Cloud services can be enablers for a company’s digital transformation. However, understanding the risks and legal issues associated with using cloud based computing services is critical for risk management and protection of an organisation’s data and related intellectual property and to minimise the risk of business disruption.
Companies are increasingly using software applications and tools, data storage and back up services that are provided as cloud based solution utilising computer servers located in datacentres owned or controlled by third parties (“cloud services”). Gartner forecasts that worldwide spending on end-user cloud services will increase by about 20 percent during 2022 to about US$500 billion, with expenditure expected to reach US$600 billion in 2023[i].
Risky business
Companies using cloud services, without proper due diligence including the legal review of the terms and conditions of the cloud services agreements and risk management are potentially putting at risk their data and associated intellectual property (“IP”) and business operation. It is important that businesses understand the risks and benefits of cloud based services and have proper…
