Cloud compliance in the face of NIS 2 and the UK Cyber Resilience Bill

It comes as no surprise that regulatory requirements for cyber security and data protection are becoming increasingly stringent. The introduction of the Network and Information Systems Directive (NIS 2) in the European Union is a clear reflection of this shift, and in the UK similar measures are on the horizon, with the impending Cyber Resilience Bill.

For businesses that rely heavily on cloud infrastructure, ensuring compliance with these evolving regulations can be complex, especially for those operating across multiple jurisdictions. At Redcentric, we recognise these challenges and provide UK sovereign cloud services that offer a critical advantage in navigating both UK and EU regulations.

Below we look at how NIS 2, the UK's Cyber Resilience Bill, and the concept of sovereign cloud are reshaping the regulatory landscape - and why cloud compliance is essential for your business resilience.

The rise of NIS 2: What you need to know

The NIS 2 Directive significantly raises the bar for cyber security across a wide range of sectors in the EU, including digital infrastructure, finance, healthcare, and more. For businesses that rely on cloud services, NIS 2 has important implications.

Under NIS 2, cloud service providers (CSPs) are classified as essential services. This means they are now directly subject to stringent cyber security requirements, including:

• Enhanced data protection: CSPs must ensure that data stored in the cloud is secure, encrypted, and protected against unauthorised access.
• Incident reporting: Cloud providers must report significant cyber security incidents to the relevant authorities within tight timeframes.
• Supply chain security: NIS 2 emphasises the importance of third-party risk management, requiring businesses to assess the security of their cloud providers.

For businesses using cloud infrastructure to host critical data, ensuring compliance with NIS 2 requires careful consideration of the sovereignty and security of their cloud provider. This is where sovereign cloud comes into play.

The importance of sovereign cloud in regulatory compliance

Sovereign cloud refers to cloud infrastructure that is operated within a specific jurisdiction and adheres to local laws regarding data protection and security. With the introduction of NIS 2 in the EU and the upcoming UK Cyber Resilience Bill, sovereign cloud solutions are becoming increasingly important for organisations seeking to stay compliant with region-specific regulations.

For businesses operating in the UK, Redcentric's UK Sovereign IaaS ensures that all data remains within UK borders, and is stored and processed in compliance with UK data protection laws. This reduces the complexities associated with cross-border data transfers and ensures compliance with regulations such as:

• The UK's Cyber Resilience Bill: Once enacted, this bill will introduce strict cyber security requirements for cloud service providers and critical infrastructure operators.
• The UK Data Protection Act: Sovereign cloud infrastructure ensures that sensitive data is handled under the UK's rigorous data protection standards.

For those doing business in the EU or globally, choosing a provider with a sovereign cloud option allows you to comply with NIS 2's expanded requirements, minimising the risk of regulatory conflicts and penalties.

What to expect from the UK Cyber Resilience Bill

While the UK has opted out of NIS 2, it is on the verge of introducing its own Cyber Resilience Bill, which will likely mirror many of the key principles of NIS 2. Similar to its EU counterpart, this bill will mandate strict cyber security standards and reporting obligations for critical sectors, including cloud infrastructure.

For businesses that are solely operating in the UK, the upcoming bill presents both a challenge and an opportunity. Organisations must ensure that their chosen cloud providers meet the evolving cyber security standards. Redcentric's UK sovereign cloud offerings are designed to help businesses maintain control over their data, ensuring compliance while reducing the risk of cyber threats.

Why UK sovereign cloud is essential for cloud compliance

Cloud compliance is no longer just about securing data - - it's about ensuring that your cloud can meet the regulatory standards of the jurisdiction in which you operate. The complexities of cross-border data storage, especially post-Brexit, mean that businesses need to be more strategic about where their data is hosted.

Here are key advantages of choosing a UK sovereign cloud:

• Data sovereignty: All data remains within UK borders, stored and managed in compliance with UK-specific data protection and security laws.
• Regulatory alignment: With the Cyber Resilience Bill on the horizon, sovereign cloud services provide peace of mind, ensuring businesses are well-prepared to meet future regulations.
• Security and resilience: By leveraging Redcentric's cloud infrastructure you can benefit from advanced security features and robust disaster recovery capabilities -, critical in an era where regulatory breaches can lead to significant fines.

Preparing for cloud compliance in the UK and EU

As both the EU and UK continue to strengthen their cyber security regulations, businesses must take proactive steps to ensure their cloud infrastructure is not only secure, but also compliant with regional laws. Whether you are subject to NIS 2 in the EU or awaiting the introduction of the UK Cyber Resilience Bill, having the right cloud strategy is crucial.

At Redcentric, our UK Sovereign IaaS platform is a compliant, secure, and resilient solution that helps organisations navigate the complexities of evolving cyber security regulations. As the regulatory landscape changes, organisations that adopt sovereign cloud solutions will be better positioned to protect their data and maintain compliance, no matter where they operate. As a managed service provider, we will maintain our platform in line with the changing regulatory landscape, providing ongoing piece of mind.

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