Laws and regulations for cloud providers, such as the integration of telecom with public cloud environments, are especially problematic. This is stated by the business news site Forbes in a recent article.

Recently, according to Forbes, it has become increasingly common for telecom operators to move part of their processes and services to the public cloud. This includes efficiency and cost savings, but also for the provision of new innovative services. This is certainly the case with the rise of 5G. This includes providing value-added services, such as AI and machine learning.

Influence of legislation and regulations

The combination of telecom services with those of public cloud environments is therefore promising, but can also lead to more legislation and regulations, concludes Forbes. The question is therefore whether these laws and regulations can have a major impact on the further development of this market segment.

According to Forbes, this may well be the case. Especially because large cloud suppliers are involved. Legislation and regulations in the European Union in particular can sometimes become difficult in this area. This is mainly due to the recent EU Digital Service Act, which aims to ensure a level playing field for digital services both within the EU market and worldwide.

Dissatisfied with current practice

To a certain extent, the new laws and regulations are a simple copy-paste of other regulations on digital goods. According to Forbes, this could lead to problems for large – often American – cloud providers. Consider, among other things, that these providers can be held responsible for everything that takes place via their environments. Furthermore, according to Forbes, EU laws and regulations would lead to ‘unfair’ measures for companies and less choice for consumers.

In addition, the (European) regulations now proposed may also be detrimental to the quality of the services. Certainly if the legislation and regulations also extend to, for example, generators and transmission towers. EU legislation and regulations can then be counterproductive.

Laws and regulations hinder cloud providers

Forbes decides to pass the article on, based on research by third parties, that it is difficult to make good and globally applicable laws and regulations. Too much is currently focused on good prices for consumers or competition between providers. Supervisors are also said to be too tied to legal matters and focus too much on privacy. This makes good regulations difficult and (cloud) companies are therefore limited in their activities. Moreover, legislation and regulations are often outdated. By the time it is implemented, the technology has already moved on.

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Last Update: January 2, 2022