What does data residency concern in cloud governance?

• A. Data residency concerns where data is stored and processed to meet regulatory constraints.
• B. Data residency is only about where backups are stored.
• C. Data residency refers to time zone.
• D. Data residency is a network protocol.

Answer: (B)

Data residency is about where the data physically resides and where it is processed, and how that aligns with regulatory requirements. In cloud governance, this means choosing which data center regions can host data, how data may be replicated or moved across borders, and ensuring compliance with laws that localize or limit processing in certain jurisdictions. It’s about legal and risk considerations tied to geography, not just the act of backing up data. Backups can be stored in different locations, but residency focuses on the primary data’s location and processing to meet constraints like data localization, privacy laws, and contractual obligations. Time zones and network protocols don’t address where data sits or how regulations apply, so they aren’t about data residency.