Cloud computing, performed on virtual servers over the Internet, is a wave of the future. Network storage and software as a service are popular cloud computing models.  Salesforce.com and Google Apps are two examples of cloud computing applications.  So, what does cloud computing mean for your organization?  The benefits are readily identified -- using a virtual, shared infrastructure reduces the need for hardware and software, resulting in substantial cost savings and efficiency.

Cloud computing also comes with risks.  The biggest concern is the lack of traditional security associated with software and hardware set up at a physical location.  As cloud computing is used for more applications, including the storage of sensitive data, such as customers' and employees' personal information, the security challenges become greater.  Some question whether a cloud can ever truly be secure.  Organizations should try to minimize their risks by including appropriate protections in agreements with providers of cloud computing applications and services.  Warranties, indemnifications, and service levels with specified remedies are some key protections that must not be overlooked when your information is headed for the clouds.

For an article with more discussion, go here.

For more information about legislation or litigation involving technology, intellectual property protection of information technology assets or any other Information Technology law issue, contact your Miller Canfield attorney or Kathy Ossian, Leader of our Information Technology Team, or call her direct at 313.496.7644.