To monitor data in use, the DLP solution's optimal location would be on the user's client or workstation, where the data would be used or processed, and where it would be most vulnerable to access or exposure. The network perimeter is most appropriate for data in transit, and an application server would serve as middle stage between data at rest and data in use, but is a less correct answer than a user's client. A database server would be an example of a location appropriate for monitoring data at rest.
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