In the context of the 7th annual EuroCloud Forum, which takes place from 5-6 October in Bucharest, Romania, Elena Zvarici, executive board member of EuroCloud Europe, talks about how Europe can take advantage of cloud computing and the data economy.
In order for Europe to take full advantage of cloud computing and the data economy, we need to strike the right balance between regulation and innovation
In the digital world the balancing act between business and regulation is a delicate one. In the past year we have seen the adoption of the new European General Data Protection Regulation, the invalidation of the Safe Harbour agreement for transatlantic data transfers and problematic discussions around its replacement the Privacy Shield.
Setting these developments into the context of the many ongoing initiatives at EU level aimed at encouraging innovation and the data economy, it is clear that getting the balance right is no easy task.
Europe is leading the way in data privacy and advocates a high level of data protection worldwide. The newly adopted General Data Protection Regulation introduces a new concept of responsibility towards data ownership, as well as new legal obligations for businesses to comply. For cloud SMEs and start-ups, getting up to speed can be problematic and they will need help.
A coordinated approach is needed between data protection authorities, policy makers and industry, in order to help organizations in this transition, by providing adequate data breach reporting tools, compliance toolkits and publicising the key issues. Let’s make sure that European SMEs and start-ups, so often the drivers of growth in Europe, are well placed to comply.
While the GDPR provides a high level of data protection we must remember that we are ever more connected through digital means and cannot think solely in terms of Europe. We are global users and exporters of digital services and need to have a strong cloud computing and data economy to be competitive. International data flows will play a key part in this. To avoid regulation clashes and to create international data-driven markets, in the future we should strive towards the creation of uniform, accepted standards of personal data protection on a global basis.
The recent agreement on the Privacy Shield for EU-US data transfers did not come a moment too soon and will hopefully bring the much needed legal certainty for the approximately 4,000 businesses who made use of the safe harbour mechanism. This legal assurance is vital. Many of these companies will rely on global information exchanges. Let’s hope that the provisions in the Privacy Shield can provide a robust enough framework to encourage data flows while providing high standards of data protection.
Global data flows are vital to international trade and economic growth and the European Commission Initiative on the free flow of data, expected at the end of 2016, should aim to enable European companies, particularly in the growing cloud computing sector, to be in the forefront of the global innovation race.
The Initiative should aim to reinforce the European cloud sector, so that companies are encouraged to develop new innovative services in the cloud, sell their services cross-border and enter the global market as exporters of technology.
This can be done by providing clarity on issues such as data ownership, liability arising from data use and data localisation across Europe.
If we really want to position Europe as a global leader in the data economy we need to ensure that we get the balance right. This means ensuring high levels of privacy while fostering new business innovation in sectors that rely on data and developing trust and confidence among users, from the individual consumer to the public and private sector.
Now is the time to move forward and encourage Europe to reap the benefits of data and the cloud.
Picture credits: Roberto Sartori
Protectionist policies, such as recently adopted German retrictions on public sector cloud use, can ultimately translate into a threat for the open and global structure of the Internet, argues Daniel Castro, Vice President of the Information Technology and Innovation Foundation and Director of the Center for Data Innovation
The Digital Post: Newly adopted German rules for government cloud computing means official data can only be processed in Germany. What is your opinion?
Daniel Castro: This is an unfortunate development, both for Germany and for others. First, countries like Germany should be an ally in support of free trade, and by enacting these types of non-tariff barriers to trade it gives cover to other countries who want to enact protectionist measures.
Second, by restricting access to foreign cloud providers, Germany is “cutting off its nose to spite its face.” Germany organizations benefit from having access to the best cloud providers, and many of these are foreign companies. This will raise costs and decrease productivity for affected organizations.
Third, there is little real benefit in terms of privacy and security to storing data within the country versus abroad. Countries should be working to clarify any distinctions. This is one reason my think tank has called for a “Geneva Convention on the Status of Data” to determine when government agencies can lawfully request access to data.
Most developed countries should be able to agree to common standards and abide by them. The end goal should be a data free trade zone that extends globally.
The Digital Post: Ever since the Snowden revelations came out, German PM Angela Merkel has been advocating for a separate European communication network/infrastructure. What might be the implications of such project, if it ever is implemented?
Daniel Castro: United States and Europe are allies on many issues, and it would be counterproductive to build separate infrastructure rather than working together towards a common goal.
Neither wants the other to spy on them, so they should be able to come to terms to upgrade the infrastructure we already share.
The greater threat to both U.S. and German interests are from China, so there is an opportunity to put aside past issues and come together to confront a looming issue.
The Digital Post: You often speak about the rise of “data nationalism” across the world. What is this phenomenon about?
Daniel Castro: Many countries are trying to pass laws and regulations to keep data within their borders, such as by requiring data to be processed locally. One reason countries are doing this is because they believe it will help create jobs, such as construction jobs for data centers.
But the net impact is very negative, as it raises the cost of doing business for the rest of the economy, and many businesses are increasingly dependent on cloud infrastructure. Moreover, some rules limit cross-border data flows which means a multinational company will run into serious issues as it tries to operate on a global scale.
The Digital Post: Is data nationalism a threat to the current structure and functioning of the Internet? Why?
Daniel Castro: Yes. The primary benefit of the Internet is that it is a global, open network available to all. Protectionist policies can chip away at this ideal until we are eventually left with a series of disjointed national or regional Internets.
Policymakers should be very concerned about overreacting to short-term fears about data privacy at the expense of damaging the potential growth of data-driven innovation in the Internet economy.