Last week, the European Commission announced its strategy for cloud computing. In doing so, the Commission aims to establish uniform rules that govern the use of cloud technology across member states, allowing the EU to exploit the enormous economic potential that this technology has to offer.
The term ‘Cloud Computing‘ refers to a technology that enables users to store or use their data remotely, accessing it via the web. Cloud computing can be described as a somewhat ‘invisible’ technology, in the sense that many Internet users are already benefiting from it, even though they may not always be aware of it. For instance, some common applications that rely on cloud computing include web-based e-mail services and social networks. This technology provides its users with a high degree of flexibility, allowing them access to their data around the clock and from any location in the world.
Across the globe, cloud computing proves to be a highly promising technology, being the fastest-growing segment of the IT industry. However, despite the obvious benefits of this technology, many businesses and consumers remain hesitant about it due to concerns over data protection and legal uncertainties. These concerns often prevent potential users from adopting cloud technology. Through its Strategy, the European Commission hence aims to promote a more widespread use of cloud computing across the EU, in order to unleash its full economic potential.
In addition to addressing security concerns, the Commission also plans to increase people’s confidence in cloud computing by clarifying copyright laws and creating model service contracts. Uncertainties over the ownership of data can often give rise to concern and even result in copyright disputes. The ownership of data that sits in the cloud is usually set out in the contracts between service providers and their users, although this can create barriers for individuals or SMEs, who do not always have the capacities to fully examine the terms set out in these contracts. The Commission, hence, plans to address these issues by creating model contracts and clarifying the legal obligations.
Besides using public policies in order to enhance the use of cloud computing, the EU also teamed up with major players from the private IT and telecommunications sectors to ensure that Europe’s IT sector meets the necessary requirements. Ultimately, the goal of this partnership is to increase the competitiveness of European businesses in the international arena.
The Commission highlights that the goal of its Strategy is not to create a public “super cloud”, but to provide the legal basis and the business environment that allows Europeans to use cloud computing to its fullest potential. The Commission estimates that cloud computing has the potential to raise EU GDP by 160 billion euro per year by 2020, whilst generating 3.8 million jobs.
The economic benefits from cloud computing are largely due to the fact that it lowers the operating costs of businesses. The vast majority of businesses that are already using this technology have experienced a 10-20% decrease in IT costs. This is mostly due to the fact that businesses can save their data in the cloud instead of purchasing expensive, physical data storage systems and hiring in-house IT staff. They further save space and electricity that would otherwise be consumed by physical storage systems. Since most cloud services are paid by usage, businesses can easily estimate the costs based on the amount of data they create.
Finally, cloud computing also facilitates business expansion as it lowers the barriers for enterprises and SMEs that want to operate globally. Businesses can thus extend their services to other countries, or remotely manage their operations from a less expensive area. Cloud computing provides this kind of flexibility, as the amount of space for data storage can be increased upon simple communication with the service providers. This, in turn, provides a favourable climate for businesses that are looking to expand.
By improving privacy and copyright protection and clarifying legal obligations, the EU hopes to stimulate a wider use of cloud computing. This technology holds great potential for businesses across the region and is expected to be a driving force towards job creation and growth in Europe. After all, thriving businesses are the backbone of a healthy economy.
David Casa is a Nationalist MEP