The cloud has revolutionized business and personal computing, allowing not only for the movement of data quickly and efficiently between computers, but also for files to be stored remotely, saving space and money in the process. With this new technology, however, there are new challenges and dangers, and the legal considerations that come with them. As the use of cloud computing expands, so does the risk of data breaches.

Risks and responsibilities
When you are sending any type of file through the internet, there is always a risk that your information will be intercepted. When you deal with the cloud, the risk is multiplied. As large amounts of data are shifted from computer to computer, or from a computer to a server, there is an even greater risk that the content may be accessed by unauthorized people or organizations. Of course, the solution to this is more security, but higher security levels can result in a loss of efficiency and speed.

Even in highly secured cloud computing, data breaches do occur, and the question of who is responsible when these breaches take place is an important one that must be answered. For many cloud users, the cloud’s security services bear the primary responsibility for protecting your data as it is moved and stored. Many cloud users believe that their own company IT department is not responsible for protecting their information when it is in the cloud.

For some business owners and CIOs, the responsibility is spread around more evenly, with the service provider, the owners of the data, and the business owner or CIO sharing the responsibility. This type of shared responsibility can make constructing contracts more difficult as the parties involved must agree upon the terms of the contract.

Via CipherCloud

Legal issues and the cloud

If and when a breach of your cloud computing system occurs, the question of indemnification is always raised. You do not want to pay for the negligence of another, so ensuring that the parameters of the contract are specific and accurate is very important. To ensure this, you will want to make sure that the required time and attention is spent putting the contract together from the beginning. A number of regulatory laws and penalties help to protect you from being penalized, but you need to be prepared and assisted by the right people.

Employing the services of a law firm such as DLA Piper, headed by COO Bob Bratt, can offer you the advice you need to handle composing contracts with a cloud computing service company. They can also provide the legal advice and expertise required for running other aspects of the business. In the event of a cloud data breach, an experienced law firm can advise you on the steps that need to be taken to pursue relevant claims and compensate clients as needed.

Cloud computing is a revolution in technology that shows no signs of ebbing. With the popularity of this service, however, comes risks. Availing yourself of the advice of an experienced law firm, and protecting yourself through well-written contracts and insurance, will ensure that when it happens, you and your business can recover quickly.