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Cloud Computing: Addressing Security Concerns

Cloud computing solutions offer many advantages over traditional enterprise systems, including cost-saving potential, access to enhanced applications, and consumption flexibility. However, with recent security breaches at major banks and retailers, security concerns regarding the storage of proprietary or sensitive data in the cloud may discourage the adoption of these solutions in enterprise environments.

A recent article in Computer Weekly suggests that we may be reaching a tipping point where cloud service providers not only address these security concerns, but also shift their marketing and product development strategies to focus on a cloud-based approach to security designed to deliver superior results to traditional information technology service models. Such an approach could include the following highlights:

  • Cloud service providers can supply the resources necessary to thwart cyber attacks using state-of-the-art cyber and physical security features that would be costly and difficult for most companies to implement.

  • Industry analysts note that security breaches are often internal and that entrusting data to the cloud can reduce the risks associated with employee access to the physical equipment.

  • Cloud service providers can identify and halt security breaches and recover affected data faster and more effectively.

  • Cloud service providers are retaining the scarce talent capable of navigating the complex, regulated, and rapidly changing field of cybersecurity.

  • By serving many customers with diverse risks, cloud service providers have the experience and knowledge base necessary to keep up with the latest security threats.

It is important that companies conduct careful diligence regarding their potential cloud service providers and implement the contract protections regarding cybersecurity that we have highlighted in this month’s Contract Corner.

Copyright © 2020 by Morgan, Lewis & Bockius LLP. All Rights Reserved.National Law Review, Volume IV, Number 301


About this Author

Peter Watt-Morse, Morgan Lewis, Intellectual property lawyer

Peter M. Watt-Morse, one of the founding partners of the firm’s Pittsburgh office, has worked on all forms of commercial and technology transactions for more than 30 years. Peter works on business and intellectual property (IP) matters for a broad range of clients, including software, hardware, networking, and other technology clients, pharmaceutical companies, healthcare providers and payors, and other clients in the life science industry. He also represents banks, investment advisers, and other financial services institutions.

A. Benjamin Klaber, Intellectual property attorney, Morgan Lewis

A. Benjamin Klaber practices on a Morgan Lewis team that counsels clients on technology, outsourcing, and commercial transactions, intellectual property matters, mergers and acquisitions, private equity, venture capital, and general corporate matters. Before law school, Benjamin was a quantitative analyst in the investment management industry after earning a B.S.E. in operations research and financial engineering. He is a member of the Emerging Leadership Board of the Pittsburgh Venture Capital Association.​​