HEAD IN THE CLOUDS ABOUT CLOUD STORAGE

Did you know there are many cloud service providers in the cyber industry? Probably so. But did you know that cloud service providers may be operating in a country outside the United State? Whether you did or not, you may not realize that cloud service providers in different countries are subject to different laws, policies and regulations---and some may be unfettered by any of these. Even if you choose a cloud service provider that is based in the United States, there may be nothing you can do to stop the provider from moving to another country for economic or political reasons---just look at the recent announcement by Burger King.

So what's a business executive to do? How do you protect your business' electronic assets without creating and running your own cloud. Just as in choosing a security service to protect your home, you must choose a cloud storage service to protect your treasured data very carefully. It is often as important an asset as physical inventory.

Here are some questions to ask before choosing a cloud storage service for your business:

* Will my data be encrypted? If so, how much and to what level?

Studies have shown that a double encryption is more than twice as secure as that protected by a single password encryption. This means more security for your business and for your clients and customers----and this extra layer of security may well insulate your business from potential liability to your clients and customers in the event of a breach.

* How can I be sure my data will not be compromised? What will the cloud storage provider do for my business if there is a breach? What will the cloud storage provider do for my clients and customers in the event of a compromise?

Having some for protection in the event of a breach can provide immeasurable comfort and stability with your business' use of the cloud. In addition, having a good understanding of what a potential provider will do in the event of a breach will assist you as a business owner in determining the need for additional cybersecurity insurance, whether it be first- or third-party coverage.

* What control do I have over my business data that is stored in the cloud?

A good cloud storage provider should be able to guarantee your access to the data but you still need to have an understanding as to when the provider may limit access. From a practical perspective, you need to know if the provider's limits may in turn limit your ability to conduct business.

* What are the provider's policies? What laws and regulations govern the provider's business? What notices will you receive if the provider's policies change? Where is the provider's home country? What laws and regulations govern in that venue? What notices will you receive if the provider makes a business decision to locate to another country?

These and other questions that are unique to your business are cornerstones to making a prudent decision on the best cloud storage provider.

So, emerge from the clouds and make a wise choice today for the sake of your business.

ABOUT THE AUTHOR

Amy Taylor is a Director in the firm's Houston office. She is a seasoned trial lawyer with more than 32 years of experience. She is also a trained mediator and arbitrator. She practices in the Litigation Practice Area. Her practice has included cyber security and risk consultation, product and premises liability cases, construction claims, mass tort and toxic tort personal injury claims such as silicone implants, asbestos, silica and mold exposure cases, business torts and contract disputes. She has tried virtually every type of civil case and worked on both sides of the docket.

ataylor