12 Feb 2010

Companies 'responsible for cloud data security'

Businesses have been advised they remain responsible for their data even when it is being stored with outsourced cloud providers.

Speaking at the Westminster eForum keynote seminar on cloud computing, Tom Greenbank, solicitor in outsourcing, technology and commercial at Pinsent Masons, said that companies need to be aware that any data loss which occurs when a firm has outsourced its data storage commitment remains the responsibility of the parent firm.

He commented: "Unless it has been agreed in the contract, the general position is that the customer is responsible."

Mr Greenbank added that attempting to renegotiate terms with large storage providers can be notoriously difficult, especially for smaller businesses.

According to on-demand computing and communication services provider Star, small firms in particular need to assure the safety of their data, as new powers for the Information Commissioner's Office could see fines of up to £500,000 being levied against them for poor data security.