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.

Everyone seems to have their own definition of cloud computing. 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. Typically access to these applications is through a standard Web browser, allowing a user to access the information from virtually any location.

Most of the cloud computing facilities are multitenant, allowing multiple companies to share the same physical hardware and application capabilities while segregating and securing access to each company’s information. The advantage to this type of service is cost and scalability. A customer no longer needs to invest in capital purchases to manage, maintain and build a physical infrastructure or to handle additional employees, software upgrades, storage requirements or business continuity planning. Most of the time, these elements are built into the cloud model.

via Connecticut Law Tribune: E-Discovery: Cloud Computing Complicates E-Discovery Issues.