Legal Aspects of Cloud Computing

Organizations use the Cloud in a variety of different service models (SaaS, PaaS, IaaS) and deployment models (Private, Public, Hybrid). There are a number of security issues/concerns associated with cloud computing but these issues fall into two broad categories: Security issues faced by cloud providers (organizations providing software-, platform-, or infrastructure-as-a-service via the cloud) and security issues faced by their customers.In most cases, the provider must ensure that their infrastructure is secure and that their clients’ data and applications are protected while the customer must ensure that the provider has taken the proper security measures to protect their information.

This research paper tackles the issues that faces Cloud Computing today and gives the experts and industry’s point of view on the matter. The aspects explored are the significant industry questions that have risen about the use of Cloud Computing, business value, organization impact, adaptability, limitations, initial cost of implementation, and the severe business security risks

Federal organizations are moving their services to the cloud to minimize their software and infrastructure footprint and to save money, time, and resources. As cloud service providers (CSPs) are becoming prevalent, we must analyze the security of these services to ensure compliance with standards and laws that protect customers, citizens, and information. Therefore, this paper analyzes a new federal cloud compliance program called the Federal Risk and Authorization Management Program (FedRAMP). This paper also establishes that FedRAMP can indirectly aid federal government organizations to be compliant with the following laws: Health Insurance Portability and Accountability Act of 1996 (HIPAA); the Family Educational Rights and Privacy Act (FERPA); the International Traffic in Arms Regulations (ITAR); and the Payment Card Industry Data Security Standard (PCI DSS). This paper will briefly explain these four laws and cloud computing discussions regarding these laws. This paper will also explain FedRAMP and the way it can help federal organizations to be complaint with these laws.

Public cloud providers will often have more responsibility for enhancing the security of the data and applications. Within the financial industry data breaches, application vulnerabilities, and availability are all important issues that can lead to legal liabilities.

Customers, even if security risks are minimal, may themselves distrust cloud computing when transmitting personal data, such as doing online banking. If they only have a vague notion of what cloud computing is, the benefits and efficiencies may seem unclear and outweighed by the risks (Knorr & Gruman 2010). They too may shy away from patronizing businesses that have cloud-hosted data.

I believe that the responsibility lies on both the user and the vendor to arrange appropriate security arrangements for the data and applications stored in the cloud. Cloud computing helps computers keep their storage capacities lower by breaking the physical bonds between IT infrastructure, but it allows security threats to personal information being hacked or leaked if the security is not looked after appropriately.

Certified Public Accountant firms are now considering cloud computing as an effective alternative to local networks (Du & Cong, 2010). Local networks are on-site servers with physical equipment that require continual maintenance and updating which can be time consuming and expensive. As the technology for cloud computing becomes more affordable and access becomes easier to understand, more and more users are gravitating to this way of business. Cloud storage is well known and accepted, however cloud computing is taking it just one step further, creating a virtual workspace. Cloud computing differs from just cloud data storage in that cloud computing provides not only storage but the ability for a company to also manage and process data in the cloud just as though they are working on their personal computer. As with all new technology, there are risks and rewards that need to be considered before companywide implementation.

A lot has being said concerning issues surrounding the law and cloud computing. Some of these issues include privacy and data security concerns and laws and regulations. Regardless of what cloud computing models an organization uses, both the cloud provider and the consumer ha to operate under this laws. Therefore both parties need to have a broad knowledge of the these laws such as data breaches, information ownership and control and how close customers can manage risk both at the federal and state levels.

This journal examines the various types of threats that a cloud-based company has to defend against. The authors recognize that the cloud has the potential to be a disruptive force in technology, and it examines the concerns that a business has for migrating to the cloud through the use of surveys. The benefits and risks are examined and the article provides statics and charts to illustrate the findings. The most interesting point of this article is it highlights the concerns customers have listing security as the number one reason preventing a business from migrating to the cloud. I plan to use this article to explain the challenges developers face in securing data on the cloud, not only with application development but also with educating businesses to alleviate misconceptions on cloud computing.

Worldwide, both the public and private sectors have grown in their distrust and discomfort in the ability of companies to handle user data properly. Trust must be restored by defining a clear line between legitimate security concerns and an individual’s right to privacy. One way to ensure privacy is by separating the application that is being used (cloud service) from the data it stores and some providers are already employing this method.

Ten years ago business professionals were grappling with the decision of whether to implement cloud computing into their organizations. Today, we no longer have the luxury of “If” we will embrace the new technology but rather “How” we will make it as safe as possible.

When deciding which information, the company wants to move to cloud, the division of responsibilities needs to be clear between providers and customers, and an analysis of their security roles depending on the type of service offered (Software, Platform, or Infrastructure) (Gonzalez, et al, 2012). Prior to the start of the service contract, the security roles and responsibilities for everything needs to be clearly acknowledged. The management, cost, and security of clouds depend on whether an organization chooses to buy and operate its own cloud or to obtain cloud services from a third party (Grossman, 2009). Each of these choices has its own security and privacy issues. Some security concerns are lessened when a private cloud is used. Only your own information is stored there and the benefits of security might outweigh the costs. Two of the disadvantages of using a private cloud is the level of knowledge needed to support the cloud and the frequency of maintenance. On the other

Cloud computing is the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or a personal computer” (MultiTrends Inc, 2015). What does this mean for businesses, both big and small? Could this change the way businesses store data, and information? Will it be cost reducing, efficient and scalable? I have found the solution to these questions and many more while researching the “Cloud” for this paper. Before this project, I had little-to-no idea what cloud computing was all about, nor did I ever imagine it would be such an asset in the business world.

Qasim et al., (2014) the authors of the article “Cloud Computing Risks & Business Adoption” researched cloud computing and adoption. The authors discussed the lurking dangers hiding in cloud computing against businesses. The articles talks about the benefits and the risks that exist and the fact the new technology has the ability to force change on how things are done in the business environment (Qasim et al., 2014). The authors confirmed businesses should not easily rush to trust cloud computing with critical data (Qasim et al., 2014).

Cloud computing is a relatively new technology that allows data to be stored, distributed and manipulated with greater ease than ever. As described by Gurjar and Rathore (2013), the “Cloud is a large pool of easily usable and accessible virtualized resources. These resources can be dynamically reconfigured to adjust to a variable load, allowing also for an optimum resource utilization” (p. 1). By moving data, documents and media to the Cloud, the potential for business efficiency and productivity increases and anyone with internet can take advantage of the benefits. As with anything, it is important to understand the risks and benefits in order to weigh whether or not moving to the Cloud is the best move for the business. Some companies,