Switching to the cloud computing model of buying technology as a service purely to cut costs and speed up deployment can be a mistake. Regulatory or legal requirements are often forgotten, and this can expose businesses using cloud computing to unnecessary risks, says Andrew Scott, a partner at law firm Dickinson Dees. The Data Protection Act, for example, requires businesses to control the way personal data is processed and stored, but this is extremely difficult with cloud computing, says Scott. It is also unlikely that businesses will have the control they need over where data is stored or have any real assurances that no data is left behind after the contact ends. Cloud computing service contacts, says Scott, require the same level of care as traditional outsourcing agreements when it comes to regulatory compliance.
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