Cloud Computing Services: Benefits, Risks and Intellectual Property Issues

Major software players of the global market, such as Google, Amazon and Microsoft are developing cloud computing solutions, providing cloud services on demand: Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a service (SaaS). In software industry and also in ICT services market, cloud computing is playing an increasingly important role. Moreover, the expansion of cloud services indirectly contributed to the development and improvement of other types of services on the market – financial and accounting services, human resources services, educational services etc. – in terms of quality and affordability. Given the fact that cloud computing applications proved to be more affordable for small and medium enterprises (SME), an increasing number of companies in almost all the fields of activity have chosen cloud based solutions, such as Enterprise Resource Management (ERP) software and Customer Relationship Management (CRM) software. However, cloud computing services involve also some risks concerning privacy, security of data and lack of interoperability between cloud platforms. Patent strategy of certain proprietary software companies leaded to a veritable “patent war” and “patent arm race” endangering the process of standardization in software industry, especially in cloud computing. Intellectual property (IP) legislation and court ruling in patent litigations is likely to have a significant impact on the development of cloud computing industry and cloud services.