As a company, you entrust your CRM system with the most valuable data: detailed customer profiles, purchase histories, communication histories and market insights. Increasingly, this sensitive data ends up in the cloud - an efficient and scalable solution. But the US Cloud Act raises crucial issues of data sovereignty and compliance that you can't ignore.
The 2018 Cloud Act (Clarifying Lawful Overseas Use of Data Act) gives US authorities broad powers to access data stored by US-based cloud providers (such as Microsoft, Salesforce, Amazon AWS, Google Cloud) - even if that data is physically located on servers outside the US, e.g. in the European Union. A US court order can be enough to compel this access, often without the affected user (your company) or the foreign state being informed or asked for permission.
Many large CRM platforms have their origin or headquarters in the USA. If you use such a CRM in the cloud, this means:
The solution is not to do without cloud CRMs, but to make a strategic and conscious selection and configuration:
The Cloud Act is no reason to do without modern CRM solutions. However, it is a clear wake-up call not to relinquish control of your customer data. A proactive approach to vendor selection, data localization and protection mechanisms is essential to maintain compliance (GDPR) and preserve your company's most valuable asset - the trust of your customers.
We can provide you with comprehensive advice on data protection-compliant CRM strategies, help you select a provider and implement technical and organizational measures for maximum data sovereignty. Contact us for a no-obligation consultation.
About the author:
Frank Lauterhahn
Managing Partner
Frank Lauterhahn is an experienced CRM consultant who helps companies of all sizes and from all industries to develop effective CRM strategies and benefit from CRM software in the long term.
With a holistic approach, he supports his customers from the definition of objectives to business analysis and implementation.
As an independent consultant with extensive market knowledge and negotiation skills, he ensures the selection of the most suitable software solution and a smooth implementation.
Thanks to his many years of experience as a project manager in CRM technology implementation, he ensures that the project runs smoothly.
With expertise in various project methods and consulting services for the digitalization of customer management, he supports companies that are ready to exploit their full potential.