The Lighter Side Of The Cloud – Mother Always Said
The Lighter Side Of The Cloud – Metcalf
The Lighter Side Of The Cloud – 100 Lines
The Lighter Side Of The Cloud – Uh-Oh!
The Lighter Side Of The Cloud – My Private Cloud
Cloud Service Providers And The Law

Cloud Service Providers And The Law

Cloud Service Providers And The Law

Imagine opting out of the continuous struggle to keep software up to date, and essentially getting rid of overburdened corporate IT departments struggling to keep systems functional. This initial flavor of cloud computing given to the public is increasingly holding true to its promise due to numerous benefits such as flexibility, cost reduction, accessibility, and reliability. Undoubtedly, cloud computing presents a potential paradigm shift for all industries and sectors with many benefits such as flexibility, cost reduction, accessibility, and reliability.

While several technical benefits of cloud computing exist, there are few important considerations for users and corporations. One of the most important is the legal repercussions these new technologies may trigger. With the arrival of any new technology, the applicability of existing laws and the possibility of new laws tailored specifically to the new technology remain unclear until precedents are set. The cloud computing phenomena is global in nature challenging the very touchstone of jurisdictional complexities.

Lawyers-law-firms-cloud-computing

(Infographic Source: Business Of Law Blog)

These legal qualms pose significant risks to cloud service providers and users alike. Service providers constantly battle to strike a balance between reward of investing in better and new technologies; on the other hand, they expose themselves to greater risk of potential lawsuits as well as uncertain future regulations. For small businesses, this issue may even be greater as they lack resources to effectively negotiate contracts with large cloud service providers. On the other hand, large corporations may be easier to draft and negotiate a ‘strong’ contract with service providers.

Broadly speaking, there are six widely applicable regulations relating to cloud computing in the United States.

1. Stored Communications Act (SCA)
2. USA Patriot Act
3. The Health Insurance Portability and Accountability Act (HIPAA)
4. US Export Control Regulations
5. Federal Trade Commission Act
6. Communications Privacy Act of 1986 (ECPA).

While laws extensively cover areas related to security and privacy, loopholes are certain when referring matters relating to cloud computing. For instance, in 2011, a class action complaint was lodged against a cloud storage provider in Wong v. Dropbox, Inc., where, it was alleged that the company violated the California Unfair Competition Law and negligently invaded privacy of individuals. The class action complaint against Dropbox arose out of an update that inadvertently allowed anyone to log into any account using any password within a four hour window.

The risks are geared towards confusion as to applicable laws, the changing regulatory climate, and lack of industry standards. Cloud computing does reflect paradigm shift for both users and corporations, as it allows taking advantage of economies of scale as well as specialization to provide a more efficient and economical solution.

As jurisdiction within the cloud is so unclear, the only option would be to come to a mutual agreement or a compromise between cloud provider and user. Therefore, a harmonious and uniform set of laws governing data privacy and security is required which, in turn, would be beneficial in several respects. For instance, service providers would be able to assess their risks more accurately subsequently decreasing the need for them to push their risk onto users through contracts that force the customer to deal with privacy breaches that may be the fault of the service provider.

By Syed Raza

Syed Raza

Syed Raza

With over 20 years of combined experience in the fields Law, Management, and IT, Syed has impeccable reviewing and strong editing skills with a long track record of writing technical, legal, and management articles that make readers stop and think.. Being a serial entrepreneur and attorney, he provides consultancy and project management in e-Discovery issues in complex civil litigation. As, a trial attorney with significant experience in matters relating to patent infringement, defense and prosecution in the pharmaceutical industry, contracts disputes, real estate, criminal matters, and international human rights law. Syed provides guidance and counsel to attorneys and clients on all aspects of discovery, including information management, data preservation and collection, early case assessment, comprehensive managed review and production. He also holds a PhD (management sciences) and MBA degree as well.
Syed Raza

Sorry, comments are closed for this post.

Recent

Wearable Tech Jobs Of The Future

Wearable Tech Jobs Of The Future

Wearable Tech Jobs Wearable Technology is a very exciting industry and the sky’s the limit with new possibilities for businesses and consumers. The new technologies will make our lives easier in terms of convenience, while in other ways more complicated due to learning curve of each new product. Lets take a look at wearable tech in…

How M2M Differs From IoT Internet of Things

How M2M Differs From IoT Internet of Things

What Is M2M Machine To Machine? When it comes to communications between machines, the terms Machine to Machine (M2M) and the Internet of Things (IoT) are seemingly similar to each other. In fact, there is a very strong connection between both terms which is why they are often used as the same. However, that is…

Cloud Infographic – Top Vulnerable Applications

Cloud Infographic – Top Vulnerable Applications

Top Vulnerable Applications  As you use the Internet on a daily basis, you probably come across cyber security topics, but rarely glance at them twice. After all, cyber security threats don’t concern you, right? Well, that’s not exactly true. Cyber attacks are more widespread than you can imagine and they may be targeting your devices as…

Popular Archives

New Report Finds 1 Out Of 3 Sites Are Vulnerable To Malware

New Report Finds 1 Out Of 3 Sites Are Vulnerable To Malware

1 Out Of 3 Sites Are Vulnerable To Malware A new report published this morning by Menlo Security has alarmingly suggested that at least a third of the top 1,000,000 websites in the world are at risk of being infected by malware. While it’s worth prefacing the findings with the fact Menlo used Alexa to…

Cloud Infographic: Corporate IT Security Stats

Cloud Infographic: Corporate IT Security Stats

Cloud Infographic: Corporate IT Security Stats Each week on CloudTweaks we provide a few shoutouts to companies who provide engaging and interesting infographics that reflect our readers interests.  In this case, we have an excellent infographic provided by the team at arellia.com which takes a closer look at cyber-security and some of the biggest malware threats…

Sponsors

The Many Hats Of Today’s IT Managers

The Many Hats Of Today’s IT Managers

The Many Hats of IT Managers In years past, the IT department of most large organizations was much like a version of Middle Earth: a mysterious nether world where people who seemed infinitely smarter than the rest of us bustled around, speaking and typing languages that appeared indecipherable, yet, which made our world work. They…

Selling Your Business To Your Employees

Selling Your Business To Your Employees

Mobility For Your Employees It may seem a radical notion, the idea of selling your business to the people who work for you, but this is the era in which we now work. Employees of all levels are all incredibly aware of their options when it comes to mobility and employability. This doesn’t mean that…

Established in 2009

CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

CloudTweaks Comic Library

Advertising