For companies turning to the Internet for online business services, it is becoming increasingly important to manage electronically stored information (ESI). In this economic climate, large and small businesses alike are moving to the Internet for services previously provided in-house in an effort to streamline internal technology operations and reduce labor costs. Online business services, commonly referred to as “cloud computing,” promise significant cost reductions, potentially saving a company as much as 50% in information technology (IT) labor expenses.
However, cloud computing is not without its downside. It adds complexity and risk to a company’s ability to monitor data that it maintains with third parties. That risk is significantly enhanced when a business faces litigation. In-house and outside counsel, charged with fulfilling discovery obligations under the Federal Rules of Civil Procedure, face particular challenges because they have a duty to stay on top of electronic information that has made its way onto the “cloud.”
