Service Agreements Play Huge Role in Compliant Cloud Computing

We've talked about the compliance concerns cloud computing raises, but as prominent as the cloud has become, a refresher is never out of order. This week, Shari Claire Lewis, a partner at the law firm of Rivkin Radler, wrote on the subject in the New York Law Journal.

She writes:

Given the explosive growth of cloud computing, it should be no surprise that it presents numerous legal issues for businesses. Two of the most significant are privacy concerns and the implications of cloud computing for pretrial discovery.

Lewis cites the World Privacy Forum's report, "Cloud Computing and Privacy," for the proposition that any agreement a financial institution or health care provider enters into with a cloud service provider must be carefully crafted to cover requirements in the Gramm-Leach-Bliley and Health Insurance Portability and Accountability Acts, respectively. She notes that the cloud provider's geographic location will also largely impact the terms of its agreements with customers.

Particularly for litigators, the biggest compliance issues raised by cloud computing center around e-discovery. Lewis notes:

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Source: IT Business Edge
By: Lora Bentley