Why host your company's data in Switzerland?

Where is your clients' data stored? For many SMEs, the answer is vague: some in an online application, some in an e-mail system, some in a file-sharing service. Yet the hosting location has concrete legal and commercial consequences. Here is why hosting in Switzerland is worth considering.

A familiar and stable legal framework

Data hosted in Switzerland, with a Swiss provider, falls under Swiss law. The main framework is the nFADP (new Swiss Federal Act on Data Protection), in force since 1 September 2023.

For an SME, this has several advantages:

• a single reference framework that your legal advisers know;
• an identified supervisory authority, the Federal Data Protection and Information Commissioner (FDPIC);
• contracts drawn up under Swiss law, with a place of jurisdiction in Switzerland in most cases.

Transfers abroad that are easier to manage

The nFADP regulates the disclosure of personal data abroad. The Federal Council publishes a list of countries that provide an adequate level of protection. For other countries, additional safeguards are required, for example standard contractual clauses. Your privacy statement must also mention the countries of destination.

When data stays in Switzerland, this question disappears for the main hosting. You still need to check any processors (e-mail delivery tool, AI service, analytics tool), which may process data elsewhere.

Your clients' trust

Beyond the law, there is perception. Many clients, particularly in French-speaking Switzerland, pay close attention to how their information is handled. Being able to say clearly "your data is hosted in Switzerland" is a simple, understandable argument.

This is especially true in sectors where data is sensitive:

• medical practices: health data, which is sensitive data within the meaning of the law. See medical practices;
• fiduciaries: financial and tax data of individuals and companies. See fiduciaries;
• insurance and brokerage: personal, family and sometimes medical information. See insurance and brokerage;
• real estate: tenant files, identity documents, proof of income. See real estate.

Some professions are also subject to professional secrecy rules or to requirements set by their professional association. Check with that association or with a lawyer.

Limits to be aware of

Hosting in Switzerland is not a magic solution. Keep in mind that:

• Security remains your responsibility. A poorly configured server in Switzerland is not protected. Access management, strong passwords, two-factor authentication, backups and updates remain essential.
• Not every service exists in Switzerland. Some AI models or specialised tools are only available abroad. In that case, the data transmitted is limited (pseudonymisation, removal of unnecessary information) and the transfer is properly governed.
• The provider matters as much as the location. Check the actual location of the servers and backups, the contractual terms and the provider's certifications.

How we work

At LYL Software, we favour hosting in Switzerland, with Infomaniak, whenever possible and suitable for the project. For each project, we draw up a list of the services used and where they process data. When a foreign service is needed, for example for an AI model, we tell you, we limit the data sent and we provide you with the information you need for your privacy statement. We put basic security measures in place: role-based access, encrypted connections, backups and logging.

To go further, see our data integration and custom software pages, as well as our method. For legal questions, a specialised lawyer remains your best point of contact.