Managed Hosting News 
Tuesday, 24th January 2012, 11:32:21
Data regulations 'could put businesses off the cloud'
Data privacy regulations within the computing industry could significantly affect IT hosting and virtualisation markets.
This is according to experts within the field who have been commenting on the recently-publicised debate surrounding the Stop Online Piracy Act in the US, which threatens to harm online industries while aiming to crack down on the piracy of content such as films and music.
"Over the last few years, legislation around data privacy and data protection has struggled to keep up with the rapid developments in technology," Connected Business contributor Stephen Pritchard told the Financial Times Connected Business Podcast.
He added that publishers of online data do have to pay heed to national practices and laws surrounding data protection, but for those providing cloud and hosting solutions, this could become much more difficult and challenging.
John Engates, chief technology officer of IT firm Rackspace, commented that some businesses are reluctant to fully adopt cloud computing solutions due to worries about the security of their data. Therefore, they are not using the technology to store all of their information.
Legislation and uncertainties surrounding what it can have and what it cannot possess legally are also issues that could prevent a company from fully implementing the cloud and getting the full benefits associated with the technology.
"The way around that has been full transparency, making sure that customers are well aware of what we do with the data, who touches the data and where the data actually resides," Mr Engates explained.
He also mentioned that it all comes down to a physical piece of equipment like a traditional server in the end and that is where a lot of customer reluctance is found.
Managing director of cooler designs company EcoCooling.org Alan Beresford recently commented that cloud technologies are the most cost-effective way of running a business and that after the initial cost of setting up a virtualised server, the long-term benefits make it worthwile.
Posted by Judy Gifford
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