Cloud Computing Expert Seminar

ETNO Executive Board Chairman, Luigi Gambardella, spoke at the AmCham Expert Seminar on Cloud Computing.

Policies to promote cloud competitiveness

Intervention by Luigi Gambardella, ETNO Executive Board Chairman

There is general consensus that services in the cloud will benefit many sectors of the economy. It will revolutionise the way people do business, interact with authorities, receive healthcare. Cloud computing will be a powerful engine for economic growth, productivity and trade. 

The Commission has identified Cloud Computing as one of the five major growing markets in the EU. Cloud Computing could save EU economies more than 700 billion Euros over the next five years and could create 2.4 million jobs. The benefit of cloud computing in terms of energy consumption optimisation and CO2 emissions reductions should not be ignored neither.

As recently recognised by Neelie Kroes, EU Commissioner for the Digital Agenda, in her speech in Davos, a reliable mobile and fixed infrastructure is essential for citizens and businesses to fully benefit from the cloud. 

The shift from personal computers to the cloud will inevitably generate additional traffic. Cloud services will require additional upload and download capacity and more bandwidth. Commissioner Kroes recently stated: “People ask what we will do with all the bandwith? I am convinced cloud computing is an important part of the answer”.   

In line with the targets of the Digital Agenda, the size of the investment required in Next Generation Access in Europe is estimated by the Commission at up to 300 billion Euros.

In light of this challenge, ETNO calls on EU policy makers to create conditions encouraging private sector’s investment in fixed and mobile NGA:

First of all, we need to question whether the current model of Internet development is sustainable in the long term, given the rapid increase of data traffic. Business models need to evolve, improving incentives for all players in the value chain to contribute to meet the huge investment challenge we are facing. Ubiquitous high-capacity networks and services are necessary to  achieve the promise of Cloud computing.

Secondly, NGA requires a more proportionate and targeted regulatory environment which would take more into account different levels of competition in markets in order to encourage risky investments.

The “promise” of Cloud computing is already an emerging reality for ETNO members, that as pan-European operators, have been among the first in Europe to offer cloud computing solutions to citizens and businesses. Let me just give you a few examples:

Deutsche Telekom’s T-Systems offers virtual hosting solutions to businesses available worldwide which include storage services, back-up services and increased security features.

Telefonica’s 3GBox is the first 3G USB modem with unlimited storage capacity based on cloud computing technology. The device has a 3G connection, which allows users to download and upload content easily and safely. Even if the user loses the device, the content uploaded to the web will remain safe.

Orange’s Private Applications Store is a secure cloud solution which enables companies to give their employees to all enterprises’ applications from any device through any network (ADSL, Wi-Fi, 3G, etc.). 

Telecom Italia’s “La Nuvola Italiana” cloud computing service aims at allowing businesses and public administrations to virtualise infrastructures and IT applications. The cloud solution offered by TI uses the 8 New Generation National Data Centre, spread all over the Italian territory, furthermore it benefits from the competencies of the National Assistance Centre, from the Control Room in order to centrally manage the infrastructure and from the Security Operation Centre in order to guarantee network security.

KPN’s Getronics subsidiary offers workstation management services, data centers, hosting services, providing employees of major organizations by offering secure data access whenever and wherever.

Belgacom’s CITRIX solution allows small and medium sized businesses to host all company software applications on a remote data centre, allowing a permanent availability and easy management of the data and applications. The solution allows considerable savings on hardware and repair. For large corporate enterprises, Belgacom Unify offers managed unified communications and IP telephony in the cloud.

You see from these non-exhaustive examples that cloud computing is already a reality that ETNO members have fully embraced.

Privacy and security issues need to be addressed but they should not be seen as obstacles to the development of cloud computing services.

Data protection rules should not stifle innovation or act as a barrier to cloud computing and should be flexible enough to allow the development of new data mobility services. With cloud computing, international data transfers will increase significantly.

Rules governing data transfers must be simplified, in particular when they are carried out within the same group of companies. Policy makers should not require that specific facilities or information be located in a specific country or region.
 
The success of Cloud computing depends on the secure free flow of data (some of them personal data, but not all) across national borders, with the  assurance that anyone can send and receive that data at any time, anywhere, for any appropriate purpose. 

We welcome the forthcoming European Cloud Computing Strategy and upcoming EC consultation. ETNO does not think however that there is a need for specific regulatory or legislative action on cloud computing . There should be no specific, new consumer rights introduced by the cloud environment, but the general rules of data protection and consumer protection should be applied to all actors. Indeed, what is key is to ensure that all players active on the cloud are subject to the same rules of data protection and security requirements.