Virtulisation and cloud computing has a good market in India and other parts of the world. As more and more individuals and companies are embracing information and communication technology, the pressure and load upon various public utilities services is fast increasing. Indian companies and Indian government is contemplating use of cloud based services to citizens across the India.
However, Indian government cannot alone establish and maintain the cloud infrastructure required to meet the growing public demands. Therefore, public private partnerships (PPP) are on rise between Indian government and private companies. Despite this the demands for cloud computing infrastructure is still much higher than its supply.
This is the appropriate time for cloud computing entrepreneurs to establish their shops and businesses in India. This would require compliance with many traditional laws. This would also require compliance with the cyber law of India that can be found in the form of Information technology Act, 2000 (IT Act, 2000). This is so because the legal and regulatory requirements of cloud computing in India are scattered under different laws of India as we have no dedicated cloud computing law in India.
Cloud computing businesses and entrepreneurs must also comply with legal requirements of e-commerce in India. Cloud computing service providers in India are Internet intermediary within the meaning of IT Act, 2000 and they are also required to comply with cyber law due diligence requirements (PDF).
Contemporary entrepreneurship initiatives like mobile health and e-health would also bring additional revenue and regulatory challenges for the cloud computing companies in India. With every new venture being added to cloud computing, additional legal and regulatory requirements and obligations would be added. For instance, m-health laws in India would bring additional regulatory pressure upon cloud computing business in India.
Recently the Indian government declared that e-delivery of public services in India would be adopted. This would ensure mandatory e-delivery of public services in India through appropriate legal framework. Cloud computing businesses would be tremendously benefitted due to such e-governance based services.
In short, if cloud computing businesses comply with techno legal requirements of Indian laws, they can reap good benefits out of cloud computing business. However, if they fail to comply with these legal requirements, they can also be held liable and prosecuted civilly and criminally under various Indian laws.