Whitehall IT chiefs have been warned by the intelligence agency GCHQ that security problems with cloud computing could foil their plans to use the technology to slash the cost of public services. The assessment forms part of the first report of the Cyber Security Operations Centre (CSOC), seen by The Register. The new internet intelligence gathering unit, located at GCHQ's "concrete doughnut" in Cheltenham, will begin operations next month.

"Cloud computing could form an important part of government cost-cutting exercises, but cloud computing hosts are likely to want to site their storage where it is cheapest for them to do so, which may mean that sensitive information or intellectual property is physically stored in another country, potentially one which might have an interest in using the information for its own purposes," CSOC says.

Source: The Register

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