Common Legal Concerns in Cloud Transactions

Grazed from FoundersWorkbench. Author: Gerry Stegmaier.

Having recently examined scalability as a key motivation to founders’ use of cloud computing funding, we will now take a look at the various legal issues that may arise from cloud computing-based transactions. The implementation of cloud computing infrastructure implicates several issues inherent to the technology – most notably data control and regulatory compliance.

The simple act of contracting with a cloud computing service provider, for example, requires a company to delegate significant control over its data and computing infrastructure to that service provider. Because the purchasing company likely continues to have responsibility for that core business data, ensuring that the cloud relationship addresses this responsibility remains an important operational consideration…

Moreover, data stored “in the cloud” may cross jurisdictional and operational barriers, subjecting a company to multiple regulatory requirements and compliance risks – many of which may be totally unanticipated or completely unfamiliar…

Read more from the source @ http://www.foundersworkbench.com/cloud-computing-common-legal-concerns-in-cloud-transactions/