As we move into 2011 it should be obvious that cloud computing is not a fad, but rather a computing model that is becoming ubiquitous. Cloud computing offers a slew of advantages including efficiency, instant scalability and cost effectiveness. However, these advantages must be balanced against the control organizations may lose over their information technology operations when they are reliant on a cloud provider to provide key processes. The issues that arise out of this loss of control are apparent when considering data breach response and liability in the cloud. When a cloud customer puts its sensitive data into the cloud it is completely reliant on the security and incident response processes of the cloud service provider in order to respond to a data breach. This situation poses many fundamental problems.
This blogpost is the third (and final) in our series analyzing the terms of Google's and Computer Science Corporation's ("CSC") cloud contracts with the City of Los Angeles. In Part One, we looked at the information security, privacy and confidentiality obligations Google and CSC agreed to. In Part Two, the focus was on terms related to compliance with privacy and security laws, audit and enforcement of security obligations, incident response, and geographic processing limitations, and termination rights under the contracts. In Part Three, we analyze what might be the most important data security/privacy-related terms of a Cloud contract (or any contract for that matter), the risk of loss terms. This is a very long post looking at very complex and interrelated contract terms. If you have any questions feel free to email me at firstname.lastname@example.org