Ref: local cloud (i.e. virtualization)
Could you explain what “content” is on the hosted data center’s site? I was negotiating a “trail” cloud engagement today and this issue became a very “hot” subject matter regarding the liability of the customer’s content. I kept trying to explain that the data center does not actually have the customer’s data (nor liability) and that the “cloud” only provides the ability for the customer to use the internet as a way to their data.
I'll give you the classic IT answer: It depends.
You can specify that all servers and data remain on your site, in your datacenter. Of course, you could add offsite back-ups...and it's prudent to do so.
Or, you could put it all in the provider's datacenter and trust them.
The middle ground is to specify, under5 contract, how your servers and data will be treated in the "cloud".
MOST of the big guys won't even discuss this. They have a standard SLA for everyone.