Beware of cloud storage for business

We are a nation of what’s the next hot thing that I have to have or become involved with. Storing information in the cloud is the new hot thing for businesses to consider using. If you pay attention to all of the advertising that has been done to promote this new technology, your company needs to do this because that is the what everyone else is going to do.

Well, when you review the pros and cons of  cloud storage, I am still uncertain about it for reasons that I will list further down in this article.On the surface it looks like a good thing, but upon further review, there are issues regarding the safety of the data, who owns the data, what are the legalities involved, and the security of backups are all areas that could be in question when storing information in the cloud.

If you read or listen to the news, Yahoo found itself being hacked into, the State Department has been hacked into by foreign hacker pros, and the list goes on. Were they using cloud storage, I don’t know, but if their data has been stored and secured in a traditional manner, how would you trust a new platform that is in its infancy stage?

I am a huge proponent of technology, but when it involves sensitive, classified, and personal information, I would need to be completely convinced that using  cloud storage will secure all of my information. I feel that more time needs to be spent researching and making certain that cloud storage is as hack proof as we can get it. If someone wants your information badly enough, they will find a way around any security or firewalls installed to deter the stealing of data.

The first thing to consider if you are moving to cloud  storage is to get a good IT attorney. They need to write a sound contract between you and the vendor. Who is responsible if data and corporate servers are hacked? Who is responsible for any lawsuits that may result from a security breech? All data should belong to you and if the contract is terminated, all data is returned to you and copies are destroyed. You should have the ability to visit their facility, review systems and procedures, and have an outside agency perform an audit if deemed necessary.

Insurance issues come into play, especially limits of liability provisions. If there is negligence on the vendors side, any lawsuit may jeopardize your company’s finances. That is why it is critical to retain an IT specialized attorney. They should provide indemnity and hold company harmless clause language in your contract. I do not practice law, so these are just a few ideas, consult your company legal counsel for advice.

The last part is to consider how young and new this technology is. Firms that are supporting  cloud storage, are still new to the game and learning on the job. Mistakes will be made so you may want to consider escrowing the data to a third party. Perform the necessary due diligence on the cloud company and determine if your data can be recaptured if an incident occurs.

The technology is wonderful but, so new that it is a very difficult decision to make.

Should you need any other advice or assistance for your business, contact us at or 330-620-2761.



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