According to John Bace, research vice president at information technology research firm Gartner Inc., a company can put information in the cloud and its law firms around the country can access it easily for multiple matters or litigation in multiple cities.
Also, cloud computing creates a way to recover data should a disaster such as a hurricane or earthquake hit a company's main location.
So it's crucial that the vendor can tell the client exactly what is happening to its data at all times. Ramana Venkata, the chief operating officer at Iron Mountain Digital, a cloud computing vendor, describes how his company handles client data.
"The data has a secure chain of custody," he says. "You need to know who is touching your data. You need to be able to prove nothing bad has been done to it."