Cloud ComputingThe new frontier of technological services and its problematiclegal issues.Rafael García del PoyoLawyer.Partner – Head of Digital Business Paste title slide graphics over this grey box in slide deck
osborneclarke.comIntroduction 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.
osborneclarke.com“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”
osborneclarke.comTypes of servicesFunctional 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.
osborneclarke.comThere are three types of service provided by cloud Software Platform as Infrastructure as a a service as a service service (PaaS) (IaaS) (SaaS)
osborneclarke.comBenefits • 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.
osborneclarke.comCriticisms • 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.
osborneclarke.comProblematic 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.
osborneclarke.comProblematic 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.
osborneclarke.comProblematic legal issuesInformation and personal dataFiles hosted on systems: concerns about the risksposed about the model for information security andthe adequate protection of personal data.
osborneclarke.comProblematic 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.
osborneclarke.comProblematic 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.
osborneclarke.comProblematic 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.
osborneclarke.comProblematic 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.
osborneclarke.comProblematic 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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osborneclarke.com Rafael García del Poyo Lawyer. Partner – Head of Digital Business OSBORNE CLARKE - MADRID firstname.lastname@example.org 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