ean Union and the United States Department of Commerce came to a new EU-U.S. agreement in 2016 on updating privacy regulations to protect European data. The agreement, called the Privacy Shield, took effect on August 1, 2016. Its requirements are more stringent than those in the Safe Harbor agreement. However, many experts expect even these regulations to be challenged in court. In addition, some U.S. companies are slow to update their privacy clauses to comply with the new regulations. Some of this slowness is because of the uncertainty about the Privacy Shield. There are concerns that the EU Court of Justice will overturn it as not being strict enough. Other organizations see adherence to the Privacy Shield stipulations as a competitive edge in competing for business in the European Union. At any rate, a new set of privacy regulations, the General Data Protection Regulation, took effect in May 2018. It includes a "right to be forgotten" provision that states that people's personal data should be deleted when citizens request the right to be forgotten. Establishing Cloud-Based Data Centers Abroad Companies, particularly small and medium sized ones, often solve the challenge of establishing cloud-based data centers in other counties by signing agreements with providers familiar with various international rules for hosting their data centers in other countries. Data storage company Box's partnership with IBM and Amazon to host other cloud companies' data centers outside of the United States are examples of this type of agreement. For now, companies are hosting data centers www.TechnicalPDF.com in Europe even though rules on privacy and security are not 100 percent clear. Cloud Summary: Rationale and Challenges The use of cloud computing application development, application management, and IT services in general has become a widely accepted practice in commercial and for-profit companies. There are however, a number of challenges in managing cloud computing and adapting applications for the cloud. Security and priv