Cloud computing: An overview of economic and policy issues

Please note: Each In-Depth Analysis is assigned a DOI (digital object identifier), which is a safe and long term way of ensuring a hyperlink to the full text of this report. However, when ESO creates this record, on occasion the DOI still has not been activated by the EU Bookshop. If you find the source url hyperlink does not work please use the alternative location hyperlink listed as a related url.Cloud computing is a model for providing information and communication technology (ICT) services over the internet. Businesses, public bodies and individuals can all benefit through lower costs, global access to data and applications, flexibility in provision, and the ability to innovate without large capital costs. Cloud computing may also have beneficial effects on energy consumption and carbon emissions.

However, cloud computing raises concerns about personal data protection and privacy, security and interoperability and portability of data and applications, as well as contract terms that may be overly restrictive of customers' rights.

The European Commission considers cloud computing central to the EU's competitiveness and a key to economic growth and innovation. The EU has provided support to research in cloud computing. Determining the appropriate responses to the challenges of cloud computing is part of the European Commission's Digital Single Market strategy.

The Commission has announced its intention to propose a 'free flow of data initiative', tackling restrictions on where data is located, and a European Cloud initiative that will cover certification of cloud services, reduce the risks of vendor lock-in, and provide a research cloud for researchers to share access to data.

Author: Ron Davies

• Primary Source

European Parliament: Directorate-General for Internal Policies of the Union: Publications available via the EU Bookshop http://bookshop.europa.eu/en/directorate-general-for-internal-policies-of-the-union-cbf.cKABstF7wAAAEjwYYY4e5K/

ESO: Background information: Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. European Cloud Initiative - Building a competitive data and knowledge economy in Europe http://www.europeansources.info/record/communication-european-cloud-initiative-building-a-competitive-data-and-knowledge-economy-in-europe/

European Parliament: European Parliamentary Research Service: In-Depth Analysis, May 2016: Cloud computing: An overview of economic and policy issues http://www.europarl.europa.eu/RegData/etudes/IDAN/2016/583786/EPRS_IDA(2016)583786_EN.pdf

EurActiv, 14.10.16: EU struggles for balance on free flow of business data http://www.euractiv.com/section/innovation-industry/news/eu-struggles-for-balance-on-free-flow-of-business-data/

EUObserver, 28.11.16: Data reform more complex than I thought, says EU commissioner https://euobserver.com/digital/136061

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