Cloud computing is a common topic in the computing world. It is an obvious expansion of the Internet technology. It is more than just about storing data on distant computers; but it also allows us run high-resources applications on a remote computer; using a cheap device with much weaker hardware configuration. Cloud computing is already among us and it’s a future technology. It means that individuals and companies should consider legal issues related to the use of cloud computing. We know that data and applications are not stored in a local computer and they are stored remotely. This will result in one large concern that is what will happen when we lose our data.

From legal standpoints; it is clear that cloud computing raises a number of possible contractual issues. This will need to be addressed by all the parties. We will need to consider possible regulatory issues ranging from export control issues to privacy. In fact, we could find issues that haven’t crossed our mind. Businesses and lawyers themselves are getting more experienced with issues related with cloud computing. It is important for them to work together. Companies should have a consensus with their legal team to deal with possible cloud-related issues that may arise. This simple effort should help us to limit any kind of liability.

It is important to have contractual obligation that can ensure that we are able to our data and customers’ data. We will need to have particular procedures and steps that explain the whole thing. We should specify standard of maintenance that must be met by the provider. Customers may also ask about contractual obligations related to uptime. We will need to provide a warranty related to the uptime. This will encourage us to limit the overall downtime. For customers, it is important to avoid providers that disclaim anything that could happen to their data. It means that providers can’t be prosecuted when bad things happen to customers’ data.

Legal contracts could also determine whether customers can get their data back when providers go out of business. Consequential damages may need to be included in the contractual agreement. Customers should also be aware that the total damages are capped and they won’t get the full reimbursement for their entire loss. It means that providers will need to be shielded from any kind of liability. We will need to know where our data will be stored. It means that we are able to assess the reliability of the data center. When the data is stored in a specific location, we may need to know about the conditions and any agreed security level. This is essential for regulatory reasons and we should be able to comply with any kind of privacy policies. It means that contract agreement related to cloud services should contain all the required terms. With proper arrangement, we should have an ideal exit strategy when the cloud solution fails to meet our expectation.