Cloud Computing and The Law Wally Kowal, President and Founder Canadian Cloud Computing Inc.

1. Cloud Computing and The Law Wally Kowal, President and Founder Canadian Cloud Computing Inc.

2. Today’s Agenda • Introduction • Defining cloud computing • The benefits of cloud computing • The state of the cloud in Canada • The future of the cloud

3. Who is Canadian Cloud? • We are a facilities-based cloud computing services provider • We have built our own cloud platform located in Canada and are delivering cloud services today to commercial clients • We are a member of the Communitech Accelerator Program • Founded in 2009 • Moved in to the Communitech Hub in Kitchener in September 2010 • Launched commercial service in January 2011 • Member of the Canadian Digital Media Network • Our management team have 9 decades of experience in high-growth technology companies but this is our first start-up from scratch • Our management team has its roots in telecom, so we understand the meaning of the word “reliable”

4. Defining cloud computing: NIST "Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models.” Essential Characteristics: • On-demand self-service • Broad network access • Resource pooling • Rapid elasticity • Measured Service  Service Models: • Cloud Software as a Service (SaaS) • Cloud Platform as a Service (PaaS) • Cloud Infrastructure as a Service (IaaS) Deployment Models: • Private cloud • Community cloud • Public cloud • Hybrid cloud

5. The Roots of Cloud Computing Cloud Computing 2000’s PC and the Internet 1990’s Client/ Server 1980’s Mainframe Timeshare 1970’s

6. Defining Cloud Computing: NIST "Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models.” Essential Characteristics: • On-demand self-service • Broad network access • Resource pooling • Rapid elasticity • Measured Service  Service Models: • Cloud Software as a Service (SaaS) • Cloud Platform as a Service (PaaS) • Cloud Infrastructure as a Service (IaaS) Deployment Models: • Private cloud • Community cloud • Public cloud • Hybrid cloud

7. The Trusted Canadian Cloud TM

8. Defining Cloud Computing: NIST "Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models.” Essential Characteristics: • On-demand self-service • Broad network access • Resource pooling • Rapid elasticity • Measured Service  Service Models: • Cloud Software as a Service (SaaS) • Cloud Platform as a Service (PaaS) • Cloud Infrastructure as a Service (IaaS) Deployment Models: • Private cloud • Community cloud • Public cloud • Hybrid cloud

9. Cloud has Multiple Delivery Models • Software as a Service (SaaS) • Use provider’s applications over a network • e.g. Provide applications • Built upon IaaS or PaaS platforms • Platform as a Service (PaaS) • Deploy customer-created applications to a cloud • e.g. Provide web servers • Built upon IaaS platform • Infrastructure as a Service (IaaS) • Rent processing, storage, network capacity, and other fundamental computing resources • e.g. Provide bare-bones servers

10. Defining Cloud Computing: NIST "Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models.” Essential Characteristics: • On-demand self-service • Broad network access • Resource pooling • Rapid elasticity • Measured Service  Service Models: • Cloud Software as a Service (SaaS) • Cloud Platform as a Service (PaaS) • Cloud Infrastructure as a Service (IaaS) Deployment Models: • Private cloud • Community cloud • Public cloud • Hybrid cloud

11. The Power of the Cloud Hybrid Cloud APP Loads APP Loads APP Loads Management Management VMware vSphere VMware vSphere Public Cloud Private Clouds

12. Benefits of Cloud Computing • Reduce capital costs • Cloud computing removes the need to purchase hardware and software and replaces capital expenses with operating expenses • Increase quality of service • Clouds are usually located in a data centre where power, cooling and Internet connectivity are designed and maintained to meet strict reliability levels • Reduce implementation time • The cloud delivers a server up and running within minutes or hours instead of weeks or months • Increase flexibility • Cloud computing lets you change CPU, memory or storage as required. • Save money • Leave server operations and maintenance to the cloud provider,which reduces manpower costs

13. Canadian Competitive Overview • Canadian IT hosting market is highly concentrated • Top 15 companies have 80% of the market • Global public cloud computing providers (Google, Amazon, IBM) • Managed Service Providers • Data centre operators (Q9, PEER1, Bell) • The remaining 20% is split between 2,000 companies • Few direct Canadian competitors in cloud

14. Who Should be Concerned • Companies that have legal requirements • Medical • Banking • Companies that have regulatory requirements • Insurance • Financial • Companies that just want to sleep better • “at risk” groups • Cautious decision-makers

15. Most cloud legal issues are not new • Service level agreement • Qualify and quantify • Remedies are both contractual and legal • User access • Who has access to the data? • Regulatory compliance • Data recovery • What happens on exit or breach of service? • Investigative support • Are foreign service providers subject to local warrants/demands? • What resources does the operator have?

16. Some legal issues are unique to cloud • Data location • Where is the data located? • Who is aware of the data’s location? • Who controls the data’s location? • What jurisdiction applies? • Data segregation • Comingling of data • Security • Auditability • Software licensing

17. Thank You