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CLOUD COMPUTING

HOW TO PROTECT YOUR DATA


WITHOUT FALLING FROM A CLOUD

A Mini-Vademecum for
Businesses and Public Bodies
CLOUD COMPUTING: 4
WHAT IS THAT?

DIFFERENT CLOUDS 8
FOR DIFFERENT NEEDS

THE LEGAL 12
FRAMEWORK

ASSESSING RISKS, 18
COSTS, AND BENEFITS

TEN RULES TO CHOOSE 24


KNOWLEDGEABLY
CLOUD COMPUTING
HOW TO PROTECT YOUR DATA
WITHOUT FALLING FROM A CLOUD

Entrepreneurs as well as forward-looking public bodies make


all efforts to provide better and cheaper services to customers
and citizens. IT technology, and in particular cloud computing,
makes it possible to implement innovative solutions to handle
a wide gamut of activities effectively and cost-efficiently.
However, this technology also entails criticalities and risks to
privacy that should be taken into account. Before outsourcing
the processing of data and records or implementing new orga-
nizational models, you should ask yourself a few questions and
take special care in selecting the solution that can best ensure
the security of your institutional and business activities. With
this vademecum, the Italian Data Protection Authority is provid-
ing guidance to all users in particular businesses and public
administrative bodies. Our objective is paving the way to an
analysis of major legal, economic and technological issues in
an area that is developing at a breathtaking pace to foster the
appropriate use of these new tools for the delivery of IT services.
CLOUD COMPUTING:.
WHAT IS THAT?.

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Cloud Computing, or just Cloud, Everything can be committed
is a set of technologies and mechanisms (outsourced) to external providers
for the use of IT services that make it at a potentially fractional cost,
easier to provide and rely on software since the IT resources for the services
and allow storing and processing a huge you need can be shared with other
amount of information via the Internet. clients in a similar situation.
Depending on the specific configuration,
you can shift either the storage
or the processing of data (or both)
from your computer to a providers
systems. Additionally, cloud computing
allows benefiting from complex
services without having to purchase
high-profile computers and equipment
or hire staff to programme and run
a complex system.

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THE IT CAR, OR CLOUD Option 2 Go to a Vendor
FOR DUMMIES You may choose to buy yourself
a car and take it to a trusted garage
Option 1 Do-It-Yourself when needed, rent it, lease it,
If an individual or a company needs call a cab or rent a chauffeured car.
a car, they may design it, purchase The choice among these options will
the individual components, assemble depend on how you plan to use the
them, and set up a workshop car, how often you will need it,
at home or at the companys what kind of performance you are
headquarters with staff specializing aiming at, and by all means
in repairing and maintenance. on the moneys in your wallet.

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Cloud computing falls under option
2. It has nothing to do with driving a
car, as it is rather a way of obtaining
IT services. The solutions made
available on the cloud are usually
more flexible, effective, adjustable
as well as cheaper than in-house We often make use of cloud technologies
solutions. Still, they may entail the without knowing it. Some of the most
risk of losing control over your data. popular email or word processing
services are on the cloud.
Actually, many of the functions available
on new generation mobile phones
(i.e. smartphones) are based in
a cloud for instance, geo-location
based services that list the nearest
shops or restaurants, or the services
allowing you to listen to music
and play online, and many more
functions and apps.

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DIFFERENT.
CLOUDS FOR.
DIFFERENT.
NEEDS.
There are various kinds of cloud
computing. The differences have to do
both with the way the cloud is structured
and data is processed (internally or
externally to an organization) and with
the service models available to clients. supervision by the data controller.
Each type of cloud shows peculiar Private clouds can be compared
features, which should be assessed to traditional data centres in which
carefully by private and public bodies additional technological measures
before relying on any cloud-based service. are taken to maximize exploitation
of the available resources and expand
CLOUD TYPES these resources whenever necessary.

Private Cloud Public Cloud


A private cloud is an IT infrastructure - In a public cloud, the IT infrastructure
a network of computers providing is owned by a provider specializing
services - that is mostly dedicated in the delivery of services that makes
to the need of one organization, which available its systems to users,
hosts the infrastructure in its premises. businesses or public bodies; this is
Alternatively, its management achieved by sharing and delivering,
is committed to a third party via via the Internet, IT applications,
a conventional server hosting processing power and data storage
agreement, which is subject to strict capacity. The services are accessed

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Other Types of Cloud
There are other types of cloud with
mixed features such as the hybrid
cloud, where some services are
provided by a private infrastructure
whilst other services are delivered
via public clouds, and the community
cloud, in which an IT infrastructure
is shared by several organisations for
the benefit of a specific user community.

via the Internet, which entails shifting


either data only or data and their
processing to the service providers
systems. Thus, the service provider
plays a key role in ensuring effectiveness
of the measures taken to protect the
information that was entrusted to him.
Along with their data, users transfer
a major portion of their control over
such data if they opt for a public cloud.

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THREE MODELS FOR CLOUD They may consist in popular office
SERVICES applications that are delivered via
the Web, such as calculation sheets
Cloud Infrastructure as a Service - IaaS or word processing software, IT protocol
The cloud service provider makes and document access rules, mailing
available basic hardware and software lists and shared calendars up
tools (like memory space, operating to high-profile email services.
systems, virtualization software, etc.)
according to a consumption-based Cloud Platform as a Service - PaaS
model; that is, he makes available The cloud service provider makes
remote virtual servers that end-users available advanced software development
(whether businesses or public bodies) solutions to meet a clients specific
can rely on to replace or supplement requirements. This type of service
their IT systems as hosted in their own is usually targeted to market operators
premises. These providers are usually that use it to develop and host proprietary
specialized market operators and applications such as financial, accounting
can count on a complex technological or logistics management applications
infrastructure that is frequently either for their own purposes
distributed over a large geographic area. or to provide services to third parties.
Again, the services made available
Cloud Software as a Service - SaaS by the cloud provider make it as good
The cloud service provider makes as unnecessary for the end-users
available, via the Internet, various to equip themselves with specific
software applications to end-users. or additional hardware or software.

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THE LEGAL.
FRAMEWORK.
THE INTERNATIONAL CHALLENGE

Cloud technology develops at a much e-privacy directive and whose


quicker pace than legislation not only transposition by EU Member States
in Italy, but worldwide. There is as yet is in progress. The measures envisaged
no updated regulatory framework in the new legal framework include
in the privacy sector or in civil an obligation for telephone companies
and criminal law to take account and Internet providers to notify
of all the innovations brought about the competent national authorities
by cloud computing, so as to afford and (under certain circumstances)
appropriate safeguards in connection users of any security breaches that
with the legal issues that may arise entail the destruction, loss or unwanted
from the adoption of distributed data disclosure of personal data that is
processing and storage services. processed as part of the service being
For instance, the European legislation provided. An additional major change
on data protection dates back to 1995. to the whole electronic communications
Some helpful innovations were sector including cloud computing
introduced into the telecom legislative is expected to take place by 2014,
framework by the so-called Telecom when the new Data Protection General
package, and this is bound to also Regulation (COM(2012)11) proposed
impact on cloud computing. by the European Commission is likely
They consist, in particular, in directive to come into force. The new Regulation
2009/136 - which amended the 2002 will introduce the same rules throughout

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the EU also with regard to third countries, to enable governance of cloud computing
which means that the Italian data without jeopardizing the innovation and
protection Act will also be re-drafted development potential of IT clouds,
from scratch. From this viewpoint, businesses and public bodies should
it will hopefully contribute to making take special care in assessing the risks
the use of cloud-based services both resulting from a shift to cloud-based
less complex and less risky. services - including personal data
One of the key innovations of the protection issues. This applies to
reformation package in question consists the so-called central purchasing bodies
in making all data controllers (banks, as well, that is the entities in charge
insurance companies, health care of purchasing goods on behalf of several
agencies, local authorities, etc.) subject public administrative agencies.
to the obligation to notify security
breaches that concern personal data. Data Controllers and Data Processors
The individuals affected will be informed Where a public administration body
without delay of the loss and/or theft or a company, acting as the data
of their data, in the appropriate cases. controller, moves part or the whole
of its processing operations concerning
PRIVACY LAWS AND CLOUDS personal data to the cloud, it should
FOOD FOR THOUGHT appoint the cloud service provider
as the data processor.
Until up-to-date, harmonized domestic This means that the client will have
and international legislation is passed to always check how any personal data

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that is uploaded to the cloud is used
and stored: the client, being the data
controller, will also be liable for any
wrongdoing committed by the provider.
However, a small-sized client such
as a SME or a local authority might find
it hard to negotiate appropriate terms
for the management of cloud-based data;
still, claiming that the client was unable
to negotiate more stringent contractual Data Flows outside the EU
terms or supervision mechanisms will The Italian privacy Code includes
not be enough to justify violations. detailed rules to transfer personal
Indeed, a client of cloud-based services data outside the EU and forbids
can apply to other providers, who may in principle transferring personal data
afford more robust safeguards especially even transiently to a non-EU country
concerning data protection. Additionally, if no adequate level of protection
the Italian data protection Code provides is afforded by the legal system of the
that the data controller is empowered country of transit and/or destination
to control the data processors of the data.
(here, the cloud providers) conduct This may often be the case if one
by checking that the processor complies relies on public cloud services
with the instructions issued with regard as opposed to private cloud and/or
to the personal data to be processed. hybrid cloud services.

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Thus, the data controller usually Data Security
the client purchasing cloud-based The data controller is required to make
services will have to also take sure that technical and organizational
due account in its determinations measures are in place to minimize
of where the data are stored the risk that data may be destroyed
and what processing operations or lost (even by accident), that it
are expected to be performed abroad. may be accessed by unauthorized
For instance, transferring data entities or processed unlawfully
to the US may be easier if the cloud or in a way that is not compatible with
provider has signed up to data the purposes for which it was collected,
protection schemes like the so-called
Safe Harbor which is a bilateral EU-
USA agreement including shared,
secure rules to allow personal data
to be transferred to companies
established in the USA.
The limitations on cross-border data
flows also impact on intra-group
data flows in a multinational setting;
here, the availability of robust binding
corporate rules to protect personal
data can allow data transfers
by respecting data subjects privacy.

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or that it may be modified because held by a public body or a company;
of unauthorized or unlawful actions. for what purpose(s) such data were
For instance, a client should make collected; and how they are processed.
sure that data is always available They may apply for an intelligible copy
that is, it can be accessed at any time of the personal data relating to them
and confidential that is, it may only and have such data updated, rectified
be accessed by those authorized to do so. or supplemented.
To secure data, one should focus In case of a breach of the law, data
not only on how it is stored, but also subjects may also have their data
on how it is transmitted for instance, blocked, erased or anonymized.
by using encryption technology. In order to comply with these requests,
the client of cloud-based services
Data Subjects Rights being the data controller will have
Any public administration body to adequately supervise not only
or company deciding to rely the provider, but also any
on cloud-based services to manage sub-processors the provider may
users and customers personal data decide to have recourse to.
should not forget that the Italian
privacy Code empowers data subjects
that is, the individuals the data relate to
to exercise specific rights.
For instance, data subjects have the right
to know which data concerning them are

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ASSESSING RISKS,.
COSTS, AND BENEFITS.
In selecting the type of cloud and service Thus, saving should not be the only
model that best fits in with your needs, variable in making your choice.
you should be especially careful. There is a handful of major cloud
This is particularly important if you opt computing providers; basically all
for a public cloud, where basically all of the remaining companies that offer
of the processing is outsourced and your cloud-based services and infrastructures
most valuable information is well beyond avail themselves of such world leaders.
your direct control. The cloud concept This means that the negotiating
may sound vague and virtual; in fact, power of an individual company
cloud technologies allow handling very or a small public administrative body
tangible services such as a companys is considerably downsized, so that
supply chain, the census register it is difficult to turn technological
of a local authority, medical examinations flexibility into contractual flexibility.
and lab tests, your online banking You might then want to join forces
activities, and much more. Nobody would with other public bodies and/or
leave their wallet with their personal IDs companies with the same needs
and their wages to any Tom, Dick or (for instance via your trade or sector-
Harry; nor would you entrust your related association) so as to build up
accounts book or customer and vendor your contractual power.
contracts to an unknown accountant who Before opting for a given type of cloud,
promised you would save a lot by doing you should check for the amount
so - without first making sure how these and types of information to be outsourced
valuable records will be kept or used. will that include personal data along

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with sensitive personal data, or will SECURITY
it consist in information that is key
to your business/activity, such What security measures were put in
as confidential or patented projects place by the provider to protect the data?
or industrial secrets? A cloud service provider can often count
You should assess the possible risks on protection systems against viruses,
and consequences resulting from hacker attacks or other IT dangers
your choice. It is true that clients that are more effective than those a user
are often unable to negotiate changes could individually afford. However,
to the providers Terms of Service; you should determine what measures
still, they can certainly select a different were put in place by your cloud provider.
provider. Cloud providers could also Before deciding for your cloud partner,
benefit in terms of opportunities keep in mind that you may lose your
from laying down privacy-friendly direct, exclusive control over your data
contractual clauses and/or relying if you hand them to a remote provider.
on prior independent certification
of their compliance with EU personal ROLES AND RESPONSIBILITIES
data protection laws.
There are some basic questions Who is actually providing the service
to be posed so that you can estimate you are about to purchase?
the impact of these technologies Is it a company or a group of companies?
on your company / your public body The service you chose might be
in terms of costs and organizational the end-result of a transformation
arrangements. chain of services that are purchased

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from service providers other than The virtual service might happen
the provider you are contracting with. to be degraded following IT attacks
If the chain is especially long or complex, or during traffic spikes, and it might
you might not be in a position to know even be down following extraordinary
who can access what data out of events or failures that make data
the many intervening service providers. temporarily inaccessible if no adequate
safeguards for network connectivity
SERVICE AVAILABILITY AND are in place. Thus, you should carefully
DISASTER RECOVERY consider how your company / your public
body would be impacted by a breakdown
If the Internet connection is down of the service, whatever its duration,
or impaired, can you continue take account of the costs (both direct
using the services you need without and indirect) you may have to bear
using the cloud? if data become inaccessible, and lay down
How long does it take to restore service? beforehand a disaster recovery plan
Is there a disaster recovery plan with your cloud provider.
for your key services?
DATA RECOVERY

Can data on the cloud get lost


or be destroyed?
Natural disasters or cyber-attacks
might undermine the operation
of some data centres.

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It is especially important to rely Can one decide to only rely on servers
on data recovery procedures and gauge that are located in the national territory,
the financial and organizational impact or in EU countries?
of the loss and/or erasure of any data The location of data storage/processing
that is only available on the cloud. impacts directly both on the applicable
law in case of disputes between
CONFIDENTIALITY client and provider and on the national
rules applying to data processing,
Are there confidentiality safeguards storage, and security.
for our data if a competitor shares Knowing this will ensure greater
the same cloud-based services? transparency in the client/provider
Providers handle data from individuals relationship. Additionally, one should
and organizations that might have not forget that privacy laws only allow
different or conflicting/competing exporting data from the EU under
interests and requirements. specific circumstances and if adequate
Thus, you should assess the safeguards protection measures are in place for data
afforded to ensure confidentiality subjects by comparison to the protection
of the information you commit afforded under EU legislation.
to the cloud. Thus, a cloud-based service might
entail unforeseen additional costs
SERVER LOCATION resulting from the clients limited control
over his data, or else which is more
In which country is the data uploaded likely on account of national and
to the cloud ultimately kept? international litigation.

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MIGRATION advantage on the assumption that
the client will be bound to accept
Does the cloud provider rely the new terms since it is practically
on proprietary technology? impossible for him to easily shift
Can data be exported easily? the data to another provider
In some cases, the fact that the service and terminate the contract.
provider relies on proprietary technology
may make it difficult for the client INSURANCE
to migrate data and documents between
different cloud-based systems, If it is found that a data breach occurred
or to exchange information with entities or data were lost, can the provider
that use cloud services from different ensure prompt payment of damages?
providers that is to say, data Because of the lack of clear-cut
portability and/or interoperability regulations, it may prove both difficult
may be jeopardized. and costly to get the appropriate
This is a scenario that might result compensation in case of damage
into less-than-straightforward following data breach, data loss,
business strategies. For instance, or (temporary) discontinuation
a cloud service provider might initially of the cloud-based service.
submit a very appealing offer to a client Availability of an insurance policy
including adequate data protection and/or simplified mechanisms
safeguards; having taken the client for settling (international) disputes
on board, the provider might then may translate into added value
change the terms of service to its own for small-sized users.

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TEN RULES TO CHOOSE.
KNOWLEDGEABLY.
1 provider relies upon in terms of their
CHECK HOW RELIABLE capacity and reliability. Users might also
YOUR PROVIDER IS want to consider whether the provider
Users should establish how experienced, employs skilled staff, how adequate
skilled and reliable their provider the providers IT and communications
is before moving their most valuable infrastructure is, and to what extent the
data to the cloud; they should take provider accepts to be liable for damages
account of their business or institutional which should be set forth explicitly in
requirements, type and amount of the the terms of service in case of security
information to be allocated to the cloud, breaches and/or service breakdowns.
risks and security measures in place.
Depending on, among others, the type 2
of service to be provided and the PREFER SERVICES WITH
importance of the data, users should ENHANCED DATA PORTABILITY
assess the providers corporate Clients should prefer cloud computing
structure; the providers references; services that rely on open formats
the legal safeguards afforded to ensure and standards to facilitate migration
data confidentiality along with the between cloud systems managed
measures in place to prevent service by different providers. Data portability
breakdowns following unexpected means you can withdraw from
failures. the service without incurring costs
Additionally, users should assess the and inconveniences that are difficult
quality of the connectivity services the to gauge in advance.

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adequate safeguards on availability
and performance of cloud services.
Choosing a service that does not
afford adequate confidentiality
and continuity safeguards may impact
substantially not only on the cloud client,
but also on the data subjects think
of public administrative bodies
or any company delivering services
to third parties.
This is why the data controller who
Additionally, this will reduce is usually the cloud client will have
the risk that a provider may change to make sure that he can keep a copy
the terms of the cloud service contract of any data allocated to the cloud apart
unilaterally to the clients detriment from any underlying cost-containment
by taking advantage of his stronger objective; this is especially appropriate
negotiating power. if the loss and/or unavailability of such
data might prove seriously harmful
3 not only to the controllers finances
MAKE SURE DATA IS AVAILABLE and/or image: think of highly sensitive
WHENEVER NECESSARY information such as health care
Clients should request that their contract or judicial data, or any data on taxation
with the cloud provider includes clear-cut, and personal income.

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4 5
SELECT WHICH DATA NEVER LOSE SIGHT OF YOUR DATA
SHOULD BE MOVED TO THE CLOUD Users should always carefully consider
Some items of information require the type of service being offered
by their very nature specific and check whether the cloud provider
security measures to be in place: that is party to the contract will be
this is the case of information protected holding the data factually or else
by industrial secrecy rules as well that provider is actually a broker
as of sensitive data such as information of services or relies on technologies
relating to health, ethnic origin, political made available by a third party.
opinions or membership of trade unions. This might occur, for instance, with
Since moving data to the cloud a cloud-based application where
reduces, in all cases, the users
direct control over such data, which
is exposed to the (at times hardly
foreseeable) risk of being lost
or accessed unlawfully, users should
evaluate responsibly whether
to rely on cloud computing services
(particularly public cloud services)
or have recourse to other types
of outsourcing or even continue
processing that data in house.

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the provider of the data processing above all, it is fundamental to check
service ultimately relies on a storage the protection afforded to the data.
service purchased from a third party: Transferring data to countries where
this will entail that the clients data no adequate safeguards are in place
will he hosted factually in the physical in terms of security and confidentiality
systems owned by the third party might make the processing of personal
in question. data unlawful and cause irreparable
Thus, to gauge the quality of cloud-based damage to the institutional activities
services one should establish who does of a public body as well as to a companys
exactly what out of all the entities business. Before uploading data
involved in providing those services. to the cloud and allowing data transfers
to non-EU countries, users should
6 check that this transfer takes place
KNOW THE PHYSICAL LOCATION in accordance with the safeguards laid
OF YOUR DATA down in Italys and EUs legislation
It is important for users to know on personal data protection.
whether their data will be moved For instance, if the cloud provider
to and processed by servers in Italy, is a US-based company, one should
the EU, or a non-EU country. check that it is a member of the Safe
This information may be essential Harbor scheme which includes rules
to determine jurisdiction and applicable agreed upon with EU institutions
law in case of disputes between to enable the processing of personal data.
users and service providers; It is also helpful to check that any

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non-EU cloud service provider and shift to a different provider.
has subjected its security and data Special emphasis should be put on
processing procedures to specific the specification of clear-cut quality
certification schemes such as those standards along with the respective
regulated by ISO security standards. penalties, so that the provider is made
Additionally, one should check whether liable for non-performance as well
the outsourcing contracts submitted as for the consequences of specific
by the provider include the standard events such as unauthorised access,
contractual clauses approved specifically data loss, unavailability due
by the European Commission to transfer to malfunctioning, etc.
personal data to third countries. To be on the safe side, check
whether sub-contractors are involved
7 in delivering cloud-based services
BE ALERT TO YOUR TERMS and/or processing the data.
OF SERVICE
It is important to assess whether the 8
terms of service laid down in the cloud CHECK FOR HOW LONG AND IN
contract are appropriate; this is true, WHAT MANNER DATA IS RETAINED
in particular, for the obligations Before relying on cloud-based services,
and liability applying to loss and/or one should probe into the providers
unauthorised disclosure of the data policies regarding data retention on the
kept on the cloud as well as for the cloud and make sure that they are laid
mechanisms to withdraw from the service down contractually. If the law does not

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9
DEMAND ADEQUATE
SECURITY MEASURES
In order to protect data confidentiality,
one should also consider the security
measures put in place by the cloud
service provider.
Generally speaking, preference
should be given to providers that rely
on secure data storage and transmission
mechanisms as based on encryption
provide for the erasure of the controllers especially if highly sensitive information
data immediately the cloud contract is to be processed along with
expires, one should establish the robust mechanisms to identify
deadline for the provider (= the data access-enabled entities.
processor) to erase any data that was
committed to him. The provider must 10
ensure that no data will be kept beyond TRAIN STAFF APPROPRIATELY
such deadline or in breach of what Both the clients and the providers
was explicitly set out with the client. staff should be trained appropriately
At all events, all data must be kept if they are tasked with processing data
in compliance with the purposes via cloud computing services so as
and arrangements agreed upon. to reduce the risks of unauthorised

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access, data loss and more generally disclose such data systematically
unlawful processing operations. to several individuals.
Training should include the technical Still, it should be recalled that
information to enable the knowledgeable individuals are also expected to keep
selection of cloud technologies along personal data with due care to prevent
with the practical steps of the processing that the loss of such data may harm
such as uploading data to the cloud other individuals.
and processing such data. New mobile technology devices
Data protection may be jeopardized like smartphones and tablets have
not only if staff behave unfairly considerable memory capacity
or fraudulently, but also if they make and often rely on unprotected
trivial mistakes or work sloppily cloud-based services that allow
or negligently. them to be used for both private
and professional purposes which
has increased the risk of losing control
ONE MORE CAVEAT ON PROCESSING over ones personal data.
FOR PERSONAL OR HOUSEHOLD This means that you should keep
PURPOSES your IT devices with care even
The Italian Privacy Code does not if you use them for personal purposes;
apply to an individual who processes you should also make sure that
personal data for personal purposes no third party may access even
and does not disseminate such by chance personal data kept
data on the Internet or does not on those devices.

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Piazza di Monte Citorio, 121
00186 Rome - Italy
phone +39 06 696771
fax +39 06 696773785
ITALIAN DATA PROTECTION AUTHORITY

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