We have discussed the cloud computing phenomenon at length in our previous articles. You will find information on the legal, commercial and technical cloud computing issues together with a checklist of the main points on our website.

In the meantime it is important to note that the European Commission is taking cloud computing seriously and desires to stimulate research and technological development in the area of cloud computing; together with Member States, wishes to set up the right regulatory framework to facilitate the uptake of cloud computing; wants to encourage the development and production of cloud interoperation standards and  an open source reference implementation and to promote the European leadership position in software through commercially relevant open source approaches.

For this reason the European Commission has included cloud computing in its Digital Agenda, where it sets the fundamentals for the development of an EU-wide strategy on cloud computing. In addition it has published an online public consultation on cloud computing seeking detailed information on cloud computing experiences, needs and opportunities. 

The Digital Agenda sets the ground for Europe's strategy for a flourishing digital economy by 2020. It proposes to maximise the social and economic potential of information and communications technologies via the internet by outlining policies and setting actions. The development of a European Cloud Computing Strategy is one of the actions of the Digital Agenda.

The strategy on cloud computing includes (i) the legal framework required for the provision of cloud-computing services, (ii) the technical and commercial fundamentals, and (iii) the development of the market. The consultation referred to above consists of a questionnaire designed to obtain structured input from stakeholders and interested parties on the needs, barriers and opportunities of the use and provision of cloud computing. No closing date for the consultation has been given but it is advisable that you submit yours as soon as possible.

Cloud computing is transforming providers of IT services and is said to change the way other industrial sectors provision their IT needs as end users, as well as the way citizens interact with their computers and their mobile devices.  The European Union recognises that clouds are of particular commercial interest not only with the growing tendency to outsource IT so as to reduce management overhead and to extend existing, limited IT infrastructures, but even more importantly, they reduce the entrance barrier for new service providers to offer their respective capabilities to a wide market with a minimum of entry costs and infrastructure requirements. 

Cloud computing has particular characteristics that distinguish it from classical resource and service provisioning environments: 

(1) it is (more-or-less) infinitely scalable;

(2) it provides one or more of an infrastructure for platforms, a platform for applications or applications (via services) themselves;

(3) clouds can be used for every purpose from disaster recovery/business continuity through to a fully outsourced IT service for an organisation;

(4) clouds shift the costs for a business opportunity from CAPEX to OPEX which allows finer control of expenditure and avoids costly asset acquisition and maintenance reducing the entry threshold barrier;

(5) currently the major cloud providers had already invested in large scale infrastructure and now offer a cloud service to exploit it;

(6) as a consequence the cloud offerings are heterogeneous and without agreed interfaces;

(7) cloud providers essentially provide data centres for outsourcing;

(8) there are concerns over security if a business places its valuable knowledge, information and data on an external service;

(9) there are concerns over availability and business continuity – with some recent examples of failures;  

(10) there are concerns over data shipping over anticipated broadband speeds. 

Cloud computing, although in its early days, is already a commercial reality and is growing. One study has predicted a growth rate of 19.5%. According to Gartner the industry is poised for strong growth through 2014, when worldwide cloud services revenue is projected to reach USD 148.8 billion. 

Within these dynamics, the EU needs to become not only cloud-friendly but cloud-active to fully realise the benefits of cloud computing while addressing the needs of end users and protecting the rights of citizens. At the same time, there should be framework that would allow for the development of a strong industry in this sector in Europe. With this consultation, the European Commission asks  stakeholders and interested parties to provide detailed information of their experiences, needs, expectations and insights into the use of cloud computing.  

This article is for general purposes and guidance only and does not constitute legal or professional advice. Copyright 2011 © Anassutzi & Co Limited. All rights reserved. Information may be shared or reproduced only if accompanied by the author’s name and bio.