JURIDICA INTERNATIONAL 24/2016
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
Infrastructure as a Service (IaaS) accounts for a signiﬁ 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 ﬁ 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 ﬁ 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 beneﬁ 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 diﬀ er are the process of obtaining and expanding the
resources; the nature of business relations between the parties; and, ﬁ 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://
www.gartner.com/newsroom/id/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 https://www.rightscale.com/lp/state-of-the-cloud (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 at http://home.in.tum.de/~riedlc/res/LeimeisterEtAlқҙҚҙ-preprint.pdf (most recently
accessed on ҝ.Ҡ.қҙҚҟ), p. Ҡ.