I have posted several times about ethics issues as they relate to SaaS programs / cloud computing. A useful list of opinions that various states have issued to date can be found in Advocate’s Studio.
This includes opinions from NY State, Pennsylvania, Iowa, Maine, Arizona and New Jersey. Missing from the list are North Carolina and Alabama. See my July 27 post concerning the opinions from these states.
The bottom line of the various opinions is that cloud computing is acceptable (no surprise since this just endorses reality) as long as firms take “reasonable” steps to ensure client confidentiality. The crux of the matter lies is the definition (or lack thereof) of “reasonable” steps. Thus, as I noted in July, in a world where “password” is the most commonly used password, the North Carolina proposed requirement of using strong passwords that are changed frequently is just pie in the sky. Sooner or later the ethics opinions will adapt to the economics of the situation.

The bottom line of the different view is that cloud computing is acceptable (no surprise since it only supports the reality), as long as the companies are "reasonable" steps to ensure confidentiality.
Posted by: Computer Services Seattle | November 24, 2011 at 08:57 AM