Cloud computing is an important technology and has been rapidly adopted by major corporations, governments and others right around the world, and for good reason. But like all technologies of this nature users need to be careful when utilising them.
A Cost Saver
Cloud computing involves storing data on remote servers that are operated by private or public cloud servers. One of its great advantages is that business users avoid the need to upgrade data storage capacity – a significant cost saver.
Security of Data
However, there are issues of which users should be aware. Security of data and protection of identity are major issues. Web and computer-based technologies, such as cloud computing have an ever-present risk of hacking, data corruption or loss.
It is important to know whether a cloud service provider subcontracted out to other parties. If legal agreements are in place, they will be between the user and the main service provider. But if subcontractors are involved, it’s important to know what are they, where they are located, and what services they’re providing to the cloud service provider.
Overseas Legal Jurisdictions
Complex legal and forensic issues result from the fact that data is stored on remote servers that are often located outside of Australia. Because the location of external service providers, their servers and their subcontractors can be across different countries, this creates difficulties across legal jurisdictions.
Users need to be very careful when stepping outside of their own jurisdiction because legal processes and protections may be completely different.
From an address by Nigel Wilson, of the University of Adelaide’s School of Law during National Cyber Security Awareness Week and published in Corporate Risk & Insurance – May 2013.