Understanding Encryption Key Software: Grades, Properties, and Engineering Applications

Types of Encryption Key Software

Encryption key software plays a vital role in securing digital information by transforming readable data into encoded formats that can only be accessed with the correct decryption key. With cyber threats on the rise, understanding the different types of encryption key software helps organizations and individuals make informed decisions about data protection. Each encryption method offers unique advantages in terms of speed, security, scalability, and use case suitability.

Symmetric Key Encryption Software

Uses a single shared key for both encryption and decryption, making it highly efficient for large-scale data protection.

Advantages

• Extremely fast encryption and decryption processes
• Low computational overhead
• Ideal for bulk data encryption
• Widely supported in enterprise systems

Limitations

• Key distribution is a major security challenge
• Requires secure channel for key exchange
• Scalability issues in large networks
• Compromised key exposes all encrypted data

Best for: Internal corporate networks, database encryption, cloud storage, and high-speed data transfer environments

Asymmetric Key Encryption Software

Relies on a mathematically linked public-private key pair, where the public key encrypts data and the private key decrypts it.

Advantages

• Eliminates the need to share secret keys
• Enables secure communication over untrusted networks
• Supports digital signatures and authentication
• Highly scalable for multi-user systems

Limitations

• Slower than symmetric encryption
• Higher processing requirements
• Not suitable for encrypting large datasets directly
• Complex key management infrastructure needed

Best for: Email encryption (e.g., PGP), SSL/TLS protocols, digital certificates, and secure web browsing

Hybrid Encryption Software

Combines symmetric and asymmetric encryption to leverage the strengths of both: asymmetric for secure key exchange and symmetric for fast data encryption.

Advantages

• Optimal balance of speed and security
• Secure key exchange without performance loss
• Used in modern secure communication standards
• Highly resistant to eavesdropping and tampering

Limitations

• More complex implementation
• Requires integration of both encryption systems
• Potential vulnerabilities at interface points

Best for: Secure messaging apps, virtual private networks (VPNs), HTTPS, and cloud-based file sharing services

File and Disk Encryption Software

Specialized tools designed to encrypt individual files, folders, or entire storage devices using strong encryption algorithms and key management.

Advantages

• Protects data at rest from physical theft
• Granular control over access permissions
• Transparent encryption with minimal user impact
• Compliance with data protection regulations (GDPR, HIPAA)

Limitations

• Performance impact during read/write operations
• Risk of permanent data loss if keys are misplaced
• May require administrative overhead for enterprise deployment

Best for: Laptops, external hard drives, USB sticks, file servers, and mobile devices containing sensitive data

End-to-End Encryption (E2EE) Software

Ensures that data is encrypted on the sender's device and only decrypted on the recipient's device, with no third party—including service providers—able to access plaintext content.

Advantages

• Maximum privacy and confidentiality
• Prevents interception by intermediaries
• Protects against server breaches
• Trusted by journalists, activists, and enterprises

Limitations

• Cannot recover lost messages or keys
• Limited support for cloud backups
• May hinder lawful access in emergencies
• Requires user education for proper use

Best for: Messaging platforms (Signal, WhatsApp), secure email, collaboration tools, and confidential communications

Type	Speed	Security Level	Use Case Focus	Common Applications
Symmetric Key	Very High	High (with secure key exchange)	Data-at-rest & bulk encryption	Databases, cloud storage, internal networks
Asymmetric Key	Moderate	Very High	Secure key exchange & authentication	SSL/TLS, digital signatures, PGP email
Hybrid	High	Very High	Balanced performance and security	VPNs, HTTPS, secure APIs
File/Disk Encryption	Medium-High	High	Device-level data protection	Laptops, USB drives, enterprise endpoints
End-to-End Encryption	Medium	Extremely High	Communication privacy	Messaging apps, secure email, video calls

Expert Tip: For maximum security, combine end-to-end encryption with strong authentication methods like multi-factor authentication (MFA). Additionally, always ensure encryption keys are stored securely—preferably in hardware security modules (HSMs) or trusted platform modules (TPMs)—to prevent unauthorized access.

Key Features of Encryption Key Software

Encryption key software is a critical component in modern data security strategies, enabling organizations to protect sensitive information from unauthorized access, breaches, and cyber threats. These systems go beyond simple encryption by providing comprehensive tools for managing cryptographic keys throughout their lifecycle. The effectiveness of such software depends on several core features that ensure security, usability, compliance, and seamless integration.

Key Generation

The foundation of any encryption system lies in its ability to generate strong, unpredictable cryptographic keys. High-quality encryption key software uses cryptographically secure random number generators (CSPRNGs) and industry-standard algorithms such as AES, RSA, or ECC to produce keys that are resistant to brute-force and prediction attacks.

Effective key generation ensures that each key is unique, sufficiently long (e.g., 256-bit for AES), and free from biases or patterns that could be exploited. This process is automated within the software to eliminate human error and maintain consistency across deployments, ensuring that every key meets current security benchmarks.

Key Management

Comprehensive key management is essential for maintaining the integrity and security of encrypted data throughout its lifecycle. This includes the creation, storage, rotation, backup, revocation, and secure deletion of encryption keys.

Advanced encryption key software provides centralized dashboards for monitoring key status, enforcing policies (like mandatory key rotation every 90 days), and automating key lifecycle events. By minimizing human intervention and enforcing strict access controls, these systems reduce the risk of key exposure and ensure that compromised or outdated keys are promptly retired.

User-Friendly Interface

A well-designed user interface significantly improves adoption and reduces operational risks, especially in environments where non-technical personnel must interact with encryption tools. Intuitive dashboards, guided workflows, and clear visual indicators help users perform tasks like generating keys, encrypting files, or restoring data without requiring deep cryptographic knowledge.

Modern encryption key software often includes role-based access controls, contextual help, and step-by-step wizards to simplify complex operations. This usability not only enhances productivity but also reduces the likelihood of misconfigurations that could lead to data leaks or failed decryption attempts.

Compliance and Reporting

Organizations operating in regulated industries must demonstrate adherence to data protection standards such as GDPR, HIPAA, PCI DSS, and SOX. Encryption key software plays a vital role in achieving compliance by maintaining detailed audit logs, tracking key usage, and generating customizable compliance reports.

These features allow security teams to prove that encryption is properly implemented and monitored. Automated alerts for suspicious activities—such as unauthorized key access attempts—and regular exportable logs support both internal audits and external regulatory reviews, helping organizations avoid fines and reputational damage.

Integration with Existing Systems

For encryption to be effective at scale, it must seamlessly integrate with an organization’s existing IT infrastructure. Top-tier encryption key software supports APIs, SDKs, and standard protocols (like KMIP – Key Management Interoperability Protocol) to connect with databases, cloud platforms, email systems, file servers, and enterprise applications.

This interoperability enables transparent encryption across hybrid environments—on-premises, cloud, and multi-cloud setups—without disrupting user workflows. Whether securing data at rest, in transit, or during processing, integrated solutions ensure consistent protection without requiring extensive reconfiguration of legacy systems.

Feature	Security Benefit	Best Practice Tip
Secure Key Generation	Prevents predictability and brute-force attacks	Use hardware-based entropy sources when available for stronger randomness
Automated Key Rotation	Reduces window of exposure if a key is compromised	Enforce rotation every 30–90 days based on sensitivity of data
Audit Logging & Reporting	Enables accountability and regulatory compliance	Store logs in immutable, encrypted format with time-stamping
Centralized Management	Improves control and reduces administrative overhead	Implement role-based access to prevent privilege abuse
API-Based Integration	Ensures consistent encryption across platforms	Validate integrations through penetration testing before deployment

Important: Selecting encryption key software requires careful evaluation of both technical capabilities and organizational needs. Poorly implemented solutions can create a false sense of security. Always verify that the software follows NIST, ISO/IEC, or FIPS standards, undergoes independent security audits, and receives regular updates to address emerging threats. Proper training and policy enforcement are equally crucial to maximizing the benefits of encryption technology.

Commercial Uses of Encryption Key Software

Encryption key software plays a vital role in securing digital assets across industries. By managing cryptographic keys used to encrypt and decrypt sensitive data, organizations ensure confidentiality, integrity, and regulatory compliance. Below are key commercial sectors that rely heavily on advanced encryption key management systems to protect critical information and maintain customer trust.

Financial Services

The financial sector handles vast amounts of sensitive data, including personal identification, bank account details, and transaction records. Encryption key software is essential for securing online banking platforms, payment gateways, and internal databases.

• Ensures end-to-end encryption of financial transactions to prevent interception by cybercriminals
• Supports compliance with PCI DSS (Payment Card Industry Data Security Standard), which mandates strong encryption for cardholder data
• Protects against fraud and insider threats through role-based key access controls
• Enables secure communication between branches, ATMs, and central servers

Key Insight: Financial institutions use Hardware Security Modules (HSMs) integrated with key management software to safeguard encryption keys from tampering or extraction.

Healthcare Industry

With the digitization of medical records and telehealth services, protecting patient privacy has become paramount. Encryption key software ensures that electronic health records (EHRs), diagnostic images, and insurance claims remain confidential.

• Helps organizations comply with HIPAA (Health Insurance Portability and Accountability Act) requirements for data protection
• Secures data both at rest (in databases) and in transit (during telemedicine sessions or cloud backups)
• Prevents unauthorized access to sensitive health information, even in the event of device loss or system breaches
• Supports audit trails and access logging for compliance reporting and incident investigations

Best Practice: Healthcare providers often implement zero-trust architectures where encryption keys are dynamically rotated and access is strictly authenticated.

Cloud Computing and Storage Solutions

As businesses migrate to cloud environments, ensuring data sovereignty and security becomes a shared responsibility between providers and clients. Encryption key software empowers organizations to retain control over their encryption keys—even when data resides on third-party infrastructure.

• Enables customer-managed keys (CMK) in platforms like AWS KMS, Azure Key Vault, and Google Cloud KMS
• Provides defense against insider threats and unauthorized access by cloud service providers
• Supports encryption of virtual machines, databases, and backup snapshots
• Facilitates compliance with GDPR, CCPA, and other data protection regulations requiring encryption of personal data

Critical Advantage: Organizations can revoke access instantly by deactivating keys, rendering encrypted data unreadable without physical deletion.

Government and Defense

Government agencies and military contractors manage classified information related to national security, intelligence operations, and critical infrastructure. Robust encryption key management is non-negotiable for preventing espionage and cyber warfare attacks.

• Adheres to strict standards such as FIPS 140-2/3 and NIST SP 800-57 for cryptographic module validation
• Secures communications across secure networks (e.g., SIPRNet, JWICS) using multi-factor authenticated key access
• Implements air-gapped key storage and split knowledge protocols for top-secret data
• Utilizes quantum-resistant algorithms in preparation for future cryptographic threats

Security Note: Many defense agencies use dedicated key management infrastructures with physical and biometric access controls.

Retail and E-Commerce

In an era of digital shopping and mobile payments, retailers must protect customer payment details, order histories, and personal profiles. Encryption key software secures every stage of the transaction lifecycle.

• Encrypts credit card data during online checkout and point-of-sale (POS) transactions
• Maintains PCI DSS compliance by ensuring cardholder data is never stored in plaintext
• Protects customer databases from ransomware and data exfiltration attempts
• Supports tokenization systems where sensitive data is replaced with non-sensitive equivalents

Customer Trust Factor: Transparent use of encryption enhances brand reputation and increases consumer confidence in digital transactions.

Additional Industry Applications

Beyond the core sectors, encryption key software is increasingly adopted in emerging fields:

• Legal & Professional Services: Secures client communications, contracts, and intellectual property
• Education: Protects student records and research data in cloud-based learning platforms
• Energy & Utilities: Safeguards SCADA systems and smart grid communications from cyberattacks
• Technology & SaaS Providers: Ensures tenant isolation and data privacy in multi-user environments

Trend Alert: Zero-knowledge encryption models are gaining traction, where even service providers cannot access user data due to client-held keys.

Strategic Recommendation: Organizations should adopt centralized key management solutions that support automation, key lifecycle management (generation, rotation, backup, revocation), and integration with existing security frameworks. Choosing a solution that supports hybrid and multi-cloud environments ensures scalability and long-term resilience against evolving cyber threats.

Industry	Primary Use Case	Regulatory Requirement	Key Management Feature
Financial Services	Transaction & Payment Security	PCI DSS, GLBA	HSM Integration, Key Rotation
Healthcare	Patient Data Protection	HIPAA, HITECH	Audit Logging, Access Controls
Cloud Providers	Data Sovereignty & Compliance	GDPR, CCPA	Customer-Managed Keys (CMK)
Government	Classified Communications	FIPS, NIST, DIACAP	Physical Key Safes, Multi-Factor Auth
Retail & E-Commerce	Secure Checkout & POS Systems	PCI DSS	Tokenization, End-to-End Encryption

Key Benefits of Encryption Key Software Across Industries

• Data Confidentiality: Ensures only authorized parties can decrypt and access sensitive information
• Regulatory Compliance: Meets legal and industry-specific mandates for data protection
• Breach Mitigation: Renders stolen data useless without the corresponding decryption keys
• Customer Trust: Demonstrates commitment to privacy and security, enhancing brand credibility
• Operational Resilience: Supports disaster recovery and secure data backup strategies
• Scalability: Adapts to growing data volumes and distributed architectures like IoT and edge computing

How to Choose Encryption Key Software: A Comprehensive Buyer’s Guide

Selecting the right encryption key software is a critical decision for any organization aiming to protect sensitive data, maintain regulatory compliance, and build trust with stakeholders. With cyber threats evolving rapidly and data breaches becoming increasingly costly, robust encryption is no longer optional—it's a necessity. This guide outlines the key factors buyers should evaluate when choosing encryption key management solutions, ensuring both security and operational efficiency.

Important Note: Poorly managed encryption keys can render even the strongest encryption algorithms ineffective. Always prioritize secure key generation, storage, rotation, and revocation capabilities when evaluating software options.

Key Factors to Consider When Choosing Encryption Key Software

• Data Classification and Sensitivity

  Understanding the sensitivity of your data is the foundation of effective encryption strategy. Begin with a comprehensive data audit to classify information based on confidentiality, integrity, and availability requirements. Highly sensitive data—such as personally identifiable information (PII), financial records, healthcare data, trade secrets, or government-classified information—demands advanced encryption controls and strict key management policies.

  Look for software that supports tiered encryption levels and granular access controls based on data classification. The solution should offer features like role-based access, policy-driven encryption, and automated key assignment according to data type. This ensures that the most critical assets receive the highest level of protection while maintaining operational efficiency for less sensitive data.

• Scalability

  As your organization grows, so will your data volume, user base, and infrastructure complexity. The encryption key software you choose must be capable of scaling seamlessly to meet future demands without compromising performance or security.

  Consider whether the solution can handle increasing numbers of keys, support multi-tenant environments, integrate with cloud platforms, and accommodate hybrid or distributed architectures. Scalable systems often feature modular designs, allowing you to add new functionalities—such as hardware security module (HSM) integration or cloud key vaults—without overhauling the entire system. Ensure the vendor provides clear roadmaps for future enhancements and backward compatibility.

• Integration Capabilities

  Encryption should enhance—not disrupt—your existing IT ecosystem. Evaluate how well the key management software integrates with your current infrastructure, including operating systems (Windows, Linux, macOS), databases, applications, cloud services (AWS KMS, Azure Key Vault, Google Cloud KMS), and virtualization platforms.

  Seamless integration with security tools such as Security Information and Event Management (SIEM) systems, Identity and Access Management (IAM) solutions, and endpoint protection platforms enables centralized monitoring, automated policy enforcement, and real-time threat detection. APIs and support for standard protocols like PKCS#11, KMIP (Key Management Interoperability Protocol), and RESTful interfaces are strong indicators of interoperability and long-term flexibility.

• Regulatory Compliance

  Compliance with industry-specific regulations is a major driver in encryption software selection. Non-compliance can lead to severe penalties, legal action, and reputational damage. Depending on your sector, you may need to adhere to standards such as:

  • GDPR – For organizations handling EU citizens' personal data
  • HIPAA – Required for healthcare providers and insurers in the U.S.
  • PCI DSS – Mandatory for businesses processing credit card transactions
  • CCPA/CPRA – California’s consumer privacy laws
  • FIPS 140-2/3 – U.S. government standard for cryptographic modules

  Choose encryption key software that includes built-in compliance templates, automated audit logging, detailed reporting tools, and evidence generation capabilities. These features simplify audits, reduce administrative burden, and strengthen your overall risk management posture.

• Cost and Total Cost of Ownership (TCO)

  While initial pricing is important, buyers must evaluate the total cost of ownership over time. This includes upfront licensing fees, implementation and configuration costs, ongoing maintenance, training, support subscriptions, and potential expenses related to scaling or upgrading.

  Also consider the indirect financial benefits: preventing a single data breach could save millions in fines, legal fees, and lost business. Encryption software that helps achieve compliance can avoid costly penalties and enable participation in regulated markets. Compare solutions not just on price, but on value—measured by security effectiveness, ease of use, and return on investment.

  Watch out for hidden costs such as mandatory professional services, limited support tiers, or proprietary hardware requirements. Opt for transparent pricing models and flexible licensing (per-user, per-device, or subscription-based) that align with your budget and growth plans.

Evaluation Factor	What to Look For	Risks of Poor Selection	Recommended Features
Data Sensitivity	Support for data classification policies and adaptive encryption	Over- or under-protecting data; inefficient resource use	Role-based access, automated key assignment, policy engine
Scalability	Modular architecture, cloud-native design, high key throughput	System bottlenecks, costly migrations, downtime	Horizontal scaling, API extensibility, HSM support
Integration	Compatibility with existing systems and open standards	Silos, manual processes, increased attack surface	KMIP, PKCS#11, SIEM integration, IAM compatibility
Compliance	Pre-built compliance frameworks and audit-ready reporting	Fines, legal exposure, loss of customer trust	Audit logs, compliance dashboards, exportable reports
Cost (TCO)	Transparent pricing, predictable renewal terms	Budget overruns, unexpected upgrade costs	Flexible licensing, bundled support, cloud cost calculators

Expert Tip: Before making a final decision, conduct a proof-of-concept (PoC) trial with shortlisted vendors. Test the software in your actual environment to assess usability, performance impact, integration ease, and administrative overhead. Involve your security, IT, and compliance teams in the evaluation process for a well-rounded assessment.

Additional Best Practices for Encryption Key Management

• Implement strong key lifecycle management: generate, store, rotate, back up, and destroy keys securely
• Use hardware security modules (HSMs) for protecting root keys and high-value cryptographic operations
• Enforce multi-person control (M-of-N) for critical key operations to prevent insider threats
• Regularly review and update encryption policies to reflect changing threats and business needs
• Train staff on secure key handling practices and incident response procedures
• Ensure disaster recovery and key escrow mechanisms are in place to prevent data lockout

Choosing the right encryption key software is a strategic investment in your organization’s long-term security and resilience. By carefully evaluating data sensitivity, scalability, integration, compliance, and total cost of ownership, you can select a solution that not only protects your data today but also adapts to future challenges. Remember, encryption is only as strong as its weakest link—make sure your keys are managed with the highest level of care and sophistication.

Frequently Asked Questions About Encryption Key Software

Q1: What is the role of encryption key software in data protection?

Encryption key software plays a critical role in safeguarding digital information by generating, managing, storing, and securing cryptographic keys—digital codes used to encrypt and decrypt sensitive data. When data is encrypted, it is transformed into an unreadable format for unauthorized users. Only those with the correct decryption key can access the original content.

This process ensures confidentiality, integrity, and authenticity of data both at rest (stored on devices or servers) and in transit (being sent over networks). By centralizing key management, encryption software minimizes the risk of human error, prevents key loss, and protects against cyber threats such as data breaches, ransomware attacks, and insider threats.

• Key Generation: Creates strong, unique encryption keys using secure algorithms (e.g., AES-256).
• Key Rotation: Periodically replaces old keys to reduce exposure if a key is compromised.
• Key Storage: Stores keys in secure environments like Hardware Security Modules (HSMs) or trusted key vaults.
• Access Control: Enforces strict policies to ensure only authorized personnel or systems can use or retrieve keys.

Q2: Which industries benefit the most from encryption key software?

Certain industries handle vast amounts of highly sensitive personal, financial, or health-related data, making them prime targets for cyberattacks and subject to stringent regulatory standards. These sectors benefit significantly from robust encryption key software:

• Financial Services: Banks, credit unions, and fintech companies use encryption to protect customer account details, transaction records, and online banking systems. Compliance with standards like PCI DSS is essential.
• Healthcare: Hospitals, clinics, and insurers must safeguard patient medical records and personally identifiable information (PII) under HIPAA regulations. Encryption helps prevent costly data breaches involving electronic health records (EHRs).
• Government & Defense: Government agencies rely on encryption to secure classified communications, citizen databases, and national infrastructure systems against espionage and cyber warfare.
• Retail & E-commerce: Online retailers process large volumes of payment card data and personal customer information, requiring encryption to maintain consumer trust and meet compliance requirements.
• Cloud Service Providers: Companies offering cloud storage or SaaS platforms use encryption key management to assure clients that their data remains private and under their control.

Across these industries, encryption key software not only protects data but also supports legal compliance, maintains brand reputation, and strengthens customer confidence.

Q3: Can encryption key software help businesses comply with regulations?

Yes, encryption key software is a foundational component in achieving compliance with major data protection laws and industry standards. Regulatory frameworks increasingly require organizations to implement strong data security measures, and encryption is often explicitly recommended or mandated.

Here’s how encryption key software supports compliance with key regulations:

Regulation	Data Protection Requirement	Role of Encryption Key Software
GDPR (General Data Protection Regulation)	Mandates protection of EU citizens' personal data; requires "appropriate technical and organizational measures."	Enables pseudonymization and encryption of personal data, helping avoid heavy fines in case of breaches.
HIPAA (Health Insurance Portability and Accountability Act)	Requires protection of electronic protected health information (ePHI).	Provides secure key management for encrypted medical records, ensuring only authorized access.
PCI DSS (Payment Card Industry Data Security Standard)	Demands encryption of cardholder data during transmission and storage.	Manages encryption keys used to protect payment data, supporting audit readiness and validation.
CCPA/CPRA (California Consumer Privacy Act/Rights Act)	Grants consumers rights over their personal data and requires reasonable security practices.	Helps demonstrate due diligence in protecting consumer data through strong encryption controls.

Additionally, encryption key software often includes logging and auditing features that provide verifiable records of key usage, access attempts, and policy enforcement—critical for passing compliance audits and demonstrating accountability.

Q4: Are there different types of encryption key software available?

Yes, encryption key software comes in various forms tailored to specific use cases, data types, and deployment environments. The right choice depends on the organization’s infrastructure, compliance needs, and security goals. Common types include:

• File-Level Encryption Software: Encrypts individual files or folders, ideal for protecting sensitive documents shared via email or stored on portable devices.
• Disk Encryption Software: Encrypts entire hard drives or SSDs (e.g., BitLocker, FileVault), ensuring all data—including temporary files—is protected if a device is lost or stolen.
• Database Encryption Tools: Secures data within databases by encrypting fields, tables, or entire databases, commonly used in financial and healthcare applications.
• Application-Level Encryption: Built into software applications to encrypt data before it’s processed or transmitted, offering granular control and end-to-end protection.
• Cloud Key Management Services (KMS): Offered by providers like AWS KMS, Google Cloud KMS, or Azure Key Vault, enabling businesses to manage encryption keys in hybrid or cloud environments while retaining control.
• Hardware Security Modules (HSMs): Physical devices that generate and store encryption keys in tamper-resistant hardware, providing the highest level of security for critical operations.

Many modern solutions integrate multiple capabilities and support centralized management dashboards, automated key rotation, and API-based integration with existing IT systems.

Q5: How does encryption key software enhance cloud security?

As more organizations migrate data and applications to the cloud, maintaining control over sensitive information becomes a top priority. While cloud providers secure the underlying infrastructure, customers remain responsible for securing their data—a principle known as the shared responsibility model.

Encryption key software enhances cloud security in several key ways:

• Customer-Controlled Keys: Instead of relying on provider-managed keys, businesses can use customer-managed encryption keys (CMEK) to retain full ownership and control over who can decrypt their data.
• Prevention of Unauthorized Access: Even if a cloud provider experiences a breach or insider threat, encrypted data remains unreadable without the proper decryption key.
• Secure Data Sharing: Enables secure collaboration across teams or organizations by allowing fine-grained access policies tied to key usage.
• Compliance in the Cloud: Helps meet regulatory requirements when storing sensitive data in public or hybrid cloud environments.
• Zero-Knowledge Architecture Support: Some encryption platforms ensure that no third party—including the service provider—can ever access the keys or plaintext data.

By decoupling key management from data storage, encryption key software empowers organizations to leverage the scalability and cost-efficiency of the cloud without compromising on security or control. This approach is especially valuable for multi-cloud strategies and industries with strict data sovereignty requirements.