Cloud computing benefits

I happened across a blog post yesterday on the federal GSA.gov website from Mary Davie, the Assistant Commissioner for the Office of Integrated Technology Services in the U.S. General Services Administration (“GSA”). As we have noted in prior posts (here and here), the federal government continues to explore opportunities to offer more of its technology products and services into the cloud. Ms. Davie’s blog post addresses what she sees as four “myths” surrounding the use of cloud computing, particularly for government agencies. In particular, she addresses the following myths:

1. Cloud can be anything. Ms. Davie notes that “not all cloud offerings are created equal” and that they must adhere to five essential characteristics.

2. Public clouds are not secure, and agencies can’t control security requirements. In her post, Ms. Davie acknowledges that public clouds are not “inherently secure,” but observes that, with guidance, agencies can create secure systems. She adds that keeping information secure requires constant work and that agencies should carefully consider what services and data to push to the cloud.

3. Agencies will lose control of their data. Ms. Davie recommends that agencies build into their requirements a prohibition against data-mining and monetizing.

4. Moving to the cloud is difficult. Ms. Davie states that “[g]ood practice in technology generally dictates that systems, applications, or data be moved in pilots or phases.” She notes that the GSA is developing cloud-specific blanket purchase agreements to help other federal agencies compare services and move to the cloud.

While Ms. Davie’s post was direct primarily to government agencies, her comments remain true for other companies and organizations considering a move to the cloud. The bottom line is that cloud computing can offer a wide variety of benefits to its users, but companies should make sure that they’ve planned ahead and put in place a framework to ensure a smooth transition.

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According to news reports, Google's new Chrome operating system will rely on cloud-based storage rather than hard drives. Microsoft's Windows 8, currently under development, is rumored to take a similar approach, although combined with hard drive support.

The Chrome operating system is reported to boot up in only seven seconds, to avoid the potential loss of data inherent in possible hard drive failure, and to make the amount of storage needed essentially irrelevant. Presumably, such solutions would also cut down on the size and cost of PCs, tablets, and other devices. read more

Simon Bradshaw, Christopher Millard and Ian Walden of the Cloud Legal Project at the Queen Mary University of London School of Law recently published a 47-page paper comparing the terms and conditions of 31 cloud-based services provided by 27 discrete providers. The paper is available for download here.

The study confirms many of the observations we and others have previously made regarding the form terms and conditions for cloud-based services; most notably, an effort to disclaim liability for the use of cloud-based services.   read more

I recently read an interview with Jimmy Harris, the Managing Director of Cloud Services at Accenture. The interview can be accessed here.

Mr. Harris offers some interesting perspectives on cloud computing based on many years of experience in IT. Among them are the observation that cloud computing is the "purest" form of outsourcing. Mr. Harris addresses this from a primarily technical point of view. From a legal point of view, the same considerations that apply to any outsourcing agreement should apply in negotiating and drafting a cloud services agreement. These concerns include clearly defining the provider's contractual obligations, performance criteria (uptime), and warranties.

Mr. Harris also observes that the role of the IT Manager is shifting from that of a service provider to a service integrator. In practical terms, this means that an IT Manager needs to be able to compare various cloud technologies based on cost, suitability, security, and performance. From a legal standpoint, this means that a business should also compare the offerings based on contractual terms and conditions and legal compliance.

Mr. Harris has a number of other interesting observations, which I commend to your attention. read more

As organizations try to reduce expenses, gain efficiencies and stay current with today’s business environment, one of the areas they are turning to is cloud computing. While cloud computing can and often allows an organization to achieve those three goals and others, the organization must make a conscious effort to take the necessary steps to reap these benefits.

A recent article in the online edition of the Cloud Computing Journal entitled “How Companies Can Reap the Benefits of Cloud Computing?” sets forth some of the steps companies must take in order to get the full benefit of cloud computing.

According to the article, a company must first understand the problem they are trying to solve. Often, cloud computing solutions can solve some problems but they can’t solve all problems. Second, companies must understand what the cloud computing vendor is offering and whether the offering fits their needs. Inherent in this is an understanding of the contractual arrangement being entered into. Lastly, the company needs to understand the capabilities it is trying to achieve. A key question is what is the business value of the initiative.
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