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Information Technology

Education needed before entering the "cloud"

Companies engaging cloud-hosting services need to understand what the tradeoffs are in exchange for cost savings, Toronto copyright lawyer Mark Hayes says in a Financial Post report.  Read Financial Post

As electronic information accumulates, the ease and low cost of storing it offsite or outsourcing software functions can be appealing to businesses looking to cut expenses, the Post reports, noting that since this often involves the transfer of personal information, experts say the increasingly ubiquitous “cloud” can also create unforeseen difficulties when that information ends up outside Canada.

“There may be situations where the government authorities, courts, administrative bodies wherever the server is located, may have more access or different access to your data than you would expect here in Canada,” Hayes says in the report.

Cloud service providers should be up front about where their servers are located and what types of facilities they are housed in, he adds.

“If they’re not willing to provide details like that … that certainly should be a red flag,” Hayes says in the article.

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