Privacy Concerns with Storing Organizational Data in the Cloud
This paper examines the tension between operational efficiency and data privacy when organizations store information in the cloud. Drawing on the observation by Kesan, Hayes, and Bashir that reduced consumer control over personal information is harmful regardless of intent, the paper analyzes the benefits and compliance risks of cloud data storage, explores the cost-benefit tradeoffs inherent in cloud adoption, and considers whether additional regulatory intervention is warranted. The recent European Court of Justice ruling striking down the Privacy Shield framework is discussed as a catalyst for stronger U.S. data protection legislation. The paper concludes that cloud computing's scalability advantages are inseparable from significant, ongoing privacy risks.
- Introduction: Central claim and paper scope established
- Balancing Efficiency and Data Privacy: Cloud benefits versus corresponding privacy tradeoffs
- The Case for Regulatory Intervention: CJEU Privacy Shield ruling and U.S. legislative need
- Conclusion: Synthesis of benefits, risks, and policy implications
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What makes this paper effective
- Opens with a precise, cited claim from Kesan, Hayes, and Bashir that frames the entire argument, giving the paper a clear theoretical anchor.
- Balances two perspectives throughout — the genuine operational benefits of cloud computing and the corresponding privacy risks — rather than treating the issue as one-sided.
- Grounds abstract privacy concerns in a concrete real-world legal event (the CJEU's invalidation of the Privacy Shield framework), demonstrating that the stakes extend beyond theory.
Key academic technique demonstrated
The paper demonstrates effective use of a framing quotation: the opening citation from Kesan, Hayes, and Bashir is not merely decorative but serves as the thesis anchor, with each subsequent section testing or extending that claim. This technique signals to readers exactly what analytical question the paper will pursue and allows every cited source to connect back to a single, traceable argument.
Structure breakdown
The paper follows a tight four-part structure: (1) an introduction that establishes the central claim and maps the paper's scope; (2) an analysis of the efficiency-versus-privacy tradeoff supported by Coss and Dhillon (2020); (3) a policy-focused section examining whether regulatory action is necessary, anchored by the CJEU Privacy Shield decision; and (4) a brief conclusion that synthesizes findings and reaffirms the need for legislative action. Each section is lean and purposeful, making this a useful model for short analytical essays that must cover multiple sub-questions within a limited word count.
Introduction
Kesan, Hayes, and Bashir observe that "[t]he market forces peering into private lives may not be doing so with malicious intentions, but the corresponding decrease in consumer control of their personal information is nonetheless harmful" (p. 471). The purpose of this paper is to explain why this statement is accurate. To that end, the discussion covers the benefits and compliance risk concerns associated with storing organizational data in the cloud, examines the balance between efficiency and the deprioritization of privacy, and considers whether additional regulatory intervention is necessary.
Balancing Efficiency and Data Privacy
There is a cost-benefit analysis involved in determining the precise balance between efficiency and privacy in organizations of any size and type. The security protocols that companies use to protect their organizational data exist along a lengthy continuum — ranging from the near-impenetrable security used to protect the formula for Coca-Cola, known only to a few select individuals with the written version kept under strict lock and key, to open-source applications accessible by all. Against this backdrop, it is clear that every opportunity to improve the efficiency of data processing operations in the cloud carries a corresponding privacy risk. As Coss and Dhillon (2020) explain, "The advantages of cloud computing, such as the ability to easily scale to meet growing technology needs, increase data storage capacity, and share services in a dynamic environment, also increase the risk to the protection of information privacy" (p. 81).
One of the keys to optimizing the balance between efficiency and data security in the cloud is to avoid the tendency to rush into adoption without fully accounting for the privacy concerns involved. Coss and Dhillon (2020) caution that "organizations inadvertently overlook the related considerations of governance, audit, and assurance when they rush to adopt cloud computing services" (p. 79). In reality, even organizations that perform thorough due diligence before transitioning to the cloud are confronted with significant privacy issues relating to both individuals and corporate proprietary rights. As Coss and Dhillon (2020) further note, "Rapid advancements in technologies have not been matched by development of ethical guidelines for their utilization fast enough to maintain a proper balance between technology and individual rights, including privacy" (p. 80).
Conclusion
The research consistently shows that cloud computing offers genuine benefits, including scalability to meet changing needs and virtually limitless data storage capacity. At the same time, those same benefits introduce a corresponding set of privacy considerations and concerns that remain the focus of ongoing scholarship and legal analysis. The CJEU's invalidation of the Privacy Shield framework further underscores the need for meaningful intervention on the part of U.S. lawmakers to help strengthen the nation's data security infrastructure.
Coss, D. L., & Dhillon, G. (2020, Summer). A framework for auditing and strategizing to ensure cloud privacy. Journal of Information Systems, 34(2), 79–83.
Lomas, N. (2020, July 17). Legal clouds gather over U.S. cloud services after CJEU ruling. TechCrunch. Retrieved from https://techcrunch.com/2020/07/17/clouds-gather-over-us-cloud-services-after-cjeu-ruling/
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