In this article, John Eustice* and Timothy O'Toole discuss key issues that users of cloud computing solutions for supply chain data should be aware of and what the United States is doing to protect sensitive data through export laws. "As more data is stored in the cloud, governments are becoming increasingly nervous about sensitive, confidential and state-secret information traveling among servers located all over the world," the authors said, adding that, "regulating cloud-computing services, including both cloud users and cloud providers, is now a necessity." The authors discuss the U.S. export control regime and new proposed regulations, outlining the steps necessary to help businesses comply with the regulations. "While business needs and cost savings will drive a company's entry into the cloud, understanding changes in the regulation landscape and solving potential legal problems before they happen is invaluable," the authors said. "Following the steps above can help your company handle sensitive supply chain data without running afoul of the export control laws."

*Former Miller & Chevalier attorney