Cloud Computing isn’t just a buzzword
19. May, 2011 
7 Comments (3,888 views)
by Public Policy
“Cloud computing, cloud computing, cloud computing …” the two magic words that have had Brussels buzzing over the past few months. We have witnessed policy makers’ madness on the issue as a new world was being discovered.
Sorry, but cloud computing isn’t new…
For many years we’ve been using many cloud-based services such as webmail, we were just not conscious of it. Gmail, Flickr and other services using remote storage and processing have been a part of the digital experience for a long time. So, a new regulation is not needed; rather, the existing ones should be updated to take cloud into account. In order to foster cloud computing, regulators must simplify legislation. Current data protection rules have been implemented differently in every EU Member State. Pan-European companies have to deal with a patchwork of 27 different implementations that create additional cost and uncertainty. Rules cannot become a barrier to innovation and have to be flexible enough to act as an incentive to the development of new data mobility services.
Many factors have contributed to making this topic current. First, there is the economic crisis. According to estimates by different studies, the generalized use of cloud computing could increase GDP by 0.2%, save 700 billion euros over the next 5 years, create 2.4 million jobs in the EU and also improve energy consumption as well as reduce CO2 emissions.
The second factor has been the explosion in the use of cloud computing services in everyday life such as, Facebook, Spotify and Dropbox that have caused issues such as data protection to surface.
The Digital Internal Market is a goal worth achieving, and reducing legislation is an important path to be followed. Existing general rules on data and consumer protection should apply to all players. Consumers will fully embrace cloud computing once they are sure that their data is protected in the same way across the Internet and the Cloud. On the technical level, interoperability must become a priority.
Digital Trust and Confidence is the main argument in implementing a single market. In order to create a common framework, the keywords for stakeholders must be compliance, transparency trust and accountability.
Ensuring a competitive market is the best way for companies to provide quality cloud computing services that meet users’ expectations and needs. Being able to offer different levels of privacy and control for users gives the necessary flexibility without stifling innovation
We have to do away with the piecemeal approach on data transfer and strive for a global approach. Current regulation does not meet the current needs of multinational companies. For example, international intra-group data transfer procedure rules must be revised in order to ensure competitiveness and lower costs.
Finally, there is an aspect that is often overlooked: network infrastructure. A Cloud Computing strategy must be supported by an infrastructure strategy. The ambitious network investments as required by the Digital Agenda goals are estimated by the European Commission at 300 billion euro. Incentives and a more proportionate and targeted regulatory environment are required in order to achieve these goals.
For TelefĂłnica, cloud computing is not a promise but a reality. 3GBox is the first 3G USB modem with unlimited storage capacity based on cloud computing technology. The device has a 3G connection that allows users to download and upload content easily and safely. If the device is lost, uploaded data to the web will remain safe. This innovative and attractive service is what the Cloud enables.
Luis Planas Herrera is stagiaire in Public and Regulatory Affairs at TelefĂłnica’s office in Brussels
luis.planasherrera@telefonica.es
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Really good article. Among the future scenarios we are facing, living and working in the cloud is an attractive one as Google has shown with it’s last device. You have my full support in order to spread this blog over the net
Great article advocating for the reduction and simplification of regulations. Data protection is key and for companies to feel secure in uploading their information off-site, we can not underestimate this issue.
You are making really good points here. Cloud computing has been around for a long time. But don’t you think it’s dangerous to let private companies centralize and concentrate enormous amounts personal information? For instance, what if Google’s Chrome OS cloud computing system end s up crashing one day? What do you think about this issue?
Dear David,
Thank you for your comment.
My point is that regulators can not oblige companies to a particular level of privacy and security.
In a competitive market companies would develop offers that differentiate with different levels of privacy and security. Ensuring transparency would permit this offer to meet users’ expectations and needs.
It is the way to give control to consumers about their desired level of privacy and security without stifling innovation.
The important issue for the cloud is how you pay for the services. Corporate customers and business customers will pay for specific services but the vast majority of consumers will probably be offered bundled or free services. When you directly pay it is (usually) much clearer what the conditions are. When you get something for free people tend to be less careful. As we know there is no such thing as a free lunch and no such thing as a free cloud, someone is paying for it. Perhaps if consumers paid for a bit more directly than some of the problems would fade away.
Luis, thank you for this excellent article. I apologize for joining later.
My concern is different: choice can really encourage competition and the market. But, I am not sure users are any more capable of really making good and informed choices – regardless of the level of transparency.
Making an informed choice of important things like privacy and security of your data on each and every online or offline service requires lots of time, high (often legal-background) literacy an, and both quite a level of understanding of both policies and technology.
Let’s face it – it is not simple any more. Not even to choose a new mobile phone and compare performances, let alone coping with more serious things. Lots of choice in a very dynamic tech environment today may appear to be counterproductive for users, and, ultimately, for the markets.
I am of course not opting for harder regulations, but am of a view that states should be more precise in regulations of core rights, having in mind the growing complexity for users to understand and protect these rights themselves.
Such a regulation should, again, come as result of cooperation of all stakeholders, rather than being imposed.
Benefits of and investments in informed decision-making may currently be more significant and less costly, respectively, than those of informed choice by all the users.
What do you think?