
by Andrew L. Goldstein
This article is the second in a two-part series examining the potential
legal issues – for both the vendor and customer – involved with the deployment
of cloud computing solutions. Read the first part of the series here.
Many companies are familiar with ‘e-discovery’ and have data
retention, storage and destruction policies in place that apply in the event of
litigation. If a cloud customer is sued, or there is the threat of litigation,
the customer may have to initiate a ‘litigation hold’ to preserve documents,
including electronic documents and any metadata in the documents. This could
present a challenge in the cloud if the customer’s data is commingled with that
of other clients or if the customer’s data is stored on parallel servers. Cloud
customers should determine the vendor’s ability to prevent the destruction,
alteration or mutilation of customer data in the vendor’s possession, as well
as the vendor’s search capabilities for the data. Cloud customers should also
make sure that their corporate policies and procedures account for any data in
the cloud. Do the data retention and destruction policies of the cloud vendor
align with those of the customer?