Managing the Risks of Cloud Computing (Tip of the Month)

Originally published November 2010

Keywords: cloud computing, ESI, internet-based computing, discovery, custody and control, data

Scenario

The IT department of a large international company is in the process of negotiating a contract with a cloud computing provider to maintain and hold all of the company's electronically stored information and data. The company's Chief Information Officer asks its General Counsel to review a nearly final draft of the contract with the cloud computing provider to make sure that any potential risks that might accompany the transition are addressed in the agreement.

What is Cloud Computing?

Cloud computing is Internet-based computing; it involves the use of remote computing resources that are usually shared and/or distributed rather than dedicated and centrally located. Cloud computing is generally a subscription-based service that satisfies both computing and storage needs with an infrastructure based in the Internet. Cloud