The Business of Clouds
And the Risks of Being There
Presenter, Drew Bartkiewicz, The
Hartford
Guest, Robert Parisi, Marsh
5/18/2009 Copyright, Drew Bartkiewicz, 2009 1

Cloud Growth
Pure Economics for Cloud Computing
Trending Up
Technology investments increasing
Data Explosion = New Technology
Ecosystem
Opening API’s a cornerstone of data
and content exchange
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Cloud Computing results from three major
developments in just 4 years
1. Data Storage Costs = Cloud
2. Open Standards / API’s Computing
3. Tec-onomies of Scale
Data
Volume
1999 Web 2.0 2009
Results in wild changes in business opportunity…and risk.
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“With Great Power there must
also come - Great
Responsibility.”
- Stan Lee
(Writer of SpiderMan 1960’s)
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A Cloud Environment means
Original assumptions for business risk
and liability no longer valid
However, it appears that the upside
outweighs the downside.
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Cloud Uncertainties
Aggregation of Risk? – for data
Aggregation of Risk? – for interdependence
Aggregation of Risk – for IP
API management, scripts management a
new business mandate
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You Could See this
Coming…
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Unseen Liability
Behavioral
Social
Personal
Data Health
Financial
Commerce
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Source: Drew Bartkiewicz, Unseen Liability

With new value comes new risks…
“Creating Unintended Consequences,
both good and bad.”
“Information thieves, black market
buyers of data, and data brokers
are definitive reference points to
suggest that information has
surged as a new resource, no
longer protected by scarcity and
location, but unleashed with
abundance and access.”
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Cloud Ecosystem Benefits…and Risks
Tre
nd s Technology Capabilities
Lower Cost
Technology Standards
Cloud
Computing Cloud Laws Cloud Contracts
s
Ris k Rogue Employee Cloud Insurance
Cloud Outages Professional Standards
Rogue User Trade Secrets
Financials
Rogue cloudster Privacy Liability
A new ecosystem calls for new ways to manage points of
risk…and aggregation.
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A business conduct gap in Cloud Computing
The professional standards, regulations, laws,
and standards of care do not exist or are not
broadly applied to Cloud governance.
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Emerging Regulation
US – FTC, HIPAA, State and Fedral Privacy
Laws, Advertising Laws, DMCA, COPPA
EU – Unfair Commercial Practices Directive
(media risk), Data Privacy Directive (privacy
risk)
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Cloud Implications
Contracts will change
Will Drive Enormous API Revolution for
Data Transfer and Content Mashing
Will Drive Need for Cloud Insurance and
Cloud Contracts to mitigate risks of
Data Liabilities
Business Interruptions
Content and IP Liabilities
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But the Economics of the
Information Age are trending
towards smart openess…
“Clouds may actually, eventually, be a more insurable
model” – Robert Parisi
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New Wealth = Distributed
Information Assets
Value of Your
IA’s to your
partners /
customers
Relative Value of Your IA’s
Value of to Your Business
Information
Assets
(IA’s)
2002 2005 2009
Graph from Unseen Liability 09
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A business has to unlock their assets
to value them…
Value of Your
IA’s to your
partners /
customers
Relative Value of Your IA’s
Value of to Your Business
Information = Unrealized
Assets
Value
2002 2005 2009
Graph from Unseen Liability 09
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Cloud Governance
If we understand how to professionally participate
in, manage, or leverage Cloud Computing, we
have the best chance to make the Clouds a
sustainable, creative, and “trusted”
environment for the future.
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Summary
Think Open, Think Smart
Manage Points of Risk with the Cloud
Insure for the Uncertainty…or make sure
your cloud partners are insured
“Cloud Insurance” exists
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“What would limit clouds is not applying common
sense and common laws to new ways of
computing and transacting via the Internet.”
Drew Bartkiewicz
Unseen Liability
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Contact
Drew Bartkiewicz
www.linkedin.com/in/drewbartkiewicz
www.hfpcyberchoice.com
Robert Parisi
www.linkedin.com/in/bobparisi
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