Mon1145 social economicimpact-rafaelgarciadelpoyo-osborneclarke

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The new frontier of technological services and its problematic legal issues. Cloud Computing Rafael García del Poyo Lawyer. Partner Head of Digital Business

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The new frontier of technological services and its problematic legal issues.

Cloud Computing

Rafael García del Poyo

Lawyer.

Partner – Head of Digital Business

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Contents

• “Cloud” models

• Types of services

• Benefits

• Criticisms

• Problematic legal issues

Private & Confidential

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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

clouds”“Private

clouds”

“Community

clouds”“Hybrid

clouds”

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Types 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.

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There are three types of service provided by cloud

Software

as a

service

(SaaS)

Platform as

a service

(PaaS)

Infrastructure

as a service

(IaaS)

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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

Information and personal data

Files hosted on systems: concerns about the risks

posed about the model for information security and the adequate protection of personal data.

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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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THANK YOU FOR YOUR ATTENTION !

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Rafael García del Poyo

Lawyer. Partner – Head of Digital Business

OSBORNE CLARKE - MADRID

[email protected]

Paseo de la Castellana, 52

28046 Madrid

Tel : +34 91 576 44 76Fax: +34 91 576 74 85

Mobile: +34 608 848 406

www.osborneclarke.comRGarciadelPoyo

Rafael García del Poyo