Regulatory framework change could boost storage channel

Review of EU regulation framework could offer VARs the chance to provide more consultancy services, because businesses will have to notify regulators and customers of data security breaches. At present, the EU requires that only network providers notify end-users if a serious security risk is posed through data loss.

The storage channel may benefit from proposed changes to a European regulation that will mean businesses have to notify regulators and customers of breaches in data security, according to business continuity vendor DisUK.

The review of the European Union (EU) regulatory framework for electronic communications networks and services regulation proposes that all suppliers of electronic communications, networks or services must be forced to announce security breaches that result in end-users’ personal data being made available to others.

Currently, the EU requires only network providers to notify end-users if a serious security risk is posed through data loss.

Rob Gretton, business development director at DisUK, told CRN: “This has the potential to drive sales of storage consultancy, storage security, storage products and related services for the channel, the way it already has in the US.”

A similar, but more strict Californian law has already resulted in a surge of data-breach notifications by businesses, including Time Warner and the Bank of America.

“The forward-looking VAR should get onto this issue now and advertise services to help their customers get to grips with it,” Gretton added.

Rich Mogull, research vice-president at analyst Gartner, said there are several ways for businesses to safeguard personal data. For example, by implementing database activity monitoring or encrypting backup tapes.

Ross McCarroll, chairman of the Storage Networking Industry Association Europe’s UK committee, agreed that the legislation is likely to lead to a sales opportunity.

“It offers VARs an opportunity to provide a large number of consultancy services, data security software and hardware sales,” he said.

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