Cloud Computing. by Civic Consulting (research conducted October 2011 January 2012)
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1 Cloud Computing by (research conducted October 2011 January 2012) for the European Parliament, DG Internal Policies of the Union, Directorate A (Economic and Scientific Policy); presentation for the EP Committee for Internal Market and Consumers
2 Purpose and methodology TOR: broad overview of cloud computing, and how it relates to EU consumer protection and digital market goals Benefits and risks and possible actions thereof Work between October 2011 and March 2012 Literature review Structured interviews (18) Small scale survey of provider terms and conditions transparency
3 What is cloud computing? Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction (US NIST) Cloud computing is when you use services, or storage, not at your own computer but somewhere else in the Internet, which is not in one data centre but is spread all over the Internet. As a user you don t know where your data is or where the services are which you are using. (Consumer organisation) 2
4
5 Economic impact North American providers make up 56% of market, against 25% in Western Europe. Gap to narrow to 50% against 29% by 2014 Potential economic impact: Fewer data centres for large organisations Cost savings and increased competitiveness of IT services available to public and private organisations Information more accessible/interactive for consumers with resulting cost savings
6 Example IBM data centre rationalisation and US Federal Government expansion Source: Renda, S., US Cloud First Policy Insights, EC-ETSI Standards in the Cloud Workshop,
7 Types and location of cloud Different types of cloud: public, private, hybrid, and community clouds Different types of service: Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS) Can be located anywhere in the world, and in several places at once, with significant policy implications 6
8 Examples of cloud use Consumers: webmail, payment intermediaries, photo/video sharing, storage, music streaming, etc. Business: document handling, customer relationship management, project collaboration, computation Public authorities: internal as for business; and development of e-government services 7
9 Potential benefits - consumers Services free (monetize personal data) Access from anywhere Lower computer costs Better access to and sharing of information Automatic maintenance and updating Potentially better security 8
10 Potential benefits - businesses Same as consumers, but also Avoiding capital expenditure for IT Scaling IT resources Better project collaboration and project management Design of custom applications by SMEs. 9
11 Potential benefits - governments Same as businesses, but also Better government services for citizens, thanks to Competition between suppliers Ability to rapidly trial new systems Lower barriers to entry for SMEs 10
12 Example of cost savings: UK G-Cloud Projected UK central government savings when shifting to cloud technologies Cloud strategy elements Savings by year in millions of GBP G-Cloud & Application Store Data Centre Consolidation Source: HM Government, Government Cloud Strategy, 2011, p
13 Main risks and policy challenges Barriers to take-up, and to single market : Data security Privacy and data protection Market fragmentation (jurisdictions) Problems with contracts Provider lock-in (no interoperability, no standards) 12
14 Data security Security risks relate to: Loss of confidentiality and integrity of data Loss of IT control Data interception Provider massive failure Risk-based approaches to address vulnerabilities: Different levels of security Private or community clouds Audit and certification system of cloud services 13
15 Privacy & data protection Cloud specific issues include: Role of the cloud provider (controller or processor?) Applicability of EU laws International data transfers Law enforcement access to personal data Providers have different thresholds of disclosure (contracts) Seen as both a risk and an opportunity (for EU clouds) 14
16 Market fragmentation (jurisdiction) Balkanisation of the cloud Complexities of many jurisdictions and many applicable laws the legal regime was unclear according to our public questionnaire in 90% of cases. Basically all people say it is an issue.all groups say they don t know what to apply Gaps in relevant laws when applied to the cloud
17 Problems with contracts Lack of transparency in contracts and information: Few data integrity guarantees Disclaimers of liability No standards regarding data control and security Rigid contracts Need for key terms and standard contracts Website check of 15 public cloud services showed lack of information on security, location of data, and privacy unclear. Need for standardised presentation of information 16
18 Future trends Same cloud services, but more Some services to go to public cloud for potential cost savings But others to remain in a private environment, as small scale solutions can still be more efficient than large scale ones 17
19 Future hurdles to overcome Adequate competition between providers (interoperability and standards, vertical integration, public procurement) Coordination of cloud computing initiatives Broadband connectivity Access to redress Environmental impacts 18
20 Conclusions and recommendations Main concerns and risks related to cloud computing are legislative framework-related, contracts/terms and conditions-related, or standards-related. To attend to these, EU policymakers should: 1. Address legislation-related gaps 2. Improve terms and conditions for all users 3. Address stakeholder security concerns 4. Encourage the public sector cloud 5. Promote further research and development in cloud computing 19
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