Cloud Computing –The Basics for Employers• Infrastructure as a Service (IaaS) -Basic Model with additional computing power and storage space as needed • Platform as a Service

© 2009 PULLMAN & COMLEY, LLC

Cloud Computing – The Basics for Employers

ABA Technology & Workplace CommitteeDaniel A. Schwartz April 29, 2010


What Is Cloud Computing?




“Old Steve Jobs Had a Farm…”

• 500,000 sq foot facility being built by Apple in North Carolina


“And on that farm, he had some servers….”


So What Is Cloud Computing?

• A Form of Remote Electronic Data Storage, Processing & Application Services on the Internet.• For data, Instead of storing information on a computer or

service at office or place of business, it is stored in the “cloud”

• The “Cloud” Is a Collection of Larger Servers Located Elsewhere and Maintained by a Vendor• The vendor then becomes responsible for the hardware

and the software to run things for which the company pays a monthly fee for services

• The data or application becomes accessible anywhere there’s an Internet connection


Don’t Be Confused By the Names

• Software as a Service• SaaS• Used to be “Application Service Provider” (ASP

services)

• It’s a loose term that describes a variety of data storage, process and application services; key is the data is not on company’s site.

• “Cloud” is just a way of conceptualizing an unseen network used over the Internet


You May Already Be Using It

• Web-based e-mails from Google and Yahoo already using “cloud”-based solutions for things like e-mail

• “Your” e-mail, is stored on a server in….U.S.? India? Offshore?

• Indeed, Google has applications that all work off that same model

• Turbotax/Mint same model


How Else to Think About It?

• Think of it as your computer in the sky, accessible from any computer or phone or device (iPad anyone) on the internet. • Most of the time, some data still resides on some

local servers • Also think of it as software that you can use from

anywhere• Need a word processor? presentation device?


What Type of Services?

• Provide E-mail• Word-processing• Data storage• Data processing• Batch processing• Web Hosting• Media Storage


Several Delivery Models

• Infrastructure as a Service (IaaS) - Basic Model with additional computing power and storage space as needed

• Platform as a Service (PaaS) - Cloud is used as a computing platform where the user can develop and use its own applications

• Software as a Service (SaaS) - Most complex, providing software for users to use instead of on their own systems.


Different Types of Clouds

• Public - Shared, pay as you go basis. Limits are security, lack of customization

• Private - Dedicated hardware. Limits are cost-savings and performance

• Hybrid - Combination of clouds (or local servers) that allows confidential information to be stored or used differently


If the New York Times Says So…

• “Companies Slowly Join Cloud-Computing” –April 18, 2010• Amazon renting other companies the remote use

of its technology infrastructure to run their computer operations

• Google, Microsoft, AT&T (and also Rackspace & Terremark) convince company to give up managing data center and use theirs instead


NYT Cont’d

• Just like the old mainframe model• Now companies using variety of different models

• Avoid upfront hardware and buy time on servers• Use also as a backup system or to handle spikes

in computing demand• Other models being developed

• For example, companies can cordon off collection of servers and use them exclusively as if their own


Why Would You Use/Need Cloud Computing

• Costs• Scalable• Outsources to “Professional”• Elastic – to Deal with “Spikes” in Demand• Backups• Remote Access/Mobility• Quickness – Can Get Start Almost Immediately• Collaboration • Security (Better Than A Stolen Laptop, but….)


What Are the Risks to Cloud Computing?

• Security, Security, Security• Offline Access• Mishandling of Data• Easier to Get via Subpoena?• Loss of Control

• Data could get moved from California, to Texas, to Offshore? What happens to copies and leftover data?

• Subcontracting• Lack of customization


From a Legal Perspective

• Typically develop an agreement• Issues include:

• Where data will be stored• Customization of software, updates• Reliability, responses• Tier Standards• Ending Relationship (Getting Data)• Security, Audits, Record Holds• In the event of…data breach, disaster• Subcontracts• Any “peeking” at data?


What Laws May Apply

• SOX• HIPAA• Data Privacy Laws (Massachusetts)• Wage & Hour Laws• Any other law that addresses record-keeping


Not All Clouds Are The Same

• Developing technologies change shapes of cloud

• For example, “Tier 4” hosts provide greater security• Guarantees 99.995% availability, redundancy,

firewalls• Not susceptible to one-time events; deal w/power

loss


New Legislation?

• Microsoft’s GC proposed the Cloud Computing Advancement Act to address cloud privacy• Enhanced privacy protection and data access

rules• Update Computer Fraud & Abuse Act• “Truth-in-cloud-computing principles” so

consumers could understand what was happening

• Work on a global basis to develop solutions


What do the courts say?

• Nothing• Only one state case refers to “cloud computing”

and in criminal context• One federal case refers to it in trademark concept

• And no regulatory guidance coming out from agencies either


The Future

• Perhaps a “hybrid” cloud – stored locally and remotely. • Removes the what if• Easier to work on matters stored locally

• Legislation, regulation, analysis must be forthcoming

• Regardless, the cost savings and efficiencies brought by Cloud Computing make it an option that companies can no longer avoid.


Daniel A. SchwartzPullman & Comley, LLC

Hartford, CTwww.ctemploymentlawblog.com

twitter.com/danielschwartz

BridgeportHartfordStamfordWhite Plains

www.pullcom.com

www.cte

www.pullco

Documents

Cloud Computing –The Basics for Employers• Infrastructure as a Service (IaaS) -Basic Model with additional computing power and storage space as needed • Platform as a Service