The Canadian digital economy is expected to grow around 9% during 2025. Despite our imperfect digital infrastructure, Canadians have become sophisticated users of digital technology. The perfect evidence is how Canadian consumers and businesses benefit from using servers abroad. However, their reasons for doing so are vastly different.
6 Reasons Why Canadian Businesses Use Servers Abroad
Businesses of all sizes can host their websites, content or data on servers in other countries.
- Many Canadian small and micro e-commerce businesses serve global markets. They can host their websites on servers in their target region or country. It’s a cost-effective and simple way to ensure fast website speeds for remote customers.
- Some Canadian companies employ remote workers from other regions. Their staff (e.g. technical or customer support staff) needs access to company resourcesfrom remote locations. Companies can reduce lag and productivity for their remote staff by storing company resources on servers abroad.
- It also improves collaborationwith colleagues spread across different regions.
- Hosting your data on servers in other countries improves disaster resilience.It ensures uninterrupted access to company resources in unexpected circumstances.
- Data storage regulations are much stricter in European countries. Overseas servers enable Canadian companies to meet the local regulatory requirements.
- Using servers abroad can optimize data storage and transmission costs.
7 Reasons Why Individuals Are Connecting to Servers Abroad
It’s not only about businesses — Canadian consumers sometimes also prefer to directly connect to servers in other countries. One of the most popular reasons is to unblock content that is not available in Canada, but that’s not the only advantage.
- You can watch geo-blocked content, like sports events, that are not available for streaming locally. You’ll need to connect to a server in a country where the content is available.
- Find bargains on flight and hotel bookings in countries you intend to visit. Connect to a server in your destination city. You’ll get access to cheaper deals, usually only available to locals.
- To reduce website tracking, try connecting to a server in a country with strict privacy laws. You’ll instantly get some relief from ubiquitous website cookies and tracking technologies. For example, the GDPRcompels most EU-based websites to ask permission before tracking website visitors. Connect to a VPN server in an EU country before browsing the internet. The websites you visit will see you as a European Union citizen. They’ll treat your browsing activity data with a little more respect.
- Using servers abroad can help avoid routine government surveillance. Unfortunately, using servers in other countries does not automatically protect your data. Get more information about the pitfalls in the next section.
There are several ways to connect to servers abroad seamlessly. However, the simplest and most popular way is with a VPN.
The Pitfalls of Connecting to Servers Abroad with a VPN
People use VPNs because it encrypts their data connection. That instantly adds a level of security to all their internet activities. The second reason is for better privacy. A VPN hides your true location. When you connect to a VPN, your device assumes the IP address of the server you are connected to.
Using a USA VPN can help reduce the accuracy of online tracking, especially when connecting to US-based services like Netflix. However, the best VPN for the USA is not necessarily the one with the most US servers. There is a far more important criterion for your data safety. Your VPN provider’s business address must be registered outside the USA to achieve the highest possible standards for online privacy.
How People Use VPN Servers Abroad For Better Privacy
Better privacy does not depend on what server you connect to. It depends on where your VPN provider is based.
Few countries in the world are privacy-friendly. In most countries, the ISPs (and, of course, also any VPN providers based in such a country) are legally obligated to keep records of their customers. These records include your real IP address and location. It also includes device details, internet activity, and user account details.
If your VPN provider is based outside the Five, Nine, and Fourteen Eyes Alliances, your data is safer.
What Are the Five, Nine, and Fourteen Eyes Alliances?
The “Eyes Alliances” are countries with mutual agreements to exchange intelligence data. Initially, five countries signed a data-sharing agreement for their respective national security purposes. After two extensions of the alliance, seventeen countries currently share data. The official treaty overrides the privacy expectations of their respective citizens.
Some of the Alliance countries use intrusive surveillance methods to collect digital information. They may intercept all your web browsing, emails, phone calls and even messaging apps. They can also force ISPs and VPN providers based in their countries to reveal customer information.
Your VPN provider should be based in a country that is not a member of the Five, Nine, or Fourteen Eyes Alliances. Iceland, Panama in Central America, Switzerland, Romania, and the British Virgin Islands are highly privacy-focused.
Coming to Grips with Overseas Servers
Businesses can host their data on servers in different parts of the world. It will improve the availability and reliability of their websites and online resources. Consumers can take steps to access service providers’ overseas servers directly. They may discover a wealth of previously inaccessible new services and resources, as well as better privacy. However, remember to choose service providers carefully to avoid regulatory or privacy nightmares.
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