What Is Cloud Computing Law?

Cloud Computing Law

Cloud computing law deals with the legal issues, such as data confidentiality, that occur when business and personal assets are placed on a cloud computing service. Because the IT infrastructure used in the cloud is owned by someone other than the organization collecting the information, issues arise. Cloud computing allows companies to use fewer resources and may involve public, private, and hybrid versions of cloud processing and storage.

The United States has not passed specific federal legislation regarding the secure electronic transmission and storage of personal data. Instead, the government’s approach to data protection and privacy includes legislation for various sectors, such as the financial industry, in combination with agency regulation and industry self-regulation. Specific privacy and protection issues are addressed in legislation such as the United States Privacy Act and the Health Insurance Portability and Accountability Act (HIPPA).

In cloud computing contracts, the customer also has a responsibility to comply with the cloud provider’s acceptable use policy. This policy protects the provider from liability relating to customer behavior.