Monday, January 23, 2012

Legal Issues Of Cloud Computing In India

Cloud computing is a process in which essential hardware and software based services are provided by a third party with no requirement to install such hardware and software by the service seeker. In other words, computational powers, hardware upgrades and latest software are provided on rent in an online environment where individuals and organisations can use the same.

Cloud computing is basically a cost saving mechanism where hardware and software costs are saved by using third party hardware and software. However, cloud computing has its own share of troubles especially in countries like India.

For instance, as per the research and studies of Perry4Law and Perry4Law Techno Legal Base (PTLB), cloud computing in India is risky and India is not ready for cloud computing. Now even other companies have endorsed this conclusion and it has been reported that chief information officers (CIOs) in India are not comfortable using cloud computing in India.

So the chief problem that is emerging in India is that cloud computing in India is still not trusted and India is still not ready for cloud computing. We have no cloud computing policy of India.

This is the reason why cloud computing in India is still at the infancy stage. The primary reasons for this situation is absence of legal framework for cloud computing in India, missing privacy laws, absence of data protection laws in India, inadequate data security in India, etc. Even the basic level cloud computing regulations in India are missing.

Even the cloud computing due diligence in India is missing and companies and individuals are using the same in great disregard of the various laws of India. Cloud computing service providers in India are required to follow cyber law due diligence in India. The cyber law due diligence for Indian companies is now well established but cloud computing and e-commerce service providers are not taking it seriously.

In fact, some companies are already facing a criminal trial in India for posting of objectionable contents by third parties on their platforms. Cloud companies are also required to follow the cyber law of India before they establish their businesses in India. This seems to be missing for the time being.

In fact, many legal experts in India have opined that India must not use software as a service (SaaS), cloud computing, m-governance, etc till proper legal frameworks and procedural safeguards are at place. This has also been accepted by the CIOs community and it is now for the Indian government to do the needful.