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Microsoft Highlights Potential Risks Of Cloud Computing

Posted on: Friday, 6 November 2009, 05:55 CST

Microsoft released a white paper on Thursday describing the privacy issues businesses should consider before moving towards cloud computing services.

Although shifting to hosted software accessed via the Internet “cloud” could bring economic benefits, there are serious questions about data protection, the technology giant said.

Businesses should know where their data resides within the cloud, and be guaranteed that they control who accesses it and when, Microsoft said.

"We want to take the initiative in regard to our position on privacy in the cloud," said Brendon Lynch, Microsoft’s senior director of privacy strategy, during an interview with the AFP news agency.

Redmond, Washington-based Microsoft released its "white paper" in parallel with an International Conference of Data Protection and Privacy in Spain.

"Cloud computing does raise a number of important policy questions concerning how people, organizations, and governments handle information and interactions in this environment," the paper said.

"Privacy protections are essential to building the customer trust needed for cloud computing and the Internet to reach their full potential."

Sales of packaged software have long been the foundation of Microsoft’s wealth.  But competitors such as Google have been working to attract consumers and businesses with email, spreadsheet and other applications offered online as free or low-cost services.

This trend towards cloud computing gained traction during the economic slowdown, providing businesses a way to reduce costs by “renting” hosted applications rather than having to purchase, install and maintain software on their own servers.

Microsoft has answered the trend with "client plus cloud" offerings, which combine conventional packaged software with features hosted as services online.

"The next generation of cloud computing has enormous potential to create new jobs and economic growth," said Lynch.

"Cloud computing is a very significant change; it provides unprecedented scalability and flexibility."

Consumers and businesses need guarantees that their online data is protected by strong privacy policies and safe infrastructures, Microsoft said.

Cloud computing typically requires the firms that host services to have data centers in a number of countries and time zones, but this presents challenges in dealing with varying governments, police agencies, and laws, Lynch noted.

"Data flows are becoming more global but privacy laws are local.”

"The full benefits of cloud computing will not be realized if there cannot be harmony and consistency with regulation,” he told AFP.

Lynch likened the ideal cloud computing host to a warehouse landlord, saying the task is to basically rent customers space for their data while keeping the structure secure.  In this scenario, the tenant holds the keys to the data.

"Generally speaking, the data is their own and we are just hosting the box they put it on," Lynch said.

"If we were approached by a government authority to gain access, we would try as much as possible to redirect the legal process to the customer to let them decide how to respond."

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On the Net:

• Microsoft
• International Conference of Data Protection and Privacy

Source: RedOrbit Staff & Wire Reports

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