:ERROR by poetmatt · · Score: 5, Informative

      yep. it's amazing the US is complaining here, but then again our country is on a constant downward spiral into idiocy. can't say I'm surprised.

    4. Re:ERROR by Pope · · Score: 4, Insightful

      Pretty much.

      US to World: Drop your tariffs! Embrace free trade (that our farmers are good at)!
      World to US: OK, you first.
      US to World: No! We have to think of *our* farmers first! (US goes off and complains to WTC)

      It's how the World Bank wields so much power, using economic terrorism against poor countries.

      --
      It doesn't mean much now, it's built for the future.
    5. Re:ERROR by BlackSnake112 · · Score: 5, Insightful

      I hope not he/she doesn't get modded to -1.

      Is there a cloud based company that will not take a peek at any of the information stored on it's servers? Does anyone really believe that? Most companies are looking for any advantage they can get. If they happen to 'see' something and patent it first it might be really hard for a small company or single person to prove that in court. Meanwhile said company could be raking in the cash on that idea/data.

      I am in the US. I work with people who do a lot if research. Most of them like the cloud idea for storing their research information. They like it until they realize that the host of the cloud can read their data.

    6. Re:ERROR by cfulton · · Score: 5, Insightful

      This is slashdot. We are not all tards and I will bet for the most part this forum agrees with the poster.

      --
      No sigs in BETA. Beta SUCKS.
    7. Re:ERROR by fizzer06 · · Score: 5, Funny
      "our country is on a constant downward spiral into idiocy

      Yeah, I saw the documentary "Idiocracy".

    8. Re:ERROR by Bob+the+Super+Hamste · · Score: 5, Funny

      With the lack of sleep last night my mind joined this headline with the previous one "Baboons Learn To Identify Words" as logically they seemed to go together. Sadly I don't think that relationship is too far from the truth upon further thought.

      --
      Time to offend someone
    9. Re:ERROR by Anonymous Coward · · Score: 4, Insightful

      Is there a cloud based company that will not take a peek at any of the information stored on it's servers? Does anyone really believe that?

      I work for a cloud provider. I have root on all of the servers. I have never, nor have I ever even wanted too, looked at any of our customers data. If fact, I'm not even sure that I could: if I even knew how!

      If you think that all Cloud providers do all day is read email, you should probably tighten the tinfoil helmet. Or perhaps you could just accept that we have better things to do and really don't give a toss about your Crayola sketched plans for world domination.

    10. Re:ERROR by cpu6502 · · Score: 4, Insightful

      The U.S. is like the Roman Empire in its last years. Trying to boss people around and not being too sucsessful because the power had waned.

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    11. Re:ERROR by Electricity+Likes+Me · · Score: 4, Insightful

      Claiming you have no idea if you could look at my data is not reassuring.

      Reassuring would be if you were certain you couldn't.

    12. Re:ERROR by Jumperalex · · Score: 5, Funny

      PROOF!!!!!

      " your Crayola sketched plans for world domination"

      I thought you said you didn't look at my data mr. AC

      --
      If you can't be good, be good at it!
    13. Re:ERROR by RelaxedTension · · Score: 5, Informative

      You really don't understand the situation. People like me are paid to be paranoid, and to make sure that our company's data is safe from prying eyes as much as absolutely possible (In fact, we are legally responsible for it). I cannot afford to just toss our data out there and not worry about it. My job is to mitigate all of the possible things an outside entity could do to access that data. And fyi, a provider can setup the server such that they cannot read the data on it while still being able to administer the server itself.

      And to the trade representative, boo-fucking-hoo. Instead of allowing US companies to guarantee data privacy, even when hosted outside of the country, the Patriot Act forces them to guarantee the opposite. As much as I would like to use a lot of the cloud services out there, I can't just because of that.

    14. Re:ERROR by gstoddart · · Score: 5, Insightful

      No, the US government is rightly concerned with the Australian government making spurious claims of security problems that harm legitimate competition for money from Australian companies, and is bringing up the issue with he Australian government, which is its job.

      Sorry, but under the US Patriot Act, the US government has granted themselves unlimited, and secret access to any and all data stored on a US server.

      I've done some contract work for the Canadian Government, and it is illegal to store certain kinds of information on US based servers because it would potentially violate Canadian law. There are companies who have arms-length subsidiaries whose job it is to handle government data that could not be allowed to be stored in the US. This is no different than similar issues with US owned companies accessing EU data because of the Patriot Act.

      The US can claim their companies are being hurt by this, but the fact of the matter is, the US is not a trustworthy place to store your data unless you are also going to accept them potentially spying on your citizens.

      This isn't a trade issue. It's a trust issue.

      So if America wants to keep their Patriot Act which tries to violate the laws of other countries, their businesses are going to lose out in those markets if it would mean those companies can't comply with local laws and the US law at the same time.

      Sorry, but these aren't spurious claims -- they're well established issues which have been covered before.

      --
      Lost at C:>. Found at C.
    15. Re:ERROR by roman_mir · · Score: 4, Insightful

      Do you remember the question/story on /., that went like this: Is the Government Scaring Web Businesses Out of the US?

      Well, I said then that it is not just web businesses.

      It is not just web business that is being destroyed in USA due to this destruction of freedoms and liberties (and Patriot Act is a very ironically named piece of the most unpatriotic legislation that USA has probably ever passed so far, notwithstanding the latest NDAA bill).

      Patriot Act has destroyed the competition in the securities, finance, investment brokerage, banking business, and of-course all this information businesses as well.

      You see, when USA was actually a free society, it was after the Civil War and before the Fed was established and IRS started collecting income taxes, that's when everybody wanted to come TO USA to do business, because how free the country was.

      Who wants to go TO USA to do business today? Well, if you are a large monopolistic bank, a central bank of some sort, then you want to be friends with the Fed, but those are not companies that produce value, they are in business of stealing everybody's money, that's all.

      But all this nonsense designed to 'protect' the people of USA is protecting them alright, protecting them from having an economy and a society. Protecting them from being able to invest or work and from being able to save in their own money.

      As to Canada, it should really decouple itself from USA, because it looks like it's going the same path at a somewhat slower pace, it really should take a step back and rethink everything, from its failing medical and pension systems to its central banking mechanism.

      P.S.
      Canada only started its central bank in 1935 and what good did that do to its economy? The moment when the healthcare became 'single payer' or universal in Canada, it had a good health care system, and because of that inertia it took quite a number of years to start seeing deterioration of the kind, where people are forced into insane lines to get treatment (or you have to be lucky to know a doctor, or maybe you are a politician, then you are OK).

    16. Re:ERROR by Ihmhi · · Score: 5, Informative

      Is there a cloud based company that will not take a peek at any of the information stored on it's servers?

      Yes: SpiderOak. They are physically incapable of looking at your data:

      Your SpiderOak data is readable to you alone. Most online storage systems only encrypt your data during transmission, meaning anyone with physical access to the servers your data is stored on (such as the company's staff) could have access to it. Or, even if your data is encrypted during storage, your password (or set of encryption keys) is often stored along with your data, thus making its easily decoded by anyone with local access to those servers.

      With SpiderOak, you create your password on your own computer -- not on a web form received by SpiderOak servers. Once created, a strong key derivation function is used to generate encryption keys using that password, and no trace of your original password is ever uploaded to SpiderOak with your stored data.

      SpiderOak's encryption is comprehensive -- even with physical access to the storage servers, SpiderOak staff cannot know even the names of your files and folders. On the server side, all that SpiderOak staff can see, are sequentially numbered containers of encrypted data.

      This means that you alone have responsibility for remembering your password or 'Password Hint' (which you can create to help you remember) allowing SpiderOak to create a true 'zero-knowledge environment' – keeping your data as safe and secure as it can possibly be.

    17. Re:ERROR by gstoddart · · Score: 4, Insightful

      You see, when USA was actually a free society, it was after the Civil War and before the Fed was established and IRS started collecting income taxes, that's when everybody wanted to come TO USA to do business, because how free the country was.

      I've said it before to you, and I'll say it again ... if you think you'd suddenly end up with some magically perfect society by rolling back that far, I believe you're sorely mistaken.

      You'd end up with something like "Escape From New York" as your society would fall apart.

      And, please, don't bother telling me again how the Austrian School of economics and Ron Paul magically prove all of your points. I don't feel like having that discussion again. You might as well try to tell me how the bible proves something scientific.

      --
      Lost at C:>. Found at C.
    18. Re:ERROR by NeverSuchBefore · · Score: 4, Interesting

      Why would we ever extradite someone just because they helped someone else copy something? Where are our priorities? We gain nothing and lose much from wasting our time on such trivial nonsense.

    19. Re:ERROR by gstoddart · · Score: 5, Insightful

      that's why I don't subscribe to any socialist principles, because they are the ones that operate on a belief that people are not rational actors

      Have you looked around? Collectively, people aren't rational actors. The economic assumptions that the populace are rational actors acting on perfect information, and that the people in that market would never attempt to cheat, lie or steal is what finally made me realize your model of economics is based on untenable axioms. To me, it's your system which tries to make people into something they're not. People have been cooperating to eke out a better life for thousands of years. Precisely because it is in their best interest.

      People do irrational things. People don't know what's always best for them.

      Your system boils down to "fuck everyone else, as long as I have my gun to protect myself I can make it". That's not a "society", that's an uneasy peace since sooner or later one of these people who wants to win is going to remember it's far easier to just take it. You know, like Somalia.

      You need to stop believing in Santa Clause.

      And you the Easter Bunny. Or, maybe I should say Easter Bunnye since we're adding random e's.

      As always, such a stimulating conversation.

      I had forgotten how boring this stuff is and why I stopped reading Ayn Rand in the first place. Your rugged individualism is more like anti-social behavior to me. I also understand just how thoroughly committed you are to that viewpoint.

      So, roll around in your ideology and fantasies of John Galt or being worthy enough to lick the boots of Dagny Taggart. I outgrew that shit 10 years ago.

      Cheers

      --
      Lost at C:>. Found at C.
    20. Re:ERROR by ppanon · · Score: 4, Insightful

      It's actually worse than that. You could do your due diligence, check out all the options for cloud hosting, do your own background checks on all the executives, managers, and operators/admins of your preferred provider and think you are safe. Then one day, the company could be bought out by "Big Cloud Operations", who fire all the trustworthy operators and outsource administration to India or China so as to increase profits and their executive bonuses. Within days or weeks, your data and trade secrets are in the hands of your competition and there's nothing you can do about it. Oh sure, you could sue them in civil court if you have a few million for lawyers, and by the time you can get a judgment a few years later, they've closed shop, the execs have raked in the cash, and there's just a shell with nothing to pay for your award.

      The only thing that you should keep on a public cloud is public data (i.e. public web sites for Internet presence, advertising, and support ). Anything that provides a substantial competitive advantage should be kept on a private virtualization infrastructure or else you're playing Russian roulette with the company's future. The last 10 years should make it pretty clear that If it can be done and there's a strong profit motive, it's only a matter of time until somebody tries it, regardless of how illegal or unethical it is. OK, that's always been true, but the last 10 years sadly make it clear that IT is no exception.

      --
      Laissez lire, et laissez danser; ces deux amusements ne feront jamais de mal au monde. - Voltaire
  2. *cough* Megaupload *cough* by Anonymous Coward · · Score: 5, Funny

    The hell you say! Saving data in your own country, so that foreign governments can't judge your citizens by their laws? That's crazy talk, I think you should have a serious conversation with my sponsor, the MPAA.

    1. Re:*cough* Megaupload *cough* by kulnor · · Score: 5, Informative

      Read this article and you'll know why government, private companies, and individuals may not want their data in the "cloud", particularly when you know half of the Internet traffic likely transits through US soil: The NSA Is Building the Country’s Biggest Spy Center (Watch What You Say) http://www.wired.com/threatlevel/2012/03/ff_nsadatacenter/

    2. Re:*cough* Megaupload *cough* by gstrickler · · Score: 5, Insightful

      Oh, I see. You must be a proponent of piracy. Just because we shut down one entity and try to extradite one of your citizens who did nothing more than allow his data to flow through routers in the US, you think we're a bunch of out of control bullies who think we can do anything we want, regardless of what any law says....Well, let me tell you...You're right. We are a bunch a bullies who thing we can do anything regardless of what the law says.

      As a US citizen, I apologize for the idiots who have taken over our government, and I appreciate your refusal to accept our insane policies. We're fighting the battle here too.

      --
      make imaginary.friends COUNT=100 VISIBLE=false
  3. LOLWUT??? by jtownatpunk.net · · Score: 5, Insightful

    Why would this be a problem? The farther away their "cloud" is, the worse the performance. There's enough of a performance hit just trying to cram all that data through a company's entartube without stretching that tube many thousands of miles for no good reason.

    1. Re:LOLWUT??? by fuzzyfuzzyfungus · · Score: 4, Informative

      There are really multiple problems...

      The US has sufficiently aggressive surveillance and limited privacy protection(and I'm just referring to the stuff that has been declared legal) that it is neither obviously desirable, nor even necessarily possible, for entities in areas with more demanding privacy law to use US-based hosting or storage service.

      Second, by the standards of places developed beyond the barter economy, Australia's overseas links are long, not terribly fast, and rather expensive(Also, Telstra...)

    2. Re:LOLWUT??? by ian_mackereth · · Score: 4, Informative

      Funny how Americans think that since breaking Enigma helped them win the WW2 so much, they are entitled to have the same advantage over the wole world now.

      Umm... that movie where US troops secured the vital Enigma machine wasn't actually accurate. It was the Brits who stole the intact Enigma and the brightest of the Brits who cracked the code and, to a large extent, helped them win the war. (OK, having a whole lot of US planes and bombs and ships and tanks and stuff to DO something with the intercepted data was also quite significant, but the intelligence side of things was all down to the Poms.)

    3. Re:LOLWUT??? by houghi · · Score: 4, Insightful

      Sure, it helped having the US on our side, but so did it help having the French, The Dutch, the Canadians, the Polish, the Russians, Australians, Indians, the many, many, many others on our side.

      It is called an alliance for a reason. They were allies. They worked together.

      They did not do it alone. None did it alone. It is a pity that that is forgotten so often.

      --
      Don't fight for your country, if your country does not fight for you.
  4. Toys - Pram by flurdy · · Score: 5, Insightful

    Is that really them throwing their toys out of the pram?!

    "How dare the Aussies deny us from intercepting data and shutting down sites by Australian companies and citizens"

    --
    My other Sig is very funny.
  5. I'm an asshole too by erroneus · · Score: 5, Insightful

    Whoever is in charge of Australia's defence department is an asshole and I happen to agree with him. WHY is it even close to being a good idea to send data out like that and especially in the US? Sorry, but I don't trust the US government.

  6. You're kidding, right? by msobkow · · Score: 4, Funny

    Australia and New Zealand are notorious for having "pipe problems" due to the long-haul links they have to use, and the US expects them to have all their critical business data travelling those overloaded pipes for the convenience of US agencies and companies??!?!!?!

    So the convenience of American firms is now justification for slagging the sound and reasonable business practices of foreign nations?

    Navel gazing US again. If they navel gaze any closer they're going to find themselves eyeballing their own stomachs from the inside... :P

    --
    I do not fail; I succeed at finding out what does not work.
    1. Re:You're kidding, right? by the+eric+conspiracy · · Score: 4, Interesting

      It's not just live data located in the US. It's data in Australia managed by a US company that could be subject to a US warrant, or even backups of Aus servers hosted in the US.

  7. Good for Australia by Anonymous Coward · · Score: 5, Insightful

    I live in the US. With the recent mega upload fiasco and some of the other craziness, I think it's a smart move for foreigners to avoid hosting in the US.

    US courts are trying to reach into other countries now. We've got way to much craziness here to trust us. The government should have known their actions will have consequences.

    1. Re:Good for Australia by fuzzyfuzzyfungus · · Score: 4, Insightful

      I live in the US. With the recent mega upload fiasco and some of the other craziness, I think it's a smart move for foreigners to avoid hosting in the US.

      US courts are trying to reach into other countries now. We've got way to much craziness here to trust us. The government should have known their actions will have consequences.

      That isn't necessarily true, it really depends on what you are planning on doing. 'Jurisdiction shopping' for hosting purposes isn't all that different, strategically, from doing it for tax laws. Different jurisdictions are useful for different things and varying degrees of terrible for others.

      If you, say, actually want to comply with EU and/or member state privacy law, or just don't want the NSA doing cloud backups for you, you'd be a moron to let your data get anywhere near the US. Same deal if you want to do something that makes the MPAA sad. On the other hand, the US is a pretty decent(and attractively priced) place to have strong opinions about assorted governments, religions, and ethnic groups that would quite possibly earn you an extended stay in a cozy correctional facility at home... The important thing is identifying your requirements and doing your best to ensure that the most sympathetic jurisdictions, for those needs, are where your activities occur...

    2. Re:Good for Australia by donscarletti · · Score: 5, Insightful

      I live in China. I'd only consider a completely local hosting solution, not because the US government fucks you harder than the Chinese government, but simply because you're going to get fucked by the local one whatever you do, so better leave it at one than be double penetrated.

      --
      When Argumentum ad Hominem falls short, try Argumentum ad Matrem
  8. No America - you're not getting our data. by Anonymous Coward · · Score: 5, Informative

    One of the reasons we don't like hosting stuff on American servers is due to one of their laws that the FBI (and similar agencies) can obtain data with a warrant that tells the service (cloud) provider not to tell the customer us. We have our own private cloud infrastructure here in Perth and spread to Adelaide and Sydney with talks of having some in Singapore. We do not want our data on cloud infrastructure we don't manage in another country.

  9. Predator Drone Strikes by Ukab+the+Great · · Score: 4, Funny

    on suspected members of Men-At-Work will soon follow.

  10. Cloud Perception by rogueippacket · · Score: 5, Informative

    As someone who regularly solutions cloud services for customers, I can assure you, the exact location of the cloud is very important to our big customers. Being able to say it's based out of entirely Canadian datacenters on an entirely Canadian network is a huge advantage over our competitors south of the border. It's not like any of them have been bitten yet, but the perception is that their data is much less safe in another country.

    1. Re:Cloud Perception by Anonymous Coward · · Score: 5, Insightful

      Oh, God, you did not just use "solution" as a verb, did you? Really?

  11. Victorian Privacy Commissioner by Black+Parrot · · Score: 5, Funny

    Is that the person responsible for safeguarding Victoria's secret?

    --
    Sheesh, evil *and* a jerk. -- Jade
  12. Dear United States trade representative by Ralph+Spoilsport · · Score: 5, Informative

    Fuck You.

    --
    Shoes for Industry. Shoes for the Dead.
  13. wtf? by pak9rabid · · Score: 4, Interesting

    As a US citizen, I can't help but think WTF. Let them (and the rest of the world, for that matter) do whatever the fuck they want.

  14. What? by Antarell · · Score: 4, Insightful

    Did the clown sprouting this crap listen to himself? God forbid a country that isn't the USA look after it's own industries and interests! To be honest I and many Aussies can't trust the Yanks as far as we could throw them, let alone let them store our data. Typical self centred 2 year old tantrum by some Yank dickwad who thinks the world should revolve around the USA. Yet another reason to build a 100ft wall around the USA until their idiot government/corporations (same thing?) learn to play with the grown ups.

  15. Why is this news? by MikeRT · · Score: 5, Interesting

    The point of a trade representative to another country is to shill, without principle, for the interests of their country's economy. If the US Trade Representative gets too pushy, just remind him that if the US ever has any intention of "containing China," Australia is one of those "do not piss off, under any circumstances" regional bases. It's especially important to have on our good side in the event China ever goes batshit crazy by seizing Taiwan, then says "since we've already risked WWIII, let's just go ahead and invade South Korea and Japan as well since their armies aren't worth shit."

  16. Ob by Hognoxious · · Score: 5, Insightful

    Would you store your beer collection in a country where it's legal to piss in it?

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  17. Duh by Galestar · · Score: 4, Interesting

    I work for an American cloud service provider, and even we do not want to store our(customers') data in the U.S. The patriot act is a huge obstacle when selling to foreign customers. Hence why we have a major data center in Canada, and are looking at putting one in the U.K.

    (see http://arstechnica.com/tech-policy/news/2011/12/patriot-act-and-privacy-laws-take-a-bite-out-of-us-cloud-business.ars)

    --
    AccountKiller
  18. Sorry by Scarred+Intellect · · Score: 4, Interesting

    Dear Australia,

    I, an American Citizen and veteran of the Marine Corps where I served an an infantry machine gunner, and filling billets including intelligence analyst and company clerk, sincerely apologize for this.

    Although this isn't my fault (for I was not allowed to vote while I was in the service. This is my opinion, I found it too much of a coincidence that my ballot and that of a friend from the same state arrived exactly 1 month to the day after it was supposed to be postmarked for return. Twice.), you can bet I will vote this round, and will not be voting for anyone that is currently in office, for they all allow these things to happen, which is an embarrassment to us all.

    I'm E-mailing my senators and congressman now. I have other concerns to raise with them anyway, like why my state charges sales tax on private sales of vehicles (double taxation) and why they want to charge tax on the Real Market Value of said vehicle even though it was sold for 1/3 that price (taxing money not spent).

    Sincerely,
    Troubled American Citizen

    P.S. Are you guys still open for citizenship? At times it's more prudent to abandon a sinking vessel rather than continue trying to fix what is so severely broken.

  19. The problem is the Patriot Act by presidenteloco · · Score: 4, Informative

    In Canada, it is illegal for public agencies or IT companies serving them to store customer/member data on US-operated servers because the Patriot Act contravenes Canadian privacy laws. Many other Canadian associations and businesses have similar policies, because Patriot Act searches would violate their infomration privacy policy.

    --

    Where are we going and why are we in a handbasket?