designating effective regulation in the cloud

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Cloud Computing: Legal, Organisational and Technological Issues, 23 February 2011 Designating Effective Regulation in the Cloud: The Move from Actors to Nodes and Forms of Communication

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My Cloud Computing Talk at UWE on 23 February 2011.

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Page 1: Designating effective regulation in the cloud

Cloud Computing: Legal, Organisational and Technological Issues, 23 February 2011

Designating Effective Regulation in the Cloud: The Move from

Actors to Nodes and Forms of Communication

Page 2: Designating effective regulation in the cloud

Part I: Regulatory Theory

Page 3: Designating effective regulation in the cloud

Standard Setting

Regulating Actors

Traditional Cybernetics Theory

Monitoring Behavior Modification

Page 4: Designating effective regulation in the cloud

Regulating Actors: Strategies

After Baldwin & Cave

Direct•Command & Control•Self Regulation•Direct Action

Market•Incentives•Market Harnessing•Disclosure

Indirect•Torts and Liabilities•Social Insurance

Page 5: Designating effective regulation in the cloud

Regulating Actors: Neo Institutionalism

Source: Lessig

Page 6: Designating effective regulation in the cloud

Element of a Control System

Hierarchical Control

Community-Based Control

Competition-Based Control

Design-Based Control

Standard Setting

Law or Other Formalised Rules

Social Norms Price/Quality Ratio (and equivalents with non-market decisions)

Inbuilt design features and social and administrative systems

Information Gathering

Monitoring (by agencies or third parties)

Social Interaction

Monitoring by dispersed buyers, clients, etc

Interaction of design features with environment

Behaviour Modification

Enforcement Social Sanctions (eg ostracism, disapproval)

Aggregate of decisions by buyers, clients, etc on purchase, take-up, location etc

As for information gathering (self-executing)

Source: Murray & Scott

Regulating Actions

Page 7: Designating effective regulation in the cloud

Regulating Actions

A Problem for Cybernetics Theory

Page 8: Designating effective regulation in the cloud

Regulating Networks

Decentred Regulation and Nodal Governance

Page 9: Designating effective regulation in the cloud

Regulating Networks: Network Communitarianism

Source: Murray

Page 10: Designating effective regulation in the cloud

Part II: Cloud Computing and

Gatekeepers

Page 11: Designating effective regulation in the cloud

The Move to the Cloud

Traditional Data Access Cloud Data Accessvs

Page 12: Designating effective regulation in the cloud

The Move to the Cloud

A New Regulatory Component

The Gatekeeper

Not a New Concept

Page 13: Designating effective regulation in the cloud

Gatekeepers and the Cloud

Gatekeepers and Communication

Gatekeeper Failure

Gatekeepers and Democracy

Gatekeeper Censorship

Page 14: Designating effective regulation in the cloud

Gatekeepers and Communications Regulation

Regulatory Gravity

Page 15: Designating effective regulation in the cloud

Regulatory Gravity

Source: Einstein

Page 16: Designating effective regulation in the cloud

Regulation in the Cloud

We already know network regulation can be as effective as actor regulation.

Moreover we know that digital network regulation is particularly effective.

Page 17: Designating effective regulation in the cloud

Regulation in the Cloud

• The key player is the gatekeeper.• Lessig spoke of “West Coast Codemakers”

• They were gatekeepers

• Whomsoever is the gatekeeper in the cloud is in a powerful position.• Who?

• Telcos • OS platform providers• Hosts

Page 18: Designating effective regulation in the cloud

Regulation in the Cloud

• What costs will gatekeepers extract?• Democratic costs• Social Costs• Identity Costs

• What duties do gatekeepers have?• Quasi-public role?

• Regulator accountability and oversight? • HR obligations?• CSR duties?

Page 19: Designating effective regulation in the cloud

Planning Regulation in the Cloud

Government

Access Operators

Personal Users

Business Users

Platform Operators

Personal Users

Business Users

Storage Providers

Personal Users

Business Users

Page 20: Designating effective regulation in the cloud

Thank You

Andrew D. MurrayReader in LawDepartment of LawLondon School of EconomicsHoughton StreetLondon WC2A 2AETel: 020 7849 4645Email: [email protected]