skills 4 cloud

Direzione Studi, Ricerca e Formazione

F.Ananasso – Skills 4 Cloud – 18 April 2011www.agcom.it

Economics and Regulatory Issues

with Cloud Computing

Fulvio Ananasso

Director of Studies, Research and Education



Cloud Technology

Substantial absence of security and privacy issues

Visibility and control over data

High availability

Scalability and rapid ramp-up

Security and data control

Flexibility to move from public to private or viceversa

Public Cloud

Private Cloud

Hybrid Cloud

Source: Yankee Group

Source: Cisco Systems

Lower CAPEX and workload variability amortized

Multi-tenancy benefits

Concerns about security and privacy

1/10



Source: Microsoft

Economics of cloud

Supply-side savings

Demand-side aggregation

Multi-tenancy

efficiency

Lower cost of labor & powerFocus on high value-added activitiesSecurity, reliability, interoperabilityDiscounts on hardware purchases

Variability of diversified utilization patterns

Fixed application labor amortized

Fixed component of server utilization amortized

Economies

of

scale

2/10



Source: World Economic Forum 2009 Cloud Computing Survey

Standards for security & privacy

Governance and data control

Compliance and data sovereignty

Service-level agreements (SLAs) & interoperability between clouds

Switching costs

3/10



• Security & privacy;

• User protection;

• Telework policies;

• Electronic communications (web) applications;

• Virtualized content ownership / data sovereignty;

• TelCo’s–vs-Over the top (OTT) offering;

• Service / network neutrality;

• Standards & interoperability – e.g. SMEs;

• Clear contractual arrangements / switching costs;

• Transparency of operating conditions;

• …..

Relevant virtualization issues --from Regulators’ standpoint

4/10



To promote competition in the provision of electronic communications networks, electronic communications services and associated facilities and services by inter alia:

• ensuring that users derive maximum benefit in terms of choice, price, and quality;

• ensuring that there is no distortion or restriction of competition in the electronic communications sector, including the transmission of content;

• encouraging efficient investment in infrastructure, and promoting innovation.

To contribute to the development of the internal market by inter alia:

• encouraging the establishment and development of trans-European networks and the interoperability of pan-European services, and end-to-end connectivity;

• ensuring that, in similar circumstances, there is no discrimination in the treatment of undertakings providing electronic communications networks and services.

To promote the interests of the citizens of the European Union by inter alia:

• ensuring a high level of protection for consumers in their dealings with suppliers, in particular by ensuring the availability of simple and inexpensive dispute resolution procedures carried out by a body that is independent of the parties involved;

• contributing to ensuring a high level of protection of personal data and privacy;

• promoting the provision of clear information, in particular requiring transparency of tariffs and conditions for using publicly available electronic communications services;

• ensuring that the integrity and security of public communications networks are maintained; ….

Policy objectives and regulatory principles (Directive 2002/21/EC as amended by

Directive 2009/140/EC – Article 8)

5/10



• To ensure that undertakings providing public communications networks or publicly available electronic communications services take appropriate technical and organizational measures to appropriately manage the risks posed to security of networks and services. W.r.t. the state of the art, these measures shall ensure a level of security appropriate to the risk presented. In particular, measures shall be taken to prevent and minimize the impact of security accidents on users and interconnected networks.

• To ensure that undertakings providing public communications networks take all appropriates steps to guarantee the integrity of their networks, and thus ensure the continuity of supply of services provided over those networks.

• To ensure that undertakings providing public communications networks or publicly available electronic communications services notify the competent national regulatory authority of a breach of security or loss of integrity that has had a significant impact on the operation of networks or services.

Security and integrity (Directive 2002/21/EC

as amended by Directive 2009/140/EC -

Article 13)

6/10



Article 20 (Contracts): To ensure that, when subscribing to services providing connection to

a public communications network and/or publicly available electronic communications

services, consumers, and other end-users so requesting, have a right to a contract with an

undertaking or undertakings providing such connection and/or services...

Article 21 (Transparency and publication of information): To oblige undertakings

providing public electronic communications networks and/or publicly available electronic

communications services to publish transparent, comparable, adequate and up-to-date

information on applicable prices and tariffs, on any charges due on termination of a contract

and on standard terms and conditions in respect of access to, and use of, services provided

by them to end-users and consumers ... Such information shall be published in a clear,

comprehensive and easily accessible form. National regulatory authorities may specify

additional requirements regarding the form in which such information is to be published.

Article 22 (Quality of Service): After taking account of the views of interested parties, to

require undertakings that provide publicly available electronic communications networks

and/or services to publish comparable, adequate and up-to-date information for end-users on

the quality of their services ... To specify, inter alia, the QoS parameters to be measured and

the content, form and manner of the information to be published, including possible quality

certification mechanisms, in order to ensure that end-users, including disabled end-users,

have access to comprehensive, comparable, reliable and user-friendly information….

End Users interests and Rights (Dir.

2002/22/EC as amended by Dir.2009/136/EC)

7/10



Research Program ISBUL (*)(2008-2010)

(*) http://www.agcom.it/Default.aspx?message=contenuto&DCId=416

AGCOM initiatives on Contents

Sector Inquiry on Digital Contents(**)

(**) http://www.agcom.it/default.aspx?DocID=5558&Search=libro_bianco_contenuti

Sector Inquiry on Copyright

protection(***)

(***) http://www.agcom.it/default.aspx?DocID=3970; http://www.agcom.it/default.aspx?DocID=5919

Sector Inquiry onVoIP/ P2P and Net

Neutrality (****)

(****) http://www.agcom.it/default.aspx?DocID=5766; http://www.agcom.it/default.aspx?DocID=5770

Research ProgramSCREEN (*****)

(2011-2012)

(*****) http://www.agcom.it/default.aspx?DocID=5442

time

8/10



Program Management (AGCOM)

WP 1. The Information

Society: users,

contents & social

networks

Task 1.1.

The Users

Task 1.3.

Social networks

Task 1.2.

Contents

WP 2. The demand

for digital

services

WP 3. The offering of

digital services &

Future internet

WP 4. The markets of

digital services &

contents

Task 2.1.

Digital divide

Task 1.2.

e-inclusion

Task 3.1.

Services for users

and enterprises

Task 3.3.

Future internet:

scenarios

Task 3.2.

The application

platforms

Task 3.4.

Future internet:

enabling factors

Task 4.1.

Innovation in digital

services markets

Task 4.3.

Internet economy &

search engines

Task 4.2.

The competition in

new markets

AGCOM

Universities / Research Centers

2011 Research Program “Services & Contents for

NGNs” (SCREEN)9/10



“tag cloud”

Prosumer

Netcitizen

End-User Innovation

Social Network

Persuasive

Media

Internet of things

Future Internet

Copyright & Copyleft

Net Neutrality

BlogsWeb 3.0

Telework

Telemedecine

Content Unlocking

E-learningSCREEN

Telepresence

Cloud Computing

10/10



Thanks for your attention !!!

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