Companies Should Not Just Jump Into Cloud

By Alan Harten

According to the Data Protection Act companies must notify their clients and government regulators of exactly where all personal data is stored.

For those considering using Microsoft’s exciting new Cloud Computing this could prove to be something of a legal nightmare.

Cloud runs on top of a system called Azure, which is a very exciting proposition for many business owners as it seems as though it could be a highly effective, efficient and cost conscious service.

The big problem comes from the fact that it is not apparently possible to know just exactly where the data itself is actually being stored.

Data protection law states that you must know where the data is stored; in particular you need to know which country it is located in, and that the country implements proper security regulation to ensure that the data is kept private and secure at all times.

Companies will need to alter their customer agreements and extend their legal compliance before moving their files over to Cloud.

Failure to do so would put companies in breach of the Data Protection Act which definitely has teeth and should not be ignored.