Addressing compliance requirements in cloud computing contracts

Companies looking to use cloud computing infrastructure for data backup and storage need to factor in the compliance requirements before contracts are signed.

In some cases, the cloud provider will be able to satisfy compliance requirements -- but often at a price, according to two market experts. Even before price negotiations begin, CIOs must understand that data backup and storage in the cloud does not remove a company's responsibility for the legal, regulatory and audit obligations attached to that information.

CIOs should be ready with a list of compliance questions for cloud vendors. But don't expect their answers to suffice. Indeed, Gartner Inc. published a report last month stating that security, privacy and compliance will prevent adoption of cloud computing in regulated industries and global companies through 2012.

Here are some guidelines and advice from Debra Logan, an enterprise content management analyst for Stamford, Conn.-based Gartner, and Tom McHale, vice president of product management for CA's GRC manager suite.

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Source: SearchCIO
By: Linda Tucci