Mon1145 social economicimpact-rafaelgarciadelpoyo-osborneclarke
1. Cloud Computing
The new frontier of technological services and its problematic
legal issues.
Rafael García del Poyo
Lawyer.
Partner – Head of Digital Business
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Introduction
Cloud Computing: a new business model, by which using information
technologies allows users to access a catalogue of standardised services
and also serves to respond to the needs of businesses in a flexible and
adaptive manner.
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“Cloud” models
Four fundamental ways in which the cloud service is delivered depending on
the control and management of the IT environment:
“Public “Private “Community “Hybrid
clouds” clouds” clouds” clouds”
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Types of services
Functional characteristics of Cloud Computing
• The providers resources are available in a
common form so that they can be used by multiple
consumers following a “multiposession” model
(multi-tenancy).
• The client can provide unilaterally processing
capabilities, usage time of the server, storing
capacity on a network, etc. According to the
business needs at any given time.
• The IT systems available using Cloud Computing
control and optimise the use of resources
automatically.
• The capacity is available on the network.
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There are three types of service provided by cloud
Software Platform as Infrastructure
as a a service as a service
service (PaaS) (IaaS)
(SaaS)
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Benefits
• Cloud Computing represents a “a la carte”
model for the assignment of a series of
services, applications and infrastructures.
• An integral infrastructure of Cloud
Computing does not need the installation
of any kind of hardware and therefore
requires less investment to be able to be of
benefit for any business.
• By its nature, the Cloud Computing
technology can be integrated much more
easily and quickly with the rest of its client´s
business applications and provides great
recuperation capacity from disasters as
well as an important reduction in inactivity
time of the systems.
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Criticisms
• Cloud Computing is highly criticised as many admit
that it limits the freedom of management.
• Cloud Computing jeopardises the freedom of
information provisions.
• The proliferation of emerging businesses or the
alliances between Cloud Computing businesses
could also lead to a conducive environment for
the monopoly and exaggerated growth in
services.
• The excessive dependence on the service
providers of Cloud Computing and the internet
availability.
• The providers of Cloud Computing provide highly
specialised services and full delivery of services
to the client which requests that it takes months
or even years.
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Problematic legal issues
• Functional Perspective will study which
functions and services (Cloud Computing)
generate legal consequences for the
participants.
• Legal Perspective analyses the way in which
governments administer laws that affect the
Cloud Computing services.
• Contractual Perspective should examine the
contents of the contracts and its application
mechanisms.
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Problematic legal issues
Customer Cloud Computing Services is responsible
for:
• The compliance requirements of a particular
service provided by the cloud.
• The division of compliance responsibilities
between the cloud provider and the customer.
• The definition of the capacity of the service
provider in the cloud to generate electronic
evidence that is necessary to give due response
to regulatory compliance.
• The role to be played by the client company
when it comes to bring together the positions of
the supplier of cloud services and their auditors
and external advisors.
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Problematic legal issues
Territory versus International business
The physical location of the servers in a particular
State is to determine, as a general rule, both the
legislation and the applicable jurisdiction.
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Problematic legal issues
Contractual Regulation
There is a lack of regulation matter on Cloud Computing,
but spanish law like European legistlation serves to give a
general and sufficient response to regulatory issues that
occur for day-today operations from this model. From this
emerges the need to regulate this type of activities via a
contractual route, independently whether it be sufficiently
routinely practised or not.
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Problematic legal issues
Management of company risk
In Cloud Computing, the fundamental problems in this field
make reference to the contractual identification and
implementation of the structures, processes and suitable
organisational controls necessary to manage the security of
information and comply with regulations.
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Problematic legal issues
Electronic evidence
The capacity of the service provider is fundamental in the
cloud to present evidence before the competent
authorities and other third party being able to demonstrate
effective regulatory compliance.
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Problematic legal issues
Self-regulation
While it is true that the self-regulation can become a
solution that contributes to better compliance of the existing
legistlation, it constitues that it is a practice much more
widespread in USA than in Europe and which in the USA
has a very different meaning to Europe.
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Rafael García del Poyo
Lawyer. Partner – Head of Digital Business
OSBORNE CLARKE - MADRID
rafael.garciadelpoyo@osborneclarke.com
Paseo de la Castellana, 52
28046 Madrid
Tel : +34 91 576 44 76
Fax: +34 91 576 74 85
Mobile: +34 608 848 406
RGarciadelPoyo www.osborneclarke.com
Rafael García del Poyo
