The key conclusion of this paper is that the cloud's economies of scale and flexibility are both a friend and a foe from a security point of view. The massive concentrations of resources and data present a more attractive target to attackers, but cloud-based defenses can be more robust, scalable and cost-effective. This paper allows an informed assessment of the security risks and benefits of using cloud computing — providing security guidance for potential and existing users of cloud computing.
Most legal issues involved in cloud computing will currently be resolved during contract evaluation (i.e., when making comparisons between different providers) or negotiations. The more common case in cloud computing will be selecting between different contracts on offer in the market (contract evaluation) as opposed to contract negotiations. However, opportunities may exist for prospective customers of cloud services to choose providers whose contracts are negotiable.
Unlike traditional Internet services, standard contract clauses may deserve additional review because of the nature of cloud computing. The parties to a contract should pay particular attention to their rights and obligations related to notifications of breaches in security, data transfers, creation of derivative works, change of control, and access to data by law enforcement entities. Because the cloud can be used to outsource critical internal infrastructure, and the interruption of that infrastructure may have wide-ranging effects, the parties should carefully consider whether standard limitations on liability adequately represent allocations of liability, given the parties' use of the cloud, or responsibilities for infrastructure.
Until legal precedent and regulations address security concerns specific to cloud computing, customers and cloud service providers alike should look to the terms of their contract to effectively address security risks.