Cloud computing is here. And if it isn't at your company yet, it soon will be. Cloud computing is simply the latest version of the historical use of technology to increase flexibility and reduce costs. By providing a bundled and scalable solution of software, infrastructure, data storage and communication, cloud computing providers allow companies to reserve cash, avoid expensive IT commitments, efficiently scale usage based on need, and launch new services quickly. However, there is truly no free lunch - at this point in its development, outsourced cloud computing fails to address important questions of legal risk associated with knowing where data is stored and transmitted. This Alert discusses several of these issues, which must be considered by companies turning to third-party cloud computing solutions.
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