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• Tuesday, February 05th, 2013

Use of cloud computing in India is still not very liberal. There are many policy and law related issues that are responsible for slow growth and adoption of cloud computing in India. Absence of an effective cloud computing policy of India is responsible for limited utilisation of cloud computing in India. However, legal issues of cloud computing in India are the main reason for cautious adoption of cloud computing in India.

We have no dedicated regulatory framework for cloud computing in India. In fact, we have no legal framework for cloud computing in India at all. Even as per the research and studies of Perry4Law and Perry4Law Techno Legal Base (PTLB), cloud computing in India is risky and India is not ready for cloud computing. This conclusion of Perry4Law and PTLB has been endorsed by other companies and it has been reported that chief information officers (CIOs) in India are not comfortable using cloud computing in India.

In short, cloud computing in India is still not trusted. The primary reasons for this situation is absence of legal framework for cloud computing in India, missing privacy laws, absence of data protection laws in India, inadequate data security in India, etc.

Even the cloud computing due diligence in India is missing and companies and individuals are using the same in great disregard of the various laws of India. Cloud computing service providers in India are required to follow cyber law due diligence in India. The cyber law due diligence for Indian companies is now well established but cloud computing and e-commerce service providers are not taking it seriously.

We believe that India must not use software as a service (SaaS), cloud computing, m-governance, etc till proper legal frameworks and procedural safeguards are at place. This has also been accepted by the CIOs community and it is now for the Indian government to do the needful. Similarly, cloud computing security in India is also required to be strengthened. As on date, use of cloud computing in India is not a viable solution as we are ignoring legal and security concerns. Cloud computing in India must be techno legal in nature and till it meets the techno legal requirements, it should not be used in India.

Besides regulatory framework for cloud computing in India we must also ensure high availability levels, appropriate data erasing mechanisms, data privacy at the service provider’s level, export restrictions upon data, data handling monitoring mechanisms, jurisdictional issues, cloud computing security issues, licensing issues for cloud computing, etc.

Privacy violations, data breaches, data thefts, cyber crimes, etc would definitely arise in cases of use of cloud computing in India. Even if a company or individual offers cloud computing services in India, it/he has to comply with many legal provisions and cyber due diligence requirements. The information technology act 2000 (IT Act 2000) has prescribed due diligence requirements for various business organisations and stakeholders. These due diligence requirements equally apply to cloud computing service providers in India.

These due diligence requirements are very stringent and cloud computing providers can find themselves in legal hassles if they ignore the same. Managing sensitive and personal data and information in India is no more a causal approach but it has become very stringent.

With the proposal to codify law of torts in India, more and more civil proceeding for violation of privacy rights may be initiated against the cloud computing service providers. It would be a wise option to establish best practices and cloud computing policy by all stakeholders in their own larger interests.

Source: Corporate Laws In India.

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