The ability to convert capital expenditures to operating expenses, tax considerations and other cost-savings benefits are sending businesses to the cloud with glee, the legal profession lagging behind but getting the hint. But as the evolution of security measures becomes more imperative, tales of international disagreement regarding security regulation make the location of your vendor’s servers a question of paramount importance in selecting your cloud provider. For lawyers, this question of location is compounded by jurisdictional considerations.

Location, Location, Location

When you place data in the cloud, you lose control of it. How it is handled by the vendors you’ve entrusted it to depends on two things: their security protocol and the regulations and laws of the physical location of your vendor’s servers. For example, Google has servers worldwide, and frequently employs cross-border data transfers. However, the terms of its security policies include a provision whereby the location of your data will not (or cannot) be revealed.

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