Spotlight on Cloud Computing: Keeping Tabs on Your Data’s Address

Cloud computing was a dominant topic in 2010 and is expected to grow further in 2011 and 2012, according to a 2010 Forrester report. The industry faces significant security and data‑privacy concerns, with 50% of IT buyers citing them as barriers to adoption and 22% pointing to unmet compliance requirements. The article discusses how cloud services can obscure data location, making it difficult for organizations to meet regulatory obligations and avoid inadvertent non‑compliance.

Regulatory compliance is a separate issue from information security, yet the two overlap. The article notes that most laws governing managed hosting still apply to cloud services, and that the company owning the data remains liable for breaches or regulatory violations. It highlights the lack of clear data‑center location information from many providers, the risk of data moving across jurisdictions, and the need for explicit contractual clauses that prevent further outsourcing. To mitigate these risks, organizations are encouraged to develop a cloud strategy that includes approved suppliers, clear rules for data types and applications, and ongoing education of business units. Legal experts emphasize that existing data‑protection, tax, and e‑discovery laws still apply, and that failure to retrieve data or comply with regulatory requests can lead to governance failures and penalties.

(Source：Infosecurity Magazine)