As the use of cloud computing grows, so too will then laws that govern its use. In this post, we take a closer look at the future of cloud computing laws and regulations.

March 14, 2014

2 Min Read
The Future of Cloud Computing Laws and Regulations

By Michael Brown 1

The amount of personal information and data that is stored in the cloud is astounding, and it is only growing. Something that MSPs should be constantly aware of is that while the technology and use is growing rapidly, the privacy laws and government regulations are not always keeping up. But they are trying, and will get there.

As you can see from this article, Australia is developing and implementing new privacy laws in order to continue to secure private information and data stored in the cloud. Most companies these days collect some form of personal information, even if it not as confidential as payment details. Facebook, Gmail, Youtube and many other sites all allow free access, but only in exchange for personal information. As all of this data is moved around and stored in the cloud, the laws and regulations they are subjected to become a bit hazy. As we discussed in this previous post, data ownership makes it difficult to enforce regulations, because cloud based services can be “located” anywhere in the world.

What new regulations are doing:

  • Requiring companies and services that store data in foreign areas to disclose where the data is being hosted. The owners of the information can then know what country’s laws and regulations apply to their data.

  • Organizations must take steps, through contract arrangements, to ensure that whatever storage location they choose is adhering to the current privacy laws that apply.

  • Regulations also stipulate that “reasonable steps” must be taken to protect any information from misuse, loss, unauthorized access, modification and other security breaches, regardless of where it is stored.

What new regulations aren’t doing (yet):

  • Most new regulations lack clarity for cloud services, because they still aren’t technologically specific enough. Much of this situation involves new ideas, technology and verbiage, and the laws don’t quite reflect that yet.

  • Some of the regulations don’t always place the obligations on the correct parties, due to unfamiliar wording and varied terms in the industry. Therefore make it more confusing as to who is responsible for what in the security process.

Laws and regulations governing cloud computing are struggling to keep pace with the rapidly developing industry. As things continue to move forward, it is important to MSPs to stay current with the legal situations as it could greatly affect many of the ways that these cloud based services operate, and changes could potentially come quickly in an effort to keep pace and provide the necessary security.

Where do you think government regulations and laws concerning data sharing and security are headed? Be sure to share in the comments.

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