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In recent years, cloud computing has emerged as one of the fastest-growing segments of the information technology industry. The ability to leverage economies of scale, geographic distribution, open source software and automated systems to drive down costs makes cloud computing an attractive option for businesses. But many of the advantages of cloud computing are accompanied by collateral legal and reputational risks. This paper outlines U.S. and European Union regulatory requirements applicable to data stored by cloud providers and highlights some of the risks associated with the use of cloud computing.
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