Security VAR Global Secure Systems (GSS) has urged businesses to consider the security implications of jumping into the world of cloud computing.

GSS has suggested businesses review their current IT security arrangements before even considering a trial run with a third party cloud computing company.

This week IBM became the latest vendor to jump on the cloud computing wagon, unveiling a new initiative to extend its software delivery model towards cloud computing applications for its ISVs and customers.

David Hobson, managing director of GSS, said the outsourcing of data to a company like IBM or Amazon means business information could end up being stored almost anywhere in the world.

“The provisions of the Data Protection Act mandate that companies must clearly state to their customers where they plan to store their data, and how they will use it. The legislation also effectively means that companies must store their data within the European Union,” he said.

Hobson explained that the chances of data being stored anywhere in the world is quite high as vendors providing Cloud Computing services need to replicate the data around the world to maintain their own disaster recovery and data backup plans.

He added: “Our caution here at GSS does not reflect on the integrity of these new cloud computing services in any way. It merely reflects the fact that corporate governance rules and, of course, data protection legislation needs to play catch-up with the real world.”