Businesses are 'accountable for their data in the cloud'

Businesses that believe their cloud is not their responsibility if using small business management software from an external provider are sorely mistaken, a leading legal affairs specialist has stated.

Speaking at this week's major Westminster eForum keynote seminar on cloud computing, Tom Greenbank, a solicitor in outsourcing, technology and commercial at Pinsent Masons, said that the customer will always be culpable for the contents of their cloud.

He said that most businesses are so far using inexpensive, off-the-shelf tools though if an organisation is procuring something more bespoke or there is sufficient "commercial clout" in the organisation, then there should be hope of a negotiated service.

However, Mr Greenbank warned: "Who is responsible for safe storage of all the contents of all the files in the cloud?

"To that question [I] say this - unless it has been agreed in the contract, the general position is that the customer is responsible."

According to Star in December 2009, companies are still legally responsible under UK law for safeguarding customer information, even if that data is hosted by an external service provider.

Small Business Management Software from Atlantic Global OnDemand.

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