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Is There a Dark Side to the Cloud?

icon Blog on Automation and Technology, Data Security  •  posted 02/17/12

A recent spate of articles in the “Wall Street Journal” and the tech press has brought up a potential dark side to cloud computing.  Namely, the specter of the Patriot Act allowing the US government access to what is stored in the cloud when the servers are provided by a US company.  While the government must show reasonable cause for their request for data, US companies would be required to turn the data over.  Some European and Asian companies are concerned that this amounts to unlimited access to their data.

American companies that provide cloud services are crying foul and saying that the concerns are overblown – that cloud service companies elsewhere are seeking to obtain a market advantage by stressing this possibility.  But it’s not just marketing.  Some governments, such as that of the Netherlands, have considered banning US cloud service companies from competing for government contracts. 

Since one selling point of the cloud is that it enables data to travel freely, this concern is worrisome.  It raises the concept of companies requiring their data be maintained within their home country’s borders and under their control, thus negating that advantage.  Not only are data restrictions being contemplated by individual companies, but some countries are also considering requiring that the cloud companies install servers within their borders.

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As recently as last summer a coalition of cloud computing experts from companies such as Microsoft, Google, and Salesforce urged the US government to conduct a study on the Patriot Act and other countries’ national security laws.  The report also recommended updating US digital privacy laws which are described as “antiquated.”

It’s not just foreign nations that are considering restricting data and specifying server locations – US federal agencies are inserting  similar terms and requirements in their contracts despite the fact that agencies have been instructed to categorize their data and only restrict the most highly sensitive.

While it appears that this concern is being used primarily by non-US cloud service providers in seeking a competitive advantage, security of data is an important consideration when thinking of moving to the cloud.  This is just one more piece of information to keep in mind when contemplating using the cloud to store sensitive information.  It is important to be well informed as to all the possible ramifications of data privacy and ownership.

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