Safely Storing Confidential Customer Data in the Cloud

Two major legal and technological changes that have taken place in the past several years are now colliding. First, with the rise of social networking and other trends, governments at every level are passing tougher laws that protect the privacy and security of personal data. Second, the decreasing costs of computer storage and bandwidth make it feasible for the first time for businesses of all sizes to outsource storage of their customers' personal and financial data to the "cloud."

These two changes — a patchwork of new privacy and data security laws and the rapid rise of cloud computing — mean that businesses face different data storage risks. Businesses therefore should understand, both from a legal and technological perspective, how to use cloud computing safely to store personal data about their customers.