BAe Systems: Office365 doesn't fly

Defence contractor BAe Systems ditched plans to adopt Microsoft Office365, the online version of the Microsoft Suite. The supplier could not guarantee the company’s data would not leave Europe, in spite of operating a data centre in Dublin.

Download this free guide

Infographic: How to future-proof UK technology

There is no doubt that the technology industry is booming right now, bringing with it exciting social and economic opportunities. However, there is a real fear that the UK industry may be stunted due to the lack of talent available. This e-guide helps to break down the future fears and expectations of dozens of business leaders and tech workers.

Start Download

• Corporate E-mail Address:

  You forgot to provide an Email Address.

  This email address doesn’t appear to be valid.

  This email address is already registered. Please login.

  You have exceeded the maximum character limit.

  Please provide a Corporate E-mail Address.

• • I agree to TechTarget’s Terms of Use, Privacy Policy, and the transfer of my information to the United States for processing to provide me with relevant information as described in our Privacy Policy.

  Please check the box if you want to proceed.

• • I agree to my information being processed by TechTarget and its Partners to contact me via phone, email, or other means regarding information relevant to my professional interests. I may unsubscribe at any time.

  Please check the box if you want to proceed.

By submitting my Email address I confirm that I have read and accepted the Terms of Use and Declaration of Consent.

“We were going to adopt Office365 and the lawyers said we could not do it,” said Charles Newhouse, head of strategy and design at BAe Systems, speaking during a panel debate at the Business Cloud Summit 2011 in London.

His experience highlights the gulf between what the industry is trying to sell and the reality of big business. Regulated industries have strict policies on data and whether it can be exported. Even if we ignore the powers of the US government under the Patriot Act,  cloud software should not be used in a regulated industry unless the sovereignty of data retained in the data centres of the cloud providers is retained.

Since Microsoft cannot guarantee this, nor Google, nor any of the other public cloud providers then what good is a public cloud service?

Development and testing are clearly good candidates, so long as the data is not deemed critical. But if you value you data, and would prefer governments to make official requests for the you you, then perhaps it is better to retain the data in your own data centres. 

Sure a provider may be able to offer a bespoke service, that complies with your regulatory framework. That is basically outsourcing.