Tuesday, August 18, 2009

Legal Implications of Cloud Computing — Part One (the Basics and Framing the Issues)

I had the pleasure of hearing an excellent presentation by Tanya Forsheit on the legal issues arising out of cloud computing during the ABA Information Security Committee’s recent meeting (at the end of July) in Chicago. The presentation resulted in a spirited debate between several attorneys in the crowd. The conversation spilled over into happy hour and became even more interesting. The end result: my previous misunderstanding of cloud computing as “just outsourcing” was corrected, and now I have a better appreciation of what “the cloud” is and the legal issues cloud computing raises.

Bottom line: this is not your father’s outsourcing relationship, and trying to protect clients with contracts may be very difficult or impossible unless the cloud computing community begins to build standards and processes to create trust. This post is not for my tech/security friends, it is for the attorneys out there, especially the general counsel and transactional attorneys who draft terms for tech contracts (e.g. outsourcing contracts, ASP contracts, software licenses, etc.). So tech friends, please cut me some slack as I completely mangle proper terminology in order to try to explain this in plain English (and of course if I get something wrong, shoot me a comment or email so I can correct — we attorneys need you on this one).

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Source: infoseccompliance.com

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