Policy Challenges of Cross-Border Computing

Author(s)

Renee Berry, Matthew Reisman

Providers of cloud computing services are increasingly serving customers outside their home markets and using service delivery models that require the transmission of data across borders. In this article, we present an overview of the global market for cloud services and explore the role of cloud computing in U.S. exports. We then examine the main policy challenges associated with cross-border cloud computing—data privacy, security, and ensuring the free flow of information—and the ways that countries are addressing them through domestic policymaking, international agreements, and other cooperative arrangements. Finally, we identify the particular challenges faced by developing countries as they seek to participate in the market for cloud computing services. Our discussion includes case studies of two of the most important emerging markets for such services—China and India.