What's happening: Cloud computing is fast becoming the next great computer event. Why manage your own PCs, servers and programs when you can rent them online. And while cloud computing promises improved bang for scarce IT bucks, it is not without information security challenges. The linked article from MIT Technology Review explores some of the security challenges of cloud computing.
What to do: Look before you leap. Sort out the answers to critical security questions: How is your information being secured? What security is the cloud vendor responsible for and what are you responsible for? Does the cloud vendor meet your regulatory and legal security obligations, such as HIPAA or PCI DSS? Is your information available to move should you want or need to do so, or if you are required to produce it under subpoena? Don't settle for vague 'salesman' type answers. Ask to see documentation. As this article from MIT Technology Review writes: "Information technology's next grand challenge will be to secure the cloud--and prove we can trust it."
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From MIT Technology Review ... Security in the Ether