Legal Implications of Cloud Technology That Your Company is Forgetting

Feb 8, 2017 8:00:00 AM

Legal_Implications_of_Cloud_Technology_That_Your_Company_is_Forgetting_(1).pngNowadays, everything is all about the cloud. Since “the cloud” is a very broad and vague term, it’s easy to feel intimidated, and maybe even suspicious of where your important information is being stored. I mean, what is the cloud, exactly? This feeling is not unwarranted, as legal risks and considerations presented by the cloud can easily be overlooked by those not familiar with them. However, the cloud can also be extremely beneficial, when approached correctly and legally.

What’s the deal?

Cloud computing and SaaS technologies are rapidly growing in popularity in all industries, which means more moving parts to keep track of internally and externally.

Like what?

In a recent Lexology article, the legal obligations of data controllers and security measures were discussed as avenues to achieving public trust in modern technology.

Basically, the article concluded that if people don’t trust new technology (enough to freely give of their private personal and company info), they are going to stop using it. And if usage comes to a halt, technological advances will suffer.

Technical and organizational measures of protection must be in place in order to keep all data gathered protected from accidental loss or unlawful forms of processing.

But everything is in the cloud...what do we do?

Use a third-party solution to help navigate customer transactions on your website and within your app. Have you heard of PactSafe?

One of the easiest ways to maneuver within the realities of negative legal implications of cloud technology is to incorporate digital recordkeeping and eSignatures, specifically clickwrap agreements.

Still, it’s important to be aware of the different digital signing options and their legal implications. Business Review Europe outlines the different types
here. Luckily, another benefit of eSignatures is their adaptability, meaning they can be implemented successfully across many industries!


Why is this important, again?

Mitigating risk within your business is more than making sure you have reliable inhouse counsel on your team; it’s making sure that the proper processes are being implemented within your product to track all necessary customer information and transaction history. This is a preventative measure for detailed recordkeeping and safeguarding your company if there is ever an event where proof of customer acceptance is warranted.  

While cloud technology makes these legal processes more necessary for your business, having a legal system of record in the cloud also makes online contracts accessible and faster for your customer.

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Amber Ferrari

Written by Amber Ferrari