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Everything is in the cloud, including liability


According to a recent CBS Business article, the next frontier cloud computing service providers need to focus on is liability.

The article references a recent example involving Sony and Amazon, where an unidentified user creating an account through the latter company's EC2 cloud service to compromise Sony's PlayStation Network, which has nearly 100 million users.

Furthermore, an outage to Amazon's elastic cloud service several months ago shut down many high-profile clients for a sustained period of time, including Foursquare and Reddit. Amazon's managed network has failed before too, temporarily shutting down in 2007 and losing some data.

In these instances, companies using the cloud provider's service might now seek professional liability lawsuits regarding their shared properties, especially when data is lost.

For companies using the cloud, however, service-level agreements are incredibly important to pay attention to, as some providers might seek to include clauses regarding data loss or downtime. Thus, according to technology experts, it is imperative that companies using the cloud mold their agreements to cover all their needs and avoid vague contract terms. 

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