How Data Residency safeguards compliance - Xray Blog

Enterprises generate and store massive amounts of data, making data residency a crucial aspect of compliance, security, and operational efficiency.

As organizations expand globally, they must navigate complex data governance policies to protect sensitive information while ensuring smooth business operations. Storing data in specific regions is not just about compliance - it also impacts performance, risk management, and trust with customers who expect their data to be handled securely and transparently.

Why compliance and security matter in Test Management

For software teams, test management involves handling sensitive data, including customer information, proprietary code, and business-critical assets. Ensuring that this data is stored in a secure environment is essential to prevent breaches and unauthorized access.

Regulations like GDPR, ISO 27001, and SOC 2 impose strict requirements on data storage, access control, and security measures. Non-compliance can lead to heavy fines, reputational damage, and operational disruptions.

In addition to holding SOC 2 certification, Xray Enterprise addresses these challenges with a robust Data Residency feature, enabling enterprises to maintain control over their test data while ensuring compliance with regional and industry-specific regulations.

Understand Data Residency

Data residency refers to the geographic location where an organization's data is stored and processed. It plays a critical role in compliance, security, and performance, ensuring that enterprises meet legal and regulatory requirements while maintaining control over their sensitive information.

For businesses operating across multiple regions, data residency is not just about choosing a storage location - it’s about making sure that customer data remains protected under the relevant jurisdiction.

Several global regulations dictate how and where organizations must store and process data. Ensuring compliance with these frameworks is essential for avoiding legal penalties and maintaining customer trust.

• GDPR (General Data Protection Regulation);
• ISO 27001;
• SOC 2 (Service Organization Control 2);
• HIPAA (Health Insurance Portability and Accountability Act);
• Local data protection laws.

Xray Enterprise’s Data Residency feature

How it works

Xray Enterprise integrates seamlessly with Atlassian's Data Residency capabilities, allowing administrators to specify the geographic location for data storage. This ensures that Xray Standard and Xray Enterprise data is closer to your operational areas, maintaining optimal performance and compliance.

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Administrators can request data residency moves through the Atlassian Admin console, selecting a 24-hour window for the migration. It's important to note that during this move, the product will be offline, and users will not have access. Therefore, planning is essential to minimize disruptions.

Regions available for data storage

Xray supports data residency in several key regions, enabling organizations to choose a location that best fits their compliance and performance needs. The available regions include:

• United States
• Europe (Frankfurt)
• Germany (Frankfurt)
• Australia (Sydney)

For European customers, data is stored in a data center located in Germany. When selecting your data residency site, it's recommended to choose the EU option to ensure data is stored within the European region.

Meeting GDPR, SOC 2, and other compliance requirements

Various global frameworks govern how companies handle and store sensitive data. By offering region-specific data storage, Xray Enterprise enables organizations to comply with:

• GDPR (General Data Protection Regulation) – Requires that personal data of EU citizens be stored within the European Economic Area (EEA) or in regions with equivalent data protection laws;
  
  
• SOC 2 (Service Organization Control 2) – Focuses on security, availability, and confidentiality for cloud-based service providers. Xray Enterprise adheres to these principles by enabling secure, region-specific data storage, reducing risks related to unauthorized access and data breaches;
  
  
• ISO 27001 – A globally recognized standard for information security management systems (ISMS). Xray Enterprise’s approach to data residency aligns with the standard’s best practices by implementing strong security controls and allowing companies to store data in jurisdictions that meet their compliance requirements;
  
  
• Other regional laws – Many countries, including Brazil (LGPD), Canada (PIPEDA), and Australia, have strict data localization laws requiring organizations to store and process data within national borders. Xray Enterprise supports data residency in multiple regions, helping enterprises comply with these regulations while maintaining operational efficiency.

Xray Enterprise allows EU-based companies to store their data in European data centers, ensuring compliance with GDPR’s strict data sovereignty rules.

How Data Residency simplifies legal adherence

Audits can be a complex process, especially when dealing with cross-border data transfers. Xray Enterprise simplifies this by:

• Providing clear data location visibility – Enterprises can confidently demonstrate to auditors and regulators that their data is stored in approved locations;
  
  
• Reducing legal complexity – By ensuring data remains within designated jurisdictions, companies minimize legal risks associated with unauthorized data transfers;
  
  
• Strengthening data governance policies – Organizations can align their internal policies with industry best practices, making it easier to implement security frameworks such as ISO 27001 or SOC 2;
  
  
• Facilitating faster compliance reporting – With data residency controls in place, businesses can streamline compliance reporting, reducing the burden of proving adherence to regulatory requirements.
  
  

Enhancing security through data localization

Data security is a top priority for enterprises handling sensitive information, especially in software testing and development. Xray Enterprise’s feature strengthens security by ensuring data is stored in specific regions, reducing exposure to risks.

Region-specific data storage

Storing data within a designated region enhances security in several ways:

• Minimized data exposure – Keeping data within a specific geographic location reduces vulnerabilities related to international data transfers and mitigates risks of unauthorized access by foreign entities;
  
  
• Compliance with local security laws – Many countries enforce strict data protection laws that dictate where data can be stored. By choosing a compliant region, enterprises ensure they adhere to legal requirements while maintaining data integrity;
  
  
• Improved disaster recovery and redundancy – Regional data storage enhances resilience by ensuring that backups and disaster recovery solutions align with local regulations and infrastructure capabilities.

Encryption and access control benefits

Xray Enterprise follows industry best practices to secure stored data, incorporating:

• End-to-end encryption – Data is encrypted both in transit and at rest, ensuring it remains protected from unauthorized access;
  
  
• Strict access controls – Enterprises can manage user access with role-based permissions, ensuring that only authorized personnel can access or modify testing data;
  
  
• Integration with Atlassian security standards – Xray Enterprise leverages Atlassian’s built-in security features, enhancing authentication and monitoring capabilities.

By localizing data storage and implementing robust security measures, Xray Enterprise helps organizations safeguard their testing data and reduce compliance risks.

The secure choice for Test Management

Xray Enterprise’s Data Residency feature provides a robust solution for organizations looking to balance security, compliance, and operational flexibility in their test management processes. By allowing enterprises to choose where their data is stored and processed, Xray Enterprise helps meet critical regulations like GDPR, SOC 2, and ISO 27001, ensuring that sensitive information remains secure and compliant with local laws.

If you're looking to elevate your test management strategy while ensuring compliance and security, Xray Enterprise is the right tool for the job. Book a demo to learn more!