In this article, Karan Singh of JGLS discusses the legal requirements to set up a public or private cloud computing service business in India.
Introduction
Cloud Computing is the computing as a service over the internet. It is also referred as “the Cloud” in simple language. It is the delivery of on-demand computing resources- everything from applications to data centers over the internet on a pay for use basis. Cloud computing has elastic resources where user can scale up or down quickly and easily to meet demand. It gives metered service so you pay for what you use.[1]
Mostly, everyone uses cloud computing these days. If use you an online service to send emails, edit documents, watch movies, or TV, listen to music, play games or store pictures or other files, then you are likely to use cloud computing. From small startups to MNCs, from government organisation to NGOs all are taking advantage of this technology for all sorts of reasons.
What can you do with the cloud:
- Create new apps and services
- Store, backup and recover data
- Host websites and blogs
- Stream audio and video
- Deliver software on demand
- Analyse data for patterns and make predictions.[2]
Public cloud computing service
Public clouds are owned and operated by a 3rd party cloud service provider, which deliver their computing resources like servers and storage over the internet. Microsoft Azure is an example of a public cloud. Cloud provider manages and own all the hardware, software, and other supporting infrastructure. You just have the access these services and you can manage your account using a web browser.
Private Cloud Computing service
A private cloud is a service exclusively by a single business or organisation. A private cloud can be physically located on the company’s on site datacenter. Some companies also pay 3rd party service providers to host their private cloud. A private cloud is one in which the services and infrastructure are maintained on a private network.
Benefit of cloud computing
Cloud computing is a new technology to enhance the traditional way business to modern way business. But why is cloud computing so popular? Here are some common reasons why companies are opting cloud computing.
Cost
Cloud computing eliminates the expenses of buying hardware and software and setting up. Expenses for pen drive, hard drives to store can be saved as cloud computing does not need any hardware for storing files.
Speed
Cloud Computing is a service which is given on demand. So even vast amounts of computing resources can be supplied in minutes. This fast speed gives businesses a lot of flexibility and taking the pressure off capacity planning.
Global Scale
The benefit of cloud computing services includes the ability to scale elastically. This means that the service can be adjusted according to the user and the location. For example: more or less computing power, storage, when it’s needed and from the right geographic location.
Productivity
Data, when stored in the offices, can create problem which requires a lot of racking and stacking or may be difficulty in hardware setup, software patching and other time consuming chores. Cloud Consuming removes the need for many of these tasks, so that the teams can spend time on achieving more important goals.
Performance
Cloud Computing works for the users and upgradation is regularly done by the companies. The database is regularly upgraded to the latest generation of fast and efficient computing hardware. This offers several benefits over a single corporate database, including reduced network and greater economies of scale.[3]
Disadvantages of Cloud Computing
Service is unavailable when the internet goes down: This can be a problem in emergency. Whe cloud computing only works when internet is there and will go down if internet goes down. Many service providers of cloud based technology are very reliable and can promise an exceptionally high percentage uptime But problems can occur if you are solely relied on the internet to access your files and the internet connection in your workplace or home suddenly malfunctions.
Shifting from one provider to another: This can be a huge problem and confusing. If you wish to change your provider then you have to transfer your files over to a different provider, that process may prove much more complicated than expected.
Reduced Customer control: Customer are bond by the service provider. Customers are at a risk of getting interference from the service provider. Many cloud computing service providers do not provide their details of infrastructures, which may be frustrating to customers that prefer to handle administration needs on their own.
Main Legal issues to be kept in mind while setting up a cloud computing service in India are
Copyright: Copyright can be a main legal issue when cloud computing service is set up in India. It is said that the copyright issues in the cloud is difficult to understand as the IPR laws vary from country to country. This makes the application of Copyright law difficult since the question of jurisdiction creates confusion in the cloud computing environment. Copyright infringement content can be uploaded on the cloud in thousands ways. To solve this problem, it should be ensured that every party involved is well aware of the rules or laws and rights of the country in which the data is stored.
Jurisdiction: The jurisdiction can be a legal issue as cloud computing works globally. The influence of cloud computing globally to conduct operations through computers has led to number of legislative issues. This can be over government or jurisdiction. The owner or customer is unaware of the location of the data which can be problematic as the location can tell the law of that country. But if we do not know the location then which law will be applied is unknown.[4]
Data Portability: Data portability is that your data can be ported anywhere in the world. It can be loosely described as the free flow of people’s personal information across the internet. Privacy is just a word in cloud computing. For example, anyone can import your social network connections, ability to reuse any information in hospitals, or any cafe.
Indemnity: The service provider does not have any responsibility for service interruptions or for any damages caused to the data. Customers can not look up to the cloud for any sort of indemnification. No measures are given for risk mitigation.
Status of Cloud Computing in India
In India there is no legislature or rule which exclusively deals with cloud computing or the legal issues that is mentioned above. And rules for cloud computing is difficult as it is globally same for everyone. Hence, the laws related to cloud computing is very limited in its applicability. But we can not say that there is no law exists in India for cloud computing. In India, there is a provision under Information Technology act, 2000. This Act deals with the issue of privacy in cloud computing from a distance.
Information Technology provides for the protection of privacy under section 72. Section 72 of the Act states the Penalty for breach of confidentiality and privacy. If any person who, in pursuance of any of the powers conferred under this Act, rules or regulations has secured access to any electronic record, book, register, correspondence, information, document or other material without the consent of the person concerned discloses such electronic record, book, register, correspondence, information, document or other material to any other person shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both.[5]
So, if anyone wants to set up a cloud computing service then he/she has to keep in mind that breach of privacy can be a problem for you. You have to be very carefull for the privacy of the customer.
Section 80 of the Information Technology act, 2000 deals with the search and seizure of computer data on connected systems if there is reasonable justification to do so. Cyber law aim is to ensure that privacy is maintained and respected in the cloud. Measurements should be taken by the companies to maintain and safeguard all that is stored in the cloud. And if the service provider fails to provide the service and maintain the privacy then there should be legal action against them.[6]
Conclusion
As of now, to set up cloud computing there is not much legal requirement. The service provider has to take care of the privacy of the customer and privacy should be the main issue of the cloud computing. Cloud industry is growing rapidly and competition is also increasing day by day. Cloud computing won’t succeed if the service provider do not create trust in the customers. We can not trust a service provider if he is likely to disclose or information and data. And without any legal support in India, user’s data is not safe at all. Government should make some rules and regulation for cloud computing in India this will help the companies and MNC’s to secure their data.[7]
India needs more regulations and not only just in privacy. According to Information Technology Act, which only deals with privacy secures the privacy part of cloud computing but what about other parts like jurisdiction, Data portability, Copyright issues.
References
[1] https://www.ibm.com/cloud-computing/learn-more/what-is-cloud-computing/
[2] https://azure.microsoft.com/en-in/overview/what-is-cloud-computing/
[3] https://azure.microsoft.com/en-in/overview/what-is-cloud-computing/
[4] http://www.indialawjournal.org/archives/volume7/issue-1/article3.html
[5] Section 72 of Information Technology Act, 2000
[6]http://www.mondaq.com/india/x/279070/Data+Protection+Privacy/Privacy+Issues+In+Cloud+Computing+With+Reference+To+India
[7]http://citeseerx.ist.psu.edu/viewdoc/download;jsessionid=891442B07F58C4D2B4827B9F09C6DD05?doi=10.1.1.403.2221&rep=rep1&type=pdf
