Data Residency ??

Yes it was new term of me as well when i came across msdn website but this really a need for a number customers who has business partners, business operations, their customers in different region and have to meet their local country data protection laws or in other terms who are concerned about data sovereignty. Data Residency Option is the solution for those type of customer.

What is Data Residency Option? 
Customers with data residency requirements can request to move their core customer data into the new region or regional data center. We recommend our customers to take no action, unless their organization needs core customer data to be stored at rest in their respective new datacenter region. By choosing to move their data, customers limit Microsoft’s possibilities to optimize the location of core customer data at rest in either their current or the new datacenter region. As a customer in any of those two regions, you will experience the same quality of service, performance and security controls as you did before.

Data-at-Rest is not available by default
Yes you may lose the option for your data to be secured at rest if you choose to move your data to a different data center. Which means by default all new data center does not offer data-at-rest- according to above statement.

For customers who need to have their core data moved to the new region:

  • Customers will need to request to have their data moved within a set enrollment window. Review the How to request your data move page for more details about the enrollment window for your region and the steps to enroll into the program.
  • Data moves can take up to 24 months after the request period to complete.
  • We introduce no unique capabilities, features or compliance certifications with the new datacenter region.
  • The complexity, precision and scale at which we need to perform data moves within a globally operated and automated environment prohibit us from sharing when a data move is expected to complete for your tenant or any other single tenant. Customers will receive one confirmation in Message Center per participating service when its data move has completed.
  • Data moves are a back-end service operation with minimal impact to end-users. Features that can be impacted are listed on the During and after your data move page. We adhere to the Microsoft Online Services Service Level Agreement (SLA) for availability so there is nothing that customers need to prepare for or to monitor during the move. Notification of any service maintenance is done if needed.