The Forthcoming General Data Protection Regulation in the EU: Higher Compliance Costs Might Slow Down Small and Medium-sized Enterprises' Adoption of Infrastructure as a Service

Author:Liliia Oprysk

Cloud-based services (especially IaaS) are widely used by businesses, including small and medium-sized enterprises. The recently adopted General Data Protection Regulation is going to influence the EU cloud computing market significantly, and SMEs using IaaS to process personal data of their clients face a need to adapt to those changes if they are to remain compliant with the data protection... (see full summary)

Liliia Oprysk
Doctoral student
University of Tartu
The Forthcoming General Data
Protection Regulation in the EU
Higher Compliance Costs Might Slow Down Small and Medium-
sized Enterprises’ Adoption of Infrastructure as a Service*1
1. Introduction
Infrastructure as a Service (IaaS) accounts for a signi cant proportion of cloud computing services over-
all, and, according to Gartner, in 2014 ‘the absolute growth of public cloud IaaS workloads surpassed the
growth of on-premises workloads for the rst time’*2. A recent report from RightScale*3 showed that 95% of
the organisations surveyed were already using or experimenting with IaaS*4, with 89% of respondents using
public cloud services*5. Moreover, 32% of small and medium-sized businesses (enterprises with fewer than
1,000 employees for the purpose of the report) were already using cloud infrastructure heavily at that time,
as compared to 25% of enterprises in general*6.
The widespread adoption of cloud-based technologies among these companies does not come as a sur-
prise: small and medium-sized enterprises are more likely to seek a less expensive option for maintaining
their IT infrastructure and to have a smaller budget at their disposal. Neither is their interest in IaaS, which
is usually the rst step in adoption of cloud-based solutions, as it requires less preparation and integration
than do Platform as a Service (PaaS) and Software as a Service (SaaS) options. Indeed, IaaS provides sev-
eral bene ts when compared to traditional computing infrastructure provision*7. Nevertheless, it has to be
noted that the resources a client acquires under IaaS are pretty much the same ones it can obtain from a tra-
ditional IT outsourcing (ITO) provider. Aspects that di er are the process of obtaining and expanding the
resources; the nature of business relations between the parties; and, nally, the contractual arrangements.
Қ The author would like to thank Dr Idir Laurent Khiar, Dr Elia Ambrosio, Prof. Karin Sein, Prof. Aleksei Kelli, and Prof. Katrin
Nyman-Metcalf for their feedback that contributed to improving the text of the article.
қ Gartner says worldwide cloud infrastructure-as-a-service spending to grow Ҝқ.ҡ% in қҙҚҞ. Қҡ.Ҟ.қҙҚҞ. Available at http://ҜҙҞҞққҞ (most recently accessed on ҝ.Ҡ.қҙҚҟ).
Ҝ RightScale is one of the leading providers of cloud management solutions, conducting an annual survey of technical profes-
sionals to assess the state of the cloud computing market.
ҝ RightScale State of the Cloud Report қҙҚҟ. Available at (most recently
accessed on ҝ.Ҡ.қҙҚҟ), p. қ.
Ҟ Ibid., p. Ң.
ҟ Ibid., p. Ҡ.
Ҡ S. Leimeister, M. Böhm, C. Riedl, H. Krcmar. The business perspective of cloud computing: Actors, roles, and value networks.
ECIS қҙҚҙ Proceedings. Available atқҙҚҙ-preprint.pdf (most recently
accessed on ҝ.Ҡ.қҙҚҟ), p. Ҡ.

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