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Understanding and Mitigating the Legal Risks of Cloud Computing

By Bennett B. Borden and Shannon Smith
June 30, 2011

It is no secret that an increasing number of enterprises are investing in cloud computing. Whether they are replacing on-premise applications or traditional outsourcing models, rising costs and technical complexity have led organizations to look to third-party providers for some or all of their information technology needs. There can be significant economic efficiencies realized by moving to the cloud. But just as important are potential benefits associated with data privacy and security, compliance, business intelligence and overall information governance improvements. Entities often struggle with establishing comprehensive information governance programs that capitalize on the value of their information assets while avoiding the risks of ungoverned information. Cloud providers are increasingly aware of these challenges and are shaping cloud solutions to overcome them. That said, there are also potential risks involved if an entity does not adequately consider the information governance implications, especially those involving electronic discovery, when moving to the cloud.

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