Cloud Computing make a revolution in economy and Information Technology

7/31/2019 Cloud Computing make a revolution in economy and Information Technology

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Cloud Computing make a revolution in economy and Information

Technology

Mohammad Abedi1*, Mehdi Darbandi

1, Jalal Nakhaei

2

1Department of Electrical Engineering and Computer Science at Iran University of Science and Technology

(IUST); Tehran, Iran2

Department of Art and Architecture, Science and Research Branch Islamic Azad University; Tehran, Iran(*Corresponding author: Mohammad Abedi)

Abstract: This paper discuss about influencesof cloud computing and also other social

networks like cloud computing on different

aspects of one society, for example as a case

study we review the impact of these social

networks on a economic and cultural aspects of

one society; also on the other hand we review

some potential parameters that has deep

influences on a extension of such networks.

Cloud Computing is a powerful and flexible

software environment, which delegates the

material's management and in which users pay

as they go. The migration of enterprise

applications on the Cloud is increasing. Most of

these applications are available with a

standardized access to the business logic

through Internet. However, the current cloud

offers is not always complying with users' needs.

For instance, some providers do not guarantee

sufficient resource flexibility and highavailability. Other users try to build their own

Cloud based on open source technologies.

Introduction:We told this social network and social service as

a Cloud, because the concept of this

technology is still cloudy, we havent enoughknowledge about hardware and/or software

platforms of such network, also we havent any

information about its architecture and thelocation of resources. Cloud computing is very

promising technology that may undoubtedly

change the way many companies operating. It is

prominent, in fact, that they create new offers on

the providers side and, conversely, new needson the users side. In other words, Cloud

technologies are potentially able to transform

networks, through the interconnection of

dispersed resources located in different

geographical places, services and lives. The

transformation of services supplied by internet

providers imply the advent and consolidation of

Software as a Service (hereinafter SaaS) [1],

and/or Resource as a Service (hereinafter RaaS),

virtual hardware, etc. these are all examples of

the phenomenon of dematerialisation andvirtualisation of physical items that involve to a

great extent hardware that often, is provided as

a service. Transformation of lives means that

companies and consumers are expected to

become familiar with the idea that their data are

not stored in-house, but theyre stored in theCloud, i.e. in the dispersed servers of the

provider. The current developments in the field

of Cloud computing are (maybe) paving the way

to the personal computer and servers of the

future, composed just of a monitor, a keyboard,a mouse and an internet connection. Potentially,

in fact, all data conventionally stored in the

hard disk of the computer can be retrieved

online from the portal of the Cloud provider.

Cloud Computing System (CCS) aims to power

the next generation data centers and enables

application service providers to lease data

center capabilities for deploying applications

depending on user Quality of Service (QoS)

requirements. Huge investments and complex

managements are shifted from users toproviders.

Mobile cloud is a machine-to-machine service

model, where a mobile device can use the cloud

for searching, data mining, and multimedia

processing. To protect the processed data,

security services, i.e., encryption, decryption,

authentications, etc., are performed in the cloud.

JOURNAL OF COMPUTING, VOLUME 4, ISSUE 9, SEPTEMBER 2012, ISSN (Online) 2151-9617

https://sites.google.com/site/journalofcomputing

WWW.JOURNALOFCOMPUTING.ORG 146

2012 Journal of Computing Press, NY, USA, ISSN 2151-9617


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In general, we can classify cloud security

services in two categories: Critical Security

(CS) service and Normal Security (NS) service.

CS service provides strong security protection

such as using longer key size, strict security

access policies, and isolations for protecting

data, and so on. The CS service usually

occupies more cloud computing resources;

however it generates more rewards to the cloud

provider since the CS service users need to pay

more for using the CS service. With the increase

of the number of CS and NS service users, it is

important to allocate the cloud resource to

maximize the system rewards with the

considerations of the cloud resource

consumption and incomes generated from cloud

users.

Cloud computing is a new network computing

paradigm based on IP architecture, it is

everywhere, pick up any tech magazine or visit

almost any IT website or blog and you'll be sure

to see talk about cloud computing. Cloud

computing applications without borders,

mobility and other characteristics has led to

their own safety and security issues in the

security field.

Elasticity of cloud computing eases the burden

of capacity planning. Cloud computing users

dynamically provision IT resources tracking

their fluctuating demand, and only pay for their

usage. Therefore, cloud computing essentially

shifts the burden of capacity planning from

user's side to provider's side. On the other hand,

providers take this burden with the optimistic

assumption that diverse workloads from various

users will flatten the overall demand curve.

However, this optimistic hypothesis has not been

proved yet in the real world cases. In fact,

counter evidences have been raised. December

2009, Amazon Web Services (AWS), a leading

infrastructure cloud service provider, started to

offer a real-time pricing for computing

resources -- Amazon EC2 Spot Instances (SIs).

Real-time pricing, in principle, encourages

users to shift their flexible workloads from

provider's peak hours to off-peak hours with

monetary incentives. Interestingly, from our

observation on AWS's one-year SI price history

datasets, we conclude that the observed

monetary incentive is not large enough to

motivate users to shift their workloads. It is

reasonable for users to choose SIs over on-

demand instances because SIs is 52.3% cheaper

on average. After that, shifting the workload to

cheaper period provides only 3.7 % additional

cost savings at best. Moreover, both average

cost savings and price fluctuation have not been

meaningfully changed over time.

Cloud computing enables IT systems to be

scalable and elastic. One significant advantage

of it is users no longer need to determine their

exact computing resource requirements upfront.

Instead, they request computing resources as

required, on-demand.

Cloud Computing is often described as

"resources accessed via a browser over the

Internet." However, this definition has become

increasingly insufficient to characterize the

breadth of applications and use cases for the

cloud, and the networks that must support them.

A broadening range of endpoints are accessing

the cloud: browser-free device apps, multimedia

endpoints such as video and game consoles,

sensor networks, servers, and storage. The

wireline and wireless network requirements-e.g.,

jitter, latency, packet loss, protocol support-for

these uses vary, and imply that a variety of

network capabilities are sometimes necessary:

e.g., MPLS for quality of service via class of

service to support interactive high definition

video in the cloud; optical transport for native

protocols such as Fiber Channel for data

integration in hybrid cloud scenarios; route

control for country compliance issues. Also,

distributed topologies and optimized routing are

required due to application latency constraints.

Moreover, wireless sensor networks and hybrid

cloud scenarios such as cloudbursting that

require a variety of complex distributed data

approaches are driving new transport

requirements: guaranteed bandwidth, dynamic

bandwidth on demand, and usage-sensitive

pricing for fine-grained quantities and duration

of bandwidth. Cloud Computing, either as an

integrated service or in support of pure-play

customers must drive service providers'

international telecommunications infrastructure

evolution as well as BSS/OSS.






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As multi-core processors with tens or hundreds

of cores begin to grow, system optimization

issues once faced only by the High-Performance

Computing (HPC). To satisfy the requirement,

one can leverage multi-core architectures to

parallelize traffic monitoring so as to progress

information processing capabilities over

traditional uni-processor architectures.

Cloud computing is an emerging computing

paradigm. It aims to share data valuations, and

services transparently among users of a massive

grid. It became a hot issue for its advantage

such as "reduce costs", "increase business

flexibility" and/or "provide business continuity".

We study methods to discuss the cloud

computing opportunity for Chinese IT industry.

Build a model to describe the kernel element in

cloud computing industry.

High-speed networks and low-cost commodity

components which becomes progressively

cheaper, faster and easily available, led

Computer Science (CS) research focus shifting

from programming computers to the question of

how best to design, build, analyze, and operate

networks [20]. New requirements and

challenges are today met by the design of a new

operational model which is enabled by an old

technology (i.e. Virtualization), rather than the

implementation of a new technology: Cloud

Computing. Although CS is mainly fostering

Cloud Computing solutions solely for specific

fields, such as enterprise and transactional Web

applications (e.g. Amazon EC 2

aws.amazon.com/ec2), this pervasive paradigm

is generating a metaphor that enables to access

and share software in the Internet as data in a

way which is natural for human beings.

The ability to record and keep account of the

usage of cloud resources in a credible and

verifiable way is a precursor to widespread

cloud deployment and availability because

usage information is potentially sensitive and

must be verifiably accurate. In an attempt to

provide a mutually verifiable resource usage

and billing mechanism, we found that the

frequent asymmetric key operations of a digital

signature lead to excessive computations and a

bottleneck of billing transactions.

While cloud computing (CC) is a scalable model

of shared infrastructure and on-demand

computing, it lacks a transparent trust and

security mechanism. A data owner (DO) loses

control over the data outsourced to a machine

in the cloud controlled and operated by a cloud

service provider (CSP). This machine is at a

location unknown to a data owner. This loss of

control over data is further intensified with the

lack of managing users' access to the data from

practical cloud computing perspectives.

Cloud computing provides cost-efficient

opportunities for enterprises by offering a

variety of dynamic, scalable, and shared

services. Usually, cloud providers provide

assurances by specifying technical and

functional descriptions in Service Level

Agreements (SLAs) for the services they offer.

The descriptions in SLAs are not consistent

among the cloud providers even though they

offer services with similar functionality.

Therefore, customers are not sure whether they

can identify a trustworthy cloud provider only

based on its SLA. To support the customers in

reliably identifying trustworthy cloud providers,

we propose a multi-faceted Trust Management

(TM) system architecture for a cloud computing

marketplace. This system provides means to

identify the trustworthy cloud providers in terms

of different attributes (e.g., security,

performance, compliance) assessed by multiple

sources and roots of trust information.

Cloud Computing is an emerging technology in

the area of parallel and distributed computing.

Clouds consist of a collection of virtualized

resources, which include both computational

and storage facilities that can be provisioned on

demand, depending on the users' needs. Gang

Scheduling is an efficient technique for

scheduling parallel jobs, already applied in the

areas of Grid and Cluster computing.

Based on cloud-computing and ecological

database, an anti-forest-fire ecological

management system was designed to detect

control and eliminate the forest fire. The cloud

computing platform was used to collect manage

and analyze the ecological data about the forest

fire etc., by monitoring the forest fire in ecology

and managing the information center. The






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cloud-computing platform against the forest fire

was built with the cloud-computing simulation

toolkit CloudSim, which is a framework for

modeling and simulating cloud computation in

infrastructures and services. The anti-forest-fire

ecological management system was a kind of

parallel decision support system for dealing

with the forest fire in ecology, and it provided

accurate timely and comprehensive information.

Besides, the system can help the forestry

department to make pre-arranged plans to

satisfy the actual needs of security management,

improve the intelligence and automation for

managing the forest fire ecologically, and

increase efficiency. The new technique can be

used to improve the ecosystem of forest fire

management and maximize the stability and

security of the forest ecosystem.

Scientific computing often requires the

availability of a massive number of computers

for performing large scale experiments.

Traditionally, high-performance computing

solutions and installed facilities such as clusters

and super computers have been employed to

address these needs. Cloud computing provides

scientists with a completely new model of

utilizing the computing infrastructure with the

ability to perform parallel computations using

large pools of virtual machines (VMs). The

infrastructure services (Infrastructure-as-a-

service), provided by these cloud vendors, allow

any user to provision a large number of

compute instances. However, scientific

computing is typically characterized by complex

communication patterns and requires optimized

runtimes. Today, VMs are manually instantiated,

configured and maintained by cloud users.

These coupled with the latency, crash and

omission failures in service providers, results in

an inefficient use of VMs, increased complexity

in VM-management tasks, a reduction in the

overall computation power and increased time

for task completion.

Mobile cloud computing is a combination of

mobile computing and cloud computing, and

provides cloud computing environment through

various mobile devices. Recently, due to rapid

expansion of smart phone market and wireless

communication environment, mobile devices are

considered as resource for large scale

distributed processing. But mobile devices have

several problems, such as unstable wireless

connection, limitation of power capacity, low

communication bandwidth and frequent location

changes. As resource providers, mobile devices

can join and leave the distributed computing

environment unpredictably. This interrupts the

undergoing operation, and the delay or failure

of completing the operation may cause a system

failure. Because of low reliability and no-

guarantee of completing an operation, it is

difficult to use a mobile device as a resource.

That means that mobile devices are volatile.

Therefore, we should consider volatility, one of

dynamic characteristics of mobile devices, for

stable resource provision.

Currently, Cloud network operators and service

providers are managing server, network and

storage resources by various management

systems to manage hardware, applications,

traffic, and resources monitoring including

bandwidth, storage capacity, and throughput

utilization. However, these systems are not

coordinated with accounting, security and

configuration systems to provide end-to-end

service management. Various players are

emerging to provide remote computing and

storage resources over the cloud network.

Telecommunications grade operation systems

will be the key to realize end-to-end service

management, and resource management to

assure application quality of service.

The scope of this paper is to assess whether or

not, from the legal point of view, it is feasible

that these innovations continue in reality or, to

the contrary, whether the development of Cloud

computing is expected to slow down or to stop.

Actually, in fact, Cloud market is still a niche,

although the investments made by private

companies and public institutions, mainly in

Europe and in the United States, allow analysts

to be optimistic about the future of these

technologies.

Cloud Computing is hinting at a future in which

we won't compute on local computers, but on

centralized facilities operated by third-party

compute and storage utilities. We sure won't

miss the shrink-wrapped software to unwrap






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and install. Needless to say, this is not a new

idea. In fact, back in 1961, computing pioneer

John McCarthy predicted that "computation

may someday be organized as a public utility",

and went on to speculate how this might occur.

In the mid 1990s, the term Grid was coined to

describe technologies that would allow

consumers to obtain computing power on

demand. Ian Foster and others posited that by

standardizing the protocols used to request

computing power, we could spur the creation of

a Computing Grid, analogous in form and utility

to the electric power grid. Researches

subsequently developed these ideas in many

exciting ways, producing for example large-

scale federated systems (TeraGrid, Open

Science Grid, caBIG, EGEE, Earth System

Grid) that provide not just computing power,

but also data and software, on demand.

Standards organizations (e.g., OGF, OASIS)

defined relevant standards.

The legal perspective is pivotal in order to

assess the future of Cloud computing and of

their providers since the applicable legal

framework is not neutral in facilitating or

limiting that expansion of businesses and

innovations [1]. Legal aspects, in fact, can be

seen as forces that, often very subtly, deploy

their effects on markets and businesses, acting

as barriers or enablers. In the next pages some

selected legal forces will be taken into

consideration and their impact on some

research questions will be investigated. The first

question is if, and to what extent, the applicable

legal framework can stimulate the starting up

and growing of Cloud technology providers and

of Cloud-based service providers (e.s. SaaS,

RaaS, etc). Furthermore, the paper will

investigate whether or not such a legal

framework can stimulate companies and

individuals to become users of Cloud

technologies, to store their data in the Cloudinstead of traditional storing methods, to use

software as services from remote locations, etc.

History of computer science has had

fundamental changes. For example in first

generation of computers (from 1945 until 1956),

vacuum tube was used in computers. In 2nd

generation (from 1956 until 1963) by the

invention of transistors, these tiny devices were

used in computers. After that, integrated circuits

were used in 3rd

generation of computers (1963

to 1971). Finally in 4th

generation (since 1971

up to now), along with technology advancement,

Large Scale Integration (LSI) circuits, Very

Large Scale Integration (VLSI) and Ultra Large

Scale Integration (ULSI) were used in

computers. Nowadays new technology that is

named as Cloud Computing is creating a new

era in computer industry and processing power.

By reviewing the historical points, we can

understand that the idea of Cloud Computing

taken from this fact: When the current user or

users dont require the processing resources,

these resources can be assigned to other users.

Most simple definition of Cloud Computing is:

Access to enormous resources and processing

powers even, through cheap computers.

Considering the revolution in economy

of society:As said in previous sections, the applicable

legal framework, i.e. the Law, is not neutral instimulating or impeding that businesses using

new technologies, like Cloud computing, are

successful. The first aspect to analyse regards

the possibility for American companies to

successfully run businesses as technology

provider or as service provider. The former isthe entity that supplies Cloud resources, on top

of which it is possible to provide services,

developed and stored in the Cloud (i.e. using

those resources) and delivered to the clients

online. A company can act as technology

provider and service provider at the same time.

However it is imaginable that a certain amount

of smaller enterprises enter the market of

Cloud-based service providers, following the

few big international players that have already

made the first steps.The investments needed to start up a business as

service provider are undoubtedly lower than

those required to create, manage and update a

Cloud infrastructure. Actually in America the

majority of Clouds are basically owned by

academic institutions, where there exist

commercial Clouds. With this respect in some






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countries is called to fill this gap. However,

some legal forces, which will be analysed below,

render this task more cumbersome for American

companies that are willing to enter the market

of Cloud technology providers.

Factors are partially different for Cloud-based

service providers, where America plays a

notable role. However, this market is still

limited and also in this sense its development is

affected by the applicable legal framework. The

legal forces hereto analysed affect the chances

(for both technology and service providers) to

enter the market, the possibilities to be

successful by reducing the compliance costs,

and the risks to exit from the market.

Considering the software as a factor:Chances to enter a market are undoubtedly

linked to the protection that a company can

have for the innovations it develops [2].

Conversely, software delivered through a Cloud

infrastructure, typically based on the SaaS

paradigm (and the same applies for RaaS and

virtual hardware resources), are in principle (as

far as they are considered computer programs

as such) not patentable in some countries [2].The situation is different in the United States,

where software patentability is not a priori

excluded. This could allow one to say that

American software houses are in a more

competitive position in comparison with

European companies, thus they have better

opportunities to enter (and above all to survive

and make profits) the SaaS market.

Given the fact that software can be patentable in

the United States but not in some countries

means also that an American company can

compete in the other countries market but not

vice versa. More generally, it is extremely

cumbersome to state which one of the two

potential solutions (software patentability vs.

software unpatentability) is better. Both of them

have advantages and disadvantages: to the ends

of this paper it must be highlighted that software

unpatentability may stimulate software houses

to improve existing computer programs and to

deliver them as a service together with

additional functionalities. In this sense, access

to the market should be easier for small

enterprises that otherwise would not have many

chances. At the same time, lack of patent

protections may reduce the growth of companies

that are already in the market. In other words, a

definite solution cannot be reached, but

nevertheless it is important that the competent

political and jurisdictional authorities are

aware that software unpatentability is not the

only possible way and that it may be challenged.

Considering cost benefit aspect:Value Added Tax (VAT) is one of the most

relevant tools used by providers of electronic

services in order to offer better prices to their

customers. In business to business (B2B)

transactions, the place of taxation is the

customers Member State. To make an example,

if a German (or American) SaaS provider

supplies the software to a Belgian business,

Belgian VAT will be due.Things are different in business to consumer

(B2C) scenarios. In this case, if a company

provides Cloud-based services to a consumer,

the place of taxation will be the suppliersMember State. In practice this means that

suppliers of electronic services have the

incentive to open an establishment, from where

(to tax purposes) the services are provided to

consumers, in a country with a lower VAT rate,

in order to offer cheaper services [3]. This is

exactly what will happen as from 2015 when thereforms introduced by the VAT package of 2008

will enter into force. Pursuant to this package,

and more precisely, in fact, the place of taxation

in case of provision of electronic services to

consumers, at the rate of the customersMember State. The practical consequences for

businesses are that they have to consider the

place of establishment of every single consumer

and apply the corresponding VAT rate. This

poses, of course, practical problems, since there

are no methods to locate the establishment ofthe consumer with no margins for mistakes and,

from a different perspective, administrative

costs for e-providers will dramatically increase

[3].

Furthermore, for many customers that buy

online services provided by companies, the price

for these services will increase and this may






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potentially affect the willingness of these

consumers to shop on the Internet. In other

words, the countries lawmaker made a real

counter-reform aimed to make more difficult the

life for many providers of electronic services

and to increase their costs and burdens

(wherever they are established). This may have

of course a negative impact on existing and/or

future Cloud technology and service providers.

Hazardous aspects of this technology:All companies face risks with the potential

consequence not to be competitive any more and

to go out of the market. The same applies to

Cloud technology and service providers, which

may incur in bankruptcy proceedings if they are

not able to pay their creditors and to be

profitable. It would go beyond the scope of this

paper to analyse the bankruptcy proceedings

and comparative perspective. Nevertheless, itmust be said that these proceedings are usually

severe and they are aimed to protect creditors

more than to offer new possibilities to the

entrepreneurs and investors that failed in their

venture. The possibility to fail when entering

new and difficult markets is undoubtedly

relatively high and the fear to be bankrupted

may potentially prevent many people to start a

business (this applies especially to people

willing to start up a small company providing e-

services).Another risk for technology andservice providers is the possibility to be

sentenced to compensate the damages suffered

by customers if the services are not performed

as promised in the agreement with the client.

How to satisfy a user to migrate to cloud

platforms:In the previous sections it was assessed which

legal forces may directly act as barriers or

enablers to investors willing to start up

profitable Cloud-based businesses (technologyproviders and service providers). Special

attention has been paid to the topics of software

patentability, VAT treatment of the services

provided online and the risks linked to the

bankruptcy of the company. In other words, one

side of the market (that of the providers) has

been analysed from the legal point of view. It is

now pivotal to assess which juridical forces are

likely to affect the customers side, i.e. to whatextent the applicable legal framework limits or

enhances the adoption of Cloud technologies by

customers. Both businesses and consumers, in

fact, are expected to trust Cloud technology and

service providers and to renounce, to a variable

extent, to the direct control of their data, files,

information etc that are stored or processed in

the Cloud. If customers are reluctant to acceptthis fact the Cloud market does not have many

possibilities to take off and pave the way to the

abovementioned personal computer or servers

of the future. This issue regards computerscientists but also lawyers and policymakers

that have the pivotal role to found the trust of

customers towards providers on solid grounds.

In other words, the trust that clients currently

have towards Cloud providers is basically

market-driven, i.e. it is based on the reputation

of these suppliers and on the legitimate

expectation that they will respect their promises.

This means that special attention must be paid

to the contractual obligations of the providers:

basically they assure, typically in a Service

Level Agreement (hereinafter SLA), that a

certain level of availability and quality of

services (QoS) will be respected. At the same

time, they will tend to protect themselves

limiting as much as possible their liabilities and

the possibilities for the customer to ask for

compensation if the obligations of the provider

are not respected or, in a worse scenario, if the

data stored and/or processed by the supplier get

lost or corrupted due to security failures.

The situation as defined pursuant to the

applicable legal framework can be summarised

as follows. First of all, it is necessary to

separate two categories of customers:

consumers and businesses. The former are all

those that operate outside their trade or

profession for purely personal purposes:

The SLA (or other contract that regulates theprovision of Cloud services) shall be

regulated by the law of the country where the

consumer has his habitual residence if,

basically, the provider addresses this country

through his website/portal. Furthermore, the

parties can state that another law will govern






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the contract, but consumer protection rules

of the country of residence of the consumer

apply. Pursuant to other applicable legal

sources the provisions in the agreement that

are too unbalanced in favour of the provider

are invalid.

The consumer can sue the provider in thecourt of his country of domicile or of thecountry where the provider is domiciled

(basically where the supplier has his

headquarter or principal place of business);

at the same time the consumer can be sued

only in the courts of the state where the

consumer himself is domiciled. These rules

are of strict applicability and basically

cannot be derogated by the parties, unless in

some specific cases.

As regards B2B transactions, things are

dramatically different, so that the provider can

limit his contractual liability and it can be

agreed that the competent court will be that of

the place where the supplier is domiciled. In

practice this means that very often the customer

will not be able to get any compensation for the

damages he suffered from the infringement of

the contractual obligations of the Cloud

provider, also in case of security failures.

Precisely for these reasons many businesses are

extremely reluctant to store data and

information in the Cloud, and the same applies

for services that are provided from remote

locations and that require that these data and

information are processed in the Cloud.Honestly, from the legal point of view, it is not

possible to say that these companies that prefer

to act in traditional ways and to keep their

data under their direct control are completely

wrong and irrational. The risk may be more or

less low, but the problematic issue is that there

is no legal protection in case of problems,

security failures, etc. It is therefore highly

advisable that the country lawmaker takes into

consideration this issue and analyses whether or

not it is fair that businesses do not have

adequate protection when dealing with

technology and service providers. This point is

even more urgent if one considers that very

often the customer does not negotiate the

content of the SLA he enters into, since this

agreement is basically drafted unilaterally by

the provider.

Conclusion:The experience and research shows very clearly

that Cloud computing are very promising and

that they are potential tools to transform all the

community software and hardware market. The

era of applications, resources, computing

capacity, etc. supplied as a service from remote

locations in a flexible and scalable way is

definitely open [1]. Its further development

depends also on some legal factors that may

impede that this process continues and that

country technology and service providers play a

pivotal role at global level. In lights of the

considerations expressed above, we can say that

it is probably the time to rethink and reshape the

notions of software patentability without

ideological influences. At the same time, it isadvisable that the country lawmaker amends the

VAT regime applicable to B2C provisions of e-

services and that the criterion that the place of

taxation is the suppliers Member State is

preferred and re-adopted. As regards risks

faced by the Cloud providers, it was assessed

that the applicable legal framework should free

potential entrepreneurs from the fear to be

bankrupted, in other words it is necessary to

harmonise protection of creditors with creation

of new companies, i.e. with innovation and morejobs. Cloud computing is a rapidly developing

information technology that has aroused the

concern of the whole world. Cloud computing is

an Internet-based application platform, which

provides enterprises with shared resources

including hardware, software, data storage, and

customizable business applications on demand.

Cloud computing technology provides a new

way to construct banks' information system.Cloud Computing is a generic term for

delivering hosted services over the Internet. Itfollows a pay-as-you-go approach. Cloud

Computing offers numerous benefits for the

enterprises, however, there are also many issues,

as with any new paradigm or technology. One of

the main issues relate to the security and

confidentiality of customer data in terms of its

location, relocation, availability and security.






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Cloud computing is a new internet-based

supercomputing principle and practice, which

supplies dynamic, scalable, and pay-per-use

services and has huge computing and storage

capacity with high reliability and security.

Furthermore, creating trust which is based on

solid legal grounds is absolutely important. This

may happen through both traditional legal ways

(amendment of existing legislation aimed to

improve the level of protection for customers in

B2B transactions) or through so-called

instruments of soft law or best practices. Inparticular, a good idea would be that of

creating a label for technology and service

providers that use fair contractual provisions in

their SLAs, so that companies can easily

recognize the trustable suppliers. This would

also stimulate a race to the top by all players in

the market in order to keep or increase their

market share. An independent authority should

be in charge of analyzing which providers

deserve this label and the task of public

institutions would be that of implementing,

promoting and disseminating the system and the

corresponding good practices.

References[1] David C. Wyld; the cloudy future of

government IT: cloud computing and the public

sector around the world, IJWesT, Vol. 1, Num. 1,

Jan. 2010.[2] Jean-Daniel Cryans, Alain April, Alain Abran;

criteria to compare cloud computing with currentdatabase technology, R. Dumke et al. (Eds.): IWSM /

MetriKon / Mensura 2008, LNCS 5338, pp. 114-126,

2008.

[3] Anil Madhavapeddy, Richard Mortier, Jon

Crowcroft, Steven Hand; multiscale not multicore:

efficient heterogeneous cloud computing, publishedby the British Informatics Society Ltd. Proceedings

of ACM-BCS Visions of Computer Science 2010.

[4] Harold C. Lim, Shivnath Babu, Jeffrey S. Chase,

Sujay S. Parekh; automated control in cloudcomputing: challenges and opportunities,

ACDC09, June 19, Barcelona, Spain.[5] Daniel Nurmi, Rich Wolski, Chris Grzegorczyk,

Graziano Obertelli, Sunil Soman, Lamia Youseff,

Dmitrii Zagorodnov; the eucalyptus open-source

cloud computing system.

Biographies:

Mohammad Abedi: received his

B.Sc. degree in Computer

Engineering (with Software

tendency) from University of

Mashhad in 2005. His research

areas are Cloud Computing, Design andImplementation of Distributed networks. Now he

is master student in Iran University of Science

and Technology (IUST); Tehran, Iran. His e-

mail address is:

Mehdi Darbandi: received his B.Sc.

degree in Electrical Engineering

from University of Mashhad in

2012. His research areas are

Kalman Filter, Matlab Simulink,Evolutionary Algorithms, and Cloud Computing.

Now he is master student in Iran University of

Science and Technology (IUST); Tehran, Iran.

His e-mail address is:

Jalal Nakhaei: is currently PhD.

Student in Art and Architecture

Engineering in Science and Research

Branch Islamic Azad University;Tehran, Iran. His research areas are

Information Technology (IT), Secure Spaces, and

Structures. His e-mail address is:




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Cloud Computing make a revolution in economy and Information Technology