Companies are rapidly doing away with their own internally managed data centers in favor of “Infrastructure as a Service” or IaaS. This means that sensitive company information used by managers, ranging from employee records, customer profiles, reports on plant operations or real-time operational information, which many companies typically stored on company servers overseen by in-house IT staff, are now increasingly being stored outside company walls with third-party vendors. The true location of stored data can sometimes be difficult to trace.
Manufacturers, especially those with multiple locations, may see potential for significant cost savings and increased operational efficiency. While this burgeoning new industry has, in many ways, improved the way manufacturing companies are managed, it has also brought with it a myriad of new domestic and international regulations.
As the legal climate surrounding IaaS continues to change, manufacturing executives can ask themselves a few questions to ensure that in making their business case for an investment in moving to “the cloud,” they factor in legal compliance and risks in the overall analysis.
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