cloud computing was being used “increasingly” by Victorian agencies, in order to reduce capital and operational costs.
Given that many cloud computing service providers are in jurisdictions which do not have similar privacy or data protection laws, if a security breach occurs, an individual in Victoria will be powerless to take action against the cloud service provider and will only be able to complain to the Victorian government organisation
large organisations need to look in a more granular fashion at what sort of data they are interested in storing in the cloud — arguing that some data could be harmlessly stored offshore — compared with sensitive data
"Victoria's privacy commissioner has issued a stark warning to government agencies about the use of cloud computing, warning that it may be "impossible" to protect personal information held about Australians when it was located offshore - or even just outside Victoria."