Reading an excellent article today from the National Law Journal entitled "How to Keep the Cloud From Bursting in Litigation" Under the Federal Rules and case law, counsel have an obligation to become sufficiently familiar with their client's ESI to comply with discovery duties to identify, preserve, and produce relevant information. Cloud computing poses three basic challenges. The first is to become fully familiar with the information transmitted to cloud-based service companies and the manner in which it is stored. The second is to understand the kind of access and control the company has to that information. The third challenge is to understand the cloud vendor's data-retention and destruction practices and policies, as well as backup procedures.
Pretty good article on an evolving topic that frankly, many employment lawyers are a little behind on.
You can read the full text here.