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Not Every Cloud Brings Rain: Legal Risks on the Horizon
Abstract
The promise of a utility-based IT service delivery model is well understood and highly desirable. Moving towards cloud-based computing is emerging and gaining acceptance as a solution to the tasks related to the processing of information. Cloud computing promises a single portal view to better manage email, archiving, and records retention. However while cloud computing certainly brings efficiencies, it is still immature and carries serious risks to business information. The questions around risk and compliance are still largely unknown and need to be ironed out. Cloud computing opens numerous legal, privacy, and security implications, such as copyright, data loss, destruction of data, identity theft, third-party contractual limitations, e-discovery, risk/insurance allocation, and jurisdictional issues. This chapter will provide an overview and discuss the associated legal risks inherent in cloud computing, in particular the international data transfer between the EU and non- EU states.
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