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Which of the following is the dominant driver behind the regulations to which a system or application must adhere?
The locality--or physical location and jurisdiction where the system or data resides--is the dominant driver of regulations. This may be based on the type of data contained within the application or the way in which the data is used. The contract and SLA both articulate requirements for regulatory compliance and the responsibilities for the cloud provider and cloud customer, but neither artifact defines the actual requirements. Instead, the contract and SLA merely form the official documentation between the cloud provider and cloud customer. The source of the data may place contractual requirements or best practice guidelines on its usage, but ultimately jurisdiction has legal force and greater authority.