OpenForum Europe Response to the Public Consultation on Cloud Computing

OpenForum Europe Response to the Public Consultation on Cloud Computing

31.08.11

Response By:                OFE Limited

Register No:                  2702114689-05

Contact Address:           Bischoffsheim Business Centre

                                     Boulevard Bischoffsheim 36

                                     1000 Bruxelles

1. Introduction

OFE has been pleased to respond to the online questionnaire initiated by the Commission but feels that as an

independent not-for-profit organisation the questions neither allow OFE and its members and partners to

fully substantiate their views, nor give the opportunity to offer its consolidated advice. OFE has been able to

join the various industry Working Groups established by the Commission and has been pleased to both

contribute to and support the Consolidated Recommendations finalised by those Groups. OFE was also

pleased to make a substantive response to the previous Consultation in February 2009 and this document

remains active and can be reviewed here.

However, OFE would like to make some additional specific input appropriate to its specialised focus and in

doing so is able to provide more detail than would be possible in larger groupings where consensus has to be

achieved over a very short time frame. We therefore hope that the short summary below will be considered

by the Commission alongside both our online input and previous response.

2. Summary

While Cloud Computing has clearly gained greater attention over even the last 12 months even its critics

who dismissed it as yet another marketing hype have been forced to change their position, and adopt a more

inclusive strategy. Yet because of the huge market interest there are many dangers, both in its understanding,

in planning for its implementation, and in potential response by legislators and market influencers. We

believe the following key criteria should be considered by the Commission in determination of its initiatives.

• Not a Single Entity Cloud encompasses different services (software as a service,

platform as a service, infrastructure as a service) and deployment models (public, private, hybrid,

community). Furthermore the business models built on cloud technology offerings demonstrate evergrowing

variety and nuances of application. Whilst there are common factors, there equally will be

many different drivers and needs between, for example in the establishment of private facilities and

those where public services are offered. One size is unlikely to fit all.

• Evolution not Revolution Cloud represents an evolution rather than a revolution in technology.

We already have operational and regulatory experience with most cloud technologies, and the

technology and the architecture in which it operates has been part of the computing landscape for

decades. Driven by economics and availability, Cloud Computing is increasingly within the reach of

businesses and individual customers, and the move to Cloud based systems will be happen in the

same way as we saw central mainframes move to distributed systems, and as we now see personal

computers move to mobile devices. The needs for a transition strategy are very different from

establishing a new market.

 

• Market Discontinuity Cloud Computing while evolutionary in terms of technology is

providing opportunities to change the way we do business in the digital economy. Possible market

discontinuity may occur as new practices may pose challenges to current business practice. Some

players will see it as an opportunity, others as a threat. There will also be an opportunity to reinsert

bad commercial and technical practice, e.g. lock-in. Any such attempts, potentially under the veil of

protection, must be viewed with caution.

 

• A Global Market It would be unrealistic to believe that Europe alone can drive this

market opportunity – it is global by definition. What Europe can do is maximise the opportunity for

its companies, particularly SMEs, and governments by both maximising the regulatory and business

environment for its exploitation and supporting its growth for the benefit of the European economy.

It can encourage new local SMEs and still both be a global influencer and active user.

 

• Cloud as a further step on the transition to services The single market in digital services

becomes an increasing issue for attracting investment in early stage offerings based in the EU. A

proactive agenda to build a true single market in digital services as well as a complementary

research, innovation and availability of investment/financing is needed to foster the proper

environment and capacity for global competition.

 

• Services Driven from the User Perspective As a services based set of models, the needs and

expectations of the end user, especially individual end users, become priority, and the criteria and

any government initiatives will need to credibly consider the user perspective. Browser based mobile

access becomes the norm, and all the issues recognised in respect of the openness of the Internet are

reinforced. User confidence and trust, security and privacy are fundamental.

 

• Interoperability and portability In the same way as the Internet itself itself has been built from day

1 on the basis of 'openness' so must Cloud Computing. Interoperability is a fundamental challenge

that can only be realised by full adoption of 'open standards' AND implementation of reasonable

commercial practices including the ability of users to move freely between suppliers without undue

restriction, either because of technical or commercial limitations.

3. Openness as a Basis

In line with OFE's special skills and focus we would like to endorse and add to some points made within the

Working Group on Interoperability.

As declared above Openness is a result of both use of technical open standards for interoperability at all

levels including data portability and between applications, AND commercial SLAs that do not unduly limit

transfer of contract or impose any other unacceptable restrictions on user choice. But with a significant focus

being on the continued openness and availability of service across chosen communications mediums (inc the

Internet), then such solutions will inevitably be multi-supplier. They will also be cross border if not global.

Such interoperability will only be achieved without significant user incremental investment and resource if

Cloud solutions are built from day 1 with Openness as a primary driver. The market will be a decider in these

areas but Government can be a forceful and positive influencer, both by its endorsement of best practice in

public procurement, and by active encouragement and involvement in industry discussions and agreements.

We believe that openness can create the level playing fields that enable strong user participation without

limiting innovation and product differentiation that help serve both niche markets and specific user needs.

The recommendations made in the ICT Standardisation Review give a positive lead and exemplar whereby

not only support for fora and consortia is given, but active assessment of standards criteria will be

undertaken. It is our view that within Cloud the market will deliver necessary standards through such

fora/consortia rather than by SDOs and the Commission can take an active role in their determination and

acceptance.

Full data portability will be an early test case of openness in action and whilst adoption of open document

exchange formats will continue to be a critical aspect on its own it will not be enough. Lock-in through

imposition of applications that limit transfer of or via unduly restrictive SLA conditions is a major threat.

Loss of user confidence and trust because of the difficulty of transferring data between applications or

suppliers is a major threat. We support the action recommended by the WG on Interoperability that the

industry develops a roadmap on necessary steps and guidelines for ease of migration.

Currently there is an over abundance of organisations seeking to confirm Open Standards in the area of

Cloud Computing. OFE believes this will rationalise over time but the Commission can and should take a

role in encouraging such an evolutionary rationalisation as well as support to standards development.

Europe should not seek to develop its own standards or impose the role of SDO's in their development.

Such standards do need to be genuinely Open and non competitive. We agree with the WG on

Interoperability's recommendation that they should 'endorse technology neutrality and promote competition'.

We agree the need to avoid standards that 'could frustrate, rather than promote, on-going and emerging

interoperability efforts of the industry at large and among the vendors providing cloud services'. We believe

that the government does have a role to play in promoting interoperable standards. The industry has a

chequered record of mutually agreeing open standards when it might disrupt current business – the document

format standards is one such example. The net result has been lock-in to proprietary solutions from a single

vendor, to the detriment of the end user. This situation typically results from the dominance of one supplier,

able to dictate market practice. In Cloud such standards will include new and old, so rules do need to be set,

both in the definition of an acceptable open standard but also in their implementation. The public sector has a

prominent role to promote the desired effect through its procurement strategy and practice, and we believe

that within public procurement the mandating of required standards can be highly effective.

4. Impact on Public Procurement

European Public Sector is currently perceived as trailing in the use of Cloud Computing despite the potential

benefits associated with freedom of choice, improved mobility, and rapid development of solutions. Equally

there appears to be no central initiative to encourage best practice working across Member States.

Public procurement has the potential to play an important, if not leading, role in fostering enhanced trust and

broader adoption of cloud services.

The EU Institutions should constructively support the international standards community to create

interoperable solutions and shared best practices, in order to assure EU requirements are met whilst limiting

fragmentation.

There are a number of steps that we would suggest the Commission considers;

• That the EU Institutions consider a 'cloud first' procurement model, akin to that adopted in the US

Government's Office of Management and Budget's plan. Not only will this appear to have

operational efficiency benefits but it would give the opportunity to develop a best practice

procurement framework that could lead to practical advice and guidance given across Member

States. It would also provide the basis for resolution of known issues relating to establishing

standards, supporting relevant applications, and validating user confidence.

• That the EC further develops the Framework model, established by the EIF, to further define and

advise on best practice procurement models. This would be a services led model, covering specific

issues such as data and application portability, applicable open standards for interoperability, privacy

and security, as well as contract negotiation.

• Using such a cloud first' initiative to review current procurement practice in order to open up the

process to smaller entrants, making it faster and cheaper.

5. Recommendations for the Commission

• The Commission should adopt the US Agency NIST definition of Cloud Computing, which is now

in widespread use globally.

• The Commission should seek to maximise the economic benefit to Europe from Cloud Computing

by:

• Recognising that the market will primarily be driven by the market, user and supplier, rather

than by external (i.e. government intervention).

• Take primary role in ensuring that use of existing legislation is maximised , rather than

assume new legislation is required. We would identify the following areas are included in

those that need to be 'cloud ready'

• Consumer related issues ( customer lock-in both technical and legal, data access and

ownership, identity, data protection and privacy, transfer of supplier)

• Mechanisms need to be developed to evaluate how existing sectoral regulatory

requirements can be met by cloud solutions

• Cloud represents multifaceted services and delivery mechanisms that encompass a

variety of types and sensitivity of data as well as a variety of technical sophistication

and capacity among both users and providers. This complex environment does not

lend itself to any one regulatory, evaluation or certification scheme.

• Competition law

• Public procurement law/practice

• Adoption of current ICT Standardisation review actions

• Establish a proactive agenda to enforce a single market for digital services, particularly in the

following areas

• Data protection

• Data retention

• Consumer law harmonisation/country of origin

• Communications law ( clarifying scope, country of origin issues and use of existing

interoperability)

• Open access for the Internet

• Pan European interoperability through adoption of open standards

• Establish a proactive education programme for SMEs and early stage investors

• Maximise use of public sector procurement funding to kick start cloud based offerings, both

at member state and at European level

• That the EU Institutions consider a 'cloud first' procurement model

• Focus relevant research funding in support of early stage investment and in early stage

adoption and market testing, rather than core technology.

Notes:

OpenForum Europe (OFE) is a not-for-profit member organisation based in both Brussels and the UK,

established to support an 'open' and competitive IT market in Europe. OFE is supported by some of the most

influential ICT companies including Deloitte, Google, IBM, Oracle, and Red Hat, but also particularly

works in strong partnership with a long list of both national and European partners.

OpenForum Europe acknowledges all the input received from its members and partners in the compilation of

this document. However, OpenForum Europe does not seek to represent any specific community nor present

their opinions as being unanimously supported by their full membership. References given are fully

attributed and every effort made to ensure they have been taken in true context.

www.openforumeurope.org