The Cloud Computing Market in India–High Time We Bring Legal Regulations in Place?

The Cloud Computing market in India is growing at a phenomenal rate and is expected to touch a billion USD by 2015. While this is a great news for startups and SMBs, most of the CIOs are still stuck over the lack of legal framework regarding Cloud Computing in India.

Legal Frameworks [Cloud Services]

There are no legal frameworks that hold the Cloud vendor responsible

- If they lose your data

- If data is ‘accidentally’ leaked.

That is, if you host your data in Cloud, the cloud host cannot be held liable for the above mentioned ‘mistakes’. Moreover, government security agencies can access a company’s information, even without a court warrant, which is basically a threat on data privacy.

In essence, there is no Data Protection/Privacy Law in India and while these are not issues that SMBs really worry about, CXOs of mid-to-large organizations will always be wary of cloud services. Unless we have certain legal frameworks, large companies will be hesitant to adopt Cloud services and this will limit the market opportunity for startups operating in this space.

What’s your opinion? If you are a startup operating in Cloud space, do share your experience selling to Indian CXOs.