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Cloud Computing Presents Challenges in e-Discovery

BY Jeffrey Ziplow
March 29, 2011

[Editor's Note: Cloud computing is being hailed as a next great hope for the entertainment industry, with consumers accessing content stored on third-party sites, rather than directly from the consumers' hard drives. But cloud computing is already used by many businesses, including those in the entertainment industry, to store their business records. This article examines issues in obtaining information from the cloud through litigation discovery.]

Cloud computing is alive and flourishing. It has become the popular technology tool for many who want to shift from local PC/Network computer storage and processing to external computers in “the cloud” (on the Internet) handling these types of services. e-Mail, word processing and financial systems are all examples of information that may no longer exist at a company's physical site and reside somewhere in cyberspace. Cloud computing technologies, however, can significantly impact how and where electronically stored information (ESI) resides, thus impacting the traditional e-discovery model.

Simply put, cloud computing is typically considered a subscription-based or pay-per-use service that is provided through the Internet. This also extends to the concept of Software-as-a-Service (SaaS). This includes software applications (e-mail, word processing, etc.) that are provided as a service to company employees via the Internet. Their information is stored on third-party network servers and not on in-house computers. Access to these applications is typically through a standard Web browser, allowing a user to access the information from virtually any location.

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