Will MSPs Demand On-Shore Hosted Data?

During several of my recent phone calls with managed service providers, an interesting -- and controversial -- debate popped up. Some industry insiders say more and more MSPs based in the U.S. are only willing to work with on-shore hosting providers.

I may earn some spam from readers, but I think the location of data is becoming less relevant rather than more relevant. Am I crazy?

Before you flame me, please consider these points:

  • Whether data sits on a hard drive below your desk or somewhere on the other side of the world, it's at risk.
  • You can mitigate risk with aggressive contingency plans, backup and recovery strategies, and well-documented best practices (which, by the way, require regular practice).
  • You can further mitigate risk by leveraging a data center provider complies with SAS 70 Type II service auditor reports and other types of controls.
Still, I hear that more and more MSPs promote the fact that they're hosting data within U.S. borders. And Ingram Micro is quick to note that its Seismic services are all hosted in the U.S.

Is this a true customer benefit? Should MSPs worry about where their data is hosted? I'm all ears.
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