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What is it about cloud that makes business ask questions they should already be asking?
5 December 2011
The market for cloud services is rapidly expanding and if the cloud is not already part of your business model or the way you consume technology, it is likely to become a key consideration soon. There has been a seismic shift in the adoption of cloud services, with big players such as Google, Dell, Salesforce.com and Amazon Web Services, amongst others, leading the way. The cloud is being sold as a more simplified and commoditised service typically provided to customers on standard terms with less room for negotiation.
On the other side of the coin the market is maturing and business customers are generally becoming more educated. They are beginning to pose more questions to cloud service providers about the type of service they are providing, the parties involved in service provision and what security assurances will be given.
With no specific cloud law in the UK, there is nothing that directly deals with the issues raised by cloud services the main regulatory hurdle for most businesses relates to data privacy requirements. Looking forward to 2012 we are sure to see some interesting developments in this sphere. Viviane Reding, EU Justice Commissioner has promised a new iteration of the European Privacy Directive (becoming known as data protection 3.0) in January and we expect the findings of the EU public consultation on cloud computing that closed this summer.
To help you on your cloud selection OC have considered the 'big five' questions that are a good starting point before taking a wider risk assessment:
1. Where is the cloud and where can you access it?
Data privacy is the hot topic here as European legislation prevents transfers of personal data outside of the EEA, this is not an insurmountable hurdle however and OC is experienced in advising on the precautions and/or alternatives your business could implement to overcome it.
2. What type of cloud is it?
The cloud is not a one-size-fits-all solution; depending on your business needs you could opt for a public cloud, a private cloud or a hybrid of both to ensure that you can take advantage of the benefits without adversely risking the business. OC are able to help you with your cloud strategy and ensure the right fit for your business.
3. Who is involved in the 'cloud stack'?
Your cloud service may very likely comprise of a 'stack' of services provided by and relying on a variety of third party providers. Again this raises data privacy issues so will require asking further questions of your cloud provider and additional precautions being taken. But is not a barrier for utilising cloud services and OC has advised on a number of transactions involving the stack and can assist you on your approach.
4. Does your business need to comply with additional regulatory requirements?
Sectors such as financial services, government and defence are heavily regulated businesses and the use of cloud services may be affected by these additional regulatory burdens. These are not necessarily a 'Stop' sign though but more of a 'Give Way' sign. With OC's sector first approach we are able to look at what the regulations for your sector require and guide you to take appropriate action in your cloud service selection.
5. What happens when you leave?
At the end of the relationship with your cloud service provider you need to be sure you know what is going to happen to your data that was in the cloud. You will need to be able to ensure that all your data is returned securely and promptly, ensuring that nothing is lost. OC can help you take appropriate precautions for this from the outset of your relationship with your chosen provider.
Helping you to answer these questions and guide you on your cloud journey is a multitude of best practice guidelines and codes of practice, mostly conflicting with each other and currently predominantly US centric. For the European business trying to demystify the cloud services market this proves at best to be a challenge and at worst confusing. We have experience on how the European user should be approaching the cloud market and can help to lift the fog on what guidance is best for your business.
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