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Micro, Small, and Medium Enterprises (MSMEs) are gradually adopting cloud-based solutions using Information, Communication, and Technologies (ICT). Due to the lack of awareness regarding the legal challenges arising from jurisdictional issues of the Cloud Service Provider (CSP), MSMEs often get entangled in expensive litigations. The paper throws light on such legal conflicts and proposes new innovative ways (such as bilateral treaties, US CLOUD Act, Mutual Law Assistance Treaties, and In-house Capability) to tackle the same. Any domestic law governing data privacy must align with the globally acceptable standards prevalent in the international perspective. In the era of industrial revolution 4.0, data is the new oil, wherein any country having control and understanding of the intersectoral dimensions of the cloud-based data indeed gains an edge over the competition. Due to the prominence of the global private sector in providing local public services, there is a need for government authorities to take flexible approaches while formulating domestic laws in the realm of cloud computing.