Cloud Computing: Adding a New Dimension to LPO


IT’s raining Cloud:

CLOUD has over the decade become an indispensible part of the global ICT ecosystem dissolving the infrastructural barriers between differently sized organizations. Hardware and software assets are no longer bought in-house but are procured and leveraged from the service providers via internet. CLOUD computing has created ample scope for innovation and cost effectiveness thereby ushering in a range of business and pricing models such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS).

There has been a considerable upsurge in applications, right from enterprise back-office systems to gaming, based on the mechanism of cloud. Based on this, one can conveniently predict that the ‘CLOUD’ is in a process of building up. According to an independent research, the global cloud computing market currently pitted at $37.8 billion will reach to $121.1 billion by 2015. SaaS till date is the largest segment occupying almost 73% of the market with some of the major provider in the likes of Adobe Web Connect, Google Mail, Cisco WebEx, and Yahoo Mail.

The Cloud Burst!
Too much of cloud can lead to a burst. With public and private cloud hosting multiple of applications and data, chances of spilling are humongous. It is interesting to note that in the age of optimization oriented resource management, even the innovative concept of ‘CLOUD’ has aroused major concerns. The first critical aspect is the unknown physical location of the data. A critical data mass can be stored in any country irrespective of a customer’s knowledge. This arouses the question of the legal governance of the data. In case of a data dispute between the vendor and a customer, there is a looming confusion on the applicable jurisdiction.

The next very important concern is the ownership of the data hosted. The lack of liability coverage policy creates a looming terror in case of data breach or loss. In spite of technological advancements, one cannot assume any security system to be infallible or fool proof. Furthermore, it is a matter of great concern whether a critical data is protected through IPR. This automatically puts to question the ingenuity of the cloud vendor. Therefore it becomes imperative for customers to understand the security as well as the legal implications while selecting a particular vendor.

Though CLOUD will continue to prove as a holistic technology solution for the SMBs, the truth remains that the relationship ecosystem will continue to remain complex.

Taming the CLOUD

The current situation calls for applicable statutory provisions regarding data protection be adjusted in order to find an appropriate arrangement for cloud computing. This has generated some sort of spurt in the legal services outsourcing industry in India. The issues with cloud computing gives rise to opportunity in the domains such as:

  • Jurisdiction

  • Data Security

  • Privacy

  • Data Protection Laws

  • Contract of Adhesion

  • Costs and Pricing Model

  • Maintenance and Support

  • Availability and Reliability

  • Disaster Recovery

  • Exit Strategy Intellectual Property

  • Licensing

India with its rich talent pool of skilled lawyers, proficient in all popular domains of the legal vertical, offers quality services at compelling price points. The uniqueness of the Indian legal process outsourcing lies in the availability of extremely knowledgeable lawyers who are aware of international laws. To add to the knowledge, polished communication skills are an added advantage. The amalgamation of the talent and opportunities can usher the predicted growth of USD 1.3 billion by 2015.