Given the ever-increasing reliance on cloud computing, it is inevitable that disputes and litigation will increase between corporations and cloud service providers. The most obvious point of contention will occur if data in the cloud is lost, damaged, stolen or is otherwise rendered inaccessible for a period of time. In such circumstances, the corporation may be facing enormous liability and will seek to hold the cloud provider responsible, while the cloud provider will undoubtedly look to the parties’ agreement and the underlying circumstances for defenses. This article discusses five key considerations for litigators representing corporations and/or cloud providers to focus upon in litigating cloud computing disputes.

BACKGROUND

Cloud computing is the process by which a corporation uses remote computing providers connected via the Internet, rather than internal servers and network drives, to store and access the corporation’s electronically stored information. Cloud computing essentially consists of large blocks of server space that are owned and managed by cloud providers, which corporations essentially “rent” on an as-needed basis.

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