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Cloud Computing for Business and Society

Posted: 01/20/10 09:05 AM ET

Today's digital age has led to tremendous breakthroughs in science, technology, and innovation. One innovation in particular, "cloud computing," or utilizing the Internet for technologies such as online collaboration and data storage, has provided businesses and consumers with a new era of products and services.

While the benefits of these new technologies are clear - accessing data at your fingertips whenever and wherever you want - these benefits also come with challenges. The recent security breaches reported by Google last week once again make this abundantly clear.

We need a safe and open cloud - a cloud that is protected from the efforts of thieves and hackers while also serving as an open source of information to all people around the world. It may sound impossible to have both of these things at the same time, but it is not. Although neither goal may be fully achieved today, we must keep striving to reach them. As more services move online, we need to take new steps to protect the rights of consumers and global citizens in the digital age.

According to a recent survey conducted by Microsoft, more than 90 percent of Americans are using some form of cloud computing; nearly all of us are connected to the cloud. But stop for a moment. Do you know what your rights are in the cloud? Are you confident that your privacy is being protected? If you live in one country but your data is stored in another, whose laws govern? These questions about privacy, security, and international sovereignty require immediate attention.

Asking legitimate questions about cloud computing policies is not the same as questioning the legitimacy, or benefits and advantages, of the cloud. This one innovation holds the potential for tremendous cost savings and flexibility, while also making data more accessible and portable. Yet as we move to embrace the cloud, we also must ensure that we maintain the basic rights people receive today.

For example, the Internet should not be a "town square," where anyone wandering the street can get a peek at what you are doing. But current law is not clear about how to deal with privacy concerns as they relate to the cloud. Users' privacy is something that businesses, governments, consumers, and other key stakeholders must seriously address.

In addition, as security experts have attested, there can be security benefits from cloud computing. At the same time, however, the recent Microsoft survey showed that more than 90 percent of Americans expressed concern about the security, access to, and privacy, of their data in the cloud.

And, of course, these issues are global: users need to know that their data and applications will be subject to consistent rules regardless of where they are hosted. The potential for conflicting rules and regulations between countries could subject cloud providers to liability for content over which they have little control and could make it difficult for users to know what laws govern their data.

These are important issues that require thoughtful solutions. Just as industry and government can benefit, they also must work together to find appropriate solutions to address the challenges that cloud computing presents. Failure to do so is likely to slow industry development and consumer adoption, thus inhibiting the full growth and potential of cloud computing

Congress can and should take thoughtful, constructive action to advance cloud computing. The country needs a "Cloud Computing Advancement Act" to enhance privacy and security protections in the cloud computing era and foster the development of the cloud. Under this proposal, there would be:

  • Improvements in privacy protection and data access rules to ensure users' privacy, starting with reforming and strengthening the Electronic Communications Privacy Act to clearly define and provide stronger protections for consumers and businesses;
  • Modernization of the Computer Fraud and Abuse Act so law enforcement has the tools it needs to go after malicious hackers and deter instances of online-based crimes;
  • Truth-in-cloud-computing principles to ensure that consumers and businesses will know whether and how their information will be accessed and used by serviced providers and how it will be protected online;
  • Pursuit of a new multilateral framework to address data access issues globally.


Cloud computing offers many potential benefits, but those benefits will not be realized unless privacy rights are maintained, data security is strengthened, and questions are settled about how data is governed when it crosses national borders. Quite simply, we need responsible action now.

 
 
 
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08:45 AM on 01/26/2010
Self monitoring can also go a long way to protect your data on the clouds. Due diligence needs to be exercised before selecting a cloud vendor, and certain new criteria be applied, that may not have been important for assessing a vendor of desktop based software:-

1) What security infrastructure does the vendor have
2) What is its data protection record
3) How many years has the company been in business
4) Has it outsourced its hosting facilities etc.

We had recently done an article on this - http://www.hyperoffice.com/saas-reviews-for-smbs/
01:04 PM on 01/22/2010
Powerful post. The problem with cloud computing is that it happens so deep within the system that it is not in the mind of the public. But like for the food and water we get, what goes in and how it is distributed should be regulated. Considering the global impact cloud computing has, the potential for misuse simply is too big to ignore.
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jeffrey678
You don't happen to make it. You make it happen.
12:03 AM on 01/22/2010
The Korean Free Trade Agreement deregulates your financial privacy. It will strip any privacy regulations that exist or are created by Congress retroactively. http://citizen.typepad.com/eyesontrade/2010/01/google-it-under-korea-fta-china-holds-your-data-privacy-future.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+eyesontrade+%28Eyes+on+Trade%29
07:01 PM on 01/21/2010
Frankly, I'm a little too skeptical about the powers of government to accept the suggestion that we "need a Cloud Computing Advancement Act" without complaint. Now, I realize that "local clouds" and/or "private clouds" are a part of the mix here, but I would see a "Cloud Computing Advancement Act" potentially as an attempt to take taxpayers money and use it primarily to the benefit of Amazon, Google, and Microsoft.

Certainly, I'm in favor of improving/modernizing outdated laws and the underlying legal concepts regarding digital security. But the attempt should be even-handed with regard to providing both protection for companies engaged in software-as-a-service (and their customers) and other means of using computers such as local applications.

If you can address internet security adequately, then cloud computing will benefit along with the rest of us, but if basic security is left unaddressed in favor of focus on software-as-a-service, then your good intentions become just another costly governmental boondogle.
05:17 PM on 01/20/2010
"The laws "protecting" digital information are so outdated that it's not clear how they even apply to modern technologies like cloud computing."

They are so outdated that if you have a plain-text email, sitting on a server belonging to a third party, that it isn't a violation of your rights for the government to search it without obtaining a warrant, unless your contract with your email provider specifically states that you reserve your rights.
02:18 PM on 01/20/2010
It's not just hackers and thieves: the government and other companies would love to get their hands on the treasure trove of personal information we put in the cloud every day. The laws "protecting" digital information are so outdated that it's not clear how they even apply to modern technologies like cloud computing. Reform of those laws is essential to ensure protection for personal information and documents in the cloud. And as Brad suggests, clear and comprehensive legal protection is good for businesses too since internet users will be more comfortable using cloud computing services.

The ACLU of Northern California has a "Demand Your dotRights" campaign so that internet users can learn about privacy on the internet and can demand laws to protect personal information. Check out our page on cloud computing: http://bit.ly/5mXK3S

- ACLU of Northern California