What does "data sovereignty" refer to?

Data sovereignty refers to the concept that data is subject to the laws and regulations of the country in which it is physically located. This principle is important in the context of cloud computing and data storage because it affects how organizations manage, protect, and share their data. When data crosses international borders, different legal environments may come into play, which can impact compliance with privacy regulations, data protection laws, and other legal obligations.

As organizations increasingly rely on cloud services to store and process data, understanding data sovereignty is critical for ensuring that they comply with local laws and regulations wherever their data is hosted. This is particularly relevant for industries that handle sensitive information, such as healthcare and finance, where regulatory compliance is paramount.

In contrast, the other options relate to different aspects of cloud computing. They discuss operational efficiencies, strategic planning for cloud migrations, or service models rather than the legal implications surrounding the location of data. Hence, the focus on legal and regulatory frameworks tied to the physical location of data clearly defines the essence of data sovereignty.