GDPR and Cloud Software: What you need to consider

In today's digital world of work, the use of cloud software for companies has become almost vital.

The room to adapt, scalability and cost efficiency of cloud solutions offer enormous benefits.

However, the use of cloud services also involves data protection duties, in specific with regard to the General Data Protection Regulation (GDPR).

In this post, you will learn what you need to pay attention to when selecting and using cloud software to ensure GDPR compliance.

The legal basis: GDPR and cloud computing

In today's digital world of work, the use of cloud software for companies has become almost vital.

If GDPR and Cloud Software: What you need to consider is on your roadmap, IT Security und Discover solutions outline services and next steps.

The GDPR regulates the protection of personal data from EU citizens.

Once you store or process personal data from your customers, employees or business partners in the cloud, you are subject to the strict needs of the GDPR.

This applies regardless of whether it is a public, private or hybrid cloud.

What do you need to look at when choosing a cloud provider?

Choosing the right cloud provider is crucial for compliance with GDPR. Not every provider meets the needed needs.

Here are some important criteria that you should consider in your decision:

• Server location: The physical location of the servers on which your data is stored is of great importance. Ideally, the servers in the European Union or in a country should have a reasonable level of data protection recognised by the EU Commission. Data centers in Germany offer the highest legal certainty.
• Contract Processing Contract (AVV): Connect with the cloud provider a contract processing contract (AVV) according to Art. 28 GDPR. This contract regulates the rights and duties of both parties in dealing with the personal data and ensures that the provider processes the data only after your instructions.
• Technical and organizational measures (TOMs): The cloud provider must show appropriate technical and organisational measures to ensure data security. These include encryption, access controls and regular security checks.

The challenge of data transfer to third countries

Specific attention is paid to data transfer to countries outside the EU, so-called third countries. With its "Schrems II".

Judgment, the European Court of Justice (ECJ) declared the EU-US Privacy Shield invalid. This means that the data transfer to the USA is no longer easily permissible.

US cloud providers are so only an option if there are extra guarantees such as the EU standard contractual clauses and an custom review of the data protection level in the third country.

Checklist: Important aspects for GDPR-compliant cloud use

Aspect	Description
Server location	Preferred EU/EEA or countries with Angem

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On the numbers: Survey and market figures without an inline footnote follow common public reports (e.g. Bitkom) and official statistics (Destatis). Practical examples: Groenewold IT internal data, 2026.

References and further reading

The following separate references complement the topics in this article:

• Bitkom – German digital industry association.
• German Federal Office for Information Security (BSI).
• European Commission – Digital strategy.
• MDN Web Docs (Mozilla)
• W3C – World Wide Web Consortium.

"Privacy by design is an architecture issue—especially when master data is personal."

— Björn Groenewold, Managing Director, Groenewold IT Solutions

Frequently Asked Questions (FAQ)

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In today's digital world of work, the use of cloud software for companies has become almost vital.

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