Online backup companies are seeing storage growth trends not only because of the exponential increase in electronic data, but also because of electronic data laws. White label online backup companies provide an easy way for businesses to comply with the federal regulations of keeping data available, easily accessible, transparent and auditable.
Here’s a super-brief history lesson on data retention: Government requirements to retain data started in 1966 (before cell phones, iPads and even desktop computers) with the Freedom of Information Act (FOIA), which is still enforced today. The FOIA mandates that the federal government allow public access to its records with written request, unless the requested information falls under one of the nine exemptions.
You can imagine the amount of data the U.S. Government creates every day and how necessary remote online backup is for it to function and comply with the FOIA. In 2010 alone, the government received 597,415 requests for information.
More recently, the U.S. enacted the Sarbanes-Oxley Act of 2002, which requires all public companies to archive all electronic business records and communications to create transparent and auditable data and prevent corporate scandals.
The U.S. is certainly not the only country with electronic data laws; the UK, for one, has strict regulations in place. Although the majority of XZ Backup’s online backup resellers are based in the U.S. (56 percent), almost half of XZ’s clients are based in foreign markets (44 percent), many of which utilize XZ’s services in order for their clients to comply with data retention laws.
The UK’s extensive electronic data laws include requiring all emails sent by financial institutions be saved for at least six years, wages and salary information be saved for at least six years, and financial promotion information regarding pensions be saved indefinitely.
Convincing your clients to take advantage of remote online backup should be pretty easy once they realize all the federal rules and regulations required for financial and government institutions and publicly traded companies.