Cloud computing—once a cutting-edge trend among high-tech startups—is transforming the way corporations nationwide are doing business. Virtually every company has data in the cloud, whether it knows it or not. And the trend isn’t limited to startups. Cisco Systems Inc., Dell Inc., and Motorola Solutions Inc. are just a few of the Fortune 500 that are increasing their use of cloud-based applications.
Cloud computing applications save companies money by using computer resources more efficiently. These applications also enable employees to work remotely and collaborate on files with colleagues with ease. But despite the enormous promise of cloud computing, the technologies are creating a host of headaches for IT and legal departments, which are grappling for the first time with conducting discovery in this new space.
There is a tendency for civil litigants to make their document requests overly broad when dealing with electronic data based on the erroneous assumption that because the data is stored digitally, it should be easy to obtain, review and produce. In reality, when collecting files from multiple sources of data stored in the cloud, e-discovery can rapidly become a hugely burdensome undertaking, even in a case in which the claims are narrow and the potential damages are small.