Extract from article by Laura Koewler Marion
Don’t let the term “cloud” fool you into thinking that the information is not in a specific location. It is, and it’s important to know the exact geographic location of the server where your data will be stored, including any back-up locations.
While cloud computing offers many benefits to organizations, it also introduces its own legal obligations and risks, many of which are tied closely to the geographic location of the stored data. As such, organizations must work proactively to understand the particular data privacy regulations applicable to their cloud computing arrangement. This due diligence will help organizations determine if they should engage with a cloud vendor or continue to store their data on-site.