Where in the Cloud is my Data? Location and Brand Effects on Trust in Cloud Services

We all hold stereotypes about different locations across the world. Do these stereotypes affect our attitudes toward cloud services when we are told the location of the servers storing our data? And, does it matter if the cloud services are provided by a well-known brand? To answer these questions, a 2 X 11 experiment was conducted to examine the effects of location and brand cues on users' reaction to cloud services. Brand authority of the hosting company had a positive effect. More importantly, location of the cloud servers also affected outcomes, in that users tended to prefer some locations (e.g., US, Europe, Oceania, China) over others (e.g., Russia) for storing their cloud data. These findings have theoretical implications as well as design suggestions.