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Cloud Computing

Notes 8. Cloud computing is not based on the Internet cloud and does not depend on Internet
access.
9. A person who collaborates with others on group projects, is an ideal candidate for cloud
computing.

Case Study Privacy in the Cloud

M oving to the cloud can bring advantages such as reduced hardware costs, but
many still worry about privacy.

A new generation of technology is transforming the world of computing. Advances in
Internet-based data storage, processing, and services – collectively known as "cloud
computing" – have emerged to complement the traditional model of running software
and storing data on personal devices or on-premises networks. Many familiar software
programs, from email and word processing to spreadsheets, are now available as cloud
services. Many of these applications have been offered over the Internet for years, so cloud
computing might not feel particularly new to some users.
Still, several aspects of cloud computing differ markedly from previous computing
paradigms and offer distinct benefits. Today's cloud services are highly scalable, which
enables customers to pay only for the computing storage and power they need, when they
need it. Datacenters in diverse geographies allow cloud providers to store and back up
information in multiple locations, which enhances reliability and increases processing
speed. And significant economies of scale generated by "server farms" that can
simultaneously support scores of users mean major cost savings for customers. (For more
information, please see the Microsoft whitepaper, The Economics of the Cloud.)
These advantages are leading governments, universities, and businesses of all sizes to
move mission-critical services such as customer relationship management, enterprise
resource planning, and financial data management into the cloud. At the same time, the
unique attributes of cloud computing are raising important business and policy
considerations regarding how individuals and organizations handle information and
interact with their cloud provider.

In the traditional Information Technology (IT) model, an organization is accountable for
all aspects of its data protection regime, from how it uses sensitive personal information
to how it stores and protects such data stored on its own computers. Cloud computing
changes the paradigm because information flows offsite to datacenters owned and managed
by cloud providers.
Cloud customers remain ultimately responsible for controlling the use of the data and
protecting the legal rights of individuals whose information they have gathered. But
defining the allocation of responsibilities and obligations for security and privacy between
cloud customers and cloud providers – and creating sufficient transparency about the
allocation – is a new challenge. It is important for customers and their cloud providers to
clearly understand their role and be able to communicate about compliance requirements
and controls across the spectrum of cloud services.
Microsoft understands that strong privacy protections are essential to build the trust
needed for cloud computing to reach its full potential. We invest in building secure and

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