Cloud Computing Legal Obligations

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This practice note is the Law Society`s view of good practices in this area and does not constitute legal advice. Further information can be found in the legal situation. You can ensure that the cloud service provider adheres to your applicable policies. A practical difficulty is that with a public cloud model, it can be difficult for the cloud service provider to accept obligations to comply with some customers` policy requirements. In any case, the cloud computing contract may provide for the choice of applicable law and place of jurisdiction. However, there may also be separate rules on applicable law and jurisdiction that apply regardless of the provisions of the contract. For example, data protection has its own separate rules on applicable law and jurisdiction. The type of service, i.e. SaaS, IaaS or PaaS, is not operated in silos. Instead, more than one can be bundled with another while meeting the customer`s needs. For example, Dropbox, which provides cloud storage, used Amazon`s EC2 IaaS. PaaS can also use another service provider`s IaaS.[15] While many legal ethics opinions dealing with cloud computing pursue a common issue of due diligence to maintain the confidentiality of client information, lawyers should consult the rules of professional conduct in their state of practice.

However, regardless of jurisdiction, opinions generally share a common guideline that is part of a broader trend in legal ethics, particularly with respect to eDiscovery, in order to keep up with technological changes and the benefits of their use. ISO 27018 is the first international privacy-specific standard for the cloud and aims to create a common set of security categories and controls that can be implemented by a public cloud service provider acting as a data processor. The goal is to help public cloud service providers meet their applicable obligations as data processors and be transparent to their cloud service customers. As the cloud evolves and new services increase, it is now common to talk about XaaS («Anything as a Service»). In addition to SaaS, examples include AIaaS (Artificial Intelligence), BPaaS (Business Process), and DaaS (as data or device). This may not be a problem, especially if the planned deployment of cloud services is not strategic. Most data protection laws are enacted to protect the personal data of citizens of each country. These laws generally govern the ability of companies and individuals to «process» (i.e., collect, retain, organize, store, use, etc.) the data of others, and they apply when information is stored, collected, processed or disclosed to or from the country. Given the increasing use of mobile devices for commercial purposes, a Mexican citizen working in Canada whose communications are stored by a Brazil-based cloud service provider would likely trigger certain provisions in the legal systems of the three countries.

To avoid violations of these laws, an attorney general must track his company`s electronic data as it crosses borders. Government of the United States of America, «Treaty between the Government of the Republic of India and the Government of the United States of America on Mutual Assistance in Criminal Matters», 2001, While the terms «cloud» and «cloud weaving» have become much more familiar to lawyers in recent years, there can still be confusion about definitions and acronyms. While much of the content of ISO 27018 is based on EU data protection laws, the standard goes a step further and addresses more procedural aspects by ensuring that cloud providers implement policies for the return, transfer and disposal of personal data to customers (for example, at the end of the service point) and their services at regular intervals (or at times, when significant changes in processing occur) be subject to independent information security reviews. However, a major obstacle preventing the widespread adoption of cloud solutions in highly regulated industries remains: there is a lack of certainty as to which standards would be acceptable to regulators. The key, it seems, is standardization. The paper aims to identify the legal and legal challenges facing the cloud service provider (CSP) and recommend a leading policy approach. Other relevant issues related to cloud data will be identified during the literature review and presented as a summary in Table 1 of the document. Cloud computing typically refers to the provision of computing resources «on demand» from a remote location and is available in several service models. The most common type is the cloud-based Software-as-a-Service (SaaS) model.

In this model, a user has access to a vendor`s software and uses it as a service. Examples of SaaS include customer relationship management, sales automation, customer service, human resources, e-commerce, procurement, business intelligence, budgeting, compliance, or accounting. The second service model is cloud infrastructure as a service (IaaS). With IaaS, a service provider provides basic computing capabilities such as processing or storage, and offers pools of IT infrastructure resources such as servers, storage, or other network components on a pay-as-you-go basis. The cloud service provider owns the devices and is responsible for housing, cooling, operating, and maintaining its systems. The third service model is Cloud Platform as a Service (PaaS). In this model, the service provider grants the customer access to a fully functional compute and solution stack on which user-created applications (using vendor-driven programming languages and tools) are deployed. Under the PaaS model, customers typically only pay for the services they use. ISO 27018 provides a practical basis for strengthening the assurance that players in the cloud industry are handling personal data correctly and paving the way for greater clarity of laws and regulations. Right now, this is an example of an industry standard that bridges the gap between legal frameworks and the rapid growth of technology.

If this standardization continues, law and regulation may have a chance to keep pace with innovation. An obvious problem would be a higher availability obligation for its customer than the availability guaranteed by the cloud service provider in the cloud computing contract. Before you sign a cloud computing contract, you need to think about what happens if you have to cancel it or what happens when the contract naturally expires. Some countries, such as Uruguay, explicitly allow the cross-border transfer of personal data between or within a group of companies without additional authorisation in situations where the parent company, subsidiary, subsidiary or branch receiving the personal data has adopted a code of conduct duly registered with the competent data protection authority. If your business operates in multiple countries, you should explore these types of requirements before moving electronic data to the cloud. Practice notes are not legal advice and are not necessarily a defence against complaints of misconduct or malneficence. Although we have ensured that they are accurate, up-to-date and useful, we do not accept any legal responsibility towards them. In early 2016, the Legal Cloud Computing Association (LCCA), a consortium whose goal is to «facilitate the adoption of cloud computing in the legal profession,» released its cloud security standards.

The standards provide guidelines for various aspects of cloud computing, including data security, user access and control, and privacy and ownership. Many of the proposed standards complement a lawyer`s ethical requirements for cloud computing, the energy needs of data servers are equivalent to the energy consumption of 25,000 households and consume 100 to 200 times more energy than a standard office. On the other hand, there is a sharp year-over-year increase in data center energy consumption, typically doubling every five years [32]. This massive power consumption of cloud-based storage servers allows CSPs to optimally place their servers in different geographic locations. It helps, has two main advantages; First, the peak load on a particular server can be offloaded to other data centers.