Infrastructure-as-a-service (IaaS) cloud services live in data centers in specific places and customer data is generated and most likely stored in this physical location, giving it legal and privacy implications that you can't just ignore.
Here are four best practices regarding cloud and geographic compliance
Source:
http://www.cio.com/article/591046/Where_in_the_World_is_Your_Cloud_Four_Compliance_Best_Practices
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