Legal Implications
The legal and ethical risks related to the cloud are the possibilities of unwarranted data flow across multiple jurisdictions. Transborder data flow can be dangerous if sensitive information stored and processed on the cloud goes to unsecure servers. While this potential issue of security affects companies and clients, there is currently nothing that places security responsibility with the cloud for legal liability. The legal discovery process is also impacted because the third party cloud provider could delay the process, allowing individuals to modify documents or make changes before they can be retrieved (Cruz, 2012). It is important to define key components of the business in order to structure a legal standard around it. Continuous cloud development must be monitored to manage these legal implications.
Ethical Implications
The loss of direct control over information and documents by allowing a third party to store it presents an ethical issue. Data corruption, infrastructure failure and unauthorized access are ethical issues that impact all parties involved. The ethical issue of who maintains control over the information is also important to address. While the information is technically owned by the individual or company that uploaded it to the cloud, it is possible that certain scenarios may cause the information and documents to transfer ownership to the company managing the cloud (Sen, 2013). This ethical issue over who really owns the information and who can determine how to use it remains a concern in cloud computing and storage (Newton, 2011). Cloud computing also has the potential to become a monopolistic industry. This increased power position could create compromising and even harmful circumstances for users.
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