E-discovery: Top considerations for negotiating contracts with cloud providers

Ensuring your cloud provider contract is sound at the outset will help protect the integrity of your company’s operations while promoting compliance with your its legal obligations

We all know the phrase “get your head out of the clouds.” Well, your head may not be in the clouds, but your company’s computers may be … if not now, very soon. Cloud computing is the delivery of IT resources over the internet instead of local/internal servers that provide network, web hosting and data storage. In other words, cloud computing uses a remote server “in the clouds” to operate a company’s computer systems, data storage, software, etc. 

It is undeniable that cloud computing can offer many benefits from both an IT perspective (eliminating the need for large capital investments in internal hardware and individual software applications) and from an end user’s perspective (facilitating collaborate workflow and permitting convenient access to data from almost any location). In light of the foregoing, together with the attractive cost savings achievable with cloud computing, increased use of cloud computing and cloud services is expected. In fact, recent surveys suggest that 40 percent of all financial services use some cloud services. In addition, in the next three years, it is estimated that more than 50 percent of Global 1000 companies will have stored customer-sensitive data in the cloud.

Contributing Author

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William T. Eveland

William T. “Toby” Eveland is a partner at Arnstein & Lehr LLP’s Chicago office. His practice focuses on business and class action litigation, premises and...

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Contributing Author

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Christopher S. Naveja

Christopher S. Naveja is a partner at Arnstein & Lehr, LLP’s Chicago office, is the Co-Chair of the firm’s Consumer Finance Litigation Practice Group, and...

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