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Data Protection 2011                                                            Data Protection in the Clouds




                Data Protection 2011                                          24 February 2011




                             Data Protection in the Clouds



                                                  Kuan Hon
                                                Cloud Legal Project
                        Centre for Commercial Law Studies, Queen Mary, University of London
                               www.cloudlegal.ccls.qmul.ac.uk / w.k.hon@qmul.ac.uk




                Introduction

                   Cloud Legal Project
                       Cloud terms of service analysis paper
                   Questions we will tackle today –
                       What information in the cloud is regulated under data
                       protection laws?
                       Who is responsible for personal data?
                       Where is personal data processed?
                       Whose laws apply in a dispute?




Kuan Hon
Data Protection 2011                                                Data Protection in the Clouds




                Maturity - Gartner hype cycle Oct 2010 (as at Aug 2010)




                But first… what is cloud computing?
                • It usually involves the provision of scalable IT resources
                  (data storage, application hosting, etc.) on demand,
                  delivered via the internet
                • Cloud Legal Project definition:
                  • Provides flexible, location-independent access to
                  computing resources that are quickly and seamlessly
                  allocated or released in response to demand.
                  • Services (especially infrastructure) are abstracted and
                  typically virtualised, generally being allocated from a pool
                  shared as a fungible resource with other customers.
                  • Charging, where present, is commonly on an access
                  basis, often in proportion to the resources used.




Kuan Hon
Data Protection 2011                                           Data Protection in the Clouds




                Government cloud – some recent papers

                  ENISA - Security and Resilience in Governmental
                  Clouds http://www.enisa.europa.eu/act/rm/emerging-
                  and-future-risk/deliverables/security-and-resilience-in-
                  governmental-clouds - p.41ff on data protection
                  UK - G-Cloud Report: Data Centre Strategy G-Cloud and
                  The Applications Store for Government - Commercial
                  Strategy Team
                  http://www.computerweekly.com/Articles/2011/02/07/245
                  289/G-Cloud-Report-Data-Centre-Strategy-G-Cloud-
                  and-The-Applications-Store-for-Government-
                  Commercial.htm - ANNEX C: Data Protection, including
                  consideration of the US Patriot Act




Kuan Hon
Data Protection 2011                                          Data Protection in the Clouds




                   Key cloud computing
                         concepts




                Virtualisation
                   • Virtualisation = many things but in this context
                     mainly involves multiple “virtual machines” running on
                     shared hardware via the internet




Kuan Hon
Data Protection 2011                                                     Data Protection in the Clouds




                Data centers

                       Massive data centres are being built, often containing sealed
                       shipping containers, themselves containing pre-configured
                       servers: “The trucks back ’em in, rack ’em and stack ’em”
                       (Ray Ozzie: Microsoft’s former Chief Software Architect)
                       Huge requirements for power / cooling / connectivity
                       Google has patented a “water-based data center” - a system that
                       includes “a floating platform-mounted computer data center
                       comprising a plurality of computing units, a sea-based electrical
                       generator in electrical connection with the plurality of computing
                       units, and one or more sea-water cooling units for providing
                       cooling to the plurality of computing units.”




                Google’s “water-based data
                center”
                So just when we thought we had
                identified all the technical,
                commercial and legal risks
                associated with outsourcing and
                offshore data processing …
                …we have to tackle maritime law
                …and the risk of meeting real
                pirates on the high seas!




Kuan Hon
Data Protection 2011                                                                           Data Protection in the Clouds




                Types of service
                 •    Software as a Service (SaaS) (eg. Oracle CRM on demand; Gmail,
                      Hotmail, Yahoo! Mail; Google Apps, Microsoft Office 365; Facebook,
                      Flickr)
                 •    Infrastructure as a Service (IaaS) = delivery of servers, software,
                      storage, etc as a fully outsourced service, typically billed on a utility
                      computing basis (eg. Amazon Web Services, Rackspace)
                 •    Platform as a Service (PaaS) = web-based environment for developing
                      and deploying applications (eg. Google App Engine, Microsoft Windows
                      Azure or Force.com which provides a set of tools and applications for
                      customising the Salesforce.com apps)
                 •    Storage as a Service (also SaaS!) = convenient way of storing /
                      backing-up data online (eg. box.net)
                 •    NB ecosystem of players – hardware, software, support, consultancy…




                Possible architectures




                     From
                     http://csrc.nist.gov/groups/SNS/cloud-computing/cloud-computing-v26.ppt




Kuan Hon
Data Protection 2011                                  Data Protection in the Clouds




                Deployment models:
                private, community, public and hybrid clouds…




                       Data protection law
                             issues




Kuan Hon
Data Protection 2011                                                           Data Protection in the Clouds




                Key features for data protection law purposes
                  Storage and processing
                       May be split up and geographically-distributed (might in practice to be
                       local(ish), for latency reasons - but might not…)
                  Sharding – data may be fragmented
                       a fragment may contain personal data (or it may not?)
                  Data replication
                  Data deletion
                  Design and access – encrypted? Can provider access user’s
                  account? Internal controls on such access?
                  Multiple parties possible – transparency?
                  Other – shared “multi-tenant” infrastructure, eg. running same
                  application instance, sharing same database; reliance on provider




                Foundational issues

                  What information in the clouds is regulated
                  under data protection laws? (“personal data”)
                  Who is responsible for personal data?
                  Where is personal data processed?
                  Whose laws apply in a dispute?
                  Issues may differ for cloud users, cloud
                  providers and data subjects




Kuan Hon
Data Protection 2011                                                    Data Protection in the Clouds




                What is regulated - “personal data” in the clouds

                  Not “personal data” = no data protection law restrictions
                  Processing “anonymised” data in the cloud:
                       By cloud user, after “anonymisation” eg. by aggregation
                       By cloud provider – may be integral to business model
                  Encrypted data – status?
                       Key-coded data analogy. Pro Life Alliance; Craigdale.
                  The “personal data” definition is critical – but
                  insufficiently clear
                  Anonymisation/encryption procedures – status?
                       Source Informatics.




                Who is responsible for personal data in the cloud?

                  Cloud user
                       If data controller, remains data controller
                  Cloud provider
                       Metadata regarding cloud service usage, where cloud
                       user is individual etc - provider is controller
                       Personal data processed in the cloud by cloud user –
                       what’s the provider’s status?
                        o It depends on the facts! Advertising, sale…




Kuan Hon
Data Protection 2011                                                             Data Protection in the Clouds




                Who is actually responsible for data in clouds?
                “...you acknowledge that you bear sole responsibility for
                adequate security, protection and backup of Your Content and
                Applications. We strongly encourage you, where available and
                appropriate, to (a) use encryption technology to protect Your
                Content from unauthorized access, (b) routinely archive Your
                Content, and (c) keep your Applications or any software that you
                use or run with our Services current with the latest security
                patches or updates. We will have no liability to you for any
                unauthorized access or use, corruption, deletion, destruction or
                loss of any of Your Content or Applications.”

                Q. Will that be good enough?
                A. It depends what the cloud user is going to use the service for
                (and how)




                Where is data stored - can you control where your
                data are stored in clouds?
                •   It depends!
                •   Some service providers can’t, for technical reasons, or won’t, for
                    commercial reasons, let you choose
                •   Other service providers are designing their clouds so as to offer customers
                    a choice between ‘regions’ (eg. Amazon Web Services)
                •   Other service providers, if asked, say they currently store customer data
                    by default in the customer’s local region (eg. Decho Mozy Inc)
                •   Geolocation may become a critical differentiator for customers concerned
                    about where their data are stored (eg. because of disclosure risks
                    associated with litigation or regulators) or subject to restrictions on data
                    transfers (such as national rules based on Articles 25 + 26 of the DP Dir.)
                •   An amorphous cloud may not be appropriate for regulated data, eg. if you
                    don’t know where the data will be processed and by whom




Kuan Hon
Data Protection 2011                                                              Data Protection in the Clouds




                But… should location of data really matter?

                   With storage virtualisation & sharding – will seizing one
                   server necessarily afford access to intelligible data…?
                   In practice, what may be more important is:
                       whether the system’s design allows the cloud provider to access
                       user data (eg. by logging into their account), cf. full encryption
                       (where provider has no access to decryption key), and
                       who can effectively assert jurisdiction over the provider (eg. the
                       location of the provider, rather than of its servers)




                 What about disclosure of cloud users’ data to third
                 parties?
                 Would a cloud user feel more comfortable signing up to this…
                 “The Receiving Party [Salesforce.com] may disclose Confidential
                 Information of the Disclosing Party [the customer] if it is compelled by
                 law to do so, provided the Receiving Party gives the Disclosing Party
                 prior notice of such compelled disclosure (to the extent legally
                 permitted) and reasonable assistance, at the Disclosing Party's cost, if
                 the Disclosing Party wishes to contest the disclosure.”
                 … or this?
                 “You authorize ADrive to disclose any information about You to law
                 enforcement or other government officials as ADrive, in its sole
                 discretion, believes necessary, prudent or appropriate, in connection
                 with an investigation of fraud, intellectual property infringement, or other
                 activity that is illegal or may expose ADrive to legal liability.”




Kuan Hon
Data Protection 2011                                                                                Data Protection in the Clouds




                 Whose laws apply if you have a cloud dispute?
                 Choice of law specified by cloud provider…                                              Number *
                 US State: California (most common), Massachusetts (Akamai),                                15
                 Washington (Amazon), Utah (Decho), Texas (The Planet)
                 English law, probably because service provider based there                                 4
                 English law, for customers in Europe / EMEA                                                4
                 Other EU jurisdictions (for European customers): eg. Ireland (Apple),                      2
                 Luxembourg (some Microsoft services)
                 Scottish law (Flexiant)                                                                    1
                 The customer’s local law                                                                   2
                 No choice of law expressed or implied, or ambiguous choice                                 3
                 (eg. “UK Law” for g.ho.st)
                 * Number in each category is out of 31 contracts analysed by QMUL Cloud Legal Project
                 http://www.cloudlegal.ccls.qmul.ac.uk/




                In practice
                    Location, location, location
                         In some situations, choose only provider that allows zoning?
                    Contract
                        procurement process?
                        the provider “stack”
                    Contract terms – standard (multiple sources); negotiate? Including:
                        Exclusions/disclaimers
                        Disclosure/monitoring
                        Data location
                    Encryption, encryption, encryption
                        Simple scenarios only – storage
                          o NB has provider access to key? (eg. for indexing/searching)
                        If cloud applications run on data – data must be decrypted before they
                        can be worked on, currently




Kuan Hon
Data Protection 2011                                                              Data Protection in the Clouds




                Forthcoming papers

                  Next few weeks –
                       What data is regulated as “personal data” in cloud computing?
                       Who is responsible for “personal data” in the cloud?
                  Published -
                       Information ownership in the cloud
                       http://www.cloudlegal.ccls.qmul.ac.uk/Research/researchpapers/37187.html
                       Cloud terms of service analysis
                       http://www.cloudlegal.ccls.qmul.ac.uk/Research/researchpapers/37188.html
                  Future –
                       Law enforcement access (soon)
                       International transfers of data
                       Governance




                Thanks for listening!

                Any questions…

                Kuan Hon
                Cloud Legal Project, CCLS,
                Queen Mary, University of London

                w.k.hon@qmul.ac.uk

                www.cloudlegal.ccls.qmul.ac.uk
                (or http://bit.ly/cloudlegal)




Kuan Hon

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Data protection in cloud computing - Data Protection Conference 2011

  • 1. Data Protection 2011 Data Protection in the Clouds Data Protection 2011 24 February 2011 Data Protection in the Clouds Kuan Hon Cloud Legal Project Centre for Commercial Law Studies, Queen Mary, University of London www.cloudlegal.ccls.qmul.ac.uk / [email protected] Introduction Cloud Legal Project Cloud terms of service analysis paper Questions we will tackle today – What information in the cloud is regulated under data protection laws? Who is responsible for personal data? Where is personal data processed? Whose laws apply in a dispute? Kuan Hon
  • 2. Data Protection 2011 Data Protection in the Clouds Maturity - Gartner hype cycle Oct 2010 (as at Aug 2010) But first… what is cloud computing? • It usually involves the provision of scalable IT resources (data storage, application hosting, etc.) on demand, delivered via the internet • Cloud Legal Project definition: • Provides flexible, location-independent access to computing resources that are quickly and seamlessly allocated or released in response to demand. • Services (especially infrastructure) are abstracted and typically virtualised, generally being allocated from a pool shared as a fungible resource with other customers. • Charging, where present, is commonly on an access basis, often in proportion to the resources used. Kuan Hon
  • 3. Data Protection 2011 Data Protection in the Clouds Government cloud – some recent papers ENISA - Security and Resilience in Governmental Clouds http://www.enisa.europa.eu/act/rm/emerging- and-future-risk/deliverables/security-and-resilience-in- governmental-clouds - p.41ff on data protection UK - G-Cloud Report: Data Centre Strategy G-Cloud and The Applications Store for Government - Commercial Strategy Team http://www.computerweekly.com/Articles/2011/02/07/245 289/G-Cloud-Report-Data-Centre-Strategy-G-Cloud- and-The-Applications-Store-for-Government- Commercial.htm - ANNEX C: Data Protection, including consideration of the US Patriot Act Kuan Hon
  • 4. Data Protection 2011 Data Protection in the Clouds Key cloud computing concepts Virtualisation • Virtualisation = many things but in this context mainly involves multiple “virtual machines” running on shared hardware via the internet Kuan Hon
  • 5. Data Protection 2011 Data Protection in the Clouds Data centers Massive data centres are being built, often containing sealed shipping containers, themselves containing pre-configured servers: “The trucks back ’em in, rack ’em and stack ’em” (Ray Ozzie: Microsoft’s former Chief Software Architect) Huge requirements for power / cooling / connectivity Google has patented a “water-based data center” - a system that includes “a floating platform-mounted computer data center comprising a plurality of computing units, a sea-based electrical generator in electrical connection with the plurality of computing units, and one or more sea-water cooling units for providing cooling to the plurality of computing units.” Google’s “water-based data center” So just when we thought we had identified all the technical, commercial and legal risks associated with outsourcing and offshore data processing … …we have to tackle maritime law …and the risk of meeting real pirates on the high seas! Kuan Hon
  • 6. Data Protection 2011 Data Protection in the Clouds Types of service • Software as a Service (SaaS) (eg. Oracle CRM on demand; Gmail, Hotmail, Yahoo! Mail; Google Apps, Microsoft Office 365; Facebook, Flickr) • Infrastructure as a Service (IaaS) = delivery of servers, software, storage, etc as a fully outsourced service, typically billed on a utility computing basis (eg. Amazon Web Services, Rackspace) • Platform as a Service (PaaS) = web-based environment for developing and deploying applications (eg. Google App Engine, Microsoft Windows Azure or Force.com which provides a set of tools and applications for customising the Salesforce.com apps) • Storage as a Service (also SaaS!) = convenient way of storing / backing-up data online (eg. box.net) • NB ecosystem of players – hardware, software, support, consultancy… Possible architectures From http://csrc.nist.gov/groups/SNS/cloud-computing/cloud-computing-v26.ppt Kuan Hon
  • 7. Data Protection 2011 Data Protection in the Clouds Deployment models: private, community, public and hybrid clouds… Data protection law issues Kuan Hon
  • 8. Data Protection 2011 Data Protection in the Clouds Key features for data protection law purposes Storage and processing May be split up and geographically-distributed (might in practice to be local(ish), for latency reasons - but might not…) Sharding – data may be fragmented a fragment may contain personal data (or it may not?) Data replication Data deletion Design and access – encrypted? Can provider access user’s account? Internal controls on such access? Multiple parties possible – transparency? Other – shared “multi-tenant” infrastructure, eg. running same application instance, sharing same database; reliance on provider Foundational issues What information in the clouds is regulated under data protection laws? (“personal data”) Who is responsible for personal data? Where is personal data processed? Whose laws apply in a dispute? Issues may differ for cloud users, cloud providers and data subjects Kuan Hon
  • 9. Data Protection 2011 Data Protection in the Clouds What is regulated - “personal data” in the clouds Not “personal data” = no data protection law restrictions Processing “anonymised” data in the cloud: By cloud user, after “anonymisation” eg. by aggregation By cloud provider – may be integral to business model Encrypted data – status? Key-coded data analogy. Pro Life Alliance; Craigdale. The “personal data” definition is critical – but insufficiently clear Anonymisation/encryption procedures – status? Source Informatics. Who is responsible for personal data in the cloud? Cloud user If data controller, remains data controller Cloud provider Metadata regarding cloud service usage, where cloud user is individual etc - provider is controller Personal data processed in the cloud by cloud user – what’s the provider’s status? o It depends on the facts! Advertising, sale… Kuan Hon
  • 10. Data Protection 2011 Data Protection in the Clouds Who is actually responsible for data in clouds? “...you acknowledge that you bear sole responsibility for adequate security, protection and backup of Your Content and Applications. We strongly encourage you, where available and appropriate, to (a) use encryption technology to protect Your Content from unauthorized access, (b) routinely archive Your Content, and (c) keep your Applications or any software that you use or run with our Services current with the latest security patches or updates. We will have no liability to you for any unauthorized access or use, corruption, deletion, destruction or loss of any of Your Content or Applications.” Q. Will that be good enough? A. It depends what the cloud user is going to use the service for (and how) Where is data stored - can you control where your data are stored in clouds? • It depends! • Some service providers can’t, for technical reasons, or won’t, for commercial reasons, let you choose • Other service providers are designing their clouds so as to offer customers a choice between ‘regions’ (eg. Amazon Web Services) • Other service providers, if asked, say they currently store customer data by default in the customer’s local region (eg. Decho Mozy Inc) • Geolocation may become a critical differentiator for customers concerned about where their data are stored (eg. because of disclosure risks associated with litigation or regulators) or subject to restrictions on data transfers (such as national rules based on Articles 25 + 26 of the DP Dir.) • An amorphous cloud may not be appropriate for regulated data, eg. if you don’t know where the data will be processed and by whom Kuan Hon
  • 11. Data Protection 2011 Data Protection in the Clouds But… should location of data really matter? With storage virtualisation & sharding – will seizing one server necessarily afford access to intelligible data…? In practice, what may be more important is: whether the system’s design allows the cloud provider to access user data (eg. by logging into their account), cf. full encryption (where provider has no access to decryption key), and who can effectively assert jurisdiction over the provider (eg. the location of the provider, rather than of its servers) What about disclosure of cloud users’ data to third parties? Would a cloud user feel more comfortable signing up to this… “The Receiving Party [Salesforce.com] may disclose Confidential Information of the Disclosing Party [the customer] if it is compelled by law to do so, provided the Receiving Party gives the Disclosing Party prior notice of such compelled disclosure (to the extent legally permitted) and reasonable assistance, at the Disclosing Party's cost, if the Disclosing Party wishes to contest the disclosure.” … or this? “You authorize ADrive to disclose any information about You to law enforcement or other government officials as ADrive, in its sole discretion, believes necessary, prudent or appropriate, in connection with an investigation of fraud, intellectual property infringement, or other activity that is illegal or may expose ADrive to legal liability.” Kuan Hon
  • 12. Data Protection 2011 Data Protection in the Clouds Whose laws apply if you have a cloud dispute? Choice of law specified by cloud provider… Number * US State: California (most common), Massachusetts (Akamai), 15 Washington (Amazon), Utah (Decho), Texas (The Planet) English law, probably because service provider based there 4 English law, for customers in Europe / EMEA 4 Other EU jurisdictions (for European customers): eg. Ireland (Apple), 2 Luxembourg (some Microsoft services) Scottish law (Flexiant) 1 The customer’s local law 2 No choice of law expressed or implied, or ambiguous choice 3 (eg. “UK Law” for g.ho.st) * Number in each category is out of 31 contracts analysed by QMUL Cloud Legal Project http://www.cloudlegal.ccls.qmul.ac.uk/ In practice Location, location, location In some situations, choose only provider that allows zoning? Contract procurement process? the provider “stack” Contract terms – standard (multiple sources); negotiate? Including: Exclusions/disclaimers Disclosure/monitoring Data location Encryption, encryption, encryption Simple scenarios only – storage o NB has provider access to key? (eg. for indexing/searching) If cloud applications run on data – data must be decrypted before they can be worked on, currently Kuan Hon
  • 13. Data Protection 2011 Data Protection in the Clouds Forthcoming papers Next few weeks – What data is regulated as “personal data” in cloud computing? Who is responsible for “personal data” in the cloud? Published - Information ownership in the cloud http://www.cloudlegal.ccls.qmul.ac.uk/Research/researchpapers/37187.html Cloud terms of service analysis http://www.cloudlegal.ccls.qmul.ac.uk/Research/researchpapers/37188.html Future – Law enforcement access (soon) International transfers of data Governance Thanks for listening! Any questions… Kuan Hon Cloud Legal Project, CCLS, Queen Mary, University of London [email protected] www.cloudlegal.ccls.qmul.ac.uk (or http://bit.ly/cloudlegal) Kuan Hon

Editor's Notes

  • #20: ‘ Amazon Web Services Customer Agreement’ Clause 7.2, available online at http:// aws.amazon.com/agreement/