The premier weekly newspaper for the legal profession in Ontario
Issue link: https://digital.lawtimesnews.com/i/50221
PAGE 8 COMMENT July 11, 2011 • law Times Navigating the legal issues with cloud computing BY NICHOLAS DEWKINANDAN For Law Times are considering cloud comput- ing as one option to do so. Cloud computing uses the A Internet as a means to connect the user to resources based in a cloud server. Th is cloud is ac- cessed through the Internet or a company network. With smart- phones and other mobile prod- ucts becoming more common, cloud services have changed to allow access from any device con- nected to the Internet. Th e applications for cloud computing are practically lim- itless. With the right setup, a cloud computing system could execute all of the programs a normal computer could run. Ev- erything from generic word-pro- cessing software to customized computer programs designed for a specifi c company could work s law fi rms are always looking for new ways to reduce their costs, some on a cloud computing system. Why would anyone want to rely on another computer system to run programs and store data? Here are just a few reasons: • Users would be able to ac- cess their applications and data from anywhere at any time. Data wouldn't be confi ned to a hard drive on one user's computer or even an internal network. • It could bring hardware costs down. Cloud computing systems would reduce the need for advanced hardware on the client side. You wouldn't need to buy the fastest computer with the most memory be- cause the cloud system would take care of those needs for you. Instead, you could buy an inexpensive computer ter- minal. Th e terminal could in- clude a monitor, input devices like a keyboard and mouse, and just enough processing power to run the middleware necessary to connect to the cloud system. A large hard drive wouldn't be necessary because data is on a remote computer. • Businesses that rely on com- puters have to make sure they have the right software in Speaker's place to achieve goals. Cloud computing systems give these organizations company-wide access to computer applica- tions. Th e companies don't have to buy a set of software or software licences for every em- ployee. Instead, the company could pay a metered fee to a cloud computing company. • Servers and digital stor- age devices take up space. Some companies rent physi- cal space to store servers and databases because they don't have it available on- site. Cloud computing gives these companies the option of storing data on someone else's hardware and thereby removes the need for physi- cal space on the front end. Corner • Corporations might save mon- ey on IT support. Stream- lined hardware would, in theory, have fewer problems than a network of heteroge- neous machines and operat- ing systems. • If the cloud comput- ing system's back end is a grid computing system, then the client could take advantage of the entire network's processing power. Often, scientists and researchers work with calcula- tions so complex that it would take years for individual com- puters to complete them. On a grid computing system, the client could send the calculation to the cloud for processing. Th e cloud sys- tem would tap into the pro- cessing power of all available computers on the back end and therefore signifi cantly speed up the calculation. Aside from reducing costs and the many benefi ts cloud comput- ing off ers businesses, there are some important legal issues that must be considered before sign- ing up with any cloud vendors. First is the physical location of your data. Your data can be stored anywhere in the world, and you may not be able to inquire where the data centre is located. Th e physical location raises questions about the legal gover- nance over the data. Th e custom- ers must be clear on the provisions of the prevailing law in the coun- try where the data is stored. If a dispute arises, which jurisdiction will supersede? Is it the location where the data is being used or where the data is being stored? A second consideration is GET THE LATEST INSIGHTS ON CONSTRUCTION LAW TRENDS AND ISSUES NEW EDITION JOURNAL OF THE CANADIAN COLLEGE OF CONSTRUCTION LAWYERS 2011 EDITOR: DUNCAN W. GLAHOLT Get convenient access to authoritative expertise on current hot topics and legal issues in the construction industry. Written by construction law experts from the Canadian College of Construction Lawyers, Journal of the Canadian College of Construction Lawyers 2011 will help you stay current and provide insight on the legal issues you face in this area of law. This year's collection of insightful articles discusses the impact of the global financial crisis on the construction sector and the construction bar, various contractual provisions, dispute resolution and public procurement issues and includes a review of Annotated Construction Law Glossary. protection of the data. Data can be easily compromised. What happens when a vendor's system is aff ected by a disaster? Almost all law fi rms that manage their own servers have disaster recov- ery in place to ensure minimal downtime. E-mails, contacts, and other business documents can be restored, but if there is no backup in place on the cloud, a user can easily lose precious data, let alone the time and money spent on production. In the case of a privacy breach caused by the vendor, is there any liability coverage? Since net- works aren't 100-per-cent secure, can you act against the vendor to claim lost profi ts? What about intellectual property rights? Your data is stored elsewhere, and that some- times means less control. If your data is your own creation, is it protected under the intellectual property provisions of the coun- try in which the data is stored? Data stored in the cloud may also hold insider trade secrets or other privileged information that must be protected. How se- cure is the information held by your cloud vendor? Some vendors may grant third- party access to stored data. Th e identities of those parties should be disclosed to the customer. Th e third party could be a legal au- thority or internal employee. Th e customer should always be informed and educated if third- party access is given. In light of all of these issues, ORDER # 983631-60145 $130 Hardcover May 2011 approx. 320 pages 978-0-7798-3631-4 Annual volumes supplied on standing order subscription Multiple copy discounts available a backup of the data should be left in the offi ce or at a respect- able data centre. Many Canadian outsourced vendors hold data in Canada while others use centres in Asia. It's a best practice to ask for and read the terms of service when searching for a vendor for your cloud computing needs. Cloud computing off ers great AVAILABLE RISK-FREE FOR 30 DAYS Order online at www.carswell.com Call Toll-Free: 1-800-387-5164 In Toronto: 416-609-3800 Shipping and handling are extra. Price subject to change without notice and subject to applicable taxes. cost savings for businesses, but there are problems from a legal perspective. As a result, adminis- trative staff should fully research the company before agreeing. Al- ways ask questions even if the answers are hard to understand as a user. Nicholas Dewkinandan is an ac- count executive at Interface Tech- nologies in Toronto. Untitled-3 1 www.lawtimesnews.com 7/7/11 9:30:43 AM