Earlier this year I attended a conference during which the issue of “Cloud Computing” was incidentally raised, and I have recently received information relating to a conference specifically directed to that issue.
| |
 |
| |
The term "cloud" is used as a metaphor for the Internet, based on the cloud drawing used in the past to represent the telephone network and later to depict the Internet in computer network diagrams as an abstraction of the underlying infrastructure it represents. PHOTO/Wikipedia. |
As it is clearly topical, it bears mention in this column, and may again in the future. Cloud computing is the delivery of computing services using shared electronic resources, software and information, typically over the internet.
Making use of the Internet for these purposes and as a storage facility is fast becoming more mainstream, and, as with many things technological, the reality of the situation is having trouble keeping up with the practicality.
It is already being used by many commercial enterprises, including some law firms (which are usually notoriously conservative) notwithstanding there are extremely serious concerns about security and privacy issues and the ability to keep information confidential.
Indeed, the conference promotional material states,”Cloud computing raises a number of legal issues."
"The cloud model has been both criticised by privacy advocates for the greater ease in which the companies hosting the cloud services control, and can monitor the communication and data stored between the user and the host company, and praised for its ability to ensure records are kept up to date.”
Having had the chance to review a contract for the provision of “cloud” services, I have grave concerns, as it appears the service providers or host companies will not accept a reasonable amount of the risk involved with the use of the product or service they are providing, forcing the consumer to bear more than their fair share of the risk.
Due to the intricacies of the internet, it may be extremely difficult to prove actual negligence on the part of a service provider, which (short of fraud or similar) is perhaps the only way the contract terms would be displaced to have the service provider found liable for the loss and damage that could be suffered by an individual or business.
The advantages are primarily in relation to the cheaper costs, as to install your own server is expensive, as is the need to properly maintain the server itself and the records and systems used on it.
Whilst there is benefit in reducing costs and the burden of data management, there may not be any real commercial benefit in reducing those costs without adequate protections, particularly as the cost of storage and computing in the “cloud” may not be cheap at all when you factor in the terms of the contracts proferred.
| |
 |
| |
As with any contract you should obtain competent professional advice before signing |
Of course, one of the fundamental problems relates to the nature of the technology being quite new and frequently misunderstood, which creates an open door for the myriad of con artists and scam merchants that seem so much more prevalent these days.
That being said, my discussions with people currently making use of the “cloud” indicate that they are generally happy with their host company and the services provided by it.
Should you locate a quality service provider or host company, you will then have to negotiate the minefield of the contract they offer.
As with any contract you should obtain competent professional advice before signing, as you may be undertaking substantial risks for little actual gain.
As with all legal matters, a perceived saving in costs now may well involve you in substantial pain and regret at a later date.
There are a number of questions that need to be asked of any proposed service provider before you even consider signing its contract, and its responses should always be obtained in writing for your own protection.
Notwithstanding the terms of the contract, which may purport to exclude any pre-contractual negotiations or discussions, any representations made in writing will give you firm grounds for action in the event they turn out to be clear misrepresentations.
As always, the clear message is to do your research thoroughly and ensure you obtain competent professional advice.