08 Dec 2009

Businesses advised on cloud security issues

UK companies have been advised that they must still adhere to UK data protection laws, even when using cloud technology that enables them to store information abroad.

Bridget Treacy, partner at Hunton & Williams, said the matter of companies storing data with firms in other countries has opened a new field of data security law that needs to be addressed.

She commented: "If there is a serious breach, which would include a reckless decision or choosing to ignore an issue, it could well land a company with a fine."

Ms Treacy added these jurisdictional issues are a tricky area to legislate and need to be thought about carefully to ensure businesses and consumers are adequately protected.

According to a report by the European Network and Information Security Agency, the number one issue holding many firms back from adopting cloud computing is whether it is safe for them to trust a cloud provider with their data or even their entire business infrastructure.