Cloud computing providers need to convince their users that they are adhering to data privacy laws.


Simon Heron, internet security analyst at Network Box, claimed that performance dips, physical and electronic security and data privacy seem to be the main concerns of companies considering cloud computing.


However users also need to be certain that the cloud provider is adhering to data privacy laws as defined in the customers' geographic region.


Heron said: “Data stored virtually could be accessed from anywhere in the world, and privacy laws vary hugely from country to country. So consideration should be given to both: where data is stored, and what privacy laws it is subject to; and from where it is accessed and used.


“Putting critical resources outside the corporate firewall can require a leap of faith, and trust that the hosting party will not expose data to attack. Some companies are cautious about using virtual hardware that is shared by others, who may have differing security standards. But as we get more comfortable with the idea of a third party holding our data – Salesforce being a good example – cloud computing is on the rise.”