Privacy Law Blog : Privacy Lawyers & Attorneys : Proskauer Rose Law Firm : CAN-SPAM, FCRA, FACTA

Cloud computing is already revolutionizing the way companies operate their businesses, in particular in the way they store and process information. But before you jump into the cloud, you may want to pause to consider your options. The many benefits of cloud computing should be weighed against the risks inherent in outsourcing the storage and processing of sensitive data and other property of your company (including intellectual property that may be moved "into the clouds"). Moreover, you should be mindful of the ways in which you can mitigate these risks, including, for example, through careful selection of a cloud computing vendor, by negotiating contractual provisions to heighten the privacy and security of your data and property, and by allocating legal responsibilities in the event of a security failure.

Click here to listen to Proskauer associate Natalie Newman talk about cloud computing with Mari Frank, the host of KUCI's Privacy Piracy radio show.

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I recently spoke with Lora Bentley of IT Business Edge regarding privacy, data security, and cloud computing -- There's More Than One Way to Tackle Privacy in the Cloud.

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The Electronic Privacy Information Center (“EPIC”) recently filed a complaint with the Federal Trade Commission (“FTC”) accusing Google of failing to implement adequate privacy and data security safeguards and engaging in unfair and deceptive trade practices related to its “cloud computing” services.

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When a company is considering using cloud computing in its IT infrastructure, there are some privacy issues that need to be addressed.

While the value of cloud computing certainly holds much promise, companies wishing to make the leap into the cloud would be well advised to consider the potential privacy issues.  Cloud computing, in its essence, is the migration or outsourcing of computing, hardware and storage functions to a third-party service provider, which hosts applications on the Internet through linked servers located worldwide.  Cloud computing has captured the attention of IT professionals because it offers the appealing option of reducing a company’s computer infrastructure and placing it in the hands of a vendor who can perform a company’s computing needs more cheaply and efficiently than the company can itself.

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