Legal challenges of cloud based enterprise 20

Enterprise 2.0 study

Legal Challenges of Cloud-Based Enterprise 2.0

14 September 2010

Mike Thompson Headshift

Overview• Introduction to Cloud Computing

• Data Storage, Transfer and Jurisdiction

• Security

• Data Portability, Interoperability and Service Continuity

• Service Level Agreements and Liability

• Pricing

• Conclusions

What is Cloud Computing?“Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.”The NIST Definition of Cloud Computing

Drivers of Cloud Computing•Cost Reduction•Turning CAPEX into OPEX•Improved Time-to-Market•Going GreenThe Future of Cloud Computing - Opportunities for European Cloud Computing Beyond 2010

http://cordis.europa.eu/fp7/ict/ssai/docs/cloud-report-final.pdf

Conceptually Seductive?

From Flickr user tipiro

Legal Complications“In the real world national borders, commercial rivalries and political imperatives all come into play, turning the cloud into a miasma as heavy with menace as the fog over the Grimpen Mire that concealed the Hound of the Baskervilles in Arthur Conan Doyle’s story.”From Storm Warning for Cloud Computing by Bill Thompson

http://news.bbc.co.uk/1/hi/technology/7421099.stm

Why is this relevant to Enterprise 2.0?

• Security

• Pricing

• Conclusions

Where is my data?

Finding: Very little public information about data

location and jurisdictional issues

• Security

• Pricing

• Conclusions

Finding: Data Centre Security most tightly managed,

providers adhering to quality standards

Finding: Data encrypted in transit but not in storage

Finding: Status of data deletion on contract termination unclear

Finding: Access control provisions more limited than

in on-premise software

• Security

• Pricing

• Conclusions

Finding: Customer has limited period of time after contract

termination in which to retrieve data

Finding: No attempts to address issues of service

continuity

Finding: Transferring and translating data between

providers remains non-trivial

• Security

• Pricing

• Conclusions

Finding: Provision of information on SLAs was

patchy

Atlassian Hosted Services“ATLASSIAN AND ITS LICENSORS MAKE NO REPRESENTATION, WARRANTY, OR GUARANTY AS TO THE RELIABILITY, TIMELINESS, QUALITY, SUITABILITY, TRUTH, AVAILABILITY, ACCURACY OR COMPLETENESS OF THE SERVICE OR ANY CONTENT THEREIN OR GENERATED THEREWITH. ”From Atlassian Hosted Services Terms of Use Section 12

http://www.atlassian.com/hosted/terms.jsp

Google Apps Premier“Google Apps Covered Services web interface will be operational and available to Customer at least 99.9% of the time in any calendar month (the "Google Apps SLA"). If Google does not meet the Google Apps SLA, and if Customer meets its obligations under this Google Apps SLA, Customer will be eligible to receive the Service Credits described below.”From Google Apps Service Level Agreement

http://www.google.com/apps/intl/en/terms/sla.html

Finding: Liability limited to amount paid in service fees

by customer over a set period of time, redeemable only in the form of service credits

• Security

• Pricing

• Conclusions

Finding: Services operated on a monthly subscription basis with a price per user and a minimum number of users

• Security

• Pricing

• Conclusions

Conclusions• Data Storage, Transfer and Jurisdiction

Could impede adoption in highly regulated industries

• SecurityNot likely to impede adoption

• Data Portability, Interoperability and Service ContinuityCould impede in the case of smaller providers

• Service Level Agreements and LiabilityNot likely to impede adoption

Greater clarity and greater trust

Salesforce 2008“Salesforce.com shall not be responsible or liable for the deletion, correction, destruction, damage, loss or failure to store any customer data.”From Clouded in Uncertainty: The Legal Pitfalls of Cloud Computing by John Salmon

http://www.computing.co.uk/computing/features/2226701/clouded-uncertainty-

Salesforce 2010“[Salesforce.com] shall maintain appropriate administrative, physical and technical safeguards for protection of the security, confidentiality and integrity of your data.”From Salesforce Master Subscription Agreement Section 8.3

http://www.salesforce.com/company/msa.jsp

Legal challenges of cloud based enterprise 20

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