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Why Businesses Should Be Aware Of The Potential Risks Of Cloud Computing

  • Posted on January 31, 2019 at 2:46 am

Why Businesses Should be Aware of the Potential Risks of Cloud Computing


Wayne Barker

With the popularity of cloud computing at an all time high at the moment it is crucial that businesses are aware of the inherent risks involved with this new technology businesses need to be aware of the potential risks alongside the efficiencies offered by Cloud Computing services.

As one of the fastest moving developments in IT in recent years more and more businesses are investing their time and resources into it is fair to say that it will continue to move and develop at a staggering rate. Having access to the unlimited resources while operating in the cloud is a big sell for busy companies.

It is all too easy to think of all their positives surrounding cloud computing without considering the inherent risk involved how are you going to be sure that you will have access to all your data anytime you need. You need to be sure that your provider can assure of the confidentiality of any data that you store in the cloud, the accessibility of said data and maintaining the integrity of all your data. It is also crucial to make sure that the business complies with all the laws surrounding data protection:

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The eighth data protection principle in the Data Protection Act of 1998 states that data controllers (the companies using the Cloud service) are not allowed to transfer personal data outside of the European Economic Area countries, unless the country to which the data is being transferred ensures an adequate level of protection for the rights and freedoms of data subjects in relation to the processing of personal data .

So how can you ensure that you comply with the necessary data protection laws?

The first option is that you seek permission or consent of the owner of the data an option that isn t particularly feasible.

A second option would be to anonymise all the data before it is stored in the cloud. Again this is a solution but not a particularly viable one.

The third option would be to agree a contract with the Cloud provider which would include a set of model clauses which have been approved by the European Commission. These model clauses, however, are complex and it is anticipated that if the business engaging the Cloud provider is a small organisation then the provider would just refuse to agree to them. As it stands, most Cloud providers are reluctant to agree to the stringent Data Protection Clauses and the contracts offered are offered very much on a take it or leave it basis.

Taking these factors into consideration is absolutely crucial before any business thinks about moving their data into the cloud as with most new technology it is always crucial to look before you leap.

Wayne Barker writes for Nelsons Solicitors, one of the largest legal firms in the Midlands. They have

solicitors offices in Leicester

, Derby and Nottingham.

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