Cloud computing will transform how companies manage their information technology infrastructure. If a company is unaware of whether it or its vendors are engaged in the cloud, it is imperative that the company find out and prepare for the legal and regulatory turbulence ahead.
What is the cloud? In simple terms, cloud computing is the outsourcing via the Internet of information technology processes that were previously managed internally. The “cloud” is a network of computing assets managed by third parties in remote locations for the benefit of users.
An example of a cloud computing service can be found at Salesforce.com. Salesforce.com operates a Web-based customer relationship management (CRM) service through which businesses run their sales operations. All software, equipment, network, databases, data, help desk, and other operations are managed by Salesforce.com at its remote location. Business users access the service through the Web and store their data at the vendor’s remote data center. This type of cloud offering is also known as “software as a service.” There are other emerging cloud models known as “infrastructure as a service” and “platform as a service.”
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