Microsoft Azure Fundamentals (AZ-900)Describe cloud conceptsHard

A global e-commerce company needs to ensure that its customer data is stored and processed within specific geographical boundaries to comply with data residency regulations in different countries. Which cloud concept is most relevant to addressing this requirement?

  1. ALow latency
  2. BData sovereignty
  3. CScalability
  4. DFault tolerance
Show answer & explanation

Correct answer: B. Data sovereignty

Data sovereignty refers to the legal requirement that data be subject to the laws and governance structures of the country in which it is collected. This directly addresses the need to store and process customer data within specific geographical boundaries due to regulations.

Why the other options are wrong

  • A. Low latency refers to minimizing delays in data transfer, which is a performance concern, not a legal one.
  • C. Scalability refers to the ability to handle increased workload, not the geographical location of data for legal reasons.
  • D. Fault tolerance ensures continuous operation despite component failures, not data location compliance.

Data Sovereignty

The concept that digital data is subject to the laws and governance structures of the country in which it is stored. This is crucial for compliance with data residency regulations.

  • Data is governed by local laws
  • Impacts data storage location decisions
  • Essential for regulatory compliance (e.g., GDPR)

Memory trick: DATA SOVEREIGNTY means your data is a citizen of its country, following its laws.

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