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How contract terms on security, integration and governance can address cloud computing data privacy and security issues in case of breach.

Cloud computing continues to fill the enterprise troposphere. A recent 2013 IDC survey reported that 61 percent of enterprises have at least one application that is cloud-based in their organization, and total investment by enterprises was up over 10 percent since 2012. But, with cloud computing comes significant concerns about security, integration and governance. Although individual users of cloud computing may lack the necessary leverage to drive and shape agreements between themselves and cloud providers, enterprises can increasingly shape cloud agreements. Being proactive in this process can mitigate corporate risk when the clouds gray.

Reprinted with permission from InsideCounsel.

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